S. N. Castle Estate, Ltd. v. Haneberg

20 Haw. 123
CourtHawaii Supreme Court
DecidedApril 11, 1910
StatusPublished
Cited by6 cases

This text of 20 Haw. 123 (S. N. Castle Estate, Ltd. v. Haneberg) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. N. Castle Estate, Ltd. v. Haneberg, 20 Haw. 123 (haw 1910).

Opinion

OPINION OP THE COURT BY

DE BOLT, J.

This is an appeal by plaintiffs from a decree of a circuit judge of the first circuit sustaining defendants’ demurrers and dismissing plaintiffs’ bill.

The facts alleged in the bill, so far as they are material to the questions arising upon the demurrers, are, in substance, as follows:

That on May 1, 1884, one Lee Ahlo, to secure the payment of $5000 executed to W. R. Castle, trustee, a mortgage covering “all of that certain rice plantation at Kaneohe, Oahu, with the property connected set forth in the annexed schedule; also all the cane and rice business of mortgagor at ILeeia, noted more fully in the annexed schedule forming a part of this mortgage;” that the schedule referred to contains a list of twenty-seven leaseholds, together with the following:

“And also the agreement and all rights, privileges and benefits pertaining to said agreement aforesaid.”

“All crops, growing or to be grown' on any and all parts of the premises demised as aforesaid and all additions and accretions thereto or connected therewith or to be therewith connected during the continuance hereof, all working animals, all tools and implements now there or to be thereon placed, during the existence hereof and all other species of property part and parcel thereof or to become parcel thereof as aforesaid.”

That this mortgage was duly recorded May 31, 1884; that from the date of the mortgage until his death, July 3, 1906, [125]*125Ahlo continued in possession of and carried on the rice plantation; that before his death all the leases enumerated in the schedule referred to had expired, but from time to time he had acquired title, either by further leases or by purchase in fee simple, of the larger part of the premises described in the schedule, together with other property “near by,” as well as working animals, tools and implements; that Ahlo thereafter executed seven mortgages to H. Hackfeld & Co., Ltd., one of the defendants, covering substantially the same property included in the original leases and also certain other lands alleged to have been subsequently acquired and used in connection with the plantation; that at all times, down to the date of his death, Ahlo recognized the Castle mortgage as a valid lien on the plantation and upon all property connected therewith, and from time to time he made payments thereon; that H. Hackfeld & Co., Ltd., as agent for Ahlo, in 1903 and 1904 respectively made two payments on the principal debt secured by this mortgage to prevent foreclosure proceedings being instituted thereon; that on August 15, 1906, defendant A. Haneberg was duly appointed administrator of the estate of Ahlo; that on August 26, 1906, the Castle Estate, assignee of the mortgage debt, duly presented its claim to the administrator, which was allowed; that the administrator was notified by the Castle Estate that it claimed a lien on the plantation and that by agreement segregated accounts were to be kept by the administrator of all moneys received from the plantation; that the administrator was authorized to sell growing' crops by order of court subject to valid and existing mortgages; that this 'agreement on the part of the administrator has not been performed, although he has sold rice from the plantation and received therefor in cash a sum largely in excess of the amount due the Castle Estate on its claim, together with other amounts received from the sale of other personal property on the plantation; that the defendants, A. Haneberg and H. Hackfeld & Co., Ltd., confederating together in order to deprive [126]*126plaintiffs of their claim against the Ahlo estate and their lien upon the property covered by said mortgage, entered into an agreement by which H. Hackfeld & Co., Ltd., foreclosed its mortgages by a sale at public auction, at which James F. Morgan, the auctioneer, purchased the property as trustee, the real purchaser being A. Haneberg, who thereafter organized the defendant corporation, Kaneohe Eice Mill Co., Ltd., to which foreclosure deeds were accordingly executed; that plaintiffs prior to the sale notified the administrator tliat they proposed to take steps to establish the lien claimed by them under the Castle mortgage and to prevent the property from being sold under foreclosure of the Hackfeld mortgages; that defendants, Haneberg and H. Hackfeld & Co., Ltd., induced plaintiffs to refrain from taking such proceedings at that time by assurances that the question at issue would be submitted to the supreme court upon an agreed statement of facts; that the plaintiffs remained in ignorance of the ‘acts of Haneberg and H. Hackfeld & Co., Ltd., respecting the foreclosure sale until about January 1, 1910, and that they have been unable to secure from defendants an agreed statement of facts upon which this matter might be submitted to the supreme court; that the accounts of the administrator are involved and incomplete, and from them plaintiffs are unable to ascertain what has become of the property upon which they claim a lien.

The bill prays that plaintiffs’ mortgage be declared a superior lien on all the property in question; that defendants be required to ‘account for the property of the estate of Ahlo, as well as all the proceeds thereof which have come to their hands and for general relief in connection with all the personal property of the Ahlo estate which has come into his possession or into the possession of any of the defendants, and that plaintiffs may have such other general relief as they may^be entitled to receive.

To the bill each of the defendants interposed a demurrer, the [127]*127defendants, H. Hackfeld & Co., Ltd., and the Kaneohe Rice Mill Co., demurring upon the grounds of want of equity and multifariousness, and the defendant, A. Haneberg, demurring upon the same grounds and upon the further ground that a Court of equity is without jurisdiction to compel an accounting with respect to his acts as administrator.

The demurrers were sustained upon the ground that the Castle Estate, having presented its claim to the administrator and the same having been allowed, was thereby estopped from proceeding in equity to obtain satisfaction under the mortgage.

1. The presentation of the claim by the mortgagee to the administrator and obtaining its allowance was required by statute (R. L. Sec. 1851), and was not of itself a waiver of the claim, nor did it operate as an estoppel.

The defendants in support of their contention that the presentation of the claim to the administrator operated as a waiver of the security, cite Ching Tam She v. Oriental Life Ins. Co., 19 Haw. 663, as well as decisions from Massachusetts, New York and other jurisdictions. In the Ching Tam She case, the judgment creditor had no lien on the land of the decedent and after having obtained the allowance of the claim by the executrix and pending the settlement of the estate, the creditor sought to enforce the judgment- by an execution sale of the land. This was inequitable as to the other claimants and the creditor was accordingly restrained,. This principle of equitable estoppel which was applicable in the case cited does not apply in the case now before us, because the property, on which the plaintiffs in this case hold a mortgage, is not, by reason of such lien, available for the payment of creditors in general, except as to any surplus that might remain after foreclosure sale under said mortgage.

As held in Estate of Kapu, 18 Haw.

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Cite This Page — Counsel Stack

Bluebook (online)
20 Haw. 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-n-castle-estate-ltd-v-haneberg-haw-1910.