Wenstrand v. Kiddoo

268 N.W. 574, 222 Iowa 284
CourtSupreme Court of Iowa
DecidedJuly 31, 1936
DocketNo. 43019.
StatusPublished
Cited by4 cases

This text of 268 N.W. 574 (Wenstrand v. Kiddoo) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wenstrand v. Kiddoo, 268 N.W. 574, 222 Iowa 284 (iowa 1936).

Opinion

Stiger, J.-

On March 11, 1920, the defendant, R. E. G-idley, and wife, executed and delivered to the plaintiff, Carl G-. Wen-strand, personally, fifteen promissory notes, each for the sum of $1,000, and to secure said notes executed to Wenstrand a real estate mortgage on property in the city of Shenandoah, Iowa. Wenstrand sold the notes to various parties and in October, 1927, brought suit to foreclose the mortgage as trustee for the several note holders.

A decree was entered January 4,1928, which rendered judgment for the amount due on each note and attorney’s fees in favor of each note holder, and provided that the costs of the suit and necessary expenses should first be paid from the proceeds derived from the sheriff’s foreclosure sale.

The aggregate amount of the judgments rendered on the several notes was $11,632.17, and the total amount of the attorney’s fees for plaintiff’s attorney on the several notes was $335.-32, for which sum judgment was rendered and taxed as part of the costs.

If the attorney’s fees taxed had been computed on the total judgment of $11,632.17, the amount would be $156.32.

The petition in foreclosure did not ask for the appointment of a receiver and the decree made no reference to a receiver. Whether or not the mortgage contained a receivership clause is not disclosed.

No appeal was taken from the decree in foreclosure.

A special execution was issued to make the judgment, and the costs taxed at $415.83 and the property was bid in by the note holders, Ed F. Rose, G-. E. Mariner, Emma Tounggren, May Hunt, T. E. Dutton, F. M. Nordstrom and Shenandoah Na *286 tional Bank for $9,000 on February 11, 1928, leaving a deficiency judgment of $3,152.18.

On March 1, 1928, the plaintiff filed an application for the appointment of a receiver, alleging that there was a deficiency judgment of $3,000 and that no receiver* was asked for in the foreclosure petition and no provision for a receiver included in the decree; that R. E. Gidley against whom the deficiency judgment stands, refuses to pay the judgment and to apply the rents from the real estate to the payment of the judgment and that he is insolvent.

An order was made prescribing that Gidley be given five days notice of the hearing on the application by registered letter. On March 7, 1928, an order was made finding that Gidley had been given the prescribed notice and appointed Burnet Ferguson receiver to collect the rent and profits from the mortgaged premises during the period of redemption.

On June 26, 1928, the receiver filed an application stating that it was very inconvenient to make a proper division of the costs of the foreclosure action and to collect the same because of diversified interests of the plaintiffs and that he had borrowed the amount of the costs in the foreclosure suit from the Shenandoah National Bank, and asks the court for authority to pay the note from the rent to be collected by him from the mortgaged premises.

On June 20, 1928, an order of court granted the receiver authority to pay the note and later the receiver did pay the note from the rent collected.

On September 11, 1929, an order was made in the receivership proceedings allowing compensation to the receiver for his services in the sum of $250.00.

On February 24, 1931, the receiver filed his final report and his disbursements show the payment of the costs in the foreclosure suit in the sum of $431.03 and the payment of the receiver’s compensation of $250. On March 7, 1931, defendant Gidley filed objections to the final report of receiver wherein he states that the petition in foreclosure did not ask for the appointment of a receiver and the decree appointed no receiver and no jurisdiction was retained by the court to appoint a receiver; that the court was without jurisdiction'to make the order in the receivership for payment of costs in the foreclosure suit; that said payment of the costs was from rentals received during the period of *287 redemption and objector who was the owner of the foreclosed property was not given credit upon the deficiency judgment; that the obligation to pay the foreclosure costs was the plaintiffs ’ and should have been paid from the proceeds of the execution sale and that the rentals should have been applied on the deficiency judgment.

The receiver filed an answer to the objections on November 5, 1931, stating that the application for the appointment of a receiver was prepared with the knowledge and consent of Mr. Gidley, who was served with a notice of the application; that the court had full jurisdiction of the subject matter and the right to a receiver had been adjudicated; that the appointment was made for the benefit of Gidley and for the purpose of assisting him in collecting the rentals from the real estate; that after his appointment, Mr. Gidley requested him to insure the buildings, the insurance thereon having expired, which was done.; that the said buildings were totally destroyed by fire during the receivership and the said Gidley entered into a written agreement authorizing the receiver to collect the insurance and to enter into a contract for the replacement of the buildings from the proceeds of the insurance; that Gidley accepted a check from the receiver for $240 for rent accruing prior to the appointment.

The answer further alleges that Gidley requested Earl B. Ferguson, attorney for the receiver, to borrow the amount necessary to pay the costs in the foreclosure suit and to pay the note from rents to be collected by the receiver from the mortgaged premises; that the receiver relied on this participation of Gidley in the matter of costs and borrowed the money, paid the costs, collected the rentals and paid the note at the bank.

Mr. Gidley does not deny that he requested the receiver to insure the buildings and pay the costs of the insurance from the rents and does not deny that he agreed to the collection of insurance after the fire and use of the proceeds in the replacement of the buildings, but denies the other allegations in the answer.

On August 26, 1933, Gidley filed a motion to set aside the order appointing the receiver for the reason that the court had no jurisdiction to make the order in that the decree in foreclosure did not appoint a receiver nor retain jurisdiction of the case.

On the same day Gidley filed a motion to set aside the order authorizing the receiver to pay the note at the bank from the rents to be collected from the real estate, the proceeds having *288 been used to pay the foreclosure costs. Gidley filed another motion to set aside the order allowing the receiver’s fee in the sum of $250.

The motions and objections to the report of the receiver came on for hearing March 19, 1934, before Judge Bari Peters.

The only issue under the objections to the receiver’s final report as to expenditures made by him on this appeal is the payment of the costs of the foreclosure suit and the receiver’s compensation.

On July 25, 1934, a decree was entered. The court found as follows:

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Bluebook (online)
268 N.W. 574, 222 Iowa 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wenstrand-v-kiddoo-iowa-1936.