Huber v. Shedoudy
Huber v. Shedoudy
Opinion of the Court
This is an action for the foreclosure of a mortgage in the usual form. Plaintiff prayed for judgment of foreclosure, for a deficiency against the mortgagors Shedoudy, and for a receiver. No relief was asked against the appellant, save that his interest in the property be declared to be subject to the mortgage. He was a grantee of the mortgagor. Judgment was entered directing the sale of the property, the application of the proceeds to the payment of the plaintiff’s claim, directing the balance, if any, to be paid to the appellant, and if there was a deficiency instead of a surplus, the deficiency be docketed against defendants Shedoudy. Appellant claims a reversal upon the ground that two material issues were not found upon, one relating to the value of the property and the other relating to attorneys’ fees. The allegations of the complaint and of the answer with reference to the market value of the property were directed to the mafter of the appointment of a receiver.
We have .cited the foregoing authorities to show how utterly frivolous appellant’s contentions are in view of the previous decisions of this court. Owing to the crowded condition of the cal *315 endar of this court a delay of nearly three years has resulted from this appeal. Section 957 of the Code of Civil Procedure provides that “when it appears to the appellate court that the appeal was made for delay, it may add to the costs such damages as may be just.” This language was adopted from the Practice Act of 1851, [Stats. 1851, p. 106], section 345, and that in turn, from the New York Code, section 330. A similar provision was contained in the original Judiciary Act adopted by Congress in 1789, and subsequently continued in effect by the act of Congress of 1803 (c. 40, sec. 1, 2 Stat. 244), and by Revised Statutes, section 1010, [U. S. Comp. Stats. 1916, see. 1671, 6 Fed. Stats. Ann., 2d ed., 228]. The federal statute in question, however, applied to all affirmances, in which it was provided, “The court shall adjudge to the respondent in error just damages for his delay, single or double costs at its discretion.” The application of this rule is discussed in West Wisconsin Ry. Co. v. Foley, 94 U. S. 100, [24 L. Ed. 71, see, also, Rose’s U. S. Notes], wherein it appeared that after several revisions of the rules of the Supreme Court at the December term of 1870, the court adopted the following rule: “In all eases where a writ of error shall delay the proceedings on the judgment of the inferior court, and shall appear to have been sued out merely for delay, damages at the rate of ten per cent, in addition to interest, shall be awarded upon the amount of the judgment.” In that case it was held that the court might award damages for a frivolous appeal in an amount less than ten per cent in addition to interest. It will thus be seen that the supreme court of the United States adopted as the ordinary measure of damages for a frivolous appeal, under a statute authorizing them to give just damages for delay, ten per cent upon the amount of the judgment. The practice in this court in imposing damages for a frivolous appeal has not been uniform. In Flynn v. Travers, 1 Cal. Unrep. 27, decided in 1857, twenty per cent damages were awarded. This penalty was also imposed in Heney v. Alpers, 2 Cal. Unrep. 164, Nickerson v. California Stage Co., 10 Cal. 520; Shain v. Belvin, 79 Cal. 262, [21 Pac. 747], by Department One, in 1889, and Williams v. Hall, 79 Cal. 606, [21 Pac. 965], in Bank. See, also, Cary v. Osio & Randall, referred to in McMillian v. Vischer, 14 Cal. 232, where a penalty of twenty per cent, amounting to $2,698.53, was imposed. In Dewitt v. Porter, *316 13 Cal. 172, the penalty imposed was fifteen per cent, and in the Second California Report the penalty imposed was usually ten per cent, although the delay was sometimes only a few months. (Buckley v. Stebbins, 2 Cal. 149; Russell v. Williams, 2 Cal. 158; Bates v. Visher, 2 Cal. 355; Pacheco v. Bemal, 2 Cal. 150.) The amount of ten per cent as damages for a frivolous appeal is fixed in some states by statute; in others by rule of court. (Hawkins v. Jones, 21 Or. 502, [28 Pac. 548]; Popp v. Louisville & N. R. R. Co., 101 Ky. 157, [40 S. W. 254]; August Gast Bank Note & Lith. Co. v. Fennimore Assn., 84 Mo. App. 228; Lanclos v. Robertson, 5 La. 41; Limberger v. Engle (Tex. Civ. App.), 47 S. W. 1025.) This same amount was allowed in Sirmans v. Folsom etc. Co., 18 Ga. App. 586, [89 S. E. 1103], (See, also, N. Y. Code Civ. Proc., secs. 3251, 3254.) The later practice in this court has been to impose a nominal penalty of from $25 to one hundred dollars for a frivolous appeal. (Henehan v. Hart, 127 Cal. 656, [60 Pac. 426]; Estate of Snowball, 156 Cal. 235, [104 Pac. 446].) The object of imposing a penalty for frivolous appeal is twofold—to discourage the same, as well as to compensate to some extént for the loss which results from delay. (West Wisconsin Ry. Co. v. Foley, 94 U. S. 103, [24 L. Ed. 71].) In view of the crowded condition of our calendar and the fact that many novel constitutional and statutory questions have arisen in this state by reason of the great volume of legislative and constitutional amendments since 1911, it is important that appeals that are merely frivolous be discouraged. We may, perhaps, express our views by adopting the language of the supreme court of the United States on that subject in Whitney v. Cook, 99 U. S. 607, [25 L. Ed. 446, see, also, Rose’s U. S. Notes]: “Our experience teaches that the only way to discourage frivolous appeals and writs of error is by the use of our power to award damages, and we think this a proper case in which to say that hereafter more attention will be given to that subject, and the rule enforced both according to its letter and spirit. Parties should not be subjected to the delay of proceedings for review in this court without reasonable cause, and our power to’ make compensation to some extent for the loss occasioned by an unwarranted delay ought not to be overlooked.”
In determining .the amount of damages which should be awarded in this case for a frivolous appeal we should con-
*317
eider the facts with relation thereto and the effect of the delay. Respondent claims, and we may assume, that the effect of this appeal has been to'delay the foreclosure sale. The judgment was entered June 27, 1916. The appellant is not bound to pay the judgment or any part thereof. As to him the effect of the judgment was merely to subject his interest in the premises to the foreclosure. The mortgage provided for interest at the rate of eight per cent, compounded quarterly. The judgment draws interest at the rate of seven per cent. The difference between the amount of interest allowed by law and that by the mortgage for the three-year period of delay secured by this appeal, is $2,173.76. The difference between simple interest at seven and eight per cent will be $720. If the sale had occurred within the usual time after the decree, the appellant would have been required to pay one per cent a month during the redemption period of one year in order to redeem. In view of the fact that the amount of interest lost by the respondent by reason of this appeal would be nearly ten per cent of the amount of the judgment, and that respondent has been required to employ an attorney to represent him on this appeal, it obviously would not be unjust to assess damages amounting to ten per cent on the principal sum for this frivolous appeal, namely, two thousand six hundred dollars.
The judgment is affirmed, with directions to enter a judgment in favor of respondent and against appellant for the sum of $720, with costs of appeal.
Lennon, J., and Melvin, J., concurred.
Reference
- Full Case Name
- S. v. HUBER, Respondent, v. ELIAS A. SHEDOUDY Et Al., Defendants; JOHN WOLLENSHLAGER, Appellant
- Cited By
- 25 cases
- Status
- Published