Madigan v. Dollar Building & Loan Co.

4 N.E.2d 68, 52 Ohio App. 553, 20 Ohio Law. Abs. 132, 6 Ohio Op. 478, 1935 Ohio App. LEXIS 339
CourtOhio Court of Appeals
DecidedOctober 10, 1935
DocketNo 2542
StatusPublished
Cited by8 cases

This text of 4 N.E.2d 68 (Madigan v. Dollar Building & Loan Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madigan v. Dollar Building & Loan Co., 4 N.E.2d 68, 52 Ohio App. 553, 20 Ohio Law. Abs. 132, 6 Ohio Op. 478, 1935 Ohio App. LEXIS 339 (Ohio Ct. App. 1935).

Opinion

OPINION

By BARNES, PJ.

The defendants prosecuted error in this court, the sole question for detenn'nation being whether or not the Court of Common *134 Pleas under the state of the record had jurisdiction to enter judgment for foreclosure under the allegations of the second cause of action of the petition and the supplemental petition. It is contended by the defendant Nigl, assignee, that by the filing of the deed of assignment in the Probate Court, and the qualification by giving bond to the approval of the court, thereby the Probate Court acquired jurisdiction of the subject matter of the trust, and that the jurisdiction thus acquired was exclusive of all of the courts. Under the recognized rule of comity, in effect that where a court of competent jurisdiction has acquired possession of the subject matter, and the right of a party to prosecute his action has once attached, the right of the court to retain the case can not be defeated by the institution of proceedings in another court although of concurrent and co-ordinate jurisdiction. This rule is as ancient as our jurisprudence and has never been questioned in any jurisdiction. Boynton, J., of the Supreme Court, in the case of Dwyer et v Garlough et, 31 Oh St, 158, at page 160, in referring to this question, uses the following language.

“The existence of the rule contended for is clearly established. As between courts of concurrent and co-extensive jurisdiction, the one whose power is first invoked by the institution of proper proceedings, and the service of the required process, acquires the right to adjudicate upon the whole issue, and to settle the rights of the parties to the exclusion of all other tribunals.”

We also refer to the case of Havens et v Horton, Jr., 53 Oh St, 342, first and sec- and syllabi:

“1. Where a deed of assignment has been filed in the Probate Court in accordance with §6335, Revised Statutes, and the assignee has qualified, that court is clothed with jurisdiction to fully execute the trust. And where such deed conveys land incumbered by mortgage, the court has power, as an incident of jurisdiction, to order the lands sold and the mortgage satisfied.
“2. Jurisdiction thus acquired is not ousted by the subsequent commencement of an action by the mortgagee in the Court of Common Pleas of the county, to foreclose the mortgage.”

The above principle of law, like all others, has its exceptions, and the principle in this state has been repeatedly announced that the jurisdiction of the Probate Court in assignment proceedings is not exclusive in cases where such court by reason of its lim • ited power and jurisdiction can not grant the full relief to which a party is entitled. We find this principle of law set forth in the case of Robinson et v Williams et, 62 Oh St, 401, Syl. 1.

“1. The Court of Common Pleas has jurisdiction in the foreclosure of a mortgage, notwithstanding a previous assignment of the mortgagor for the benefit of creditors, in all cases where the remedy in the Probate Court is inadequate. And this is so where assignment does not include all the property covered by the mortgage; or. as in this case, the mortgagor, after making the mortgage, has plotted the land into lots and streets and made of it an addition to the city, without the assent of the mortgagee, and disposed of some of the lots.”

The reason for this rule is very apparent and the mere statement of facts in the case cited will at once disclose the necessity for the rule. The plaintiff, the mortgagor, seeking foreclosure in the Common Pleas Court, after the assignment in the Probate Court, could not possibly be given full relief in the assignment proceedings. The statement of facts discloses that the mortgage was originally taken on acreage. Thereafter the owner plotted the tract into numbered lots showing streets and alleys. Two lots were sold. The deed of assignment described the property by lot number, and not by metes and bounds. This at once discloses that neither the two lots sold nor the streets would be included in the deed of assignment, whereas the mortgage covered the entire area within the metes and bounds included in the acreage. Neither the assignee nor the Probate Court would have jurisdiction over any property not included in the deed of assignment. In the interests of avoiding a multiplicity of suits the rule of law has been promulgated as above.

Another decision of the Supreme Court in point is the case of Dwyer et v Garlough et, 31 Oh St, 159. The principle is clearly set forth at page 160 of the opinion.

“Where a court of law and a court of equity have concurrent jurisdiction over the same subject, it frequently happens that the former tribunal, because of inadequate or limited powers, is unable to afford that relief which a party has the right to demand, and which a court of equity is fully competent to give. In such case, a court of equity is clothed with complete jurisdic *135 tion, and if necessary to the full protection of the rights of a party, will enjoin further proceedings in the action at law. In so doing, it but exercises that jurisdiction very commonly and properly resorted to in cases where there is no specific, adequate, and complete remedy at law.”

This case was decided in 1877.

The identical questions of fact were presented in the reported case as in the'instant case, and unless the rule of law is modified through .extension of power of the Probate Court or legislation relative to dower gives to the Probate Court jurisdiction to grant full relief, then under the rule of stare decisis the plaintiff must prevail. In the reported case in 31 Oh St. supra, it appears that the defendant Gar-lough held a mortgage, executed by the plaintiff’s assignor, whose wife had released her inchoate right of dower in the premises mortgaged. Por the satisfaction of his debt he had the right to foreclose her equity of redemption and to sell her interests in the property mortgaged as well and as fully as to foreclose and sell the equity therein of the husband. In the deed of assignment, which was made and filed in the Probate Court prior to the foreclosure action in the Common Pleas Court, the wife had not joined.

■ Boynton, J., in rendering the opinion, called attention to the fact that the jurisdiction of the Probate Court was purely statutory and that the statute is therefore the source of power. It is further stated under the then existing law that neither the Probate Court nor the assignees had the power, under the act regulating the mode of administering assignments in trust for the benefit of creditors, to cause the inchoate dower interest of the wife in the property mortgaged to be extinguished by a sale to which she did not consent. A further excerpt from the opinion is of interest and we quote it literally:

“The interest or estate that the assignee is authorized to sell, either with or without an order from the Probate Court, is defined by the fifth section of the act.

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Bluebook (online)
4 N.E.2d 68, 52 Ohio App. 553, 20 Ohio Law. Abs. 132, 6 Ohio Op. 478, 1935 Ohio App. LEXIS 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madigan-v-dollar-building-loan-co-ohioctapp-1935.