Silva v. Lopez

5 Haw. 262, 1884 Haw. LEXIS 64
CourtHawaii Supreme Court
DecidedDecember 10, 1884
StatusPublished
Cited by21 cases

This text of 5 Haw. 262 (Silva v. Lopez) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silva v. Lopez, 5 Haw. 262, 1884 Haw. LEXIS 64 (haw 1884).

Opinion

Opinion op the Court, by

McCully, J.

A bill in equity is brought to set aside a sale made by the chief defendant as mortgagee, under a power of sale.

The argument before us was based on four objections to the validity of the sale, as follows :

“1. That as Lopez made no entry upon or demand for the possession of the mortgaged premises and chattels, he neglected the performance of a condition precedent.

“2. That the advertisement of sale by Lopez did not comply with the terms of the power.

“ 3. That the manner of conducting the sale, especially as regards the live stock, was grossly unfair to the mortgagors, and a breach of the implied condition that the sale should be conducted to the highest advantage of the mortgagors.

« 4. That defendant Brown, having been attorney for the mortgagee, violated his duties as trustee for the mortgagors, by becoming a purchaser at the sale of divers lots of the mortgaged property.”

[263]*263The power of sale is in these terms : “ Then the said party of the third part (Lopez), his executors, administrators or assigns, are hereby authorized and empowered to enter into and take possession of the property and chattels hereinbefore mentioned, and sell the same at public auction, first giving three weeks’ notice in the English and Hawaiian languages, in two newspapers published and printed in Honolulu, of the time and place of such sale.”

Default was made in the payment of the first installment of semi-annual interest due, and the defendant proceeded to foreclose the mortgage by public sale. The property consisted of sundry parcels of real estate, and chattels described as follows : s‘ All that flock or herd of cattle and their increase running at large in Manoa Valley, or elsewhere on the Island of Oahu, and being in number one hundred head more or less and branded P x 0, three bullock carts, eight yokes and thirteen chains, also fifty head of horses, mares and colts, more or less, and their increase, running at large in said Manoa or elsewhere, and branded P x 0, also five horses in said Manoa and branded Ct, and also forty head of cattle, with their increase, branded Et, and running at large iu said Manoa, or elsewhere on the Island of Oahu.”

Mr. Justice Austin, by whom the case was heard in chambers, whence the appeal is to this Court, sustained the bill on the second and third points of controversy above stated, not sustaining it upon the first and fourth.

The first objection to the validity of the sale is that there was no entry upon or demand for the possession of the mortgaged premises and chattels.

To effect a valid sale under power, all the directions of the power must be complied with, says Wells, J., in Cranston vs. Crane, 97 Mass., 463, and this is unquestioned. The counsel for the defendants cite this case as overruling Roarty vs. Mitchell, 7 Gray, 243. We do not think it does upon the point at issue. The power contained in the first cited case authorized entry and sale on the premises, after notice given of the time and place, and the Court held that entry at the time of sale was sufficient. In Roarty vs. Mitchell the language of the power was that * * may enter and take possession of said premises, and may séll and [264]*264dispose of the same after notice, and the Court say <1 that it appears upon the agreed facts that no possession was taken of nor entry made upon the premises, nor was any demand for entry or possession made. We think such entry or possession or, what perhaps would be equivalent, a demand for possession and refusal, were conditions precedent without which no valid sale could be made under the power of sale in the deed.” The language of the power in the case at bar corresponds with the above in requiring entry and possession, but not that the sale be held on the premises. Both cited cases require entry, with the suggestion in the latter that demand and refusal might be equivalent.

The proceedings upon sale of mortgaged property without suit are established by-Chap. XXXIII. of the Acts of 1874. The Act provides that when a power of sale .is contained in a mortgage, upon breach of the condition the mortgagee may give notice of his intention to foreclose by publication for three weeks before advertising the mortgaged property for sale, ‘‘and also give such notices aná do all such acts as are authorized or required by the power contained in the( mortgage.” He is, thirdly, to file with the Registrar of Conveyances, within thirty days after said copy of the notice of sale, an “ affidavit that he has in all respects complied with the requisitions of the power of sale in relation to all things to be done by him before selling the property.” The first requisition of the power of sale in this case was entry and possession. The parties having made this a condition precedent, are bound by it, without regard to any statute not requiring it ; so, if it had been made a condition that the sale should be on the mortgaged premises, the statute not it requiring, this sale at any other place would not be valid. It cannot be considered that the statute requirement that three weeks’ publication of intention to foreclose abrogates the condition precedent, if the parties have made it, that there shall be previous entry and possession taken. The statute provides that besides such notice of intention, the mortgagee shall also give such notices and do all such nets as are authorized or required by the power.

The evidence in this case is that the defendant mortgagee only demanded interest due, and ■ threatened to ‘foreclose. The threat to foreclose can only be considered a threat to take all the steps [265]*265required for legal foreclosure, among which was making entry. His demand for debt due cannot be considered an entry or taking possession. Upon this view we hold that the sale of the real estate was invalid upon the first ground of objection. How far this is applicable to the sale of the chattels will be considered in discussing the third objection.

In regard to the second objection, that the sale made on the twentieth day after the first publication of the notice was not in compliance with, the condition in the mortgage of first giving three weeks’ notice of the time and place of sale, we hold that not less than twenty-one days was requisite: The authorities which seem to support the defendants’ position are applicable to eases where insertion of the notice is required to be a certain number of times in a weekly newspaper. They are otherwise when a publication is required for a certain period of time, as in this case, “ after three weeks’ notice,” not after three consecutive weekly publications. For the full discussion and citation of authorities on this head we refer to the opinion of Mr. Justice Austin.

The learned Justice also sustains the bill on the third objection to the sale, as not being made in a fair and advantageous manner. This objection applies only to the sale of the chattels.

It will not be controverted that the law requires the mortgagee, in the exercise of his power, to use discretion in an intelligent and reasonable manner, not to oppress the debtor or to sacrifice his estate. Perry on Trusts, Sec. 602.

We must apply this principle to the facts and circumstances of every case.

This sale was held at an auction room in the city of Honolulu.

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Cite This Page — Counsel Stack

Bluebook (online)
5 Haw. 262, 1884 Haw. LEXIS 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silva-v-lopez-haw-1884.