Northwestern & Pacific Hypotheek Bank v. Dalton

256 P. 93, 44 Idaho 120, 1927 Ida. LEXIS 75
CourtIdaho Supreme Court
DecidedMarch 31, 1927
DocketNo. 4383.
StatusPublished
Cited by5 cases

This text of 256 P. 93 (Northwestern & Pacific Hypotheek Bank v. Dalton) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwestern & Pacific Hypotheek Bank v. Dalton, 256 P. 93, 44 Idaho 120, 1927 Ida. LEXIS 75 (Idaho 1927).

Opinions

BUDGE, J.

Appellant made application in the district court of the eleventh judicial district for the appointment of a receiver to take full charge, control and management of certain premises which had been mortgaged to appellant and which it had purchased on foreclosure sale. The property was bid in on August 10, 1923', and the application was filed November 13th thereafter. The application was in the form of an affidavit, and alleged the execution and delivery of a note and real estate mortgage to appellant by respondent W. S. Dalton, the commencement of an action in foreclosure by appellant and entry of judgment in its favor and purchase of the lands and premises by it for the amount of the judgment, with interest and costs; that respondent W. S. Dalton entered into certain agreements with three other persons whereby said persons were to farm the premises and to deliver to Dalton certain portions of the crops raised during the year 1923, and that said persons, together with Dalton, were scheming and conspiring to convert to their own use the share of the crop belonging to Dalton, and were threatening to get control of the farm during the year 1924 in such a manner as to cheat and defraud appellant of any part of the rents and profits from said premises during the year 1924; that the crops for the year 1923 had been harvested and the shares thereof due to Dalton were ready for delivery; that Dalton had neglected and refused to pay construction and maintenance charges of the U. S. reclamation service, and taxes, against the property, and that appellant paid the same; that other sums were due as construction, operation and maintenance charges which, if not paid, might result in cancelation of the water right appurtenant to said lands, to appellant’s great and irreparable injury; that the reasonable market *122 value of said lands did not exceed the sum of $10,828.33; that appellant had received offers for rental of said lands during 1924, but that there were no ordinary agricultural crops produced in the section where the lands in question are situated which mature and become ready for harvesting prior to August 10th of any year, and that by reason of the year of redemption expiring August 10, 1924, appellant was not in position to make a lease agreement for the year 1924. An order was prayed for requiring W. S. Dalton and the parties with whom he had the lease agreements to show cause why an injunction should not issue restraining them from disposing of the rents and profits arising from the operation of the property subsequent to August 10, 1923, and that said persons be temporarily restrained from disposing of said crops or any part thereof until the date of hearing, and that they be required to account for and to pay over to appellant a proportionate part of the rents and profits arising from the operation of the premises; and that a receiver be appointed to take charge, control and management of the premises and the crops grown thereon during the year 1923, with full power to lease, operate, farm and manage the same until redemption or the expiration of the time for redemption, and to apply the proceeds therefrom to the payment of taxes and maintenance, operation and construction charges against the property, and interest accruing on appellant’s debt.

A temporary restraining order was issued, and affidavits in opposition to the appointment of a receiver and for dissolution of the temporary injunction were filed by respondent W. S. Dalton and others. From these affidavits it appears that most of the crops for the year 1923 had been harvested and the proceéds distributed; that it was contemplated W. S. Dalton would personally occupy and use the premises during the year 1924, and that a chattel mortgage had been made by said Dalton covering his interest in and to the crops produced during 1923'. It was denied that there was any scheme or conspiracy to convert to their own use, by Dalton or any of the persons *123 with, whom he had the lease agreements, any share of the crop belonging to Dalton.

After a hearing before it, the court denied the application for appointment of a receiver and ordered the dissolution of the temporary restraining order. The trial court’s action in thus disposing of the cause is assigned as error upon appeal.

Appellant bases its application for the appointment of a receiver, in part, upon the provisions of C. S., sec. 6817, and particularly subdivision 2 thereof, which provides:

“A receiver may be appointed by the court in which an action is pending or has passed to judgment, or by the judge thereof: ....
“2. In an action by a mortgagee for the foreclosure of his mortgage and sale of the mortgaged property, where it appears that.the mortgaged property is in danger of being lost, removed or materially injured, or that the condition of the mortgage has not been performed, and that the property is probably insufficient to discharge the mortgage debt”

Appellant seeks to bring itself within the italicized portion of the section above quoted by alleging in its affidavit “that the reasonable market value of said lands and premises does not exceed the sum of $10,828.33.” This is not a showing “that the property is probably insufficient to discharge the mortgage debt,” since it appears from the record that the amount of the mortgage debt at the time the property was disposed of on execution sale, including principal, interest, taxes, operation, maintenance and construction charges paid by appellant, attorney’s fees, costs of suit, sheriffs costs and expenses and commissions of said sale, amounted to $10,828.33', for which sum the property was bid in by appellant. Appellant’s allegation is then, simply, that the reasonable market value of the lands and premises does not exceed the sum of the mortgage debt at the time of the execution sale, including all the items above mentioned: whereas it would be required, under *124 the statute, to make sufficient allegations of fact showing “that the property is probably insufficient to discharge the mortgage debt.” But, as stated, it is shown by appellant’s own allegation that the property is sufficient to discharge the mortgage debt. The allegation is, therefore, wholly inadequate in so far as it attempts to comply with the provisions of the statute in this respect.

“To authorize the appointment there should be in the complaint or affidavit a statement of facts showing that the actual value of the mortgaged premises is less than the debt secured with interest and costs, and that a resort to the rents and profits is necessary. A mere averment that the value of the property is insufficient or that the premises are insufficient is not enough ....

“The power to appoint a receiver is very largely in the discretion of the trial court, and an appellate court will not interfere with the exercise of such discretion except in cases of palpable abuse.” (18 Cal. Jur. 301.)

In Bank of Woodland v. Stephens, 144 Cal. 659, 79 Pac. 379, it was held that the party who desired a receiver must state facts sufficient to show that the premises mortgaged are probably insufficient to pay the mortgage debt, with interest and costs, as provided in Cal. Code Civ. Proc., sec. 564, similar to sec. 6817, supra. (See, also, Title Ins.

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Cite This Page — Counsel Stack

Bluebook (online)
256 P. 93, 44 Idaho 120, 1927 Ida. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwestern-pacific-hypotheek-bank-v-dalton-idaho-1927.