Penn Mutual Life Insurance v. Fife
Penn Mutual Life Insurance v. Fife
Opinion of the Court
The opinion of the court was delivered by
This action was brought upon a promissory note given by the defendants William H. Fife and Harriet A. Fife, his wife, to the plaintiff, respondent here, secured by a mortgage upon real property, for the foreclosure of the mortgage. Subsequent to the execution of the mortgage Fife and wife assigned all their property for the benefit of creditors, one of the appellants, Zephania J. Hatch, being appointed by the court assignee of the estate. Notice to all the creditors was duly made and published by the assignee, and subsequent to the assignment the respondent appeared in the assignment proceeding, which was No. 11,826 in the superior court, and filed a petition for leave to sue the assignee and foreclose his mortgage. Leave was granted by the court and this action was accordingly brought. Judgment of foreclosure was pronounced and from such judgment an appeal is taken here.
The judgment is simply a judgment of foreclosure without any personal judgment. It is contended by the appellants that the court acted without jurisdiction in granting leave to foreclose the mortgage by a separate' suit, .and many cases are cited, from this court to sustain the view that the respondent’s remedy was exclusively in the assignment case. We do not think that the cases cited are in point, as in none of them' had the mortgagee obtained the leave of. the court to sue. In fact, in Quinby v. Slipper, 7 Wash. 475 (35 Pac. 116), it was especially stated by this court that nothing could, be done by any person
“ Under these circumstances” said the court, “it is clear to us that the application thus made by appellant was addressed to the sound discretion of the court, .in which it was presented. This is so clear from the authorities cited that we do not think it necessary to argue the question, especially as -we do not understand the appellant to seriously dispute the. proposition.”
The judgment will be affirmed.
Scott, Anders and Gordon, JJ., concur.
Hoyt, C. J., dissents.
Reference
- Full Case Name
- The Penn Mutual Life Insurance Company v. William H. Fife
- Status
- Published
- Syllabus
- ASSIGNMENT FOB BENEFIT OF CREDITORS — LEAVE TO MORTGAGEE* TO SUE — DISCRETION OF COURT — COLLATERAL ATTACK. Although an assignment for the benefit of creditors has been made by a mortgagor, it is a matter within the discretion of the court, to grant leave to the mortgagee to institute a separate suit for foreclosure. The action of the court in assignment proceedings in granting leave to a mortgagee of the assignor to bring a separate suit for foreclosure cannot be collaterally attacked in the foreclosure proceeding.