Shepherd v. Dougan

83 P.2d 468, 59 Idaho 465, 1938 Ida. LEXIS 70
CourtIdaho Supreme Court
DecidedOctober 15, 1938
DocketNo. 6602.
StatusPublished
Cited by7 cases

This text of 83 P.2d 468 (Shepherd v. Dougan) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shepherd v. Dougan, 83 P.2d 468, 59 Idaho 465, 1938 Ida. LEXIS 70 (Idaho 1938).

Opinions

*466 HOLDEN, C. J.

This case originated in the district court for Bear Lake county where appellants commenced an action in ejectment, joined with suit to quiet title, by which they sought to eject respondent from certain hotel property located at Paris, Idaho, and also to quiet their alleged title to the property. Respondent answered and cross-complained. By her cross-suit, respondent sought to have the hotel property impressed with a lien for certain amounts paid under the terms of a void “Uniform Real Estate Contract.” The facts were stipulated. Findings of fact and conclusions of law were made and filed, upon which the court entered its decree quieting title to the property in appellants and ejecting respondent, from which decree she appealed. (Shepherd et al. v. Dougan, 58 Ida. 543, 76 Pac. (2d) 442.) In the opinion, on that appeal, this court said:

“The Dougans went into possession of the hotel April 10, 1927. While in possession they paid Shepherd and expended for repairs, taxes, and insurance premiums, a total of $19,-533.02. Appellant is entitled to interest on the respective sums making up that total from the date of each payment and expenditure at the statutory rate in force at the time. Against said sums, and interest thereon, a rental charge shall be made monthly, and deducted monthly, commencing April 10, 1927, the date the Dougans went into possession of the hotel, and ending April 2, 1937, the date respondents went into possession. The entire interest of Mary Elizabeth Shepherd having passed to and vested in her husband, Fred T. *467 Shepherd, by operation of law, prior to the date he executed said deed to respondents, appellant is entitled to an equitable lien on the hotel property for the difference between said sums, plus interest thereon, computed as above directed, and the rental value, to be charged and deducted, as aforesaid, not affected by Shepherd’s deed to respondents because they had notice.
“The judgment is reversed and the cause remanded to the trial court with instructions to take such further evidence as may be necessary, if any, to enable it to compute the difference between said sums paid and expended, as aforesaid, together with interest thereon, and the rental value of the hotel to be charged and deducted as herein directed, to make and file appropriate findings of fact and conclusions of law, and to enter a decree awarding a lien for such difference on the hotel property in favor of appellant.”

Following the filing of the opinion, respondents on the first appeal, appellants here, filed a petition for rehearing. In discussing the petition for rehearing, the author of the opinion said:

“As pointed out in the foregoing opinion, it is stipulated by the parties to this controversy that following the execution and delivery of the deed by which Fred T. Shepherd conveyed the hotel property to the respondents, the respondents repudiated the instrument dated April 5, 1927, being the so-called contract and the instrument which all parties agree, and correctly so, is absolutely void, and, of course, the parties having agreed that said instrument was absolutely void, the case was tried upon that theory in the court below, and must be so treated on this appeal. It is clear that appellant could not possibly either abandon or x’efuse to perform an absolutely void contract, nor could she be in default under the terms or conditions of an absolutely void contract. ’ ’

The author further said:

“Here, I have concluded, after a careful re-examination of all the facts and circumstances, that justice will be better served by charging interest at the statutory rate on the net *468 balance of the trust funds, to wit, the sum of $7,559.69, from April 2, 1937, the date the respondents went into possession of the hotel, than by computing interest thereon in the manner and as directed in the foregoing opinion. With that modification of the foregoing opinion, the petition for a rehearing should be denied.”

Mr. Justice Morgan, in his discussion, said:

“I concur in the conclusion reached in the foregoing opinion on petition for rehearing, but am not in accord with the theory therein expressed to the effect that the rate of interest on money due, can be made dependent upon anything other than the statute governing that subject.”

Justice Morgan then quoted section 26-1904, as amended by chapter 197, Session Laws 1933, p. 390, and stated his opinion that

“Subsection 2 is controlling. The money which appellant (respondent on this appeal) is entitled to recover, and for which she has a lien on the premises, became due April 2, 1937, when respondents (appellants on this appeal) repudiated the void contract and went into possession of the hotel, as pointed out in the opinion by the chief justice on petition for rehearing. The court is governed by the statute and is without arbitrary power to fix the amount of interest recoverable according to its ideas of justice.”

Mr. Justice Givens, among other things, said:

“The following factual situations are not disputed: That the contract of sale and purchase between the original vendor, F. T. Shepherd, and appellant and her husband, now deceased, was void because not signed by the original vendor’s wife, Mrs. F. T. Shepherd. The consequent legal affluent is that the vendees and the original vendor are equally charged as a matter of law with knowledge that the contract was void, and the present respondents, assignees of the original vendor, F. T. Shepherd, purchased with full knowledge of these facts and are therefore bound thereby. The scales, therefore, remain even.
“Being a void contract, neither party could enforce it as such, and it conferred no rights and imposed no obligations, *469 nor did either party gain any rights thereunder or thereby of a contractual nature.
“For the above reasons I continue to concur with the opinion of the Chief Justice as modified by him and think the petition for rehearing should be denied.”

Mr. Justice Ailshie directed his discussion to the question as to whether respondent was entitled to a lien, concluding his discussion with the statement that:

“For the foregoing reasons, I am persuaded that the original opinion herein is erroneous in so far as it awards a lien against the property, and I think the case should be reconsidered and our judgment in that respect should be revised.”

Following the issuance of the remittitur from this court and the filing of the same in the court below, to wit, March 8, 1938, respondent applied for judgment for the amount and as directed by this court. Appellants thereupon asked that the case be opened up and that they be permitted to amend paragraph Y of their respective answers to respondent’s cross-complaint. That paragraph, together with the proposed amendment added in italics, follows:

“Answering paragraph YIII plaintiff admits that F. T.

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Bluebook (online)
83 P.2d 468, 59 Idaho 465, 1938 Ida. LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepherd-v-dougan-idaho-1938.