State ex rel. Union Sav. & Loan Ass'n v. Superior Court In and For King County

• Decision Date: 27 February 1934
• Docket Number: 24922.
• Citation: 176 Wash. 482,30 P.2d 231
• Court: Washington Supreme Court
• Parties: STATE ex rel. UNION SAVINGS & LOAN ASS'N v. SUPERIOR COURT IN AND FOR KING COUNTY et al.

30 P.2d 231

176 Wash. 482

STATE ex rel. UNION SAVINGS & LOAN ASS'N v. SUPERIOR COURT IN AND FOR KING COUNTY et al.

No. 24922.

Supreme Court of Washington

February 27, 1934

Department 1.

Proceeding by the State, on the relation of the Union Savings & Loan Association, to review an order of the Superior Court in and for King County, Howard M. Findley, Judge, denying injunctive relief in a foreclosure action brought by relator.

Order affirmed.

Evans &amp McLaren, of Seattle, for appellant.

Dore Beeler & Haven, of Seattle, for respondents.

MAIN Justice.

The relator, as plaintiff, brought an action to foreclose a real estate mortgage.In the complaint, it asked for injunctive relief, and, in the alternative, for a receiver to collect the rent from the property covered by the mortgage during the foreclosure.The relator supported the application for injunctive relief by an affidavit, and a temporary restraining order was issued, accompanied by a show cause order returnable on a specified date.Upon the return day the defendants in the foreclosure action appeared, and a hearing was had which resulted in an order denying any injunctive relief because the relator had breached the contract upon which it necessarily relied for such relief.To review this order, the relator has brought the case here.

The facts essential to be stated are these: The relator is a corporation organized under the laws of this state with reference to savings and loan associations, and has its principal place of business in the city of Seattle.W. P Goodrich and wife were the owners of a lot in the same city upon which had been erected a three-story apartment house, which contained twenty-four apartments, and a small duplex house, which contained two apartments.November 9, 1928, the owners of the property executed and delivered to the relator their promissory note in the principal sum of $30,000, bearing interest at 7 per cent. per annum, payable $320 December 20, 1928, and the sum of $1,350 on the 20th day of June and December thereafter until January 1, 1934, when the entire balance would become due and payable.The note was secured by a mortgage upon the property mentioned.

Thereafter and on July 26, 1932, the mortgagors, Goodrich and wife being in default in the payments due on said note and mortgage, executed to the relator an assignment of rents covering the property.This assignment provided that the rents should be collected by the owners of the property, who should act as manager and janitor, and be turned over to the relator.The rents thus turned over were to be disposed of, first, by paying the operating and upkeep expenses of the property; second, 'reservation of funds in the hands of the assignee [relator] each month of sufficient appropriations to retire taxes and insurance premium as the same become due'; and, third, delinquencies of principal and interest on the mortgage.There had been placed in the property furniture and furnishings purchased upon conditional sales contracts, and there was a further provision that the assignee, out of the rents, could make such...