Trust Co. v. Mobley

150 S.E. 169, 40 Ga. App. 468, 1929 Ga. App. LEXIS 589
CourtCourt of Appeals of Georgia
DecidedOctober 18, 1929
Docket19562, 19563
StatusPublished
Cited by14 cases

This text of 150 S.E. 169 (Trust Co. v. Mobley) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trust Co. v. Mobley, 150 S.E. 169, 40 Ga. App. 468, 1929 Ga. App. LEXIS 589 (Ga. Ct. App. 1929).

Opinion

Bell, J.

(After stating the foregoing facts.)

The plaintiff insists that the judgment of October 11, 1928, which was rendered after the allowance of the plaintiff’s amendment, and which, in view of the amendment, revoked the previous order sustaining the defendants’ general demurrer, was in legal effect the overruling of the general demurrer, and, being unexcepted to, became the law of the case and should stand as an adjudication that the petition set forth a cause of action. There is no merit in this contention. Under the terms of the previous order the allowance of the amendment in this case ipso facto opened the petition for a fresh adjudication, and the order of revocation was seemingly superfluous and unnecessary. At any rate, a judgment which merely revokes a previous judgment conditionally sustaining a general demurrer does not have the effect of overruling the demurrer, but only restores the status and leaves the demurrer for future determination. Since the first order in this case was a conditional one and concluded nothing, it would necessarily follow that its subsequent revocation likewise concluded nothing. Folsom v. Howell, 94 Ga. 112 (21 S. E. 136); Smith v. Bugg, 35 Ga. App. 317 (133 S. E. 49); Kumpe v. Hudgins, 39 Ga. App. 788 (149 S. E. 56).

The effect of the court’s third and last order on the defendants’ demurrer was that the petition set forth a cause of action so far as it sought to recover a sum sufficient to pay the taxes claimed by Campbell county, but that beyond this the plaintiff was not entitled to recover. In the main bill of exceptions, which was brought by the defendants, it is complained that this judgment was erroneous in that it did not sustain the demurrer in whole and dismiss the petition as failing to set forth a cause of action for any amount. [474]*474This brings us to an examination of the petition and to the crux of the case.

Considering what the petition alleges with what it fails to allege, and in view also of the plaintiff's own implied interpretation of it, we are of the opinion that it fails altogether to show any right of recovery. The plaintiff must stand upon the ground occupied by his predecessor in office and is bound by his acts; in fact this is not disputed, — he relies upon them. So, in this opinion in using the word “superintendent” we will refer interchangeably either-to the present plaintiff or to his predecessor, without attempting to distinguish which of these persons is intended to be designated in a particular instance.

The Bank of Campbell County had executed a deed to secure a debt of $12,500 before the bank went into the hands of the superintendent, the property conveyed being the lot upon which the banking house was situated, and of which the bank was at the time in possession. Whether, if the bank thereafter had any equity of value in this property, the superintendent on taking possession could have dealt with the same in any manner except to “buy in said property or pay off such secured claim,” as provided in the act of 1922 (Ga. L. 1922, p. 65), it is clear that the property was treated as having no value above the debt, and that its sale was only for the benefit of the grantee in the security deed. We are not concerned in this case with any question as to whether the sale put into the purchaser the absolute title to the property, although this would seem to be doubtful if the defendants are correct in their contention that the superintendent could have acted only in the manner indicated by the language quoted.

There is some reference in the petition to the Atlanta National Bank, but that bank is not a party, and the allegations are too vague to indicate any interest which it had in the debt secured by the deed to the savings corporation. We therefore think it proper to disregard all reference to the national bank.

In support of our statement that the property was dealt with as having no value above the indebtedness to the savings corporation, we call attention to the allegation that the savings corporation r. presented to the superintendent that to foreclose the security deed for the recovery of said property in the manner provided by the laws of this State, would be both expensive and attended with delay, [475]*475but that under the provisions of section 7 of article 7 of the banking act of 1919 the superintendent “could make application and sell for them and in their behalf [italics ours], and so as to enable them to realize upon said real estate, said bank building, and without expense, relieving them of the necessity of paying court costs and sheriff’s commissions and the like and that the superintendent, in order to be of assistance to this creditor, did make application to the judge of the superior court and did procure an order to sell the property accordingly. This action appears to have been taken by the superintendent solely in behalf of the savings corporation and for the purpose of saving delay and expense to it. If the property had been worth more than the debt, the superintendent presumably would have acted in behalf of all creditors rather than to serve the interest of the one alone.

Again, the savings corporation would have needed no assistance in avoiding expenses in the nature of “court costs, sheriff’s commissions, and the like,” unless the property was worth less than the debt with legal costs of collection, since on a sale procured directly by this creditor the proceeds would have been charged with such expenses, as part of the debt.

The petition shows that the application of the superintendent for permission to sell was consented to by the savings corporation with the understanding that “its lien on said property [should be] divested and attached to the fund realized from the proceeds of said sale.” To construe the allegations most strongly against the plaintiff, as must be done on demurrer, it is conclusive that in the negotiations between the superintendent and the savings corporation the rights of no other creditors were contemplated, and that the sale was to be made solely in the interest of this creditor. The savings corporation, under the agreement then entered into, was the only person appearing to have any rightful claim to the fund, and by the execution of such agreement it so altered its position that the plaintiff should now be estopped from claiming that the sale was made for any other purpose than that originally understood.

.The purchaser at the sale was the Trust Company of Georgia, and the petition alleges that the suit is brought against that defendant to recover the purchase-price, $12,000, which as shown above was less than the amount of the debt to the savings corporation. The security deed conveyed the title to the property, and the word [476]*476“lien” as used in the consent agreement of the savings corporation must be construed in the light of this fact; the intention of the parties manifestly was that the savings corporation would have the same right in the proceeds which it theretofore had in the property, and as between the immediate parties this intention should prevail. No other creditor is complaining, the superintendent being the sole movant in this proceeding.

The effect of a security deed is not merely to create a lien but to convey title, subject to redemption by payment of the debt thereby secured. “The debtor himself may redeem, or his creditors may redeem, but until redemption the legal title is out of the debtor and in the creditor.” Groves v. Williams, 69 Ga.

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Bluebook (online)
150 S.E. 169, 40 Ga. App. 468, 1929 Ga. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trust-co-v-mobley-gactapp-1929.