Court of Appeals of Tennessee, 1996

Ronald D. Mackie and Brenda L. Mackie v. David K. Hinchy and Pearline HInchy

Ronald D. Mackie and Brenda L. Mackie v. David K. Hinchy and Pearline HInchy
Court of Appeals of Tennessee · Decided October 4, 1996 · Presiding Judge Houston M. Goddard

Ronald D. Mackie and Brenda L. Mackie v. David K. Hinchy and Pearline HInchy

Opinion

I N THE COURT OF APPEALS OF TENNESSEE EASTERN SECTI ON FILED October 4, 1996 Cecil Crowson, Jr. Appellate C ourt Clerk RONALD D. MACKI E a nd ) COCKE COUNTY BRENDA L. MACKI E ) 03A01- 9604- CH- 00138 ) Pl a i nt i f f s - Appe l l e e s ) ) ) HON. C. S. RAI NWATER, J R. , v. ) CHANCELLOR ) ) DAVI D K. HI NCHY a nd ) PEARLI NE HI NCHY ) ) AFFI RMED I N PART; REVERSED De f e nda nt s - Appe l l a nt s ) I N PART; a nd REMANDED

FLETCHER L. ERVI N OF NEWPORT FOR APPELLANTS R. J . TUCKER OF NEWPORT FOR APPELLEES

O P I N I O N

Godda r d, P. J .

Da vi d K. Hi nc hy a nd Pe a r l i ne Hi nc hy, who a r e r e s i de n t s o f I n d i a na , a ppe a l j udgme nt s of t he Cha nc e r y Cour t f or Coc ke Co u n t y . The Cha nc e l l or , f i r s t , gr a nt e d a de f a ul t j udgme nt a g a i n s t t he m i n f a vor of Rona l d D. M c ki e a nd Br e nda L. M c ki e , a a wh o a r e r e s i de nt s of Fl or i da . The Cour t a l s o or de r e d t he s a l e o f c e r t a i n r e a l e s t a t e , t he pr oc e e ds of whi c h woul d be a ppl i e d t o t h e s a t i s f a c t i on o f t he i n de bt e dne s s s e c ur e d by t he r e a l e s t a t e a n d , p r e l i mi na r i l y, a pe r s ona l j udgme nt i n t he a mount of $18, 2 0 0 , p l u s i n t e r e s t a t t he r a t e of 8. 65 pe r c e nt pe r a nnum f r om Oc t ob e r 1, 1989. Se c ond, a f t e r s a l e of t he pr ope r t y a nd gi vi ng c r e di t f o r p a y me nt s pr e vi ous l y ma de , he a wa r de d a de f i c i e nc y j udgme nt i n t h e a mo unt of $15, 719. 97, whi c h i nc l ude d c our t c os t s a nd e xpe ns e s of t he s a l e .

The Hi nc hys a ppe a l , c ont e ndi ng t he Tr i a l Cour t wa s i n e r r o r i n not s us t a i ni ng t h e i r Rul e 60 mot i on t o s e t a s i de t ha t p o r t i o n of t he J une 1, 199 2, de f a ul t j udgme nt a wa r di ng t he M c k i e s a pe r s ona l j udgme n t a ga i ns t t he m. a

Al t hough t he r e we r e ot he r mot i ons by t he pa r t i e s a nd o r d e r s of t he Cour t , we wi l l de t a i l t hos e we de e m ne c e s s a r y f or p r o p e r di s pos i t i on of t hi s a ppe a l .

1. Fe br ua r y 19, 1991, c ompl a i nt by M c ki e s s t yl e d, " COM a PLAI NT TO FORECLOSE ON MORTGAGE DEED, " l a t e r a me nde d by or de r e nt e r e d M y 6 , 1991, a l l e gi ng t he Hi nc hys ha d e xe c ut e d a mor t ga ge t o t h e m a s e c u r i n g a n i nde bt e dne s s of $22, 000 t ha t , a f t e r pa yi ng e i ght p a y me n t s t he r e on i n t he a mount of $475, t he i nde bt e dne s s be c a me i n d e f a ul t a nd s ought ( 1) pr oc e s s , ( 2) a ppoi nt me nt of a Spe c i a l M s t e r , ( 3) s a l e of t he mor t ga ge d pr ope r t y, a nd ( 4) ge ne r a l a r el i ef .

2. J u ne 1, 1992, or de r gr a nt i ng de f a ul t j udgme nt a wa r di ng a r e c o v e r y i n t he a mount of $18, 200, pl us i nt e r e s t a t t he r a t e o f . 6 5 p e r c e nt pe r a nnum f r om Oc t obe r 1989, a nd or de r i ng s a l e of t h e p r o pe r t y.

