Sherman v. Wichner

152 N.W. 700, 35 S.D. 436, 1915 S.D. LEXIS 72
CourtSouth Dakota Supreme Court
DecidedMay 24, 1915
DocketFile No. 3720
StatusPublished
Cited by7 cases

This text of 152 N.W. 700 (Sherman v. Wichner) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sherman v. Wichner, 152 N.W. 700, 35 S.D. 436, 1915 S.D. LEXIS 72 (S.D. 1915).

Opinion

SMITH, J.

Action in circuit court, Tripp county, to- foreclose a mortgage on certain real property known as the Sherman Hotel, in the town of Colome. The complaint contained the .usual and sufficient allegations of the execution and delivery of the mortgage, and default in its conditions- prior to the commencement of the action; also that the mortgaged premises were rented to tenants at a rental of $75 per month, and—

“that the value of the said mortgaged premises is probably insufficient to pay the amount of the mortgage indebtedness, besides accrued taxes and necessary insurance, besides costs of the action.”

The complaint contains the further allegation:

“That justice and -equity require that a receiver be appointed to take possession of said mortgaged property and collect all rents and profits arising therefrom during the pendency of this action”

[438]*438—ánd prays a further order that:

The rents and profits “may be applied to the payment of any deficiency which may exist in the mortgage indebtedness after paying the principal, interest, costs, attorney’s fee, taxes, and indebtedness.”

Plaintiff verified the allegations of the complaint as “true of his own knowledge.” The. verified complaint was presented to the trial court, and, without notice to. defendants, the court forthwith made an order reciting:

“This court being satisfied that justice and equity require the appointment of a receiver to collect the rents and profits during the pendency of this, action”

■ — and appointing A. B. Hancock as receiver with authority to take .possession of the mortgaged premises, to collect the rents and profits during the pendency of this action, and out of the rents and profits to pay the taxes, insurance on the premises, all as covenanted in the mortgage, and to retain the balance from such rents until the further order of the court. It was. further ordered that the receiver execute a bond in the sum of $2,000, and take the oath- required by law, and that upon his qualification the defendants, and all persons claiming under them, refrain from interfering with the receiver or his. possession of the premises, and further directing the tenants, to- pay to the receiver rents accruing under the lease. This order was made on July 31, 1914, filed and entered; August 6, 1914, served on appellant August 12, 1914, and on the last-named date the receiver took .possession of the property. Defendant excepted to the order appointing the receiver, and alleges error therein for the reasons: First, that the complaint fails to state facts sufficient to entitle the plaintiff, to the appointmen of a receiver; second, that the court did not require plaintiff, to give a bond before issuing the order, etc.; third, that the order was made ex parte, without notice. Respondent amended the statement of facts in appellant’s brief by showing that on August 25, 1914, appellant served notice of a motion, returnable August 31st, to vacate the order appointing a receiver, for the reasons that: (1) Said order is contrary to law, and the court was without jurisdiction to make the same; (2) because the order was made before the commencement of the action, and therefore void; (3) [439]*439because the order was on an ex parte application without proof; and no bond was given; (4) that the complaint fails, to- state facts entitling plaintiff to the appointment of a receiver; (5) because defendants are entitled to possession of the property under section 2054 of the Civil Code, and the defendants cannot be legally dispossessed by a receiver;' (6) because the property is not probably insufficient to pay the amont of the mortgage, but is ample security therefor, as shown by affidavits annexed and served, “numbered from 1 to- 27,” and that the order covers personal property upon which -plaintiff has no- lien, and it is impossible to- determine what part of the rent is paid for the building, and what part for the personal property. This motion came on for hearing August 31st, and thereafter the court entered another order reciting that the court had considered the affidavits attached to and served with the motion, and also affidavits offered in rebuttal, and that, being fully advised, the court finds from such affidavits:

“That the probable value of the property set out in the complaint is not sufficient to pay the mortgage indebtedness, besides taxes, insurance, and costs.”

And the court found and determined that the order should be modified so as to allow the defendant Mart Coffman, to- collect $20 a month for the use of his furniture, and that the plaintiff should execute a bond in the sum of $500, as provided by section 229 of the Code of Civil Procedure, said bond to be executed within ten days from the date of the order, whereupon it was-—

“ordered that said order above mentioned be modified as herein-before mentioned, and the receiver heretofore appointed is directed to pay to the said Mart Coffman $20 of the proceeds received by him for rents, and said plaintiff is directed to file the abo-ve bond mentioned, within ten days fro-m this date. * * * Otherwise the order shall remain in full force, virtue, and effect.”

This order was dated and entered October 12, 1914, and at the time the motion was considered and decided appellant had answered the complaint in the action, in which answer defendant, among other things admitted default in the conditions of -the mortgage. It is alleged, and not denied, that plaintiff executed [440]*440and filed a .bond in compliance with, the' order of October 12th, and that the same was duly approved.

[1] It is settled in this state -by statute and by the decision of this court in Roberts v. Parker, 14 S. D. 323, 85 N. W. 591, that in an action to foreclose a mortgage a receiver of the mortgaged property may be appointed where it appears that the conditions of the mortgage have not been performed, and that the property is probably insufficient to discharge the mortgage debt; that the receiver may taka possession of the mortgaged premises, and collect and retain the rents and profits subject to the control and disposition of the court.

Appellant contends, however, that the order appointing the receiver was erroneous, for two reasons: First, that it was made without notice; and, second, that the allgations of the verified complaint upon- which the order was made were insufficient to sustain the order, in that it was a conclusion, and not a statement of facts from which it was made to' appear that the mortgaged property was probably. insufficient to- discharge the mortgage debt. The allegation in the sworn complaint is:

“That the value of the said mortgaged premises is probably insufficient to pay the amount of mortgaged indebtedness, besides accrued taxes and necessary indebtedness, besides costs of the action.”

Such an allegation was held insufficient in Bank v. Stephens, 144 Cal. 659, 79 Pac. 379.

But, as the record before us, for the reasons hereinafter stated, precludes a reversal upon any of the grounds urged by appellant, we find it unnecessary to consider or decide the legal questions so ably presented in appellant’s brief. One of appellant’s assignments of error is “That the court did not require plaintiff to give a bond,” etc., as required by section 229, Code Civil Procedure.

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Bluebook (online)
152 N.W. 700, 35 S.D. 436, 1915 S.D. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sherman-v-wichner-sd-1915.