Producers' State Bank of Wilson v. Clark

1924 OK 680, 228 P. 986, 102 Okla. 181, 1924 Okla. LEXIS 164
CourtSupreme Court of Oklahoma
DecidedSeptember 9, 1924
Docket14595
StatusPublished
Cited by6 cases

This text of 1924 OK 680 (Producers' State Bank of Wilson v. Clark) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Producers' State Bank of Wilson v. Clark, 1924 OK 680, 228 P. 986, 102 Okla. 181, 1924 Okla. LEXIS 164 (Okla. 1924).

Opinion

LÍDICK, J.

The suit in which this proceeding arose was instituted by the Producers’ State Bank of Wilson, Okla., against Arch Clark in the district court of Carter county, and default judgment was rendered therein on the 29th day of September, 1922, in favor of the plaintiff. On the 26th day of February, 1923, execution was issued, under which certain real property was levied upon and sold. Thereafter, and on March 5, 1923, Walter Hodges, as trustee for the use and benefit of the City State Bank of Wilson, Okla., filed objection to the confirmation of the sale under said execution in so far as it affected lots 16, 17, 18, and 19, of block 26 of the town of Wilson, to which motion the Producers’ State Bank, appellant herein, responded, asking that same be denied. The motion was heard by the court on April 5, 1923, and the court decreed that the sale should not be confirmed as to the lots above described. Thereafter the plaintiff filed motion for new trial, which was overruled. Plaintiff brings the case here on appeal by petition in error with case-made attached.

It appears that these lots were originally owned by one J. B, Cudd. In November, 1919. Cudd agreed to sell the lots to the defendant, Arch Clark. Cudd and wdfe executed a deed to Clark, conveying the lots in controversy, and then, in company with Clark Cudd went to the City State Bank of Wilson, of which Walter Hodges was president. ' That bank then and there advanced to Arch Clark sufficient money to pay for these lots: Clark gave his check to Cudd for the purchase price. The deed executed by Cudd was left in the bank and never recorded. Sometime thereafter Arch Clark and his wife executed a mortgage to that bank, to wit, the City State Bank of Wilson, Okla., to secure this money and other sums advanced for the purchase of houses which were moved upon the lots. This mortgage was never recorded, but was held at this bank, together with the deed from Cudd to Clark. Clark took possession of the property. Cudd at that time parted with all control over the deed and the property and never thereafter asserted any interest therein.

On November 3, 1923, and after the Producers’ State Bank obtained its judgment against Clark, the City State Bank of Wilson, which had in its possession the deed made by Cudd to Clark and which then also held and claimed a lien under the mortgage given by Clark unto it, proceeded, without formally relinquishing its claim under this mortgage, to obtain and did obtain from Cudd a deed purporting to convey the lots in controversy from Cudd and wife to Walter Hodges, as trustee for the City State Bank of Wilson, of which he was president. This bank never did obtain a deed from Clark and no act was done by which the parties or any of them undertook to cancel the title conveyed by Cudd to Clark, as aforesaid, or' to have Clark relinquish his claims thereunder.

In the motion filed by Walter Hodges, as trustee for the City State Bank, he alleged that the premises were in fact owned by the City State Bank of Wilson by virtue of this trust deed'from Cudd to Hodges, as trustee of said bank, said trust deed having been executed some six weeks after the judgment was rendered in favor of the Producers’ State Bank, as aforesaid. He claimed the right to file this motion as trustee for the City State Bank of Wilson by virtue of section 211, Comp. Stat. 1921, which, in part, reads as follows;

“An executor, administrator, guardian, trustee of an express trust, a person with whom, or in whose name, a contract is made for the benefit of another, or a person expressly authorized by statute, may bring an action without joining with him the person for whose benefit it is prosecuted.”

In his motion, and at all times during the trial, he ascertained and appeared to have no authority as trustee for the bank, except as the holder for the benefit of the bank of whatever title he may have acquired by virtue of this trust deed. His pleading is, in fact, so indefinite as to whether he appears individually or as trustee, it is almost an act of grace to hold that he is in court even as trustee for the bank. The City State Bank of Wilson filed no pleading or motion in the case and made no appearance in the case, except so far as its trustee represented it in presenting its claims under this trust deed.

The case went to trial upon the objection to cqnfirmation of sale made by Hodges in his capacity of trustee aforesaid, and upon the response thereto filed by the Producers’ State Bank. During the trial Hodges, *183 through Lis attorney, appeared to overlook tire fact that the City State .Bank was not a party to the proceedings. The court rendered judgment sustaining what it termed the objections of the City State Bank, although the objections were in fact only those of the trustee asserted for the benefit of the Dank. The journal entry of judgment is so uncertain as to whether the City State Bank had obtained a judgment in its own name that the Producers’ State Bank, on appealing the ease to this court, names the City State Bank in its petition in error as a defendant in error here.

Appellant first contends that the court ■was without jurisdiction to entertain the motion objecting to the confirmation of sale interposed by Walter Hodges for the benefit of the bank on the grounds that neither he nor the bank were parties to the original action between the Producers’ State Bank and Clark. This contention is set at rest by reference to the case of Sparks v. City National Bank, 21 Okla. 827, 97 Pac. 575, wherein this court held, in an opinion by Mr. Justice Turner:

"Where land has been sold on execution, any person claiming to be the owner thereof and interested in defeating the sale, may, although not a party to the suit, move the court to set aside such sale.”

We do not deem it advisable to change this established practice no matter how reluctant we might be to approve it were the question first presented at this time. It must be observed, however, that under such procedure the court’s decree affects only those persons who are parties to the suit or who involuntarily appear and join in the action. Appellant likewise contends that on authority of Johnson v. Filtsch, 37 Okla. 510, 138 Pac. 165 (on rehearing, 47 Okla. 64, 138 Pac. 806), and Jefferson v. Gallagher, 56 Okla. 405, 150 Pac. 1070, Walter Hodges, as trustee of the bank, had no right to enter on behalf of the bank his objections to the confirmation. Walter Hodges in his pleadings specifically stated that the deed was taken for the use and benefit of the City State Bank, and his motion was filed in his capacity as trustee. As we shall hold the deed to be a nullity, we need not pass upon the question as to whether the cestui que trust should have been made a party to these proceedings where the trustee was claiming the right to proceed under section 211, Comp. Stat. 1921.

We are unable to determine from the record on exactly what theory the lower court reached its conclusions that the sale could not be confirmed. We are not willing to adopt or approve the theories advanced by counsel for defendant in error in their briefs. The testimony of the witnesses produced by Walter Hodges, trustee, conclusively shows that J. B. Cudd abandoned, tranferred, conveyed, and relinquished all his right, title, interest, and estate in these lots in 1919, when he executed a deed to Arch Clark and received from Arch Clark, the defendant herein, the purchase price agreed upon.

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Bluebook (online)
1924 OK 680, 228 P. 986, 102 Okla. 181, 1924 Okla. LEXIS 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/producers-state-bank-of-wilson-v-clark-okla-1924.