3. Se p t e mbe r 21, 1992, M s t e r ' s r e por t di s c l os i ng s a l e wa s a a c c o mp l i s he d a nd t he t ot a l pur c ha s e pr i c e wa s $8500.

4. Oc t obe r 16, 1992, de c r e e c onf i r mi ng s a l e , f i xi ng a t t or ne y ' s a n d M s t e r ' s f e e s , a nd or d e r i ng di s bur s e me nt of s a l e pr oc e e ds . a

5. De c e mbe r 11, 1992, pe t i t i on by M c ki e s s e e ki ng a de f i c i e n c y a j u d g me n t .

6. M r c h 18, 1993, mot i on by Hi nc hys t o di s mi s s pe t i t i on a s e e k i n g a de f i c i e nc y j udgme nt f or l a c k of pe r s ona l j ur i s di c t i o n .

7. Se pt e mbe r 8, 1993, a n s we r t o mot i on t o di s mi s s mot i on f or d e f i c i e nc y j udgme nt by M c ki e s . a

8. No ve mbe r 2, 1993, or d e r ove r r ul i ng Hi nc hys ' mot i on t o d i s mi s s pe t i t i on.

9. De c e mbe r 29, 1993, a ns we r a nd c ount e r - c ompl a i nt by Hi nc hy s .

10. Fe br ua r y 23, 1995, a n s we r t o c ount e r - c ompl a i nt .

11. Oc t obe r 2, 1995, mot i on by M c ki e s t o di s mi s s Hi nc hys ' a c o u n t e r - c ompl a i nt .

12. Oc t obe r 26, 1995, r e s pons e of Hi nc hys t o M c ki e s ' a mot i on t o d i s mi s s .

13. No ve mbe r 3, 1995, Rul e 60 mot i on t o s e t a s i de de f a ul t j u d g me n t a nd or de r of s a l e of J une 1, 1992.

14. No ve mbe r 6, 1995, a ns we r t o mot i on t o s e t a s i de de f a ul t j u d g me n t .

15. No ve mbe r 6, 1995, mot i on by Hi nc hys t o di s mi s s M c ki e s ' a s u p p l e me nt a l pl e a di ng s e e ki ng a de f i c i e nc y j udgme nt .

16. J a nua r y 9, 1996, j udgme nt f i ndi ng t ha t t he Cour t ha d e x e r c i s e d pr ope r i n pe r s ona m a nd i n r e m j ur i s di c t i on ove r t he Hi n c h y s , t ha t t he de c r e e c onf i r mi ng t he s a l e e nt e r e d Oc t obe r 1 6 , 1992, i s r e s j udi c a t a t o a l l pl e a di ngs f i l e d t he r e a f t e r , a nd t h a t t h e Cour t i mpr ope r l y ove r r ul e d Hi nc hys ' mot i on t o di s mi s s t h e p e t i t i on f or de f i c i e nc y j udgme nt .

Ba s e d upon t he f or e goi ng f i ndi ngs t he Tr i a l Cour t g r a n t e d t he Hi nc hys ' mot i on t o di s mi s s t he M c ki e s ' a pe t i t i on f o r d e f i c i e nc y j udgme nt , di s mi s s e d t he mot i on s e e ki ng t o s e t a s i de

Th i s o r d e r r e c i t e s t h e Oc t o b e r o r d e r wa s e n t e r e d o n Oc t o b e r 12.

It wa s s i g n e d o n Oc t o b e r 1 2 ; h o we v e r , i t wa s e n t e r e d o n Oc t o b e r 1 6 .

t h e d e f a ul t j udgme nt , di s mi s s e d t he c ount e r - c ompl a i nt , a nd r e a f f i r me d i t s a wa r d o f a de f i c i e nc y j udgme nt .

W f i r s t not e t ha t t he c ompl a i nt a s a me nde d doe s not e s e e k a n y pe r s ona l j udgme nt a ga i ns t t he Hi nc hys , but onl y t he s a l e o f t h e pr ope r t y t o s a t i s f y t he M c ki e s ' a i nde bt e dne s s .

