Sanxey v. Iowa City Glass Co.
| Decision Date | 04 December 1883 |
| Citation | 17 N.W. 429,63 Iowa 707 |
| Parties | SANXEY, TRUSTEE, v. THE IOWA CITY GLASS Co. ET AL |
| Court | Iowa Supreme Court |
Appeal from Johnson District Court.
THIS is an action in equity, by which the plaintiff sought to foreclose a trust deed upon certain real estate, made by the Iowa City Glass Company to the plaintiff, as trustee, to secure the payment of the principal and interest of fifteen thousand dollars of bonds issued by said glass company. The names of the owners of the bonds, some fourteen in number together with the amounts of the bonds held by them, were exhibited with the petition, and it was asked that judgment be rendered against the glass company, and in favor of the respective owners of the bonds, for the amounts due to them and that a special execution issue, and the property be sold to satisfy said judgments, and, in case the proceeds of the sale should be insufficient for that purpose, that the same be applied pro rata on the amount due each bond-holder.
On the 27th day of May, 1882, D. F. Sawyer, one of the bond-holders named in the exhibit to the petition, and the owner of $ 2,500 of the bonds, by leave of the court intervened in the action. By his petition of intervention, it appears that certain others of the bond-holders had guaranteed the collection of the bonds held by him. He claimed in the petition that the amount secured by his bonds was a prior lien on the property. He charged in the petition that the trust property was less in value than the amount due on the bonds, and that, by the foreclosure upon plaintiff's petition, it was designed by the guarantors of the collection of his bonds to have the property bid in at the sale on special execution for the full amount of all the bonds and interest thereon, and thus deprive him of the benefit of his guarantee.
On the 31st day of May, 1882, the plaintiff amended his petition by setting forth, among other things, that, if the property should be sold for cash at an ordinary sheriff's sale the same would be at a great sacrifice, and it was prayed that an order be made that the property be bid in at the sale for the benefit of all the bond-holders. On the 2nd day of June, 1882, the intervenor filed his written objections to the relief demanded in the amended petition, the ground thereof being that the court had no power to grant the relief therein prayed. The cause was tried by the court, and judgments were rendered against the glass company in favor of all the bond-holders for the amounts severally due to them and a decree of foreclosure was entered, by which it was ordered that, in the absence of other adequate bidders at the execution sale, the said plaintiff, as trustee, should bid in the said property at its reasonable market value, for the benefit of all the bondholders, and the petition of intervention of said Sawyer was dismissed. The intervenor, Sawyer, appeals.
REVERSED.
S. H. Fairall and Joe A. Edwards, for appellant.
Milton Remley and Boal & Jackson, for appellee.
I.
J. E Switzer, a bondholder, also intervened in the action, but, as he has not appealed from the decree, we need make no statement of the case so far as his rights are concerned....
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