Whalen v. Ring

276 N.W. 409, 224 Iowa 267
CourtSupreme Court of Iowa
DecidedDecember 14, 1937
DocketNo. 44171.
StatusPublished
Cited by6 cases

This text of 276 N.W. 409 (Whalen v. Ring) 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
Whalen v. Ring, 276 N.W. 409, 224 Iowa 267 (iowa 1937).

Opinion

Stiger, J.

On February 25, 1937, the petitioners in this proceeding commenced an action in equity in the district court of Iowa in and for Linn County against Collins Mortgage Company and Equitable Life Assurance Society of the United States to cancel certain promissory notes and mortgages securing the notes. The petition in equity alleges that said notes and mortgages were signed by plaintiffs by their attorney in fact; that said attorney under his written power of attorney had the right to represent the plaintiffs only in matters having to do with the extension or renewal of mortgages upon real estate owned by them in Greene County, and in executing the said original notes and mortgages to defendants the agent exceeded his authority. The petition also complained of transactions between defendants and the Guarantee Trust Company of New York relative to the notes and mortgages in question and other mortgages. Plaintiffs further allege that they did not receive the proceeds of the loans and that the retention of the instruments by the society would be unconscionable and fraudulent. The prayer of the petition is in part as follows:

“That said purported instruments be set aside, annulled, and held for naught and that the defendants be required to surrender up the same to be cancelled and that the court adjudge and decree the cancellation thereof.

“That the court adjudge and decree that the said defendants and each of them are by their acts and conduct as set forth in the foregoing petition, estopped from enforcing or setting up any claims because or .on account of the said instruments or any of them, including any claim to be bona fide purchasers or owners thereof.

‘ ‘ That the plaintiff may have the decree of this court granting such other and further relief (and such relief only) as shall be effectual to decree the cancellation and surrender by defendants for cancellation of the written instruments in the foregoing petition described which is consonant with the principles of courts of equity and which the nature of the case may require. ’ ’

*269 The defendants filed a motion for change of place of trial from Linn County to Greene County stating that the action was commenced to procure among other things a cancellation and surrender of mortgages on real estate situated in Greene County, Iowa; that said mortgages convey an interest in real estate and the proceeding constitutes an action for the determination' of an interest in real property and must be commenced in the county in Avhich said real estate is situated under the statutes of the State of Iowa; that said petition also prays that the defendants be enjoined, restrained,-and estopped from asserting any interest in the aforesaid real estate under said mortgages, or by reason thereof, and for general equitable relief.

Plaintiffs filed a resistance to the motion for the following reasons:

“1. This action is not brought for the recovery of real property or of an estate therein or for the determination of such right or interest or for the partition of real property within the meaning of Code section 11034.

“2. This is not an action to quiet title or to remove a lien affecting real property and no such relief is sought.

“3. This is an action in personam and not in rem.

“4. That real property or estates in real property are not the subject of the action nor is the determination ‘of such right or interest’ the subject of the action.

“5. This action is a transitory action and not a local action.

“6. The motion for change of place of trial is filed by only one of two joint defendants.”

Plaintiffs amended their petition by adding the following:

“Plaintiffs do not herein seek or ask for a decree quieting title to real property or removing a cloud or lien upon real property.”

The trial court sustained the motion for change of venue. The petitioners obtained in this court a writ of certiorari to test the validity of the action of the trial court in sustaining the motion.

The procedure adopted by petitioners to review the action of the trial court is not questioned.

The plaintiffs in the equity action sought a cancellation and *270 surrender of the mortgages and notes and a decree restraining the defendants from making any claims under the instruments. Code section 11049 reads as follows:

“11049. Personal actions. Personal actions, except as otherwise provided, must be brought in a county in which some of the defendants actually reside, but if neither of them have a residence in the state, they may be sued in any county in which either of them may be found.”

The position taken by petitioners is that the equity action is one in personam, a transitory and not a local action, and, being a personal action, must be brought in the county in which the defendants reside under the provisions of section 11049. They assert that actions excluded by the words “except as otherwise provided”, found in section 11049, are those classified as local by section 11036 and actions for breach of written contract which by its terms is to be performed in a particular place. Code section 11040. The petitioners particularly deny that section 11034 is one of the exceptions made in section 11049 and that the equity action comes within the provisions of section 11034. Section 11034 reads:

“11034. Real property. Actions for the recovery of real property, or of an estate therein, or for the determination of such right or interest, or for the partition of real property, must be brought in the county in which the subject of the action or some part thereof is situated. ’ ’ ■

Petitioners claim that the proceeding in equity is strictly in personam and is not an action for the determination of a right or interest in real estate under section 11034 and therefore is not a local action which must be brought in the county where the land is situated. They further contend that the “subject” of the action is not real estate and that the suit was not broi;ght for the determination of a right or interest in real estate.

The petitioners state the test of the correct venue under the Iowa statute is to determine whether the action as pleaded is in personam or in rem; that an action for the cancellation of instruments is transitory and not local; that, if plaintiffs prevail on the merits, the decree will operate in personam only and the action is in no sense in rem. We cannot agree with the petitioners. We are of the opinion that the action for cancel *271 lation of the mortgages and for a decree estopping defendants from claiming any rights nnder the mortgages involves a determination .of a right or interest in real estate and must be brought in the county where it is situated. The decree rendered in the case will necessarily determine the validity of the mortgages and such judgment will manifestly affect and determine rights in real property.

The plaintiffs claim in the equity action that their agent had no authority to execute the mortgages and encumber their real estate and that the mortgages were obtained and held under circumstances that render the transactions fraudulent.

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Bluebook (online)
276 N.W. 409, 224 Iowa 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whalen-v-ring-iowa-1937.