Racho v. Woeste

9 N.W.2d 827, 305 Mich. 522, 1943 Mich. LEXIS 405
CourtMichigan Supreme Court
DecidedJune 7, 1943
DocketDocket No. 73, Calendar No. 41,908.
StatusPublished

This text of 9 N.W.2d 827 (Racho v. Woeste) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Racho v. Woeste, 9 N.W.2d 827, 305 Mich. 522, 1943 Mich. LEXIS 405 (Mich. 1943).

Opinions

Starr, J.

This case involves a complicated series of events, transactions, and litigation extending over a period of about 14 years. On May 6, 1926, Howard Racho, while driving an automobile owned by his mother, plaintiff Sophia Racho, was involved in an automobile accident in which defendant Antolina Woeste sustained serious injuries. In April, *524 1927, defendants Antolina Woeste and her husband John Woeste, by their attorney, defendant John H. Flancher, began separate law actions against plaintiff Sophia Racho and her son Howard to recover damages resulting from such accident. At the time such suits were instituted, Howard was in State’s prison, and they were later dismissed as to him. In September, 1927, Sophia Racho was defaulted in each suit for failing to appear and plead. On February 5) 1930, Antolina Woeste obtained a default judgment for $15,000 and her husband, John Woeste, a default judgment for $5,000 against Sophia Racho. The validity of such default judgments is one of the principal questions in the present case.

In March, 1931, executions were issued on both judgments and levied on 76 acres of land in Taylor township, Wayne county, then owned by Sophia Racho, defendant in such law actions and plaintiff in the present chancery action. On May 8, 1931, defendant Archie Montrie purchased from defendants John and Antolina Woeste the law judgments which they had obtained against Sophia Racho, and received written assignment thereof. For such assignment Montrie paid the Woestes' $500 in cash and agreed to pay their doctor’s bill in the amount of $100 and also the bill of their attorney, defendant Flancher. At the execution sale on May 16, 1931, defendant Montrie purchased the Sophia Racho land for $8,000, which sum was paid by crediting the same on the two judgments.

On May 14, 1932, plaintiffs Racho and her daughter Leola Nelson began the present chancery suit against defendants Archie Montrie, John Woeste, and Antolina Woeste, and notice Us pendens was filed in the office of the register of deeds. In their bill plaintiffs alleged ‘ ‘fraud, collusion and conspir *525 acy” in the obtaining of the two default law judgments and in the execution sale of the lands; and that defendant Montrie had purchased the "Woeste judgments and also the land at the execution sale, as agent and trustee for plaintiff Bacho. In their bill plaintiffs asked that an accounting be had between plaintiffs and Montrie; and that plaintiffs’ title to the land “be quieted and the clouds removed therefrom.” On June 2, 1932, defendant Montrie filed answer denying that he purchased either the Woeste judgments or the land at the execution sale as agent for plaintiff Bacho and alleging that he purchased such judgments and land “for his own use and benefit” and that he was the owner thereof.

At about this point (June, 1932) there intervened a series of transactions and other litigation, extending over a period of several years, which later became involved in the present case. On June 23, 1932, defendants Woeste entered into a written agreement with Steve Kaszebski, whereby he was to collect the two default judgments from plaintiff Bacho, and to receive for his services 50 per cent, of the amount collected. In May, 1935, defendants Woeste conveyed a % interest in the Bacho land to said Steve Kaszebski and Katherine Kaszebski, his wife, and in' May, 1936, Kaszebski conveyed his interest in the land to his wife. It also appears that Kaszebski mortgaged his interest in the land to one Bernice Mazol for $200. In May, 1935, defendants Woeste also conveyed a % interest in the Bacho land to Mike Kushner and Dora Kushner, his wife, in trade or exchange for an 80-acre farm located in Tuscola county which, according to the trial court’s opinion in the present case, was worth $3,000.

On July 15,1932, defendants Woeste began a chancery action against defendant Montrie, his wife *526 Edna, and defendant John Flancher, to vacate and set aside their May 8, 1931, assignment to Montrie of their two default judgments. In January, 1933, a decree was entered in the chancery action setting aside such assignment, and.in pursuance of such decree Montrie and wife reconveyed the land in question to the Woestes. By such decree Montrie was given a lien on the land for the repayment of certain advances in the amount of $650. Such decree further determined that the Woestes were indebted to defendant Flancher in the amoupt of $1,000 for legal services and expenses and “that such sum should be payable from the proceeds of the sale of the land.

In January, 1937, Steve Kaszebski and Katherine Kaszebski, his wife, and Mike Kushner and Dora Kushner, his wife, were impleaded as parties defendant in the present case. John Flancher also intervened as a party defendant and cross plaintiff. During the proceedings attorney Ezra Frye, representing defendants Woeste, Kushner, and Kaszebski, filed notice claiming an attorney’s lien.

In January, 1937, plaintiffs filed amended bill of complaint alleging that Leola Nelson was joined as a party plaintiff because her mother, plaintiff Racho, had transferred the land in question to her; that the two default law judgments were “fraudulently excessive” and were obtained by defendants Woeste through fraud, collusion, and conspiracy; also that such law judgments were void because the circuit judge trying such cases did not hear the testimony taken. In their amended bill plaintiffs charged, in effect, that the execution sale was irregular and void; th^t plaintiffs’ record title to the land was clouded by the levy of executions and the execution sale; and that defendants Kushner and wife and Kaszebski and wife acquired their claimed interest *527 in the land subsequent to the filing of notice lis pen-dens. Plaintiffs asked that an accounting be decreed with defendant Montrie; that the default judgments taken by defendants Woeste against plaintiff Bacho be declared void; and that plaintiffs’ title to the land in question be quieted and the clouds removed therefrom.

Defendants’ motion to dismiss plaintiffs’ bill and amended bill was denied, and all defendants filed answers. The case was tried in July, 1940, before the same circuit judge who had entered the Woestes’ default judgments against plaintiff Bacho in February, 1930, and who had entered the decree in the chancery suit of defendants Woeste against defendants Montrie and Flancher in January, 1933. The trial court’s opinion stated in part:

“The present status of the title has evolved from five law suits contributing directly or indirectly to the confusion. * * *
“It (present case) is further complicated by the hopes of the parties involved that they could salvage ’á substantial investment in a farm in Taylor township, worth in the good old days $100 an acre, sold in the boom days for $1,000 an acre, and now settled back to approximately its original value. * * *
“On May 6,1926, plaintiff, Sophia Bacho, was the owner of the above-described real estate. She was also the owner of a Ford car, which on that date and while driven by her son, Howard Bacho, who lived with her, struck and injured Mrs. Antolina Woeste. Both of'Mrs.

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Bluebook (online)
9 N.W.2d 827, 305 Mich. 522, 1943 Mich. LEXIS 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/racho-v-woeste-mich-1943.