Rush v. Dickenson County Bank
Rush v. Dickenson County Bank
Opinion of the Court
delivered the opinion of the court.
This is ah appeal from a decree confirming a commissioner’s report of liens and directing a sale of W. C. D. Rush’s real estate.
The suit was originally instituted by the Dickenson County bank to enforce the payment of two judgments against Rush and his former partner, J. K. Damron. There were other judgments constituting liens against Rush’s estate, as shown by the report of Commissioner Phipps (the first report filed in the cause), but as it appeared that the real estate of Rush and Damron would rent for enough in five years to pay the two judgments upon which the suit was brought, the other lienors agreed to waive their rights for the time being and allow the property to be rented to satisfy the bank judgments. Accordingly Special Commissioner Smith, who was appointed for that purpose, offered the lands of Rush and Damron for rent, and each of these two defendants became the lessees of their respective lands at one-half of the total amount of the two judgments, each of them paying to the commissioner in cash one-fifth of one-half of that total amount, and each paying one-half of the costs. They executed their several notes payable in one, two, three and four years, secured by personal endorsement, for the resi
The cause is here upon numerous assignments of errors. We shall mention and discuss only the more important of those which were specifically argued and insisted upon in the petition for appeal, and in the oral argument.
3. The alleged error, based upon the failure of the report to show the liens as to which Rush was primarily and secondarily liable, respectively, is also without merit. The report in question, along with the previous report and proceedings in the cause, sufficiently embodies this information, and, moreover, the decree complained of does not in any way prejudice the appellant in this respect.
We are of opinion that there is no error in the decree complained of, except as to the ascertainment of the amount of the liens, and that for the error in this respect the decree must be reversed and the cause remanded for further proceedings in conformity with the views herein, expressed.
Reversed.
Reference
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- 1. Judicial Sales- — Ascertainment of Liens — When Exceptions to Commissioner’s Report Should be Sustained — Case at Bar.— Exceptions to a commissioner’s report of liens against the real estate of a judgment debtor should have been sustained in the instant case, as the report was palpably wrong in respect to certain of the judgments reported therein, and while it was apparent that the lower court intended to sustain the exceptions at-least in part, and, by certain provisions in the decree of confirmation, to correct the mistakes in the report, the corrections were not made in-the orderly manner and with the substantial accuracy and clearness required by the important and firmly settled rule of practice that liens on real estate must be ascertained and definitely fixed before the same is sold at a judicial sale. 2. Judicial Sales — Reference to Commissioner to Fix Credits to Which Debtor Entitled. — A decree confirming a commissioner’s report and ordering a judicial sale of a judgment debtor’s lands contained a provision to the effect that, as it appeared to the court that certain credits evidenced by receipts filed with the exceptions to the report were not allowed to the debtor by the report, the commissioner should give the debtor credit for such payments as were evidenced by the receipts. The decree did not say whether the commissioner referred to was the commissioner who took the account or the commissioner who was directed to make the sale, and the decree limited the credits to receipts filed, whereas the principal credit involved was one for which no receipt was filed. Held: That if the record and receipts together showed the credits accurately, they should have been fixed in the decree, and not delegated to any commissioner, unless some future opportunity-was to be given the court for1 final review and approval before sale. , 3. Judicial Sales and Rentings — Judgment Against Debtor After a Judicial Renting — Intervention of Other Judgment Creditors — Case at Bar. — A decree directed that a judgment debtor’s lands should be rented to satisfy the judgment. The debtor became the lessee but failed to meet the rental payments. In the meantime several petitions were filed setting up judgments obtained against the debtor after the suit was instituted. Upon report to the court of the debtor’s default the lands were ordered sold. It was assigned as error that the court improperly permitted the parties who had obtained judgments after the original bill was filed to present petitions setting them up. Held: That there was no merit in this contention. Until the property was sold, it belonged to the debtor, and judgments rendered against him before or after the suit was brought were liens upon his interest. The owners of such liens had the right to intervene. It was also immaterial that the petitions, though filed before, did not appear to mature until after the report of liens was returned, as it would have been proper for the commissioner to report the liens which these petitions asserted, if the petitions had not been filed at all. 4. Merger — Judgments—Original Judgment and Judgment Against Purohaser or Renter at Judicial Sale. — A judgment debtor, whose lands were offered for rent to satisfy the judgment, became the lessee of the lands and failed to pay his rental notes. Judgments upon the notes were taken against the judgment debtor by the commissioner. Held: That the original judgments against the judgment debtor were not merged in the new judgments which the commissioner took upon the rental notes, and the original judgments did not lose their priority. 5. Merger — Judgments and Decrees — Doctrine Not Inflexible. — The doctrine of merger is not inflexibly applied in courts of equity, and will not be permitted to destroy the security of a decree as a lien, when.such a result is not in keeping with the ends of justice. 6. Judgments and Decrees — Liability of Judgment Debtor’s Personal and Real Property. — There is no obligation on a judgment creditor to exhaust the personal property before he proceeds against the real estate, or vice versa, nor is there any reason why he may not pursue both the real and personal property of his defaulting debtor in separate proceedings at the same time, provided he does so in good faith and without needless and capricious multiplicity of litigation. There can be but one satisfaction of the debt, but the creditor has the right to collect his money from either or both classes of property, and until he has been fully satisfied the defendant ordinarily has no right to complain.