Peoples Bank of Philippi v. Cain

148 S.E. 107, 107 W. Va. 309, 1929 W. Va. LEXIS 84
CourtWest Virginia Supreme Court
DecidedApril 30, 1929
Docket6122
StatusPublished
Cited by3 cases

This text of 148 S.E. 107 (Peoples Bank of Philippi v. Cain) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoples Bank of Philippi v. Cain, 148 S.E. 107, 107 W. Va. 309, 1929 W. Va. LEXIS 84 (W. Va. 1929).

Opinion

Lively, Judge:

Plaintiff below, hereinafter referred to as plaintiff, filed its bill against appellant as administratrix of the estate of Patrick Cain and in her own right, and other heirs, as a creditor of the estate.'

*310 Tbe suit is by a creditor for itself and all other creditors against tbe administratrix and tbe heirs and distributees for tbe purpose of settling up the administration, selling tbe real estate of decedent, and. paying tbe indebtedness. An amended bill avers that tbe estate is indebted to plaintiff in tbe sum of $304.50 reduced to judgment in tbe lifetime of decedent; that decedent bad no personal property at tbe time of bis death; that be owned a parcel of real estate in tbe county consisting of 69.120 acres; that defendants, naming them, are tbe heirs; that Ann Cain qualified as administratrix in June, 1924, and is now acting as such; and prays for a settlement of her administration accounts; tbe ascertainment of tbe debts and their priorities; tbe real estate owned and possessed by Patrick Cain; tbe stating of all proper accounts; and for general relief. Tbe printed record does not show when tbe bill was filed; but by an order of January term, 1926, tbe bill was taken as confessed by all defendants and tbe cause was referred to a master commissioner who was required to ascertain tbe real estate, tbe rental value thereof, tbe liens against tbe same in their order of dignity and priority, and to settle tbe accounts of tbe administratrix. The commissioner later reported (report filed April 12, 1926), that Patrick Cain at tbe time of bis death owned an undivided one-half interest in a tract of 69.120 acres in Union District, with an annual rental value of $12.50; that plaintiff bad tbe first lien thereon for $346.83; and Citizens National Bank of Philippi bad tbe second lien thereon- for $313.65. He further reported that tbe administratrix, though summoned to appear and settle her accounts, bad failed to do so, and therefore be could report no settlement. Later (impossible to say on what date from the printed record) tbe cause was recommitted to tbe commissioner for tbe purpose of settling tbe accounts of tbe administratrix and a rule awarded against her to show cause why she should not appear before him and settle. Tbe commissioner reported on August 27, 1926, failure to get her to make settlement. However, tbe master commissioner by report of October 23, 1926, showed a settlement of her accounts before him in which she bad remaining in her bands tbe sum of $7.61 which she claimed as commissions. At tbe *311 following term, by decree entered February 11, 1927, there being no exceptions thereto, the report was confirmed. Plaintiff’s debt and Citizens National Bank’s debt were decreed to be liens on the one-half undivided interest of decedent in the land. A special commissioner was directed to sell the interest in the land after notice and by way of public auction. At this term of court and prior to the entry of this decree, defendant, Ann Cain, as administratrix, and in her own right, tendered and filed her separate demurrer and answer to the bill. The demurrer says that the suit was brought by plaintiff within one year after respondent had qualified as administratrix, and therefore should be dismissed as prematurely brought; and that the execution on plaintiff’s judgment set up in the bill was improperly issued and returned, therefore no suit could be predicated thereon. The answer says that respondent’s decedent, Patrick Cain, was surety only on plaintiff’s debt, and that plaintiff’s remedy should first be against the principal in that debt, Julia Maloy. The answer denies the validity of a judgment in favor of Wm. Post, but says if that judgment is valid, it is one of suretyship for Julia Maloy and Ambrose Maloy, principals, and Post’s remedy should first be exhausted against said principals. There is a paragraph in the answer denying all the allegations of the bill not admitted to be true, and calls for full proof. The Wm. Post claim, referred to in the answer, came into the case at that term by a petition by Post in which he set up a judgment in favor of Trader’s National Bank of Bnckhannon against Ambrose Maloy, Pat Cain, Annie Cain and William Post rendered by the Upshur county circuit court April 22, 1924, for $203.89 and costs, which petitioner avers he had paid, and which had been assigned to him by the judgment creditor. Post asked to be made a party to the creditors’ suit and prayed for a decree in his favor as a first lienor on the land, and accompanied his petition by affidavit that prior to that time he had no knowledge of the pendency of this creditors’ suit. Upon the coming in of this petition, and the answer to plaintiff’s bill, the court took the case upon the bill and exhibits, the demurrer and answer, the commissioner’s report to which no exceptions were filed, *312 tbe proceedings theretofore had and orders entered; and rendered the decree of February 11, 1927, complained of by this appeal. The decree overruled the demurrer, confirmed the report, reserved for future determination the question of priority of ¥m. Post’s alleged judgment lien for the coming in of evidence thereon to be taken by the parties — the right to take which evidence was expressly reserved to them. The decree ordered sale of the land. Later, on May 26, 1927, Ann Cain in her own right moved the court to set aside its decree of February 11, 1927, notice of which motion had been given, and the notice docketed on April 14, 1927, the ground being that the liens on the land decreed to be sold had not been fixed in their amounts and priorities. This motion was denied.

By this appeal the decree of February 11, 1927, and the order of May 26, 1927, refusing to set that decree aside, are sought to be declared erroneous and to be reversed and annulled. The main ground relied' upon for reversal is the failure of the court to ascertain the liens on the land in the order of their dignities and priorities before ordering sale of the land. It is a very firmly settled rule of chancery procedure that real estate 'should not be sold to satisfy liens thereon without first ascertaining the amounts of each and fixing them in the order of their dignity and priority. It is error not to do so. The reason for the rule is that if the liens be not ascertained in their order of payment it has a tendency to discourage the creditors from bidding in order to protect their respective liens. Coles, Adm’r. v. M’Rae, 6 Rand. (Va.) 644; Iaege v. Bossieux, 15 Grat. (Va.) 83; Anderson v. Nagle, 12 W. Va. 98; Parsons v. Thornburg, 17 W. Va. 356.

There was error in the decree in this regard; but wherein is appellant, Ann Cain, prejudiced thereby? It may be said that the reason for the rule fixing priority of liens is for her benefit both as administratrix and in her own right, for by following the rule, the land would likely bring a better price at the sale. However that may be, the record shows that the land was actually sold on May 9, 1927, by the special commissioner to Isaac Mitchell for $475.00 cash, report having been duly made thereof to court and that report confirmed *313 without objection or exception; and a deed directed to be made to tbe purchaser.

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Bluebook (online)
148 S.E. 107, 107 W. Va. 309, 1929 W. Va. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-bank-of-philippi-v-cain-wva-1929.