City of San Francisco v. Lawton
City of San Francisco v. Lawton
Opinion of the Court
Cope, J. concurring.
The object of the suit to foreclose a mortgage, under our law, is to obtain the sale of the estate which the mortgagor held at the time he executed the mortgage, and the application of the proceeds of the sale to the payment of the demand, for the security of which the mortgage was given. All persons who are beneficially interested, either in the estate mortgaged or the demand secured, are proper parties to the suit. This rule, as a general thing, will only embrace the mortgagor and mortgagee, and those who have acquired rights or interests under them. Where prior incumbrancers are made parties, it is only for the purpose of liquidating the amount of their demands, and paying them out of the proceeds of the sale. Adverse titles to the premises held by parties claiming by conveyance from the mortgagor prior to the mortgage, or from third parties prior or subsequent to the mortgage, are not the
In the present case, the defendants, Howard, Perley, Gould and Smith, who alone appeal from the decree, set up in their answer title to a portion of the mortgaged premises, under a grant from the former Mexican Government, bearing date in May, 1839, and a patent of the United States, issued upon its confirmation, in March, 1858, and also under a deed executed by the Tax Collector of the city and county of San Francisco, upon a sale for unpaid taxes for State and county purposes, for the fiscal year ending in June, 1856. On the trial, they produced the patent, and traced title thereunder to the defendants Howard and Perley. They also produced the tax deed, .and traced title thereunder to Perley. The record does not disclose any evidence of title in either Gould or Smith under the patent or the tax deed. Of the value of the titles conferred by those instruments, it is unnecessary to express any opinion. Their validity is not the proper subject of determination in the present suit. It is only necessary to look into them so far as to see that they are asserted in good faith, and are not mere pretenses for delay; and this being seen, the rights of the defendants Howard and Perley should have been reserved in the decree. If there were no other reasons than the assertion of these adverse
The case of Clark v. Baker (14 Cal. 612) is cited by the respondent as authority for the position that the appellants, claiming under the patent of the United States and the tax deed, are estopped from asserting their title against the title of the mortgagor. We do not understand the decision in that case as sustaining the position. The facts were these : Clark, without having the legal title, conveyed to Baker certain premises; Baker, to secure the purchase
There are several other objections taken by the appellants to the action of the Court below, but upon them we express no opinion. With a clause in the decree saving to the appellants their rights under the patent and tax deed, it is not probable that they will feel disposed to press the objections. On the further hearing it will not be necessary to take anew the testimony. The parties can use that already embodied in the transcript, and add such further testimony as they may deem essential to the proper presentation of the case.
Judgment reversed, and cause remanded for further proceedings.
Reference
- Full Case Name
- CITY AND COUNTY OF SAN FRANCISCO v. LAWTON, Administrator of the Estate of Mowry, AUSTIN E. SMITH, VOLNEY E. HOWARD, E. L. GOOLD and D. W. PERLEY
- Cited By
- 41 cases
- Status
- Published
- Syllabus
- The object of the suit to foreclose a mortgage, under our law, is to obtain the sale of the estate, which the mortgagor held at the time he executed the mortgage, and the application of the proceeds of the sale to the payment of the demand, for the security of which the mortgage was given. All persons who are beneficially interested, either in the estate mortgaged or the demand secured, are proper parties to the suit. This rule, as a general thing, will only embrace the mortgagor and .mortgagee, and those who have acquired rights or interests under them. Where prior incumbrancers are made parties, it is only for the purpose of liquidating the amount of their demands, and paying them out of the proceeds of the sale. Adverse titles to the premises held by parties claiming by conveyance from the mortgagor prior to the mortgage, or from third parties prior or subsequent to the mortgage, are not the proper subjects of determination in the suit. Such titles must be settled in a different action, giving rise, as they generally do, to questions of purely legal cognizance. The foreclosure operates, except in a single instance, only upon the estate or interest which the mortgagor possessed at the time, and the sale under the' decree passes, with the like exception, only such estate or interest. The exceptional instance arises where the mortgagor has, subsequent to the execution of tho mortgage, acquired a title which enures, by way of estoppel, to the benefit of the mortgagee. In sucli case the foreclosure operates upon the subsequently acquired title to tho same extent as if originally held by the mortgagor, and the sale under the decree passes it. In all other cases the estate mortgaged is the only estate brought under the consideration of the Court, and the only estate affected bv its decree. A vendee may deny the title of his vendor. Parties with clear titles may buy out settlers and trespassers rather than incur the expense and delay of establishing their rights by litigation; and where, in such case, they are made parties to a suit to foreclose a mortgage executed by their grantor previously to the conveyance to them, they are not estopped from denying the title of the mortgagor, and from claiming that their rights under their previous titles are superior to those of the mortgagee. A quitclaim deed only purports to release and quitclaim whatever interest the grantor possesses at the time. lie does not thereby affirm the possession of any title, and is not precluded from subsequently acquiring a valid title and attempting to enforce it. So a grantee in a quitclaim deed may deny that he received any estate by the deed. A grantee of land in fee may deny that he received any estate by the conveyance. With the execution of the conveyance the transaction between the parties is '• closed. Thenceforth the grantee holds the property for himself, and is neither bound to surrender possession to his grantor, or to maintain the validity of his title. Gtarh v. Baker (14 Cal. 612) commented on, and shown not to conflict with the opinion in this case.