Metropolis Trust & Savings Bank v. Barnet

132 P. 833, 165 Cal. 449, 1913 Cal. LEXIS 443
CourtCalifornia Supreme Court
DecidedMay 17, 1913
DocketS.F. No. 6043.
StatusPublished
Cited by28 cases

This text of 132 P. 833 (Metropolis Trust & Savings Bank v. Barnet) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolis Trust & Savings Bank v. Barnet, 132 P. 833, 165 Cal. 449, 1913 Cal. LEXIS 443 (Cal. 1913).

Opinion

LORIGAN, J.

This action -was brought by plaintiff to permanently enjoin defendants from selling certain real estate in Alameda County, 'under a judgment obtained in a suit to foreclose a mechanic’s lien. Judgment went for plaintiff and defendants appeal. The only point involved is whether the findings sustain the judgment.

, The material facts as found are, that on December 4, 1902, H. Brand and wife made six deeds of trust to the California Title Insurance and Trust Company, conveying six lots of land to secure advances of upward of thirty thousand dollars made to them by the respondent, then known as the Phoenix Savings, Building and Loan Association; that on October 28, 1903, the appellant, W. P. Fuller & Company, brought six separate suits in the superior court of Alameda County against said Brand and others, to foreclose six mechanics’ liens for materials furnished upon said respective parcels of real estate, the respondent being one of the defendants in said action; that respondent filed its answer in such action on April 14, 1904, and an amended answer on October 21, 1905, in which a lien prior to that of Fuller & Company upon all said property was asserted by reason of the deeds of trust referred to; that subsequent to the filing of the answer, but before the amended answer was filed, ‘ Brand and wife defaulted in the payments provided for in the trust deed, and respondent purchased the several parcels of real estate at the trustee’s sale following such default, receiving the trustee’s deed therefor, and thereupon became invested with the title *452 to said property free from any encumbrances or liens whatsoever; that on July 6, 1906, in said mechanics’ lien suits judgment was awarded Fuller & Company, making certain sums claimed by it a lien upon all of said parcels of real estate, subject and subordinate, however, to the lien of respondent under the deed of trust, and ordering the property to be sold, with the further order for a personal judgment against Woodward, Watson & Company, a corporation, which was also a defendant in the action, for any deficiency remaining over after such sale; that respondent in its amended answer failed to set up any defense based on any matters arising out of the sale by the trustee made on June 30, 1904, or the deed executed to it as purchaser thereunder; that such deed was not offered in evidence at the trial, nor any rights of respondent arising thereunder litigated or adjudged in said action. It appears further that Woodward, Watson & Company, against whom the personal judgment for a deficiency was to be entered, were the contractors for the erection of buildings on the lots out of which the mechanics’ liens of Fuller & Company arose.

But two grounds of attack on the decree awarding respondent a permanent injunction need be noticed.

It is claimed by appellants that the respondent is precluded from asserting in the present action the title derived by it through the trustee’s sale pending the mechanics’ lien suit brought by Fuller and Company; that said title was involved in said action in which the respondent was defendant, and is res adjudicata by said judgment, so that respondent is estopped from asserting it in the present suit.

But we think it clear that there is no merit in this contention. It is apparent that the only issue made in the mechanics’ lien suit brought by Fuller & Company and tendered by the answer of respondent, was solely as to the priority of the liens asserted by the parties. The title which is asserted in the present action—the absolute title acquired by respondent under the trustee’s sale—was not put in issue by the answer of respondent. In fact it did not then have the absolute title to the property, as the trustee’s sale, under which that title was derived, had not then taken place. It is true that subsequent to the filing of its answer respondent acquired such title under the trustee’s sale, but that title was’ *453 never put in issue. It might have been, had the respondent chosen to do so by a supplemental answer. But no such answer was filed, and we are not referred to any authority which made it compulsory that such an answer should be filed. In the absence of such supplemental answer the rule is that: “The rights of the parties are to be determined as they were at the commencement of an action unless some event happens subsequently which affects the matters in issue and the court cannot consider such subsequent matter unless it is presented by a supplemental pleading.” (21 Ency. of Plead. & Prac., p. 8.)

Our code declares (Code Civ. Proc., see. 1911) that “that only is deemed to have been adjudged in a former judgment which appears upon its face to have been so adjudged, or which was actually and necessarily included therein or necessary thereto.”

As said in Freeman on Judgments, 4th edition, section 249: “ . . . The general expression, often found in the reports, that a judgment is conclusive of every matter which the parties might have litigated in the action is misleading. What is really meant by this expression is, that a judgment is conclusive upon the issues tendered by the plaintiff’s complaint. It may be that the plaintiff might have united other causes of action with that set out in his complaint, or that the defendant might have interposed counterclaims, cross-bills, and equitable defenses, or either of the parties may have acquired new rights pending the litigation, which might, by permission of the court, have been pleaded by supplemental complaint or answer, and therefore might have been litigated in the action. But as long as these several matters are not tendered as issues in the action, they are not affected by it. . . . The plaintiff must support all the issues necessary to maintain his cause of action. The defendant must bring forward all the defenses which he lias to the cause of action asserted in the plaintiff’s pleadings at the time they were filed.....Thus, in an action to recover real estate, the defendant cannot put in evidence a title acquired pendente lite, unless he has pleaded it by a supplemental answer; and therefore where he has not so pleaded it, he is not concluded from asserting it in a subsequent action.”

*454 . See, also, People’s Savings Bank v. Hogdon, 64 Cal. 95, [27 Pac. 938]; Hall v. Susskind, 109 Cal. 203, [41 Pac. 1012],

The absolute title which the respondent obtained, and which is asserted in the present action, was acquired after the mechanics’ lien suit was at issue; it was not the title litigated in the suit, nor was it an issue in that action, and under the authorities just referred to the claim of appellants that the judgment in that suit was res adjudicata as to the title now asserted is not well taken.

It is further insisted by appellants that they are entitled under the decree in the mechanics’ lien suit to have a personal judgment entered against Brand—the owner of the property —and the other defendants for any deficiency under the sale; that the sale is a statutory prerequisite to the entry of such personal judgment and the court in the present action had no right to grant a permanent injunction the effect of which, they claim, is to absolutely deprive Fuller & Co.

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Bluebook (online)
132 P. 833, 165 Cal. 449, 1913 Cal. LEXIS 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolis-trust-savings-bank-v-barnet-cal-1913.