Stafford v. Fizer

82 Mo. 393
CourtSupreme Court of Missouri
DecidedApril 15, 1884
StatusPublished
Cited by33 cases

This text of 82 Mo. 393 (Stafford v. Fizer) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stafford v. Fizer, 82 Mo. 393 (Mo. 1884).

Opinion

Martin, C.

This was an action in ejectment in the usual form, for eighty acres of land, and was commenced February 20th, 1880. James A. Clark was the common source of title. The plaintiff, Mary E. Stafford, claimed as purchaser at execution sale effected on the 30th of October, 1878. This sale was in pursuance of a judgment in a certain proceeding commenced on the 18th day of June, 1878, by the collector of Saline county, against James A. Clark, J. Y. Stearne, trustee, and Daniel White, guardian of W. E. White, the object of which was to enforce the lien of the State for taxes upon said land for the years 1868 to 1876, inclusive, amounting in the aggregate to $123.25, besides interest and costs.

The defendant, Eizer, had been in possession as tenant of Jas. A. Clark, but it is alleged in the answer that at the commencement of this suit he was tenant of H. Clay Cockerill. The defendants claim title by trustee’s deed to H. Clay Cockerill, dated April, 1879, delivered in execution of the power of sale in a deed of trust made by said Jas. A. Clark in August, 1863, to J. Y. Stearne, as trustee, to [396]*396secure certain notes therein described, one payable to Daniel B. White, guardian of WilliamE. White, in the sum of $8,635 ; one payable to John T. Stearne in the sum of $4,-686.49, and a third payable “ to the executors of the estate of Thomas N. Cockerill” in the sum of $1,300. This deed of trust conveyed a great amount of other real property, as well as much personalty. The trustee was vested with the power of sale upon default of payment of the debts secured. It appeared that Henry Clay Cockerill was executor of Thomas N. Cockerill. These facts were set up by the defendants in their answer by way of equitable defense, and they asked to be allowed to redeem the land by payment of the taxes for which it was sold. The case was tried by the court without a jury; and upon the evidence it found that Eizer was, at the time of the judicial sale, in possession of the premises as tenant of Jas. A. Clark; that the title acquired by Mrs. Stafford at said sale was superior to the title of defendant, Cockerill, acquired at a sale under the deed of trust, and that she was entitled to possession of the land sued for. The defendants have appealed.

The principal question for us to determine is, whetner the deed of a purchaser at execution sale under a proceeding to enforce the State’s lien for taxes, is good against the beneficiary of a deed of trust, antedating the origin of the tax lien, who has not been made a party to the proceedings to enforce it. The record shows that the trustee and another beneficiary in the deed of trust were made parties to the tax lien suit, but that the executor of Cockerill, who held the note for $1,300 was not included in the suit. The deed of trust was duly recorded, and no excuse for the omission is alleged in the petition or contained in the evidence. The learned counsel for the plaintiffs maintain that the complete title to the land passed to the purchaser by virtue of the execution salo, and that the omission of the beneficiary in question could not affect its validity. The precise question here presented has never been passed upon by this court. ' But the principles of law, as well as [397]*397the decisions of this court governing the enforcement of liens on real estate, ought to furnish a sufficient guide for us in determining it. It will be observed that we are dealing with two liens, one created by law in favor of the State whi eh necessarily takes precedence of other pi’ior, as well as subsequent liens, on account of its peculiar character; R. S. 1879, §§ 6831, 6832; Blossom v. VanCourt, 34 Mo. 390; McLaren v. Shieble, 45 Mo. 130; Dunlap v. Gallatin Co., 15 Ill. 7; Almy v. Hunt, 48 Ill. 45; Binkert v. Wabash Co., 98 Ill. 205 ; the other in favor of creditors, created by the act of the debtor. These two liens have been foreclosed and the purchasers stand opposed to each other with deeds under the proceedings respectively employed for enforcing them. The lien of the State is the superior one, although subsequent in time, a superiority invariably accorded to it in absence of some legislative declaration to the contrary. Cadmus v. Jackson, 52 Penn. 295; Doane v. Chittenden, 25 Ga. 103; Hopper v. Malleson, 16 N. J. Eq. 382; Cooper v. Corbin, 105 Ill. 224. No system of jurisprudence would command respect which failed to maintain and enforce the benefits of this priority, by all necessary and reasonable proceedings to that end. "When real estate was encumbered with two mortgage liens, and the owner of the first undertook to enforce it by suit, he could proceed to judgment without making the owner of the second a party defendant. But, in doing so, he accepted the consequences of leaving him unaffected by the proceeding. The second mortgagee was not, perhaps, a necessary party to a decree of foreclosure. He was a proper party, and if he was omitted from the proceedings the decree could not operate as a divesture of his rights, 2 Jones on Mort., § 1394 (3rd Ed.); Valentine v. Havener, 20 Mo. 133; Goodman v. White, 26 Conn. 317. The second mortgagee holds a lien only on the equity of redemption, and a foreclosure of his lien gives to the purchaser under it, only the equity of redemption. As against a purchaser under proceedings foreclosing the prior mortgage, from which he has been omitted as a party, [398]*398he possesses the right to redeem the laud by payment of the debt for which it was foreclosed. In a proper proceeding to enforce this equity of redemption, he may acquire the absolute title. He could not successfully resist an action at law for the possession, because the title under the superior lien is the superior title at law. Valentine v. Havener, 20 Mo. 133. But since law and equity have been blended, he can resist and overcome this title by setting up his equitable defense in the right to redeem, and paying for decree of redemption. If the holders of the deed of trust, which in this case constitutes the second lien, had been made parties to the proceedings to enforce the tax lien the subsequent foreclosure of the deed of trust would fail to vest in the purchaser any right of redemption. He would be concluded by the decree on the tax lien. The name of the beneficiary in the deed of trust was omitted from the tax lien suit. The name of the trustee was not in my judgment an equitable substitute. A trustee in a deed of trust, having no other power or light over the land beyond the mere power of sale, does not, in my judgment, represent the beneficiary in other matters relating to the land-lie has nothing to do with the rents and profits, insurance, taxes or possession of the land. He has no right to hold or manage it in any way for the use of the beneficiary. As a nominal trustee, for the sole, purpose of making a sale under the powers conferred on him, he was not a competent party to foreclose by suit without joining the beneficiary with him. Davis v. Hemingway, 29 Vt. 438; 2 Jones Mort., §§ 1384, 1397 (3rd Ed).

I do not find anything in the revenue act which relieves the collector from the operation of the general rule applying to the enforcement of liens, which requires the holder of the superior lien to make the owner of the junior or inferior incumbrance a party to the proceedings for enforcing the first lien, if he desires to divest him of his rights. Section 6837 provides, that all actions commenced under the provisions of chapter 145 shall be prosecuted in the [399]*399name of the State, at the relation, and to the use of the collector “ and

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Bluebook (online)
82 Mo. 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-v-fizer-mo-1884.