IN RE VID

Decision Date20 February 1947
Docket NumberNo. 9031.,9031.
PartiesIn re V-I-D, Inc., Debtor. GLOVER v. COFFING et al. (KRAMER, Intervenor).
CourtU.S. Court of Appeals — Seventh Circuit

Jay E. Darlington, of Hammond, Ind., for appellant.

Arthur J. Goldberg and Max R. Kargman, both of Chicago, Ill., and Kenneth Call and Alfred P. Draper, both of Gary, Ind., for appellees.

Before EVANS and MAJOR, Circuit Judges, and BALTZELL, District Judge.

BALTZELL, District Judge.

On August 7, 1934 a complaint to foreclose special assessments on a certain piece of real estate located in Gary, Lake County, Indiana, was filed in the Superior Court of that county by the U. S. A. Company, the owner of the assessments. The defendants included a person by the name of Don Hoover, and ...... Hoover, his wife, and the Home Bank & Trust Company and Lawrence H. Prybylski, as trustees under a certain mortgage. Summons was issued to the Sheriff for service upon the defendant, Don Hoover, giving his address as 2212 West Twelfth Avenue, Gary, Indiana. This same address was endorsed in the complaint. There was a Don Hoover living at the address given in the summons and endorsed in the complaint, and service was had upon him at that address. He was not, however, the Don Hoover who was the fee-simple owner of the real estate in question, but was another man of the same name. In fact, the Don Hoover served had no interest in such real estate and never asserted any interest therein. The Don Hoover who owned such real estate was a resident of Jasper County, Indiana, and never received any notice of the foreclosure proceedings, and the other Hoover ignored the summons. As a result thereof, the mistake in service was not discovered until long after judgment had been rendered.

A judgment by default was rendered against all of the defendants foreclosing the special assessments against such property, which was by such judgment ordered sold by the Sheriff of Lake County. The property was sold to the U. S. A. Company on April 15, 1935, and the Sheriff issued a certificate of sale. The certificate was within the year purchased by Marguerite S. Glover, the intervening petitioner-appellant in the instant case, hereinafter referred to as the intervenor, and, on October 27, 1936, after the expiration of the year of redemption, she surrendered the certificate and received a deed from the Sheriff which purported to convey to her the fee-simple title. The deed was recorded, and the property was entered for taxation in her name.

On February 25, 1937, the Home Bank & Trust Company and Lawrence H. Prybylski, as mortgage trustees, both of whom were parties defendant in the foreclosure proceedings in the Lake Superior Court and upon whom service was had by publication, filed verified petitions in such cause praying that the decree and judgment be vacated, that the case be reopened and that they be permitted to answer. Notice was served upon the U. S. A. Company, the plaintiff in that action, which company failed to appear. The judgment theretofore rendered was thereafter vacated and set aside. The trustees filed an answer and tendered into court the sum of $520 which represented the amount claimed by the U. S. A. Company to be due on the special assessments.

Thereafter, Don Hoover of Jasper County, owner of the real estate in question, executed a quitclaim deed to V-I-D, Inc., a corporation located in Gary, Indiana. This deed was dated February 23, 1939, but was not recorded until April 13, 1943. A few months after the execution of the deed, that is, on June 24, 1939, V-I-D, Inc., filed a petition for reorganization under Chapter X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., in the United States District Court for the Northern District of Indiana. The petition listed the real estate in question as a corporate asset and stated that it was encumbered by two mortgages and by an outstanding tax title. The petition was approved by the court, and McM. Coffing was appointed trustee.

On December 1, 1939, the intervenor filed an intervening petition in the reorganization proceedings wherein she stated that she was the fee-simple owner of the real estate claimed by the bankrupt to be its asset and asked that she be adjudged such owner, that possession be surrendered to her, that an accounting be had of the rents and profits collected by McM. Coffing, the trustee, and that such funds be turned over to her.

On February 13, 1940, Lawrence H. Prybylski filed an intervening petition in the reorganization proceedings in which he stated that he was first mortgage trustee under a trust deed which was a prior lien against the real estate in question. Both McM. Coffing and Lawrence H. Prybylski asserted in their answers to the intervenor's...

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7 cases
  • In re Canganelli
    • United States
    • United States Bankruptcy Courts. Seventh Circuit. U.S. Bankruptcy Court — Northern District of Indiana
    • 3 Agosto 1991
    ...of the person, the judgment is void and not merely erroneous, and it may be attacked collaterally at any time. In re V-1-D, Inc., 158 F.2d 964 (7th Cir.1946), citing, Calumet Teaming and Trucking Co. v. Young, 218 Ind. 468, 33 N.E.2d 109, 33 N.E.2d 583 (1941), cert. den. Glover v. Coffing, ......
  • In re Central R. Co. of New Jersey
    • United States
    • U.S. Court of Appeals — Third Circuit
    • 15 Julio 1947
    ...Town of Agawam v. Connors, 1 Cir., 1947, 159 F.2d 360 (Right of redemption of trustee measured by state law.); In re V-I-D, Inc., 7 Cir., 1947, 158 F.2d 964 (Indiana law regarding effect of judgment rendered without jurisdiction over subject matter or person used to exclude realty from debt......
  • In re VID, Inc.
    • United States
    • U.S. Court of Appeals — Seventh Circuit
    • 28 Agosto 1952
    ...his fee simple title. That judgment of the bankruptcy court was appealed to this court and was affirmed in In re V-I-D, Inc., Debtor — Glover v. Coffing, 7 Cir., 158 F.2d 964. As suggested by this court in that appeal, Marguerite S. Glover's remedy was to accept the money which the trustees......
  • In re VID, Inc.
    • United States
    • U.S. Court of Appeals — Seventh Circuit
    • 7 Octubre 1955
    ...and appellant in the instant case), as is evidenced by the fact that there have been three previous appeals to this court. In re V-I-D, Inc., 158 F.2d 964; In re V-I-D, Inc., 177 F.2d 234, and In re V-I-D, Inc., 198 F.2d 392. In the first two cited cases Glover was the appellant, and in the......
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