Schwartz v. Murphy

112 F.2d 24, 72 App. D.C. 103, 1940 U.S. App. LEXIS 4215
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 15, 1940
DocketNo. 7353
StatusPublished
Cited by17 cases

This text of 112 F.2d 24 (Schwartz v. Murphy) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Murphy, 112 F.2d 24, 72 App. D.C. 103, 1940 U.S. App. LEXIS 4215 (D.C. Cir. 1940).

Opinion

STEPHENS, Associate Justice.

This case is here on a writ of error to the municipal court of the District of Columbia. The petitioner, plaintiff below (hereafter referred to as plaintiff), sued, as administratrix of the estate of her husband, to recover an unpaid balance of the proceeds of a foreclosure sale of real estate. From the plaintiff’s bill of particulars and affidavit of merit and from evidence introduced by her at the trial, the following appeared: During his lifetime the plaintiff’s husband had purchased a tract of real estate in the District of Columbia, subject to a first trust deed securing a loan in the sum of $10,000 which he had assumed and agreed to pay. He executed and delivered to the sellers of the property a balance of purchase price note-in the sum of $2500, the payment of which he secured by the execution and delivery of" a second trust deed on the property. The-defendants in the action are the trustees, under this deed. There was default in payments on the $2500 note, and the defendants as trustees therefore made a foreclosure sale under the second trust deed, selling, of course, subject to the first trust deed securing the $10,000 first loan. The sale realized the sum of $1600. After this had been applied to the balance due on the $2500 note and taxes and expenses of sale, there remained in the hands of the defendants $503.30. Of this they paid, prior to the commencement of this action, $121.63 to the plaintiff as administratrix. It was. to recover the balance of $381.67 that the-. [25]*25plaintiff brought the present suit. Sin-proved, in addition to the foregoing, that the probate court had authorized the suit to recover these proceeds of the sale of the decedent’s real estate, it having been made to appear to that court that the personal properly in the estate was not sufficient to meet the debts and expenses thereof.

By a plea in the municipal court the defendant trustees admitted all of the matters above set forth except their liability to pay the balance of $381.67. In respect of this sum they asserted that they had properly paid out $25 as an agreed attorney’s fee; and they alleged that the balance of $356.67 they had necessarily paid to the holders of the note secured by the first trust deed to discharge interest accrued to the time of the foreclosure sale. In addition to this plea the defendants, at the close of the plaintiff’s case, entered a plea 1o the jurisdiction of the municipal court. This they based upon D.C.Code (1929) tit. 18, § 193, which, after defining the jurisdiction of the municipal court, excepts therefrom, among others, “cases involving title to real estate.” We set out in the margin the text of the section in question.1 In their plea to the jurisdiction, the defendants asserted that the plaintiff, in order to maintain her action, would be required to prove title in the decedent to the property which was the subject of the trust deeds. The municipal court declined to proceed further, holding that the plea to the jurisdiction was good. Because of the importance of the question involved, in respect of the limits of jurisdiction of the municipal court, we issued the writ of error.

In support of the action of the municipal court in declining jurisdiction the defendants rely upon Gray v. Ward, 45 App. D.C. 498, 1916. and Johnson v. Simmons, 53 App.D.C. 356, 290 F. 331, 1923. Gray v. Ward was an action in the municipal court to recover a vendee’s deposit under a contract for the purchase of real estate. It appeared from the declaration and particulars of demand that the defendant — apparently an agent who had accomplished a contract of sale — had guaranteed, but had failed, to deliver a good title. There was a trial, and at the conclusion thereof the municipal court gave judgment for the plaintiffs for return of the deposit. An appeal was taken to the then Supreme Court of the District of Columbia and there, although a question was raised as to the jurisdiction of the municipal court, a trial was had and a verdict returned for the plaintiffs. The case then reached the Court of Appeals. Here there was a reversal, this court holding that the municipal court had no jurisdiction to try the cause, and that therefore the Supreme Court had had none. In deciding the case, the court, speaking through Mr. Justice Stafford said:

“Leaving out of view those states in which the justice may he ousted of his jurisdiction by some action of the defendant which puts the title to real estate in issue, it seems to be the fair result of the decisions that the question of jurisdiction under statutes like our own is to he determined by the declaration, and whenever it is necessary for the plaintiff, in order to make good his declaration, to go into the question of title, whether by way of proving it or disproving it, the title to land is involved, and the justice has no jurisdiction. When this test is applied to the present case, it is evident that the title to land was necessarily involved. As the court below instructed the jury, it was impossible for the plaintiff to recover if he did receive a good title by way of the deed in question.” [45 App.D.C. at 505]

Johnson v. Simmons was an action brought in the municipal court to recover $32.24 for the use of a party wall. In an affidavit of defense the defendant denied the plaintiff’s ownership in the wall, and on that ground denied any indebtedness. [26]*26There was a judgment for th.e defendant, an appeal by the plaintiff to the then Supreme Court of the District, and in that court a jury verdict in the plaintiff’s favor. Thereafter, however, this was set aside and a judgment of dismissal entered upon the stated ground of want of jurisdiction in the municipal court and therefore in the Supreme Court. Upon appeal to the Court of Appeals, this court sustained the judgment of dismissal upon the faith of Gray v. Ward, accepting as controlling the statement therefrom above, quoted. In both Johnson v. Simmons and Gray v. Ward the limitation upon the jurisdiction of the municipal court was in the same terms as those set out in the margin above.

It is apparent that neither Gray v. Ward nor Johnson v. Simmons is on all fours with the instant case. In Gray v. Ward it appeared from the declaration that — unless there was to be a default by the defendant — there was an unavoidable, issue as to title. The whole theory of the plaintiff’s right to recover was that the good title guaranteed by the agent had not been forthcoming. In Johnson v. Simmons the plaintiff’s title was put directly in issue by the defendant’s plea. In the instant case not only is there no dispute as to the existence in the plaintiff’s decedent of a title to the real estate which was made the subject of the two trust deeds, but also, the defendants themselves, by making their foreclosure sale upon the faith of it, recognized the decedent’s title. They recognized it also by paying to the plaintiff, prior to the institution of her suit, a portion of the proceeds of the sale, the sum of $121.63. The action was one for money had and received, and the only issue between the parties was as to the propriety of the application by the defendants, in the manner abóve set forth, of the surplus of the proceeds of the foreclosure sale. Therefore, neither Gray v. Ward nor Johnson v. Simmons determines, in respect of a case like the instant case, where there is no actual dispute as to title, the meaning of the phrase “except in cases involving title to real estate” as a limitation upon the jurisdiction of the municipal court. We must therefore for the first time determine the meaning of that phrase as applied to such a case as this.

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Bluebook (online)
112 F.2d 24, 72 App. D.C. 103, 1940 U.S. App. LEXIS 4215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-murphy-cadc-1940.