Wayman v. North Kentucky Fair

162 S.W.2d 226, 290 Ky. 652, 1942 Ky. LEXIS 472
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedMay 15, 1942
StatusPublished
Cited by1 cases

This text of 162 S.W.2d 226 (Wayman v. North Kentucky Fair) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wayman v. North Kentucky Fair, 162 S.W.2d 226, 290 Ky. 652, 1942 Ky. LEXIS 472 (Ky. 1942).

Opinion

Opinion op the Court by

Morris, Commissioner—

Affirming.

In July 1935 tke Realty Corporation of Corinth., Kentucky, bought from North Kentucky Fair a tract of 15 acres in the town of Florence, for $15,000, one-third in cash, the balance evidenced by two notes of $5,000 each, with lien to secure payment. The Realty Company thereafter divided the tract into 131 town lots.

On October 14, 1935, Realty sold to Lincoln Realty Company 23 lots, retaining lien to secure the payment of a $1,600 note. The Lincoln sold these lots subject to Realty’s $1,600 lien. On October 17, 1935, Realty mortgaged 4 lots to Farmers Bank of Corinth to secure the payment of a $2,500 note, and on the same day conveyed 11 lots to the Bank, the conveyance being subject to Fair’s lien on the whole tract. On the same day Realty borrowed upon its promissory note $1,600 from the Bank and attached to its note as collateral the $1,600 note which Lincoln had given Realty. The Realty Company failing in its obligation, Fair Company sought by equitable action to foreclose.

Included in parties named as defendants' was the Farmers Bank of Corinth, Grant County. The trouble which later arose was due to the fact that summons was served on the cashier rather than the president. Civil Code of Practice, Section 51, Subdivision 3.

*654 Upon submission the chancellor, on April 13, 1937, adjudged that the Fair Company had a superior lien on the entire tract to secure the deferred payments. The commissioner was directed to sell a sufficient number of the lots to pay the lien debts. A lien was adjudged in favor of the Realty on lots sold to Lincoln to secure payment of its $1,600 lien note, which had been put up as collateral with the Bank.

Following the entry of the judgment, and on June 14, 1937, the Fair, Realty and Nellie Shoffner stipulated in a filed writing, that the lots could be sold to better advantage if grouped and offered for sale, as specifically set out in the agreement. Pursuant to the judgment and stipulation the commissioner sold the 131 lots, reported his action and on August 11, 1937, the report was confirmed, without exceptions. On November 14, 1938, the Farmers Bank moved to quash the summons, because of irregularity of service as above stated; the court sustained the motion.

At the same term, on December 16, 1938, the chancellor set aside the judgment and report of the commissioner. The order recited that ‘ several thousand dollars worth of land sold, due to insolvency of purchasers and sureties, * * * has now reverted to the commissioner,” and one Jennie Bauer has by pleading asserted title to 20 lots, “and the Farmers Bank has title to 11 of the lots sold, and a mortgage lien on 4 other lots,” and that the plat on record, and upon which the commissioner relied, did not conform to and define the lots sold as they are described in deeds whereunder the same were held. The commissioner was directed to employ a surveyor to fix the boundaries of the lots; to make a blueprint, and furnish it with his report to the court. The report, if made, is .not exhibited in the record here. There were no objections to this order.

The above order was entered December 16, 1938, and on April 12, 1939 (a succeeding term), the appellant, G-oldie Wayman, made it known to the court that at the sale conducted by the commissioner, she had purchased lots Nos. 1 to 10, 28 to 32 and 65 to 70, all inclusive, and had executed bond for $3,633, and upon confirmation had paid the commissioner the sum of $1,280.43. She then asserted that on December 16, 1938, the court set aside the order of sale, and “denied her right to secure a deed,” the commissioner still retaining her money. *655 These allegations were followed by her motion for an order directing the'commissioner to refund to her the portion of the purchase price paid on the lots.

Thereafter on April 20,1939, the plaintiff moved the court to set aside the order entered on December 16, 1938, on the grounds that the failure of service on the Farmers Bank “did not affect any of the lots in said subdivision,” except those owned in fee by and under lien to the bank, and the court sustained the motion of plaintiff, the order reciting:

“It now appearing to this court that said order was entered without any warrant or authority of this court to enter said order in the way and manner in which same was entered, this court is now of the opinion that said order, to the extent that it undertakes to set aside judgments and orders of this court entered in 1937, is a clerical misprision, and for that reason same is declared to be null and void and a clerical misprision, and the same is set aside to that extent, to which ruling G-oldie and R. C. Wayman, * * * except. ’ ’

It also appears that at the same time the Farmers Bank entered appearance, filing its separate answer and cross-petition setting up its ownership and lien rights upon the lots above noted, and which by “chance” were in part the same lots sold to one purchaser and rights of purchase assigned to others, and asked that they be resold, with other lots where it appeared the purchasers and sureties were insolvent.

It was ordered by the court that the commissioner resell lots or groups involved in the Bank’s claim, and those where there had been default. It is admitted that none of the lots which Mrs. Wayman had purchased was included either in the Bank group or in the group ordered resold because of failure to meet purchase requirements.

Mrs. Wayman’s motion to refund was overruled, over objection. Following the order of April 20, 1939, sustaining plaintiff’s motion to set aside the order of Desember 16, 1938, and directing a resale of lots (not involving those purchased by Mrs. Wayman), she, on December 13, 1939, two terms after the April 1939 term, moved the court to reconsider the order theretofore made *656 overruling her motion, and to sustain it, due to the fact that “said judgment and order of sale is void and that the purchaser cannot get a good and marketable title to said property.” She also moved that the judgment and order of April 27, 1937, be set aside and held for naught, and that she be released from any further obligation upon her sale bonds. The court overruled both motions; she excepted, prayed and was granted appeal, and is the sole appellant.

The matter which is brought to us for determination is somewhat simplified by stipulation of counsel, in substance agreeing that the only question involved is whether the fact that the Bank was not regularly before the court at the time of the rendition of the original judgment, renders void or in any wise affects the sale of all the lots sold under the first order, or whether it renders void only sales of those owned in fee or under mortgage to the Farmers Bank, none of which was purchased by appellant.

“It is conceded by all parties that insofar as these lots (Bank’s) are concerned, the sale provided for in the original judgment was void, but it is the contention of appellees that the second sale cured all defects existing in the first sale.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Little v. Mann
195 S.W.2d 321 (Court of Appeals of Kentucky (pre-1976), 1946)

Cite This Page — Counsel Stack

Bluebook (online)
162 S.W.2d 226, 290 Ky. 652, 1942 Ky. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wayman-v-north-kentucky-fair-kyctapphigh-1942.