Richardson v. South Florida Mortgage Co.

136 So. 393, 102 Fla. 313
CourtSupreme Court of Florida
DecidedJuly 1, 1931
StatusPublished
Cited by11 cases

This text of 136 So. 393 (Richardson v. South Florida Mortgage Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richardson v. South Florida Mortgage Co., 136 So. 393, 102 Fla. 313 (Fla. 1931).

Opinion

Ellis, J.

— It appears from the record in this case that Horace J. Richardson and wife on May 1, 1925, executed to “South Florida Mortgage Company, Trustee” five coupon notes aggregating the sum of forty-five thousand dollars and on the same day executed and delivered to “South Florida Mortgage Company as Trustee,” a mortgage upon certain “Miami Beach Improvement Com *315 pany’s Ocean Front” property to secure the payment of the notes and interest accumulating thereon.

The first four notes for five thousand dollars each were payable respectively on the first day of May 1926, 1927, 1928 and 1929 and the fifth note in the sum of twenty-five thousand dollars was payable on the first of May, 1930.

The mortgage contained an acceleration clause. On the 20th day of February, 1928, the South Florida Mortgage Company began its suit to enforce the mortgage lien. On April 6, 1928, a petition was filed by Eugene H. Iglehart and Richard L. Lowther as receivers of J. F. Wild & Company, a banking corporation of the State of Indiana, which had suspended, for intervention and substitution of themselves as Receivers of the suspended bank in Indiana as complainants instead of South Florida Mortgage Company, in which petition it was alleged that the South Florida Mortgage Company had on March 3, 1928 assigned to the petitioners all right, title and interest in the mortgage indebtedness “by an assignment of mortgage” to them. The petitioners then alleged that they were the owners and holders of the notes and mortgage and asked to be permitted to file a supplemental bill.

On April 12, 1928, the supplemental bill was filed. The complainants claim that as Receivers of J. F. Wild & Company, the banking corporation of Indiana, and by virtue of the assignment to them of the mortgage indebtedness and mortgage they are entitled to the same relief to'which the originally named complainant, the South Florida Mortgage Company as Trustee, was entitled, that is to say, to an accounting of the amount due, payment to them of that amount and sale of the property on default. But the record discloses that the South Florida Mortgage Company was a mere holding agency for J. F. Wild & Company of the indebtedness and security, had *316 never had any beneficial interest in the indebtedness, therefore could transfer none to the Receivers and further that the South Florida Mortgage Company does not appear to have been authorized under the laws of this State to transact business as a Trust Company. See Chapter 8531 Laws 1921; Chapter 9287 Laws 1923; Section 6145 C. G. L. 1927; Section '6061 C. G. L. 1927; Sec. 4185 R. G. S. 1920 (6126 C. G. L. 1927).

The real party in interest was J. F. "Wild & Company and the suit should have been begun by that corporation, Section 4201 C. G. L. 1927, in view of the doubtful, if indeed not certain lack of authority of the South Florida Mortgage Company to maintain the suit in its own name.

The South Florida Mortgage Company attempted in violation of law to become a trustee for Wild & Company in the transaction with Richardson and wife. The Mortgage Company had no interest in the debt of any character, had no power to act as trustee and had no interest or title to the securities to convey or transfer to the Receivers of Wild & Company.

When the Receivers intervened Wild & Company had become defunct as a banking corporation and the receivers had been appointed by an Indiana Probate Court and such appointment expressly authorized the Receivers to take possession of property of the defunct bank “wherever the same may be found” and to institute suits as Receivers in the discharge of their duties.

An answer to the supplemental bill was interposed by the Richardsons which did not deny the indebtedness but questioned the right or authority of the Receivers to maintain the suit. Reference was made to a master who made her report in September, 1928, in which it was declared that the allegations of the supplemental bill were sustained, that the amount of the indebtedness, including interest, was $52,582.59, and that reasonable solicitor’s fees would be $2,250. and recommended that a decree be entered accordingly.

