Riley v. State Bank of De Pere

269 N.W. 722, 223 Wis. 16, 1936 Wisc. LEXIS 520
CourtWisconsin Supreme Court
DecidedNovember 10, 1936
StatusPublished
Cited by2 cases

This text of 269 N.W. 722 (Riley v. State Bank of De Pere) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riley v. State Bank of De Pere, 269 N.W. 722, 223 Wis. 16, 1936 Wisc. LEXIS 520 (Wis. 1936).

Opinion

Rosenberry, C. J.

Upon this appeal, the defendant contends that it is not liable and the judgment is erroneous for the following reasons: (1) That its liability was discharged by payment of the sum into court pursuant to judgment in garnishment in aid of execution against Edward Riley; (2) that in the event that garnishment proceeding is void, it is subrogated by the payment to the rights of the mortgagees; [20]*20(3) that it is protected by the judgment against the deposit entered after payment into court in the second garnishment action; (4) that the right of the plaintiff to recover is suspended because of the pendency of the garnishment proceeding in the second garnishment action; (5) that Edward Riley was guilty of laches and waived his right for four years by payment of the money into court; (6) that the defendant bank is not liable for more than sixty-five per cent of the deposit because of stabilization proceedings had and judgment therefore should’not have been entered in any event for the entire amount.

Attention should be called to the fact that this case was presented to the trial court upon an agreed statement of facts.

The parties entered into a written stipulation—

“that the above entitled action may be determined by the court upon the following statement of facts, and the original records in the cases heretofore tried and referred to herein: . . . ”

Further — “That the facts as revealed from the exhibits heretofore mentioned, and the pleadings on file, will constitute the record on which the court may determine the issues between the parties in this action.”

In the course of his argument counsel for the defendant makes certain contentions respecting the right of the plaintiff to attack collaterally the judgments already referred to. No such right was reserved in the stipulation, and it is considered that under the stipulation the rights of the parties must be determined upon the facts stipulated as if they had been found by special verdict. 2 Am. Jur., Agreed Case, p. 378, § 317, and cases cited. In this respect there is no difference between an agreed case and an agreed state of facts.

The stipulation was no doubt advisedly made. If the judgments were not subject to collateral attack they were subject to direct attack and the whole matter might properly be [21]*21determined in this action. Under the stipulation the matter of collateral attack drops out oí the case.

There can be no doubt that in an action to foreclose a real-estate mortgage where service of the summons is made by publication on a nonresident mortgagor the court has no jurisdiction to render a personal judgment against such mortgagor for deficiency. Pennoyer v. Neff (1877), 95 U. S. 714, 24 L. Ed. 565; Maxcy v. McCord (1904), 120 Wis. 571, 98 N. W. 529, 98 N. W. 923.

The circuit court for Brown county having no jurisdiction to render a judgment for deficiency in the foreclosure action, the judgment attempted to- be rendered therein was void and5 may be attacked collaterally. Pennoyer v. Neff, supra; O’Malley v. Fricke (1899), 104 Wis. 280, 80 N. W. 436.

The defendant argues that sec. 278.04, Stats., authorizes the uniting in a foreclosure action of a demand for a deficiency judgment with a demand for judgment of foreclosure; that sec. 262.12 (4) authorizes service by publication on the defendant in actions for the foreclosure of a mortgagé; that the two sections operate to give the court jurisdiction over the defendant personally. The defendant supports this contention by calling attention to Witter v. Neeves (1891), 78 Wis. 547, 47 N. W. 938, where it was held that a judgment for a deficiency was a bar to1 a subsequent action at law on the debt secured by the mortgage. In Witter v. Neeves there was personal service upon the defendant and the court had full jurisdiction. While sec. 262.12 (4) authorizes service by publication in actions to foreclose mortgages, it is beyond the power of the state to obtain jurisdiction of the person of the defendant beyond its borders, and it is so held by the supreme court of the United States in Haddock v. Haddock (1906), 201 U. S. 562, 26 Sup. Ct. 525, 50 L. Ed. 867.

Counsel contends that in Mutual Life Ins. Co. v. Pinner (1887), 43 N. J. Eq. 52, 10 Atl. 184, it was held that a defi[22]*22ciency judgment rendered in an action where service was had by publication was valid, but in that case appearance was entered on behalf of the absent defendant, and the question was whether or not that appearance should be set aside as not authorized, and it was held that the defendant was guilty of laches.

In the foreclosure action so far as the record discloses, the court had jurisdiction of the res and therefore jurisdiction to enter judgment of foreclosure, but it had no jurisdiction of the person of the defendant, and therefore no jurisdiction to enter a personal judgment for the deficiency. Apparently being of the view that the judgment for deficiency was at least questionable, the Magoons, assignees of the mortgagee, brought an action against Edward Riley and Adeline Riley, defendants, seeking to recover a personal judgment on the amount remaining due on the note after applying the proceeds of the sale on foreclosure. On November 23, 1931, the sheriff made his return “that the defendants could not be be found” and that they were residents of Chicago. Thereafter a verified complaint was filed setting out the facts relating to the deficiency, being the amount remaining due after the foreclosure sale. On December 10th, garnishment proceedings were begun against the defendant bank. An order for the publication of the summons was made December 11, 1931. An affidavit of mailing was made December 12, 1931. The summons in garnishment was served November 30, 1931.

Sec. 267.06, Stats. 1931, provides that the garnishee summons and annexed affidavit shall be served on the garnishee and upon the defendant, and except where service of the summons in the action is made without the state or by publication and provides:

“Unless the garnishee summons be so served on the defendant or his attorney or the proof of service on the garnishee show that, after due diligence, such service cannot be [23]*23made within the state, the service on the garnishee shall become void and of no effect from the beginning.”

The garnishee summons was served upon the garnishee defendant bank, and the return of the deputy sheriff who served it makes no reference to the service of a garnishee summons on the defendant, nor does he certify that such service cannot be made within the state. This defect in the return operates to deprive the court of jurisdiction if any it had acquired theretofore. Smith, Thorndike & Brown Co. v. Mutual Fire Ins. Co. (1901), 110 Wis. 602, 86 N. W. 241; Morawets v. Sun Insurance Office (1897), 96 Wis. 175, 71 N. W. 109. An attempt was made to help> out the situation by having the sheriff file an affidavit on December 11, 1931, to the effect that the affidavit and summons in garnishment were delivered to him for service on November 20th; that he has used due diligence to' find the defendants, Edward Riley and Adeline Riley, etc. The statute makes no provision for an affidavit.

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

Related

State v. Ivy
341 N.W.2d 408 (Court of Appeals of Wisconsin, 1983)
Mahrle v. Engle
53 N.W.2d 176 (Wisconsin Supreme Court, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
269 N.W. 722, 223 Wis. 16, 1936 Wisc. LEXIS 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-state-bank-of-de-pere-wis-1936.