Merritt v. Gibson

15 L.R.A. 277, 27 N.E. 136, 129 Ind. 155, 1891 Ind. LEXIS 36
CourtIndiana Supreme Court
DecidedMarch 17, 1891
DocketNo. 15,920
StatusPublished
Cited by9 cases

This text of 15 L.R.A. 277 (Merritt v. Gibson) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merritt v. Gibson, 15 L.R.A. 277, 27 N.E. 136, 129 Ind. 155, 1891 Ind. LEXIS 36 (Ind. 1891).

Opinions

McBride', J. —

The question we are required to decide in this case is: When a mortgage on land has been foreclosed^ and the mortgaged land sold to the mortgage creditor on the decretal order, is he entitled, as against the owner of the equity of redemption, to the appointment of a receiver to take [156]*156charge of such land, and collect and hold, subject to the order of the court, rents and profits accruing thereon during the year allowed for redemption thereof, on showing inadequacy of the security and insolvency of the debtor?

Appellant Adolphus E. Merritt owned, and, with his wife and co-appellant, Zora Merritt, mortgaged to appellee seven hundred and seventy-two acres of land in Switzerland county to secure the payment of a debt of $18,000. August 2'lst, 1890, appellee brought suit in the Switzerland Circuit Court against appellants and others to recover judgment on the debt and to foreclose the mortgage.

The complaint alleged the insolvency of the debtor and insufficiency of the security, and asked for the appointment of a receiver.

Such proceedings were afterward had that on the 22d day of September, 1890, said court rendered judgment in said-cause against appellant Adolphus E. in favor of appellee for $21,541, and costs, and rendered a decree foreclosing said mortgage as against-both, with others joined as defendants. The court at the sam.e time made an order continuing the matter of the application for the appointment of a receiver until the next term of said court.

October 30th, 1890, an order of sale was issued on said, decree to the sheriff of Switzerland county, who, after due notice, sold said land under said decree on the 6th day of December, 1890, the appellee and mortgage creditor becoming the purchaser, and paying therefor $17,000.

The next term of the Switzerland Circuit Court after the-rendition of said decree convened November 23d, 1890, and on the 3d day of the term appellee filed in said court her written motion renewing her application for the appointment of a receiver, and alleging the total insolvency of the debtors; that there was due to plaintiff on said judgment the sum of $21,541.25, and costs, with accruing interest and costs ; that said mortgaged real estate was not worth to exceed $16,000, [157]*157and that by reason of the manner in which it was occupied and cultivated it was being damaged.

Appellants appeared and resisted the motion, and the court thereupon ordered the parties to file affidavits for and against said application. The matter came up for hearing December 9th, 1890, three days after the land had been sold by the sheriff, and a large number of affidavits were presented by each party. From the affidavits filed it is shown that the land consists of several tracts, and that of the seven hundred and seventy-two acres about four hundred acres are cleared and cultivated, and the residue is pasture land; that it is occupied by the appellants and twelve tenants, the appellants having their residence on one of the tracts and cultivating a part of the land, and the tenants each residing on and cultivating a small tract, principally in tobacco, for a share of the crop. _ The estimates of the value of the land vary from $16,000 to $30,000, and the annual rental value is shown to be $1,800 to $2,000.

The court appointed a receiver to “ take charge of, protect and preserve during the time allowed for redemption the real estate described in said mortgage,” and ordered that he “ take charge of said real estate and rent the same in such manner as shall be most productive; that the same shall be rented in such parcels as shall be most advantageous. And to fully carry out this order said defendants are ordered to deliver up to said receiver the possession of all of said real estate except the residence and appurtenant out-buildings occupied by said defendants, and so much of the adjacent, real estate on said Bodkin farm as said defendants desire to cultivate themselves by their own labor, not exceeding forty acres, and of which he is now in possession as a resident.”

The rents collected were to be held subject to the further order of the court.

The solution of the question thus presented depends upon the construction to be given to the statute authorizing the [158]*158redemption of lands sold on execution or decretal order, and that authorizing the appointment of receivers.

The question has never been decided under our present statutes, and in order to reach a correct solution it will be well to consider:

1st. The rule for the appointment of receivers in analogous cases prior to the enactment of statutes relating to the redemption of lands from judicial sales; and,

2d. The rule as declared by this court under the several statutes in force prior to the enactment of the present statute.

The first statute of this State providing for the redemption of lands from judicial sales was enacted in the year 1861.

Prior to the enactment of this statute the purchaser of land at judicial sale was entitled to a deed for the land and to possession at once. There was, therefore, no occasion to ask for the appointment of a receiver after sale. The purchaser could take immediate steps to enforce his right of possession under his title. Before that time, however, courts of equity, in suits for the foreclosure of mortgages, had and exercised jurisdiction in the appointment of receivers to collect the rents and profits accruing before a sale could be had.

The fourth clause of section 1222, R. S. 1881, relating to the appointment of receivers, is merely the legislative enactment of the pre-existing equity rule. Main v. Ginthert, 92 Ind. 180, citing High Receivers, 639-666; Edwards Receivers, 356; Jones Mortgages, sections 1516, 1532 and 1533. See, also, Connelly v. Dickson, 76 Ind. 440; Bank of Ogdensburgh v. Arnold, 5 Paige, 38 (3 N. Y. Chancery Reports, 617, note); Lea Ins. Co. v. Stebbins, 8 Paige, 565 (4 N. Y. Chancery Reports, 543, note); and Jones Mortgages, section 1521, and cases there cited.

In Main v. Ginthert, supra, this court said : “ The juris[159]*159diction of courts of equity in the matters of the appointment of receivers over mortgaged property for the protection of mortgagees, or in aid of suits for the foreclosures of mortgages, is well established, and has long been exercised by such courts both in England and in this country.”

Preliminary to considering the rule under the statute, we will review the legislation affecting the question.

The statute relative to the redemption of lands above referred to contained the following»provision :

The judgment debtor shall be entitled to the possession of the premises for one year after the sale, and in case they are not redeemed at the end of the year as provided in this act, he shall be liable to the purchaser for their reasonable rents and profits.” 2 R. S. 1876, p. 220.

At that time the statute authorizing the appointment of receivers, in so far as it had any bearing on this question, was as follows:

“A receiver may be appointed by the court, or the judge thereof in vacation, in the following cases:
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Cite This Page — Counsel Stack

Bluebook (online)
15 L.R.A. 277, 27 N.E. 136, 129 Ind. 155, 1891 Ind. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merritt-v-gibson-ind-1891.