Moshannon Nat. Bank v. Iron Mountain Ranch Co.

18 P.2d 623, 45 Wyo. 265, 1933 Wyo. LEXIS 8
CourtWyoming Supreme Court
DecidedJanuary 24, 1933
Docket1767
StatusPublished
Cited by9 cases

This text of 18 P.2d 623 (Moshannon Nat. Bank v. Iron Mountain Ranch Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moshannon Nat. Bank v. Iron Mountain Ranch Co., 18 P.2d 623, 45 Wyo. 265, 1933 Wyo. LEXIS 8 (Wyo. 1933).

Opinions

*271 Bluhe, Justice.

While the pleadings herein are voluminous, a brief statement thereof, just to show the nature of this action, will, we think, suffice for the purposes of this opinion. As appears from the petition filed in this case, the Iron Mountain Ranch Company, one of the defendants herein, on March 1st, 1912, *272 issued bonds in the total sum of $150,000, and to secure these bonds made and executed a trust deed, mortgaging about 45,000 acres of land in Albany County, Wyoming. The defendant the Wyoming Trust and Savings Bank, of Cheyenne, Wyoming, was named as the trustee under the trust deed, with sole power to foreclose the deed, in case of default, but provision was made, not necessary to be mentioned in detail, requiring the trustee to act in case the owners of fifty per cent of the bonds should call upon it to do so. The bonds became due on March 1st, 1927, but were not paid, and some time prior to that time, interest on the bonds had been in default. The trustee under the trust deed brought no foreclosure action, and so on March 8th, 1930, the plaintiffs herein, owners of $21,800 of the bonds, brought this action seeking to foreclose the trust deed, and asking the appointment of a receiver. To justify them in bringing this action and displace the trustee named in the trust deed, it is alleged that the trustee had been negligent; that it collected $6000 insurance money, for which it has never accounted, and that it had resigned as trustee. A number of other reasons not necessary to be mentioned here, are set out to show why the trustee is not the proper party to foreclose. It is further alleged that Hannah Elizabeth Bosler is in control of the Iron Mountain Ranch Company, as well as the Diamond Cattle Company; that she is the owner of more than fifty per cent of the bonds in question, and that she has been permitted, by and with the consent of the trustee, to appropriate all the income of the lands and divert it to her own use. These allegations were evidently made mainly with the view of showing that the provisions in the trust deed that the owners of fifty per cent of the bonds should call on the trustee to act were, under the circumstances, wholly nugatory.

On April 2, 1930, the Wyoming Trust and Savings Bank filed answer herein, denying that it had resigned as trustee, and also denying, in substance, the allegations tending to show that it was not the proper party to foreclose the *273 suit. On tbe same day, tbe Stockgrowers National Bank also filed answer, joining issue with tbe plaintiffs as to tbe allegations made against it. Further, on the same day, tbe trustee, adopting tbe course apparently approved in Tracy, Corporate Foreclosure, Sec. 37, filed a cross-petition in tbe action, seeking to foreclose tbe trust deed in question here. Subsequently it filed an amended and a second amended cross-petition, with tbe same end in view. Mrs. Bosler, tbe Iron Mountain Ranch Company and tbe Diamond Cattle Company appeared to these cross-petitions and joined issues with tbe cross-petitioner, but tbe plaintiffs herein have never hitherto appeared thereto, or joined issues thereon. Nor was anything done in connection with tbe issues raised by the answer of tbe trustee or tbe Stockgrowers National Bank.

On April 5th, 1930, Mrs. Bosler, tbe Iron Mountain Ranch Company, and tbe Diamond Cattle Company (sometimes called demurrants herein) each filed a demurrer to tbe petition. On July 5, 1930, tbe court found “that the petition of tbe plaintiffs fails in its allegations to sufficiently show tbe inability and unwillingness of tbe defendant Tbe Wyoming Trust and Savings Bank, trustee, to foreclose tbe mortgage in question, and for that reason fails to show tbe right of these plaintiffs to foreclose said mortgage and therefore fails to state a cause of action in tbe particular mentioned.” Tbe demurrers were accordingly sustained, and, upon request, leave was granted to file an amended and supplemental petition to correct tbe deficiency as found by tbe court in tbe petition. Ten days were granted for that purpose, which time, subsequently, was extended to August 15th, 1930. No such pleading was filed within this time, but on November 28, 1930, the plaintiffs filed an amended and supplemental petition, reiterating some of tbe allegations in tbe original petition, alleging a number of other reasons why tbe trustee is not tbe proper party to foreclose tbe trust deed, and setting out reasons why tbe pleading bad not been filed previously. Tbe court was asked for *274 leave to file this pleading. This was denied on February 24, 1931, for the reason that the foreclosure suit would thereby be delayed, but plaintiffs were given the right to remain in the suit, file whatever pleadings they desired to the cross-petition, and do any and all things “necessary to push the foreclosure proceeding” brought by the trustee, and at all times advise the court therein. Nothing further being done by plaintiffs in the case, the demurrants filed a motion on May 7,1931, to dismiss plaintiffs’ petition for want of prosecution. And still nothing further being done by plaintiffs, these motions were sustained on November 14th, 1931, and the court.directed “that plaintiffs’ petition be and the same is hereby dismissed for want of prosecution.” An exception was taken, and from that order the plaintiffs have appealed. The errors assigned in substance are that the court erred (1) in sustaining the demurrers to the petition; (2) in not permitting the amended and supplemental petition to be filed; (3) in “dismissing plaintiffs from the case with issues of fact and of law pending and undetermined;” (4) in failing to appoint a receiver, and (5) permitting one of. the defendants to oust them from prosecuting their litigation.

1. Counsel for the demurrants have filed herein a motion to dismiss the appeal for the reason that the propriety of the order of dismissal of the petition of plaintiffs, which order is the basis of the appeal herein, has not been discussed in the briefs, and hence is waived under the well known rule of this court. We are not certain that this motion should be sustained, since in any event counsel for plaintiffs have assigned the dismissal of the action as error, and howsoever invalid their arguments may be, they complain of that in their brief. Counsel for the defendants, however, have, in connection with the motion to dismiss, advanced many arguments dealing with the propriety, from a procedural standpoint, of the order dismissing plaintiffs’ petition, and counsel for the plaintiffs have apparently, but mistakenly, we think, deemed these arguments to be unim *275 portant. Tbe latter have argued tbis case upon the theory —aside from that relating to the appointment of a receiver —that they are entitled to foreclose the trust deed and have a right to displace the trustee. But the merits on that point are not before us, unless they arise in connection with the order of dismissal from which this appeal is taken, and as will appear later, they do not, we think, so arise. The right to dismiss the petition must necessarily depend upon the facts in each case.

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Bluebook (online)
18 P.2d 623, 45 Wyo. 265, 1933 Wyo. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moshannon-nat-bank-v-iron-mountain-ranch-co-wyo-1933.