Sheffey v. Bank of Lewisburg

33 F. 315, 1887 U.S. Dist. LEXIS 154
CourtDistrict Court, D. West Virginia
DecidedDecember 1, 1887
StatusPublished
Cited by1 cases

This text of 33 F. 315 (Sheffey v. Bank of Lewisburg) is published on Counsel Stack Legal Research, covering District Court, D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheffey v. Bank of Lewisburg, 33 F. 315, 1887 U.S. Dist. LEXIS 154 (wvad 1887).

Opinion

Jackson, J.

On the eleventh day of October, 1875, Robert J. Glendy executed a deed of trust to the Bank of Lewisburg on a tract of land in Greenbriar county, in this state, to secure to the bank a loan it had made to him of $15,000. "The bank held this deed, and did not place it on record, until after another trust deed was executed by Glendy to the complainants in this cause, on the twentieth day of November, 1876, covering the same land. This deed was admitted to record under the registry Jaws of the state, oh the twenty-first day of November, 1876, at 11 o’clock a. m., of that dajr, while the deed of the Bank of Lewisburg, the defendant in this cause, was not recorded until some five hours after, on the samo day. In April, 1877, the trustee under the deed to the bank advertised for sale the lands described in it; but before the sale took place the complainants filed their bill in this case, claiming that they had a prior lien upon the land, and applied to this-court for an injunction to restrain the trustee under that deed from making sale until the court could determine the respective rights of the parties under the two trust deeds. The judge of this court, on the third day of May, 1877, passed an order at chambers to restrain the trustee Mathews from selling the property described in the bill until the further order of th'e court. -On the fifteenth day of November, 1877, the bank filed its answer, alleging—First, that Sheffey and Bumgardner, trustees under the second deed of trust, had notice of the bank’s deed before the execution of the deed to them; second, that Sheffey and Bumgardner had such notice before the recordation of the deed; third, that by the terms of the deed to Sheffey and Bumgardner the debt due to the bank had priority; and, fourth, that the deed to Sheffey and Bumgardner was void on its face.

Nothing further was done in this case until the May term, 1878, when it appears that on the fourth da.y of May the bank tendered an amended and supplemental answer, setting up the fact that, at the time that Glendy executed the two deeds of trust heretofore referred to, ho was not vested with the legal title to the lands upon which he had given the two deeds of trust, and that since the filing of the original answer ho had received and recorded his deeds, and had become vested with the legal title, and that since he had become vested with the legal title, the bank had obtained judgment at law against him; and that, under the provisions of the Code of West Virginia, it had obtained priority over the deed of trust to Sheffey and Bumgardner. The filing of this answer was objected to by the complainants, and the objection was sustained; the court holding that the matters set up in it, if true, did not affect the questions at issue in this cause; and for this reason the court perpetuated the injunction, decreed a sale of the lands, and ordered the proceeds to be distributed under the provisions of the Sheffey and Bumgardner deed. At the next term of the court, on the second day of August, 1878, the bank tendered a petition to rehear so much of this decree as refused to allow the supplemental answer to be filed; and the first question that pre[317]*317seats itself for the consideration of the court is, whether this decree was a final or an interlocutory order in this cause. It appears that the consideration of the questions presented by this peiition was postponed uniil the November term of this court in 1885, when the court passed upon them, and entered a decree which vacated and set aside the decree of the fourth day of Slay, 1878. It is now insisted that the court could not properly make the order vacating that decree, for the reason that it was a final decree disposing of all the questions presented by the pleadings in this cause. The bill filed was mainly for the purpose of settling conflicting rights under two deeds of trust given by the defendant Glendy upon a valuable farm in Greenbriar county,—one to the plaintiffs in this cause, and the other to the defendant the Bank of Lewisburg. The deed to the bank was first executed and delivered, but the deed to the plaintiffs was first duly recorded under the registry la,ws of the state. The bill made the Bank of Lewisburg, Alexander F. Mathews, and Robert Glendy defendanis.

The vital question presented by the pleadings was, which of the two deeds secured the first lien upon the property. For this purpose it was only necessary to have the bank and the trustee before the court, as the plaintiffs were only contesting the right, of the bank to assert a prior lien under its trust. When this question was disposed of, all the court, bad to do was to direct the sale of the property, and distribute the proceeds among the creditors secured by the trust which was ascertained to he the first, lien upon the laud conveyed, and, if there was any balance after satisfying the creditors secured in that trust, apply such balance to the satisfaction of the debts secured in the second trust. This question being settled, the merits of the controversy as presented by the pleadings were at an end. The decree of May 4, 1878, directed the sale of the land in controversy, distributed the proceeds arising from the sale, and perpetuated the injunction inhibiting the bank from selling under its trust deed. It is obvious that this decree determined the rights of the parties, and was, in effect, a decree of foreclosure of mortgaged premises, leaving nothing to bo done except to execute its provisions. Such a decree has always been held by the legal tribunals to be a final decree. That the defendant bank so regarded it is evident from the order it obtained from the court on the second day of August, 1878, tendering “its petition for a rehearing of the order made in the cause of the term before.” The peiition did not seek to open the decree, only so far as the court had refused the hank permission to file what it termed its amended and supplemental answer, which presented the fact that, at the time that Glendy executed the two trust deeds referred to, ho was not vested with the legal title to the lands conveyed, and that the bank had obtained judgment against Glendy, and had the same docketed after he acquired the legal title. The subject-matter of this petition was duly considered at the time, and we see no reason now to change the views we then entertained, and only refer to it to show the conclusive character of the decree as admitted by the petition filed by the bank. If then, this decree is final, as wo hold it to be, it is not a subject of review by the court [318]*318which passed it after the term at which it was enterered, the time having expired within which, under equity rule 88, a rehearing could be had. That rule expressly declares that “no rehearing shall be granted after the term at which the final decree of the court shall have been entered and recorded.” The application of this rule has been frequently the subject of consideration by the supreme court, and in the case of Roemer v. Simon, 95 U. S. 214, it held that the court which rendered the decree “cannot grant a rehearing after the term at which the final decree was rendered.”

It is true, this decree has been vacated for the reason, given by the court at that time, that the beneficiaries, or cestuis que trust, were not before the court. Subsequent reflection has not only induced me to change my views upon this question, but it leads me to the conclusion that if there is a want of proper parties before the court, it is an error which can be reached only by an appeal.

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Bluebook (online)
33 F. 315, 1887 U.S. Dist. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheffey-v-bank-of-lewisburg-wvad-1887.