State Nat. Bank v. Ladd

1916 OK 930, 162 P. 684, 65 Okla. 14, 1916 Okla. LEXIS 602
CourtSupreme Court of Oklahoma
DecidedOctober 31, 1916
Docket7911
StatusPublished
Cited by5 cases

This text of 1916 OK 930 (State Nat. Bank v. Ladd) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Nat. Bank v. Ladd, 1916 OK 930, 162 P. 684, 65 Okla. 14, 1916 Okla. LEXIS 602 (Okla. 1916).

Opinion

Opinion by

COLLIER, C.

On the 10th day of January, 1912, the Ardmore State Bank recovered judgment against O. B. Ladd, for the sum of $269.90, together with foreclosure *15 of mortgage on tuo mules, one wagon, one cow, and cotton crop. Thereafter, on the 16th day of January, 1912, an order of sale was duly issued, and said property advertised and sold thereunder on (lie 80th day of January, 1912, for $68.50. On the 27th d£ty of February, 191.2, after the sale of said property under said order of sale, said Ladd filed a supersedeas bond of said judgment rendered against him. Thereafter this cause was appealed to this court, the cause reversed and remanded upon the ground that plaintiff had no lien upon said property by virtue of the mortgage which was foreclosed, and that the judgment of the trial court in favor of plaintiff, in the said case of Ladd v. State Bank of Ardmore, 43 Okla. 502, 143 Pac. 170, was erroneous and unauthorized. On the 10th day of July, 1915, the defendant in error, hereinafter styled the plaintiff, brought action against the State National Bank of Ardmore, as successor of the Ard-more ¡State Bank, plaintiff in error, hereinafter styled defendant, to recover the value of said two mules, one wagon, and one cow, sold under said order of sale under said judgment against Ladd, laying said action for a conversion of said property.

The defendant answered denying each arid every material allegation of the petition, and pleaded in defense the judgment rendered in the case of Ladd v. Ardmore State Bank, the order of sale, and the sheriff’s return. It was admitted by the defendant that the reasonable cash value of the property sold by the sheriff under said order of sale in said case of Ladd v. Ardmore State Bank was, at the time of the sale of the property, the sum of $275. The return of the sheriff and the order of sale showed that the property was sold to other parties than the plaintiff in said case of Ardmore State Bank v. Ladd for the sum of $68.50. There was other evidence, which, from the view we take of the case, We deem unnecessary to recite. The .cause was tried to a jury, and upon conclusion of the evidence the defendant moved the court to instruct the jury to return a verdict in its favor. Thereupon the plaintiff moved the court to instruct the jury to return a verdict for the plaintiff in the sum of $275, with interest at 6 per cent, per annum from the 16th day of January, 1912, until paid. The jury was discharged, and the court took the case under advisement, and, on November 4, 1915, sustained the plaintiff’s motion and rendered judgment for the plaintiff in the sum of $275, with interest from January 16, 1912, at 6 per cent, per annum. In due time the defendant moved for a new trial, which was overruled and excepted to. To reverse the judgment rendered this appeal is prosecuted.

There are but two questions which we deem-necessary to consider for a proper review of this case: (1) Assuming, but not deciding, that the Ardmore State Bank was taken over by the defendant, and the defendant liable for the acts of said Ardmore State Bank, was the action of the Ardmore State Bank in securing the judgment and the illegal sale of said property which was sold liable for a conversion? (2) Assuming that the defendant was the successor of the Ardmore State Bank and received the amount realized in the sale of the property under the order of sale, which we do not hold, was the plaintiff entitled to recover in said action the amount realized at said sale, with interest thereon, or to recover the value of the property at the time of the erroneous sale thereof, with interest thereon from the date of sale?

To constitute a conversion there must be a wrongful act on the part of the party charged, and before the defendant could be adjudged guilty of a conversion of the property erroneously sold, such sale must have been a wrongful act. A judgment, although it may be erroneous, nevertheless, is the act of the court, and, until reversed, unless superseded, which was not done in the instant case, constitutes a sufficient justification for all acts done in its enforcement,- and It afforded complete protection to the defendant, who acted in reliance upon the adjudication. Thompson v. Reasoner, 122 Ind. 454, 24 N. E. 223, 7 L. R. A. 495; Gray v. Brignardello, 68 U. S. (1 Wall.) 627, 17 L. Ed. 693; Freeman on Judgments, sec. 482; Wait, Fraud. Conv. (2d Ed.) secs. 443, 444.

The principle is that it would be unjust to hold that a judgment rendered by a court of competent jurisdiction of both the parties and the subject-matter should fail to protect the parties acting under it, before reversal. Miller v. Adams, 7 Lans. (N. Y.) 131; Id., 52 N. Y. 409; Palmer v. Foley, 71 N. Y. 106; Dusenbury v. Kelley, 85 N. Y. 383; Hayden v. Shed, 11 Mass. 500.

Upon principle and upon the irrefutable reasoning of all the authorities, the conclusion follows that the defendant in the instant case is not liable in an action sounding in tort, for damages resulting to the plaintiff by the erroneous sale of the property under the judgment rendered.

It is true that the authorities are not entirely in harmony upon the question of whether upon reversal of the erroneous judgment under which the property of defendant has been sold the measure of damages is the amount realized at the sale made under said erroneous judgment or the value of the property at the time of the sale. But we think the great weight of authority and the better *16 reasoned cases conclusively show that the party injured by such erroneous judgment and sale of property thereunder is only entitled to recover the amount realized at such sale.

In Peek v. McLean, 36 Minn. 228, 30 N. W. 759, 1 Am. St. Rep. 665, it' is held:

“Defendant, after reversal of an erroneous judgment against him, is entitled to restitution of only so much as the plaintiff has received upon the execution rendered thereunder.”

In Thompson v. Reasoner, 122 Ind. 454, 24 N. E. 223, 7 L. R. A. 495, Mitchell, O. J., speaking for the court, says:

“A judgment regularly given, although it may be- erroneous, is nevertheless the act of the court, and any one who proceeds to enforce it may avail himself of its protection ¡until it is reversed. Whatever contrariety there may be in the adjudged cases, in other respects, all the authorities agree that where a judgment is merely erroneous, it will afford complete protection to all persons who proceed to enforce it, and who act in reliance upon the adjudication. Upon the reversal of an erroneous judgment, the law raises an obligation against one who has received the benefit of the judgment, to make restitution to the other party of any money or property that may have been received, or for its value or equivalent in money in case the plaintiff asserts title to the thing received, or has converted it to his own use.”

In Hess v. Deppen et al., 125 Ky. 424, 101 S. W. 362, 15 Ann. Cas. 670, it is held that:

“When a judgment is reversed, restitution must be made of all * * * received under it; but no further liability should in any case be imposed”

—and citing in support thereof Schnabel v. Waggener, 118 Ky. 362, 80 S. W. 1125; Mark v. Hyatt, 135 N. Y. 306, 31 N. E. 1099, 18 L. R. A. 275; Thompson v. Reasoner, 122 Ind. 454, 24 N. E. 223, 7 L. R. A. 495; Simpson v. Hornbeck, 3 Lans. (N. Y.) 53; Bryan v. Congdon, 86 Fed.

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Bluebook (online)
1916 OK 930, 162 P. 684, 65 Okla. 14, 1916 Okla. LEXIS 602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-nat-bank-v-ladd-okla-1916.