Farm Credit Corporation v. Rigby National Bank

Citation290 P. 211,49 Idaho 444
Decision Date05 June 1930
Docket Number5404
CourtUnited States State Supreme Court of Idaho
PartiesFARM CREDIT CORPORATION, a Corporation, Respondent, v. RIGBY NATIONAL BANK, a Corporation, L. C. PARKER, W. H. MCDANIEL, CHARLES W. KELCH, and GIBSON & CO., a Corporation, Appellants

AGRICULTURE-LABOR LIEN-FORECLOSURE-LANDLORD LIEN-ASSIGNMENT-FAILURE TO RECORD-JUDGMENT-CONCLUSIVENESS.

1. Statute providing lessor's share is not subject to lien of field workers and protects landlord against labor bills contracted by tenant renting on shares (C. S., sec. 7372).

2. Exemption of landlord's share in crop from field workers' liens may be waived by landlord agreeing to pay lienable labor before labor is performed (C. S., sec. 7372).

3. Judgment foreclosing liens on crop held conclusive where no appeal was taken therefrom.

4. Execution sale to satisfy judgment for foreclosure of liens on crop passed title to seed, notwithstanding landlord's half had been assigned by unrecorded assignment to claimant.

5. Failure to make holder of unrecorded assignment of lease party to foreclosure of liens against crop did not render judgment invalid as to it (C. S., sec. 6949).

6. Statute providing holder of unrecorded conveyance under mortgage or having lien on property need not be made party to foreclosure includes liens other than mortgage liens (C. S sec. 6949).

7. Landlord assigning lease on land reserving one-half of crop as rent held not necessary party in foreclosure of labor liens on crop raised by tenant.

8. Holder of unrecorded assignment of farm lease reserving one-half of crop as rent should have been made party in proceedings to foreclose labor liens on tenant's share of crop (C. S., sec. 6949).

9. Claim of holder of unrecorded assignment of unrecorded lease reserving rent as one-half of the crop held inferior to lien foreclosure judgment on crop and sale in execution notwithstanding claimant was not party to foreclosure proceedings (C. S., sec. 6949).

10. When verdict is directed, fact findings and conclusions of law are unnecessary.

APPEAL from the District Court of the Ninth Judicial District, for Jefferson County. Hon. C. J. Taylor, Judge.

Action to recover for conversion of clover and alfalfa seed. Judgment for plaintiff. Reversed.

Judgment reversed, with direction. Costs to appellant. Petition for rehearing denied.

F. A McCall and E. M. Holden, for Appellants.

It is appellant's contention that a lienholder in a foreclosure action occupies the same position with respect to the holder of an unrecorded mortgage or lien as does a mortgagee whose mortgage is recorded; and that, under the provisions of C. S., sec. 6949, as construed by this court, he is not required to make the holder of such unrecorded mortgage or lien a party defendant; and that the judgment therein rendered and the proceedings therein had are as conclusive against the party holding such unrecorded mortgage or lien as though he had been made a party to the action.

Where the statute requires all persons holding mortgages of record which will be cut off to be made parties, only a mortgagee of record need be made a party, notwithstanding the lien claimant may have notice of the existence of the mortgage at the time he commences his suit. (40 C. J., 404.)

To entitle the holder of a mortgage on premises covered by a mechanic's lien to be made a party to a suit to enforce the lien, it is not enough that the plaintiff have knowledge of the existence of such mortgage at commencement of the suit, but the mortgage must have been of record. (Conlan v. Leonard, 82 N.J.L. 108, 81 A. 492.)

Alvin Denman, for Respondent.

The provision of C. S., sec. 6949, that the judgment in foreclosure proceedings is as conclusive against the party holding an unrecorded conveyance or lien as if he had been made a party to the action, has no application to conveyances of personal property or liens upon chattels. (Spencer v. Steward, 37 Idaho 610, 615, 218 P. 369; State v. Guilbert, 56 Ohio St. 575, 60 Am. St. 756, 47 N.E. 551, 38 L. R. A. 519; C. S., secs. 5427, 6376, 7345; Strahorn-Hutton-Evans Commission Co. v. Florer, 7 Okla. 499, 54 P. 710, 712; Davis v. Bartz, 65 Wash. 395, 118 P. 334; Williams v. First Nat. Bank, 48 Ore. 571, 87 P. 890; Interior Warehouse Co. v. Hays, 91 Wash. 507, 158 P. 99; 24 Cyc. 57, 58; 21 C. J. 1184, 1221.)

By the foreclosure proceedings of the farm laborer's lien and the appellant's purchase of the seed upon the sheriff's sale pursuant to such foreclosure, the appellant, not having made the respondent a party to that action, simply stepped into the shoes of the mortgagor, and as such mortgagor could not question the respondent's right to the possession of the seed, and neither could the appellant. (17 Cyc. 1299, 1302.)

