Metropolitan Life Insurance v. Frick

245 N.W. 921, 61 S.D. 9, 1932 S.D. LEXIS 204
South Dakota Supreme Court·Decided December 13, 1932·No. File No. 7223.·Published·Cited by 1 cases

Opinion

ROBERTS, J.

Plaintiff instituted this action to foreclose a mortgage executed by Olive M. Frick and Jacob O'. Frick, individually, and by Olive M. Frick, as guardian for Bertha F. Schab and Mary F. Schab. A subsequent mortgage for $4,500 was also executed by these mortgagors to one E. S. Reddin, as guardian of the person and estate of Fred Fetter. Reddin, as guardian, instituted an action to foreclose the mortgage, and from judgment of foreclosure and order denying a new trial an appeal to this court was taken by the defendants in that action. The opinion in that case, Reddin v. Frick et al., is reported in 54 S. D. 277, 223 N. W. 50, to which reference is made for a statement of the facts, issues involved, and holdings of this court.

The action at bar was instituted prior to the decision on appeal in the Reddin Case. Thereafter the plaintiff herein amended its complaint and sought relief by foreclosure of the mortgage against the one-third interest of Olive M. Frick and by way of subrogation against the interest of the minor wards in a portion of the land described in the complaint. The right of subrogation is founded upon the payment out of the proceeds of the loan secured by plaintiff’s mortgage of existing liens against the land. The court entered1 judgment against the defendants Fricks for the- entire indebtedness amounting to $19,429.76. The judgment directs that the one-third interest of the defendant Olive M. Frick in the prem *11 ises be sold separately for the satisfaction of the indebtedness; that plaintiff be subrogated to a mortgage of $2,000 dated September 14, 1914, executed by Olive M. Frick, individually and as guardian, and also, to a mortgage dated May 1, 1906, executed by Otto Schab in the sum of $1,700, and that the sum of $8,961.31, the amount of two mortgages together with interest, be satisfied by a sale separately of the two-thirds interest of the wards.

The .trial -court upon the application of the attorneys for the defendants entered an order amending its decision and judgment. The court in its order recites that the application thus made was to have a certain tax deed, describing it, “stand: cancelled of record in the event that the plaintiff’s decree of foreclosure of the mortgage in controversy in this action shall become final,” and the decision, and judgment were amended accordingly.

The defendant Olive M. Frick, as guardian, executed the mortgage in question pursuant to an order of the county -court of McCook -county. This order also authorized the guardian to execute the mortgage for $4,500, which was before this court in the case of Reddin v. Frick, supra. The validity of this order was in issue and was held void for the reason that the judgment roll showed on its face that the guardian desired to mortgage the interest of the minors in the real estate to pay personal debts of herself and husband.

The mortgage of $2,000 referred to, and to which plaintiff was subrogated by the terms of the judgment, was executed by defendant Olive M. Frick, individually and also as guardian, pursuant to an order of the county court of McCook county dated September 14, 1914. The petition of the guardian upon which such order was granted states “that order to show cause on application of guardian for order to mortgage real estate is hereby expressly waived.” The order recites that the “guardian * * waived the requirements of statute in su-c'h cases provided of the time for the hearing of said petition and of notice of such hearing by publication as by law required, and asked in the said petition, which was signed by the said guardian and the mother of the said minors, be heard at once and without further hearing. * * *” The mortgage referred to was given to secure a loan used for the purpose of paying off an existing mortgage executed by Otto -Schab for an equal amount.

*12 The appellants contend, first, that the court erred in entering the order amending the judgment for the reason that the same is interlocutory and not final; second, that the court erred in not finding that the mortgage for the foreclosure of which the action was instituted was void as to the guardian and minors; third, that the order of the county court authorizing the execution of the mortgage for $2,000 is void, and consequently plaintiff was not entitled to subrogation under such mortgage; and, fourth, that the court erred in granting to the respondent an equitable lien in the sum of $100 for taxes paid on a portion of the mortgaged premises for the reason that it does not place any portion thereof on the mother’s interest in the land.

With reference to the first contention, the appellants are correct in their assertion that, so long as the relation of mortgagor and mortgagee exists, the latter cannot, as against the former, acquire title to property by means of a tax deed. First National Bank v. McCarthy, 18 S. D. 218, 100 N. W. 14. The defendants upon their application to have the judgment amended did not ask for an unconditional cancellation of the deed. The court granted the relief requested by the defendants and they are not in a position on this appeal to claim- error on. the part of the court in granting their application.

We are of the view that there' is no merit in appellants’ contention that the judgment should be reversed for the reason that the co.urt failed to expressly find that, as to the minors, the mortgage was void. This is fairly assumed from the findings and conclusions of the court. The -court did not award a judgment of foreclosure of this mortgage upon the two-thirds interest of the minors. The court found that a portion of the loan procured by the execution and delivery of the mortgage in question was used to pay off and secure the satisfaction of two existing mortgages and found and decreed that the plaintiff was for that reason entitled to subrogation.

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Metropolitan Life Insurance v. Frick, 245 N.W. 921, 61 S.D. 9, 1932 S.D. LEXIS 204 (S.D. 1932).

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