Rauer's Collection Co. v. Higgins

196 P.2d 803, 87 Cal. App. 2d 248, 1948 Cal. App. LEXIS 1320
CourtCalifornia Court of Appeal
DecidedAugust 20, 1948
DocketCiv. No. 13765
StatusPublished
Cited by54 cases

This text of 196 P.2d 803 (Rauer's Collection Co. v. Higgins) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rauer's Collection Co. v. Higgins, 196 P.2d 803, 87 Cal. App. 2d 248, 1948 Cal. App. LEXIS 1320 (Cal. Ct. App. 1948).

Opinion

BRAY, J.

The superior court made an “Order Denying Petition to Levy Execution on Homestead” in a proceeding brought under the provisions of sections 1245 to 1258, inclusive, of the Civil Code. The petitioner therein appeals. The questions raised concern the effect of a certain declaration of homestead upon the property of respondents, who at all times herein mentioned were, and are, husband and wife.

In 1937, respondents Claude C. Higgins and Anna Higgins purchased with community funds certain real property in San Mateo County. The deed, dated July 28, 1937, and recorded December 4, 1937, conveyed the property to them as joint tenants, with the right of survivorship. Thereafter and on August 14, 1939, both respondents signed, and on August 15th recorded, a declaration of homestead on this property. The declaration states that Claude Higgins and Anna Higgins are husband and wifethat Claude is the head of a family, consisting of himself, his said wife, and their three minor children, all actually residing on the land (describing it); that it [251]*251is their intention to use it as a home, and that they claim it, together with the dwelling house thereon, as a homestead; that the actual cash value of the premises is estimated to he $4,500; and that all of it is necessary for the use and enjoyment of the homestead; “That the character of said property sought to be homesteaded is as follows: That the said real property is the Community property in Joint-Tenancy of the Declarants. . . .” (Emphasis added.) No attack is made upon the validity of the declaration.

In 1940, petitioner, on an assigned claim, brought suit in the Superior Court of San Mateo County against respondent Claude Higgins. On December 10,1945, judgment for approximately $950 was rendered in favor of petitioner and against Claude. On appeal to this court, the judgment was affirmed.1 On February 6, 1946, an abstract of the judgment was recorded in San Mateo County, and on July 16, 1947, execution was levied by the sheriff on the homesteaded property. The same day, petitioner, pursuant to the provisions of section 1245 of the Civil Code, applied to the superior court for the appointment of appraisers to value the property. Respondent Anna Higgins appeared and answered the petition, setting forth that she was not a party to the judgment; that the property was held in joint tenancy by her and Claude; that its value was less than $6,000; that it could not be divided without material injury to it; and asked that the petition be denied.

The court duly appointed three appraisers. On September 23, 1947, their reports were filed. They found that there were no liens or encumbrances of record and that the property could not be divided without material injury. No challenge of these findings is made. Two of the appraisers valued the property at $5,850, the third at $4,775. On September 29th, petitioner moved the court to adopt the majority report of the appraisers and to direct a sale of the property under the writ of execution. This motion was resisted by respondent Anna. The court, in its order, found that the property was held in joint tenancy and “that the actual cash value of said real property is less than $6000.” It then denied the petition.

Amount op Exemption

The first question to be determined is the amount of homestead exemption to be allowed. In 1939, when the homestead was declared, section 1260 of the Civil Code provided that [252]*252the homestead exemption of the head of a family was $5,000 over liens and encumbrances at the time of any levy. In 1945, section 1260 was amended to allow an exemption of $6,000. Respondents contend, and the court apparently agreed, that the exemption to be applied is that of the date of recording the abstract of judgment, or $6,000. Petitioner contends that it is that of the date of incurring the indebtedness. The record on this appeal fails to disclose the date of the incurring of the indebtedness upon which this litigation is based. However, in the record before this court in the former appeal (see footnote, p. 324) of which record this court may take judicial notice, the trial court found that an account was stated between the parties on June 2, 1939. At that time, as well as at the time of recording the declaration and in fact ever since 1872, the amount of homestead exemption for the head of a family was $5,000.

The question of the effect as to creditors then existing of an increase in the amount of the statutory homestead exemption has not been passed upon heretofore in this state. In the case of Cohen v. Davis, 20 Cal. 187, the court was considering the effect of an amendment in 1860 of the homestead laws of 1851. It held that to avail himself of the provisions of the later act it was necessary for an owner who had previously filed a declaration of homestead to file a new one after the 1860 act took effect, and that as the owner had failed to file such new declaration, his rights were measured by the earlier act. Gluckauf v. Bliven, 23 Cal. 312, is to the same effect. The holdings in both cases, however, are based upon the express wording of the act, which, in effect, stated that all persons holding homesteads had one year in which to file the new declaration of homestead provided by the act.

In McNabb v. Byrnes, 92 Cal.App. 337 [268 P. 428], the court was considering a complaint based upon a declaration of homestead made in 1922. Objection was made that the declaration did not contain a statement that no former declaration of homestead had been made by the parties. In 1927, section 1263 of the Civil Code had been amended providing a new subdivision (5) which permitted such a statement to be made in the declaration. After holding that this was not a mandatory requirement, the court held that subdivision (5), which had been added after the declaration of homestead had been recorded, was “not retroactive in its effect.” (P. 342.)

[253]*253That the increase in exemption cannot be given a retroactive interpretation, as it would be an impairment of the obligation of contracts, and that the creditor is entitled to rely upon the exemption statutes as of the time the obligation was incurred, is well established. Medical Finance Assn. v. Wood, 20 Cal.App.2d Supp. 749 [63 P.2d 1219], and Smith v. Hume, 29 Cal.App.2d Supp. 747 [74 P.2d 566], dealt with the enactment in 1935 of section 690.24 of the Code of Civil Procedure, making a motor vehicle of a value less than $100 exempt from execution. No such exemption had theretofore existed. In both cases it was held that to give a retroactive effect to this statute would be in violation of the state and federal Constitutions, as it would impair the obligation of contracts.

In The Queen, 93 F. 834, it was held that a California statute exempting from execution seamen’s wages not exceeding $100, “as applied to previous contracts made with seamen, at a time when no such exemption is allowed, would materially lessen and impair the obligation of such contracts.” (P. 837.) See also In re Fox, 16 F.Supp. 320, and Waples on Homestead and Exemption (1892), pp. 227-229.

“ ‘It is settled that every statute will be construed to operate prospectively unless the legislative intent to the contrary is clearly expressed. . . .

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Bluebook (online)
196 P.2d 803, 87 Cal. App. 2d 248, 1948 Cal. App. LEXIS 1320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rauers-collection-co-v-higgins-calctapp-1948.