MCNAUGHTON, J. Givens, C. J., and Budge, Lee and Varian, JJ., concur.

OPINION

MCNAUGHTON, J.

This is an action in conversion to recover $ 1181.41, for clover and alfalfa seed alleged to have been wrongfully converted by Rigby National Bank. This is the alleged value of one-half of the seed grown by Charles W. Kelch in 1925 upon certain rented land.

In proving title plaintiff offered in evidence the unrecorded assignment of an unrecorded instrument entitled "Idaho Farm Lease," by the terms of which the rental was to be one-half the crop.

The bank's claim of title is based upon a purchase at execution sale of the entire crop of seed raised by Kelch in foreclosure of farm labor liens.

The field laborers instituted their action against the interest of Kelch, the tenant. W. H. McDaniel, the thresher, intervened, claiming lien against the whole crop for threshing bill in the sum of $ 760, based upon the claim that he was employed by Kelch, the owner of half the seed, and Sheppard & Company, owner of the other half.

Kelch, as owner of half the seed, Sheppard & Company, in the complaint alleged to be owner of the other half, the Rigby National Bank, as mortgagee, and Gibson & Co., as warehousemen in possession of the seed, were made parties to the foreclosure action and served with process. Judgment was for the foreclosure of these lien upon the whole crop. The whole crop was sold in satisfaction of the judgment. Appellant Rigby National Bank purchased the entire crop on the execution sale in satisfaction of the judgment.

The Farm Credit Corporation was not made a party to that proceeding. Its claim as assignee of the lease was not known at the time of the foreclosure action. After the foreclosure, but before the sheriff's sale, it appears H. B. Sheppard, meaning to speak for the credit corporation, notified an officer of the bank that it had a claim on this seed; that it claimed a chattel mortgage on the tenant's part and claimed to own the landlord's part.

Sheppard & Company had a crop mortgage but it was made party to the foreclosure action and that mortgage was found to be inferior to the lien claims.

At the trial of this case the district court, basing its action on the force of this Idaho Farm lease, directed a verdict and entered judgment for the plaintiff. The Rigby National Bank appeals and specifies error in eighteen assignments. It claims the proof was not sufficient to sustain the judgment in particulars specified.

From the evidence introduced we think the plaintiff relied mainly upon the lease feature of the instrument entitled "Idaho Farm Lease."

Granting that this is a crop rental lease within the provisions of C. S., sec. 7372, that section provides:

"Any person who does any labor on a farm or land in tilling the same, or in cultivating, harvesting, threshing, or housing any crop or crops raised thereon, has a lien on such crop or crops for such labor. Such lien shall be a preferred and prior lien thereon to any crop or chattel mortgage placed thereon, and any mortgagee taking a chattel or crop mortgage on any crop or crops, upon which any person shall perform labor in cultivating, harvesting ...

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5 cases
  • GOLDENBERG v. Vill. OF CAPITAN
    • United States
    • Supreme Court of New Mexico
    • March 8, 1949
    ...asks for a directed verdict, and it is granted, findings of fact and conclusions of law are unnecessary. Farm Credit Corporation v. Rigby Nat. Bank, 49 Idaho 444, 290 P. 211; Langdon v. Taylor, 2 Cir., 180 F. 385; City Nat. Bank v. Phillips Petroleum Co., Tex.Civ.App., 47 S.W.2d 357; and Fi......
  • Ralph v. Union Pac. R. Co.
    • United States
    • United States State Supreme Court of Idaho
    • March 23, 1960
    ...102 P.2d 647. 'When a directed verdict is had findings of fact and conclusions of law are not necessary.' Farm Credit Corporation v. Rigby Nat. Bank, 49 Idaho 444, 290 P. 211, 214. Clearly, the identical procedure applies to a judgment notwithstanding the verdict, particularly where, as her......
  • Goldenberg v. Village of Capitan
    • United States
    • Supreme Court of New Mexico
    • September 25, 1948
    ...directed verdict, and it is granted, findings of fact and conclusions of law are unnecessary. Farm Credit Corporation v. Rigby Nat. Bank, 49 Idaho 444, 290 P. 211; Langdon v. Taylor, 2 Cir., 180 F. 385; City Nat. Bank v. Phillips Petroleum Co., Tex.Civ.App., 47 S.W.2d 357; and Fidelity Trus......
  • In Re: On Rehearing
    • United States
    • United States State Supreme Court of Idaho
    • May 11, 1944
    ...... effect upon the mortgagor's credit is not encompassed. within the purpose of the ... strangers and third parties. (Farm Credit Corp. v. Rigby. Natl. Bank, 49 Idaho 444, ......
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