Service Investment Co. v. District Court

394 P.2d 837, 155 Colo. 323, 1964 Colo. LEXIS 335
CourtSupreme Court of Colorado
DecidedJuly 27, 1964
DocketNo. 21338
StatusPublished

This text of 394 P.2d 837 (Service Investment Co. v. District Court) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Service Investment Co. v. District Court, 394 P.2d 837, 155 Colo. 323, 1964 Colo. LEXIS 335 (Colo. 1964).

Opinion

Mr. Justice Hall

delivered the opinion of the Court.

This is an original proceeding wherein Service Investment Company (herein referred to as Service) seeks a writ directing the respondent to vacate an order entered [324]*324May 25, 1964, in Case No. 20124, then pending in the District Court of Arapahoe County. The order, vacation of which is sought, provides:

“This matter coming on to be heard this 25th day of May, 1964, upon the petition [of Equitable Investments] * * *, THE COURT DOTH FIND that the matters * * * in the Petition are true; that the sale * * * by the Public Trustee of the County of Jefferson * * * should be stayed * * *; WHEREFORE, It is ordered * * * that that sale * * * be and is hereby ordered to be and is suspended pending further order of this Court * * *.
“It is further ordered that * * * copies of this Petition and Order * * * be delivered to * * * Service * * * and * * * Bush as Public Trustee in * * * County of Jefferson, * * * and that the same be placed of record in the said County, and in the office of the Clerk and Recorder thereof.”

Prior to April 3, 1964, the First National Bank of Englewood (herein referred to as the Bank) had commenced, in the District Court of Arapahoe County, Civil Action No. 20124 (herein referred to as No. 20124). Named as defendants in said action were: (1) Perl-mutters Development Corporation (herein referred to as Perlmutter); (2) Equitable Investments (herein referred to as Equitable); (3) Vareo Steel, Inc.; (4) Madison M. Lyon, and (5) Patricia M. Vass, Public Trustee of Arapahoe County.

The Bank sought the following relief: (1) Judgment against Perlmutter for $70,000.00; (2) court foreclosure of a deed of trust (securing the $70,000.00) on one parcel of Arapahoe County property; (3) appointment of a receiver to take charge of said property during the foreclosure proceedings; (4) judgment against the above named defendants declaring their rights, if any, in. the property described, to be inferior to and subordinate to the rights of the Bank, as evidenced by its deed of trust.

On April 3, 1964, Service was the holder of a note of Perlmutter on which there was past due some [325]*325$230,000.00, which note was secured by deed of trust on one parcel of land located in Jefferson County. On that date Service filed with Helen Bush, the Public Trustee of Jefferson County (herein referred to as Bush), its notice of election and demand for sale of said property. Pursuant to such demand, Bush advertised the premises described in said deed of trust for sale, the same to be had May 26, 1964.

On May 25, 1964, the court, in No. 20124, entered the stay order above mentioned. At that time neither Service nor Bush had been served with any notice, process or papers of any kind in No. 20124. On May 25, 1964, the attorney for Equitable delivered to Service and Bush a certified copy of an undated petition for stay and the stay order dated May 25, 1964, and on that date said documents were placed of record in the office of the County Clerk and Recorder of Jefferson County.

On May 28, 1964, Service filed in Case No. 20124 its motion seeking to have the court vacate its May 25th stay order. On June 2, 1964, hearing and argument were had on this motion and the motion disposed of on that date by an order of court reading as follows:

“And thereupon this cause comes on to be heard before the Court on defendant’s, Service Investment Co., Motion to Dissolve or Vacate Order Relative to Stay of Proceedings.
“And thereupon the Court being sufficiently advised in the premises DOTH ORDER that Motion to Vacate Order Relative to Stay of Proceedings be denied, and that 10 days be granted to file motion for re-hearing.”

One June 5, 1964, Service commenced this proceeding and in so doing presumably elected to forego the right granted “to file motion for re-hearing” in No. 20124.

An order was entered by this court on June 11, 1964, directing the respondent to show cause, within twenty days, why the May 25th stay order should not be vacated and dissolved.

On July 2, 1964, the respondent through counsel, the [326]*326same counsel who represented Equitable in proceedings had in No. 20124, filed herein his RESPONSE TO ORDER TO SHOW CAUSE.

This response does not deny any of the facts set forth in the petition of Service, though in the response are set forth many alleged facts which the respondent tenders as justification for entry of the stay order. We find nothing in any of these alleged facts that tends to justify the court’s action in entering the questioned stay order.

Considering everything in the response as true, considering everything said in the light most favorable to respondent and resolving all doubts in favor of respondent, we find nothing to indicate that the respondent had jurisdiction to issue the stay order.

From a search of the voluminous and somewhat verbose response, it appears that counsel for Equitable tenders factual and argumentative reasons justifying the entry of the stay order, stating:

1. “* * * a second deed of trust upon the same property [Arapahoe Co.] is held by * * * Equitable Investments, securing a note * * *, which note * * * is also secured by other parcels of property in the County of Jefferson * * *, upon which Jefferson County property, or some part thereof, the Petitioner, * * * Service * * *, claims to hold a first deed of trust.”

2. “That the * * * Bank * * * holds another and further note of * * * Perlmutter * * *, which note is secured by further deeds of trust both on the Arapahoe County property * * * and the Jefferson County property, the subject matter of the deeds of trust of * * * Service * * * and Equitable * *

3. “That Equitable * * * holds, as security for a further advance of $10,000.00 to * * * Perlmutter * * *, deeds of trust on both the Arapahoe County and the Jefferson County properties mentioned.”

4. “That at the time of the institution of * * * No. 20124 * * *, no foreclosure proceedings were pending in Jefferson County in any form, but in the pleadings [327]*327[in No. 20124] the facts concerning the multiple security transactions of the several parties with Perlmutter * * * were made to appear.”

5. “That multiple claims are pending before the Arapahoe County District Court * * *, there being claims of Vareo Steel, Inc., and Madison M. Lyon * * *, and there being, as the Court has been advised in open court, claims against the Jefferson County property by general judgment creditors of Perlmutter * *

6. “That at pre-trial it was made to appear, * * * that the same notes in litigation before the Arapahoe County District Court are secured by the properties in Jefferson County being sought to be indepdently [sic], and nonjudicially, foreclosed in Jefferson County.”

7.

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Bluebook (online)
394 P.2d 837, 155 Colo. 323, 1964 Colo. LEXIS 335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/service-investment-co-v-district-court-colo-1964.