McDonald v. Second National Bank

76 N.W. 1011, 106 Iowa 517
CourtSupreme Court of Iowa
DecidedOctober 21, 1898
StatusPublished
Cited by9 cases

This text of 76 N.W. 1011 (McDonald v. Second National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. Second National Bank, 76 N.W. 1011, 106 Iowa 517 (iowa 1898).

Opinion

Ladd, J.

1 The plaintiff, only, appeals, and the decree, in so far as favorable to him, requires no consideration. McWhirter v. Crawford, 104 Iowa, 555. We shall assume, then, that Donald McDonald and wife, on the eighteenth day of January, 1893, conveyed the farm, of about one thousand four hundred acres, in Plymouth county, to the plaintiff, as security for the indebtedness then due him, and that his acts of possession were such as to put everyone on inquiry with reference to his interest therein. This farm was incumbered at that time by two mortgages, — one dated May 1, 1889, for sixteen thousand dollars, to Beyer & Co., and another dated October 18, 1890, for eighteen thousand dollars, to A. S. Garretson. At the same time, and to secure the same debt a mortgage was executed by the same parties to Garretson on certain lots situated in Sioux City, Woodbury county, and also a chattel mortgage on a large amount of personal property. Garretson assigned these three mortgages to the Second National Bank of Nashua, N. H. The mortgage to Beyer & Co. was foreclosed, and the land sold to the mortgagees at the sheriff’s sale, December 16, 1893. The proceeds of the property covered by the chattel mortgage were applied on the debt secured. It will be observed that the mortgages securing the notes assigned by Garretson to the bank covered real estate in two counties, — one, lots in Woodbury county, where the mortgagors resided, and the other, land in Plymouth county. The bank began an action in Woodbury county on both mortgages, obtained personal judgment against Donald McDonald, and a decree directing the sale of all the property. Special execution was issued to the sheriff of Plymouth county, the land sold thereunder, and a sheriff’s deed executed to C. W. Iloitt, assignee, who held the certificate of sale, October 30, 1894, and he redeemed from the sale to Beyer & Co., a few days later: The appellant asserts that the court sitting in Woodbury county acquired no jurisdiction to enter a decree foreclosing the mortgage on the Plymouth 'county land, and, as redemption from the sale to Beyer & Co. was made more than nine months after the sale, the bank or Iloitt [520]*520has no remedy against the land. The plaintiff was not made party to any of these actions, though he had actual notice of their pendency, and had both actual and constructive notice of the mortgages when he received the deed. It thus appears there is no equity in his claim, and that, if his contention is allowed, it must be because of the technical construction of the statute.

Section 3493 of the Code is as follows: “An action for the foreclosure of a mortgage of real property, or for the sale thereof under an incumbrance or charge, or to enforce a mechanic’s lien thereon, shall be brought in the county in which the property to be affected, dr some part thereof, is situated.”

2 II. The appellee insists that the two mortgages should be construed as one instrument. As already mentioned, these were executed at the same time, by and to the same parties, and to secure the same indebtedness. These circumstances show them'to have been a part of the same transaction, but not the same instrument. If security was taken in two mortgages instead of one, for convenience in, recording, this confirms the thought that separate mortgages were intended. The note and mortgages will be read together and construed only with respect to the debt as parts of one contract. Fetes v. O’Laughlin, 62 Iowa, 532, and cases cited; Kennion v. Kelsey, 10 Iowa, 443; 1 Jones Mortgages, section 71. The fact that several mortgages may be considered in connection with the same note will not affect their identity as separate instruments. It is said that because the conditions of defeasance are identical (i. e. the payment of the debt) the case falls within the rule announced in Lomax v. Smyth, 50 Iowa, 232. This distinction is ignored; here the mortgages are complete within themselves, while there the deeds were executed conveying land in different counties, but the condition of defeasance with respect to all such land was contained in a single instrument. While a mortgage need not necessarily consist of one paper, to hold that such an instrument, complete in itself, without evidence to the con[521]*521trary, is not a distinct mortgage, would be ignoring the technical as well as common meaning of the word.

3 III. The words “shall be” in the section 'of the Code quoted were substituted for “may be” by chapter 126 of the Acts of the Twentieth General Assembly. This section, before this amendment, was construed as permissive only. Insurance Co. v. Gleason, 56 Iowa, 47; Trust Co. v. Day, 63 Iowa, 459. And under a similar provision of the Code of 1851 it was held that an action might be maintained in the county where the defendant resided, though the land was situated elsewhere in the state. Finnigan v. Manchester, 12 Iowa, 521; Cole v. Conner, 10 Iowa, 299. Under section 2795 of the Envision, which provided that the action “must be brought in the county in which the subject of the action, or some part thereof is situated,” the court, in Chadbourne v. Gilman, 29 Iowa, 181, had occasion to pass upon a motion to strike out of a petition so much as related to five separate mortgages on land outside of Dubuque county, where the suit was pending. It appeared that six mortgages covered land in six counties, and each secured a distinct portion of the debt; and it was held that, as the mortgage on the land in Dubuque county was not part of the subject of the action on the other mortgages, and because of a misjoinder of actions, the motion should have been sustained. The difference between that case and the one at bar is apparent. There a distinct portion of the debt was secured by each mortgage. Here both mortgages secured the same debt. We think this not very material, however, because foreclosure proceedings might have been maintained in Plymouth county after judgment was obtained in Woodbury. Banta v. Wood, 32 Iowa, 469; Brown v. Cascaden, 43 Iowa, 103; Morrison v. Morrison, 38 Iowa, 73. Indeed, there appears to be no good reason why appropriate actions might not have been maintained in both counties at the same time. Section 4288 provides that “if separate actions are brought in the same county on the bond or note and on the mortgage given to secure it, the plaintiff must elect which to prosecute. The other will be discontinued at his cost.” By fair implication, a suit may be [522]*522maintained on the note in one county, and, in a proper case, an action for the foreclosure of the mortgage in another. Difficulty in fixing the portion of the debt secured by each mortgage is obviated by the sale of the different parcels. In this case the lots constituted the homestead of Donald McDonald, and the security on the farm was necessarily first exhausted. Code, section 2976. The sale of the farm made definite the amount secured by the mortgage on the lots.

4 IY. In bringing suit on both mortgages in Woodbury county, there was then a misjoinder of actions, and so much as related to that on the farm in Plymouth county might liave been stricken on motion, under the ruling in Chadbourne’s Case. Code, section 3547. But, by failing to appear, all objections on this ground were waived. Code, section 3548. Where the motion is made, however, the plaintiff may, on application, separate his actions, and file a petition for each. Code, section 3549.

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Cite This Page — Counsel Stack

Bluebook (online)
76 N.W. 1011, 106 Iowa 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-second-national-bank-iowa-1898.