W ha ve i t of ol d- - Foot not e 14, § 648, Gi bs on' s Sui t s e i n Ch a n c e r y, 4t h Ed. ( 1937) , whe n a ddr e s s i ng e xe c ut i ons - - t ha t a d e c r e e mus t b e c i r c ums c r i b e d by t he e vi de nc e , t he e vi de nc e c i r c u ms c r i be d by t he pl e a di ngs , a nd t he pl e a di ngs c i r c ums c r i b e d b y t h e pr oc e dur e of t he c ha nc e r y c our t . ( Se e a ppe ndi x. )

I n t he pr e s e nt pos t ur e of t hi s c a s e , i t i s obvi ous t h a t t h e r e a r e no pl e a di ngs s e e ki ng a pe r s ona l j udgme nt a ga i ns t t he Hi nc h y s . I t i s t r ue t ha t a pe t i t i on wa s f i l e d by t he M c ki e s a wh i c h d i d s e e k s uc h r e l i e f , but t he or de r of t he Tr i a l Cour t o n J a n u a r y 9, 1996, gr a nt e d t he mot i on of t he Hi nc hys t o s t r i ke t h a t p e t i t i o n, a nd t hi s a c t i on by t he Cha nc e l l or i s not a ppe a l e d.

W a c c or di ngl y f i nd t ha t a t t he t i me of t he e nt r y of e t h e p e r s ona l j udgme nt on J a nua r y 9, 1996, t he r e we r e no pl e a di n g s wh i c h woul d a ut hor i z e t he Cha nc e l l or t o gr a nt s uc h a j udgme nt , a n d s o muc h of hi s or de r t ha t pur por t s t o do s o i s r e ve r s e d.

Ru l e 1 5 o f t h e Te n n e s s e e Ru l e s o f Ci v i l P r o c e d u r e n o w a l l o ws d e c r e e s t o b e e n t e r e d wh e n i s s u e s n o t p l e a d e d a r e " t r i e d b y e x p r e s s o r i mp l i e d c ons e n t of t he pa r t i e s . "

I n our r e s ol ut i on of t he c a s e , we ha ve not ove r l ooke d t h e f a c t t ha t t he c ompl a i nt a s a me nde d di d s e e k ge ne r a l r e l i e f .

W a r e , howe ve r , di s i nc l i ne d t o f i nd t ha t t hi s pl e a di ng i s e s u f f i c i e nt l y br oa d t o pl a c e t he Hi nc hys on not i c e t ha t t he y wo u l d b e c a s t i n j udgme nt s houl d t he s a l e of t he pr ope r t y not ge ne r a t e s u f f i c i e nt f unds t o pa y t he i nde bt e dne s s .

Gi bs on' s Sui t s i n Cha nc e r y, 7t h Ed. , a ddr e s s e d t he q u e s t i o n t hus l y:

§ 220. Re l i e f Unde r t he Ge ne r al Pr aye r . - - As a r u l e , no r e l i e f c a n be gr a nt e d i f none i s de ma nde d; a nd n o r e l i e f wi l l be g r a nt e d i nc ons i s t e nt wi t h t ha t d e ma nde d. The de c r e e or di na r i l y f ol l ows t he s pe c i a l r e l i e f s ought by t he c ompl a i nt , i f t he pl e a di ngs a nd p r oof wi l l wa r r a nt i t .

I f t he p l a i nt i f f i s not e nt i t l e d t o t he s pe c i f i c r e l i e f he pr a ys , he ma y unde r t he ge ne r a l pr a ye r ha ve s u c h ot he r r e l i e f a s t he pl e a di ngs a nd pr oof wi l l j u s t i f y, pr ovi de d i t i s not of a c ha r a c t e r t o t a ke t he d e f e nda nt by s ur pr i s e . The r e l i e f unde r t he ge ne r a l p r a ye r mus t f ol l ow, or di na r i l y a nd l ogi c a l l y, t he p l e a di ngs a nd t he pr oof . I f t he c ompl a i nt pr a ys f or g e ne r a l r e l i e f onl y, t he pl a i nt i f f c a n by a me ndme nt d e ma nd t he s pe c i f i c r e l i e f he i s e nt i t l e d t o on t he c a s e ma de out by t he pl e a di ngs a nd pr oof .

Be f or e c onc l udi ng, we poi nt out t ha t not hi ng c ont a i ne d i n t h i s opi ni on woul d i n a ny wa y a f f e c t t he va l i di t y of t he c o u r t - o r de r e d s a l e of t he mor t ga ge d pr ope r t y.

For t he f or e goi ng r e a s ons t he j udgme nt of t he Tr i a l Co u r t i s a f f i r me d i n pa r t a nd r e ve r s e d i n pa r t , a nd t he c a us e r e ma n d e d f or s uc h f ur t he r pr oc e e di ngs , i f a ny, a s ma y be

n e c e s s a r y a nd c ol l e c t i on of c os t s be l ow. Cos t s of a ppe a l a r e a d j u d g e d a ga i ns t t he M c ki e s . a

_______________________________ Hous t on M Godda r d, P. J . .

CONCUR:

_ _ _ _ _ _ _ _________________________ Do n T. M M r a y, J . c ur

_ _ _ _ _ _ _ _________________________ Ch a r l e s D. Sus a no, J r . , J .

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