Past v. Rennier

151 N.W. 763, 30 N.D. 1, 1915 N.D. LEXIS 96
CourtNorth Dakota Supreme Court
DecidedFebruary 5, 1915
StatusPublished
Cited by4 cases

This text of 151 N.W. 763 (Past v. Rennier) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Past v. Rennier, 151 N.W. 763, 30 N.D. 1, 1915 N.D. LEXIS 96 (N.D. 1915).

Opinion

Burke, J.

The facts in this case were somewhat complicated, and pretty largely in dispute. In stating the same, we give all the undisputed facts and some of the minor disputed ones, which are decided without setting forth the evidence or our reasoning therefor, but the major disputes will be treated later. On December 27, 1907, plaintiff, Past, was the owner of twelve and one-half lots situated in the city of Jamestown, and mostly improved property. Upon that date, he and his wife executed a mortgage upon said property to one B. J. Trimble securing the payment of $4,000. This loan was negotiated by the defendant W. B. S. Trimble Company, a corporation whose president was a brother of the mortgagee. This mortgage was later foreclosed, and plays a minor part in the controversy. February 8, 1908, the firm of Bennier & Wilmart obtained a judgment against Past for ■■the sum of $77.20, which was duly docketed in the office of the clerk of the district court for said county on February 20, 1908, thus becoming a second lien upon all of said premises. Thereafter, Past and his wife gave a second mortgage upon all of said premises to the Farmers’ & Merchants Bank of Jamestown to secure the sum of $1,400, which mortgage was later assigned to one Toay. This mortgage was a third lien upon the land, and was likewise foreclosed later, and also has a slight bearing on the issue. There are other judgment creditors (Toay with a $770 judgment) whom we do not believe it necessary to mention in particular, whose liens are inferior to the three mentioned.

The lien with which we are most concerned was the one represented by the judgment of Bennier & Wilmart. After obtaining two executions which were returned unsatisfied, a third and last execution was issued and passed in the hands of the sheriff, and levy and sale made of five of the lots covered by the Trimble Company mortgage. Those five lots are for convenience placed in three groups: one, lot 2, block 35, Jamestown, is known as the feed mill property; lots 13 and 14, block 23, Lloyd’s Second Addition to Jamestown, will be hereinafter referred to as the Mell property; and lots one and two, block 25, Lloyd’s Second Addition, will be mentioned as the Sappenfield property. Upon the sale of this property under such execution, each of said tracts was separately offered for sale, and no bids being received therefor the three tracts were offered together, whereupon the W. B. S. Trimble [8]*8Company made a bid of $119.25, which was the exact amount necessary to satisfy said judgment and costs. This sale took place on the 22d of June, 1909. No redemption was made from this sale, and on the 23d of June, 1910, the Trimble Company applied for and received a sheriff’s deed to the three tracts aforesaid, and on the same day recorded it with the register of deeds of said county. They thus became the owner of all of the interest of said plaintiff in said tracts, subject only to the $1,000 mortgage aforesaid, unless plaintiff is able to establish his attack upon said sheriff’s deed, which will be treated later. The case was tried in the court below which resulted in findings of fact and conclusions of law adverse to the plaintiff, and he has appealed to this court demanding a trial de novo. Plaintiff states his position in his brief as follows: “The grounds of attack by plaintiff upon the sheriff’s deed issued to the defendants, W. B. S. Trimble Company, on June 23, 1910, are: (1) That the price for which the property was bid in by the Trimble Company at the sale was, in comparison with the actual value of the property, so grossly inadequate as to call for strict scrutiny of all proceedings leading up to, connected with, or following the sale; (2) that actual notice of the levy of the execution upon the property of the plaintiff, Past, was not given, and he did not know the property had been sold until a considerable time after the sheriff’s deed had been issued to the Trimble Company, this failure of notice resulting from the omission of the sheriff of Stutsman county to comply with his statutory duty of serving the plaintiff, Past, an execution debtor, with a copy of the execution and a notice of levy upon the property, and to serve the tenants occupying the different parcels of property with notice of levy; (3) fraud and collusion betwen the judgment creditors, Rennier & Wil mart, and the Trimble Company, the purchasers at the sale, with the end and purpose not of realizing the amount due upon the judgment, but of obtaining title by sheriff’s deed to plaintiff’s property.” We will consider those three attacks in the order mentioned.

(1) Appellant says: “While, under the great current of modern authority, inadequacy in price, however gross, in itself, is insufficient to warrant setting aside of a judicial sale, it is by universal holding a circumstance which courts will always regard with suspicion; and in cases where it appears, slight additional circumstances only are [9]*9required to authorize the setting aside of the sale.” This seems a fair statement of the rule, and we will examine the facts in this' case to determine whether or not there was such inadequacy of price that would throw suspicion upon the defendants’ conduct. As already stated, the three tracts sold to Trimble Company were covered by a $4,000 mortgage which necessarily was superior to the title acquired by the purchaser. True, this mortgage was also secured by seven and one-half other lots, but it would require care to prevent the mortgagee from throwing an unjust proportion of said encumbrance against the lots in question. Under those circumstances, the purchaser might have the possibility thrust upon him of paying nearly the entire encumbrance of $4,000 from those three tracts. There is no satisfactory testimony as to the market value of these three tracts, but a circumstance occurred which gives us some idea thereof. Toay, the assignee of the second mortgage, made an attempt to buy the interest of J. R, Trimble and the Trimble Company in the entire property covering the twelve and one-half lots. At that time Mr. Trimble told him that their mortgage with interest, taxes and insurance, together with the amount they had invested in the execution sale title, amounted to $6,300, and that he would assign the entire amount to him for a bonus of $2,000, which would mean that he was willing to transfer what rights and interests they had in the entire tract, including the first mortgage, for $8,300, and that he believed Toay would buy at that figure, and Mr. Toay refused this offer, but offered them $1,000, which would make the entire property worth, in his judgment, something over $7,300. Referring to the offer of Trimble, Toay says: “I was not willing to pay that sum. There would be nothing left for me at that figure. At that time I told Mr. McElroy that he was too high. I am positive as to the date of this conversation. It was along in the latter part of the year, about the first part of November, 1910.” Plaintiff himself testifies that the mill property was worth $2,500, the Mell property $1,500; and the Sappenfield property, $1,600, this of course, subject to the $4,000 mortgage. There is some other testimony, but none place the price so high as the plaintiff himself. Eor the purpose of this argument, we may assume that there was an equity in the three tracts sold upon execution after apportioning to them a fair share of the first mortgage, of, say, $1,000 to [10]*10■$2,000, tbe value placed on it by Toay.

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Bluebook (online)
151 N.W. 763, 30 N.D. 1, 1915 N.D. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/past-v-rennier-nd-1915.