McCarty v. Goodsman

167 N.W. 503, 39 N.D. 389, 1918 N.D. LEXIS 39
North Dakota Supreme Court·Decided January 17, 1918·Published·Cited by 14 cases

Opinions

Birdzell, J.

This is an action for the foreclosure of a mortgage •on 160 acres of land, securing the payment of $700 and interest. Judgment was entered in the district court of Pierce county in favor of the plaintiff, but it was ordered that certain of the proceeds of the foreclosure sale be paid to the defendant Styles as assignee of nn attorney’s lien, existing in favor of the defendant Campbell. The defendant Styles appealed from the judgment, demanding a review and trial de novo of certain questions of fact, which are set forth in seventy-seven specifications. The plaintiff McCarty, also appealed, specifying errors in the holding of the trial court sustaining the attorney’s lien of defendant Campbell and entering judgment therefor in favor of Styles as assignee. The defendant and respondent Campbell moves to dismiss the latter appeal as to him, upon the ground that there has been no settlement of the statement of the case.

[395] Tlio facts necessary to an understanding of the questions involved in this matter are as follows:

In 1906 Styles purchased from a bank, of which his brother was cashier, a quarter section of land, subject to an encumbrance of $500 in the shape of a mortgage owned by the Union Central Life Insurance Company. It developed later, howéver, that, in addition to the mortgage mentioned, the former owner of the land, one Charles W. Goods-man, had given the mortgage in question in this suit, to secure the payment of five promissory notes, aggregating $700. These notes and mortgage ran to Theodore P. Scotland & Company. Soon after the discovery by Styles of the Scotland & Company mortgage, he brought an action (February, 1907) to quiet his title as against the mortgagee. In that action the validity of the Scotland & Company mortgage was upheld by the judgment of the trial court, which judgment was affirmed by this court in Styles v. Theo. P. Scotland & Co. 22 N. D. 469, 134 N. W. 708.

In the action to quiet title, the defendant Scotland & Company was represented by Paul Campbell, a party defendant in this action. Campbell had obtained possession of all the above-mentioned notes and introduced them in evidence to substantiate his client’s claim. Not having been fully paid for his services, he later claimed an attorney’s lien upon them.

In August, 1912, McCarty attempted to foreclose the mortgage in suit by advertisement, claiming to be the owner of the entire obligation secured thereby. In September a restraining order was obtained, restraining further foreclosure proceedings under the advertisement. This order was based upon three affidavits, setting forth, among other defenses, Campbell’s lien. Nothing further having been done by way of realizing upon the securities, Campbell started foreclosure proceedings under his lien in August, 1913. After six days published notice, the lien was foreclosed by advertisement by the sale of all of the notes on August 28, 1913, at which sale Styles became the purchaser, the amount paid by him being $173.17. On October 18, 1913, or soon thereafter, the exact date being immaterial, this action was begun by McCarty and Finch, Van Slyck, & McConville for the foreclosure of the mortgage in question. The complaint alleges an assignment from Theodore P. Scotland & Company to John McCarty of all of the notes [396] excepting a $100 note, as of July, 1907, and an assignment of the $100 note to Finch, Van Slyck, & McConville as of October 1, 1901. It also disputes Campbell’s lien and alleges the facts with reference to the foreclosure thereof. The defendants Styles and Campbell answered separately. The answer of the former covers fifteen printed pages and sets forth five defenses to the action. In reality, it is an argument of the ease. Briefly stated the defenses set forth are a reliance upon the title secured through the foreclosure of the attorney’s lien, an estoppel as against the plaintiffs to foreclose the mortgage on the ground that in the previous suit of Scotland & Company against Styles the notes and mortgages had been held to be the property of Scotland & Company; also that the defendants in this case are not precluded by the former judgment from showing' that the mortgage itself is void by reason of not having been executed by the mortgagor.

The answer of Campbell denies the consideration for the alleged assignment of the $100 note from Scotland & Company to Finch, Van Slyck, & McConville, and alleges that the assignment of the four notes to McCarty was an assignment to him as trustee for the benefit of the creditors of Scotland & Company. Also that the Finch, Van Slyck, & McConville assignment was collateral to indebtedness which was afterwards fully paid; that the possession of the notes was not delivered to the assignees; that plaintiffs, by reason of their knowledge and acquiescence in his defense of the suit against Scotland & Company, are precluded and estopped as against him and his successor in interest to dispute the rights which Styles obtained as purchaser at the lien foreclosure sale.

The findings, conclusions, and judgment of the trial court are in accord with the questions and principles discussed in a comprehensive memorandum decision which was rendered in disposing of the case, and the questions which arise on Styles’s appeal are foreshadowed in that opinion. The learned trial judge considered that four questions were involved. First, “What is the effect of the judgment and decree entered in the case of Styles v. Scotland & Company described in finding of fact number eight ?” Second, “Has the Statute of Limitations run since said judgment and decree was entered, so as to bar this foreclosure sought in the complaint?” Third, “Did defendant Campbell have a lien on the personal property, to wit, the notes and mortgage sought to be fore[397] -closed, in this action ?” Fourth, “If such an attorney’s lien existed, was it foreclosed ?”

While the appellant Styles asks for a review of seventy-seven specifications of facts, the mere enumeration of which covers thirty-three pages of his brief, the real questions involved in this appeal are those relating to the propriety of the adverse decision of the trial court upon the four questions discussed in the memorandum decision, and the correctness of certain findings of fact necessary to sustain the decision and judgment thereunder. In the argument of the appellant Styles, the errors assigned are grouped under' nineteen heads, and the legal propositions therein raised, which merit discussion, will be considered In the order appealing to us as most logical, and with such brevity as is consistent with a comprehensive review of the real questions presented ■on the record.

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McCarty v. Goodsman, 167 N.W. 503, 39 N.D. 389, 1918 N.D. LEXIS 39 (N.D. 1918).

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