237 F. 181 (8th Cir. 1916), 4684, United States v. Trogler

Docket Nº:4684.
Citation:237 F. 181
Party Name:UNITED STATES et al. v. TROGLER et al.
Case Date:October 20, 1916
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 181

237 F. 181 (8th Cir. 1916)

UNITED STATES et al.

v.

TROGLER et al.

No. 4684.

United States Court of Appeals, Eighth Circuit.

October 20, 1916

Page 182

Archibald A. Lee and Eugene B. Lacy, Asst. U.S. Atty., both of Denver, Colo. (Harry B. Tedrow, U.S. Atty., of Denver, Colo., on the brief), for appellants.

Edwin H. Park, of Denver, Colo., for appellees.

Before SMITH and CARLAND, Circuit Judges, and AMIDON, District Judge.

AMIDON, District Judge.

The United States brought an action in the federal court for the district of Colorado to set aside certain patents for coal lands. Among the parties to that litigation were the original patentees and Keitel, who had secured the patents through dummy entrymen, and also many subsequent claimants of interests in the property. Among the latter were the appellees here, William A. Trogler and F. W. Keitel. The Commonwealth Trust Company, which held a trust deed to secure a loan of $25,000 upon the property, was also a party to that suit, as were the Dorseys, who were the beneficiaries of the trust deed. This suit was filed in March, 1910. Thereafter a suit was brought in the same federal court by the trust company to foreclose the trust deed. Everybody having any interest in the property, including the appellees here, were parties defendant to that bill. While the government suit to cancel the patent was still pending, the

Page 183

suit to foreclose the trust deed passed to the usual decree establishing the validity of the trust deed, the fact that it was a lien upon the land, and directing a sale of the property to pay the amount due, $37,200.56. The government, of course, was not a party to the foreclosure suit, because it could not legally be made a party. The land was sold pursuant to the decree in that suit, and, before the entry of a decree in the suit by the government to cancel the patent, the period of redemption expired, and the Dorseys, who were purchasers at the foreclosure sale, became entitled to a deed. After the title of the Dorseys thus became complete, the suit by the government passed to judgment. The decree found that the patents were obtained fraudulently, and that the government was entitled to their cancellation, except as against good-faith purchasers and incumbrancers of the property. It likewise found that the trust deed was taken without any notice of the fraud, and for value, and adjudged it...

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