Union Trust Co. v. Lessovitz

171 N.E. 840, 122 Ohio St. 406, 122 Ohio St. (N.S.) 406, 8 Ohio Law. Abs. 336, 1930 Ohio LEXIS 255
Ohio Supreme Court·Decided May 21, 1930·No. 22098 and 22099·Published·Cited by 25 cases

Opinion

Jones, J.

The Union Trust Company filed an action in the court of common pleas seeking to recover a judgment upon a promissory note of certain of the defendants and to have its mortgage upon their property foreclosed. Taylor, the principal defendant in the action, filed his answer and cross-petition, denying the allegations of the plaintiff’s petition because of want of knowledge; he also set forth in his cross-petition a judgment procured by him against the mortgagors on July 19, 1927, and alleged that his judgment was prior to the mortgage of the trust company filed for record in the following October, and prayed for a marshaling and determination of priority of liens. Thereupon the trust company replied to Taylor’s cross-petition and alleged that the loan secured by its mortgage was advanced to the mortgagors in payment and satisfaction of their two recorded mortgages, one held by the Woodland Bank and the other by one Kaplan, both of which liens *413 were recorded prior to the time Taylor secured his judgment lien. It further alleged that it advanced the money in satisfaction of these two prior mortgages in reliance upon the mortgagors.’ representation that these two mortgages were the only incumbrances upon the property, and with the understanding that the trust company was to have the first and best security upon the premises for its loan; that, when it made such advancements, and discharged the two prior mortgages, it knew of no other incumbrances upon the property and believed that it was securing the first and best lien thereon. The reply asks for foreclosure and equitable relief, and asks that it may be subrogated to the rights and preferences of said two mortgages to the extent that the money advanced by it went to their satisfaction and discharge. The trial court found in favor of the trust company as to the amount due, but held adversely to its claim of subrogation.

From this decree, denying subrogation, the trust company .appealed the case to the Court of Appeals, and probably out of precaution it also carried the ease to that court on error. While both cases were pending, and before the hearing of either, Taylor filed his motion to dismiss the appeal upon the ground that the case was not appealable. Without hearing the motion to dismiss the appealed case, the record discloses that the court proceeded to hear the error case and affirmed the trial court, and upon the day of affirmance it dismissed the appeal case at the cost of the appellant, thereby sustaining a motion of Taylor, the appellee, asking its dismissal upon the ground that the case was not appealable.

Section 6, Article TV, of the Constitution, pro *414 vides: “The courts of appeals shall have * * # appellate jurisdiction in the trial of chancery cases.” The right of appeal is a valuable one; and, if the cause sounds in chancery, the appellate court is without jurisdiction to dismiss it over the objection of the appellant. This was a chancery case. The right of subrogation and priority of liens was the chief question raised by the pleadings, and was the only question in which Taylor and the trust company were interested. By Taylor’s general denial the amount due to the trust company was put in issue; but upon that issue the trial court found in favor of the trust company.

In a unanimous decision of this court, Hummer v. Parsons, 111 Ohio St., 595, 146 N. E., 62, it was held that the question whether an action is one in chancery or at law is determined from the pleadings and the issues made thereby. The first proposition of the syllabus in that case reads: “An action to foreclose a lien upon real estate and to- subject property pledged to the satisfaction thereof, whether such lien is a mortgage or a mechanic’s lien is a chancery proceeding, and is appealable.” The instant case has even more traits of chancery than the case alluded to; for, in addition to foreclosure, it presents the features of priority of liens and subrogation, in the determination of which the two principal parties were chiefly interested. The case presented in the trial court was one in chancery, and was therefore appealable to the Court of Appeals.

As disclosed in the foregoing statement, the defeated party, the appellant trust company, prosecuted both appeal and error to the appellate court. While the proper method of procedure, respecting *415 the use of these concurrent remedies, has been indicated by this court in causes decided prior to the adoption of the Constitution of 1912, since that time there seems to have been no adjudication by this court upon that subject. However, we perceive no substantial reason for making any distinction in the procedural use of these remedies, whether employed prior to or after that date. Cadwell v. Cadwell, 93 Ohio St., 23, 112 N. E., 148. These concurrent remedies were fully recognized in the following decided cases. Hull v. Bell Bros. & Co., 54 Ohio St., 228, 43 N. E., 584; Willson Improvement Co. v. Malone, 78 Ohio St., 232, 85 N. E., 51; Jenny, Admr., v. Walker, 80 Ohio St., 100, 88 N. E., 123.

As lawyers well know, cases frequently arise where the defeated party is doubtful of the remedy that he should employ; and this is especially true under our new Constitution, where the border line between law and chancery is sometimes vague. When the lawyer is in doubt whether the judicial determination of appealability will be in his favor or otherwise, in order to safeguard his client’s interests, the prudent and commendable practice is to institute both remedies; but he should first prosecute his appeal until the final determination of his right thereto. In this connection we quote from the opinion of Williams, C. J., on page 241 of 54 Ohio State, 43 N. E., 584, 587, in the case of Hull v. Bell Bros. & Co., supra: “If the appeal be sustained, the proceeding in error avails nothing, for the cause then stands for a retrial of the issues in the appellate court, the judgment appealed from is superseded by that of the appellate court, and the errors occurring on the trial below, if any were committed, become immaterial.”

*416 When a case is appealed to the appellate court, the judgment of the trial court is not vacated, but suspended. While many of the early decisions of this court speak of the appeal as “vacating” rather than “suspending” the judgment below, some of them using these terms indiscriminately, the later decisions of this court are in accord with the principle announced in the syllabus and opinion of Chief Justice Swan in Bassett v. Daniels, 10 Ohio St., 617, where it is held that an appeal, when perfected, ‘ suspends all proceedings upon the judgment appealed from.” See, also, Jenney, Admr., v. Walker, 80 Ohio St., 100, 88 N. E., 123; Murray v. Mahan, 81 Ohio St., 569, 91 N. E., 1135; Barnes v. Christy, 102 Ohio St., 160, 131 N. E., 352.

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Union Trust Co. v. Lessovitz, 171 N.E. 840, 122 Ohio St. 406, 122 Ohio St. (N.S.) 406, 8 Ohio Law. Abs. 336, 1930 Ohio LEXIS 255 (Ohio 1930).

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