*317 Exceptions were duly filed to the report in which the questions of the court’s jurisdiction, the authority of the Receivers to maintain the suit or the South Florida Mortgage Company to do so and the correctness of the allowance of $2,250. as solicitor’s fees were presented. There is no allegation whatsoever nor prayer in the so-called supplemental bill to support a decree for solicitor’s fees unless the original bill may be read in connection with it, and even in that case the allegation concerning the employment of counsel and the obligation to pay reasonable attorney’s fees related only to the South Florida Mortgage Company. Its obligation in that regard may not with any degree of certainty be said to be that of the Banking Company or that of the Court’s Receivers. It is essential to good pleading to allege definitely that the complainant in a foreclosure proceeding has employed counsel and agreed to pay either a sum certain or reasonable fees to be ascertained by the court for the service to be rendered. The obligation to pay should appear to be definite, certain as to amount then fixed or to be ascertained by the court. The agreement to pay attorney’s fees is an indemnity and will be so treated, not as a means for exploiting the services of counsel to the advantage of a shrewd complainant in the suit who may be the creditor or one.who has succeeded to his rights. See Reid v. Murrell, ... Fla. ..., 130 South. Rep. 713; Close v. Webster, ...Fla. ..., 132 South. Rep. 814; Britt v. First Nat. Bank, 97 Fla. 284, 120 South. Rep. 554; Holmes v. Dunning, ... Fla. . .., 133 South. Rep. 557; Szold v. Siekler, . . Fla. ., 133 South. Rep. 559; Berns v. Harrison, . . Fla. . . , 131 South. Rep. 654.

The South Florida Mortgage Company had no standing-in court as a complainant in the foreclosure proceedings not only because it had no interest in the subject matter of the suit and was therefore not a proper party, see Bridger v. Thrasher, 22 Fla. 383, but it was forbidden by law to act in the capacity of final agent or trustee for *318 any corporation or to take, accept, and execute any trust and powers whatsoever. See Sec. 6154, C. G. L., supra.

The Receivers for Wild & Company were appointed more than five months before the South Florida Mortgage Company exhibited its bill to enforce the mortgage lien, Which is another reason why the South Florida Mortgage Company should not have attempted in its own name as ‘ ‘ Trustee ’ ’ to commence the suit without at least disclosing the facts in the case. Such conduct was not in good faith with the Court for reasons that will later be disclosed and which relate to the interests of possible creditors of Wild & Company in this State. So the South Florida Mortgage Company, undertaking to do a trust business in violation of law, sought to maintain litigation under circumstances which could not be said to square with a course of good faith toward the court and with persons who might be interested in the litigation or the result of it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Edelsten v. Mawardi
137 So. 3d 459 (District Court of Appeal of Florida, 2014)
O'NEAL v. General Motors Corp.
841 F. Supp. 391 (M.D. Florida, 1993)
Metropolitan Inv. Corp. v. Buchler
575 So. 2d 262 (District Court of Appeal of Florida, 1991)
BELLE ISLAND INV. CO., LTD v. Feingold
453 So. 2d 1143 (District Court of Appeal of Florida, 1984)
Gadd v. Pearson
351 F. Supp. 895 (M.D. Florida, 1972)
Cleveland Mortgage & Investment Co. v. Gage
198 So. 677 (Supreme Court of Florida, 1940)
Taylor, Et. Ux. v. the Toledo Trust Co.
160 So. 366 (Supreme Court of Florida, 1934)
Crichlow v. Maryland Casualty Co.
156 So. 440 (Supreme Court of Florida, 1933)
Davant v. City of Brooksville
144 So. 666 (Supreme Court of Florida, 1932)
Clark v. South Florida Mortgage Co.
143 So. 124 (Supreme Court of Florida, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
136 So. 393, 102 Fla. 313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-v-south-florida-mortgage-co-fla-1931.