White v. Peterson, 43333.

• Citation: 269 N.W. 878,222 Iowa 720
• Decision Date: 24 November 1936
• Docket Number: No. 43333.,43333.
• Parties: WHITE v. PETERSON, Clerk of Court, et al.
• Court: Iowa Supreme Court

222 Iowa 720
269 N.W. 878

WHITE
v.
PETERSON, Clerk of Court, et al.

No. 43333.

Supreme Court of Iowa.

Nov. 24, 1936.

Appeal from District Court, Clay County; George A. Heald, Judge.

Action in interpleader brought by tenant of premises, on which a mortgage had been foreclosed, against the assignee of the mortgagor, claiming the rents under an assignment made before the institution of the foreclosure action, and the receiver appointed by the court in the foreclosure decree. By stipulation of the parties, the rents involved were paid into court, the plaintiff was released from further liability, and the action proceeded between the defendant-assignee and the defendant-receiver. From a decree and judgment in favor of the receiver, the assignee appeals.

Affirmed.

[269 N.W. 879]

Miller & Claussen, of Clinton, for appellant.

Lovrien & Wilson, of Spencer, for appellee.

DONEGAN, Justice.

On the 18th day of December, 1933, W. E. Thompson was the owner of the title to a farm of approximately 204 acres of land in Clay county, Iowa, subject to a mortgage thereon in the principal sum of $5,000, which was then owned by the Brotherhood of American Yeomen. On that date Thompson rented the farm to L. A. White by written lease for a period from March 1, 1934, to March 1, 1935, for a rental of $600, $300 payable December 15, 1934, and $300 payable February 1, 1935. The rent payments were evidenced by two separate promissory notes which were referred to in the lease. The granting clause of the mortgage conveyed the rents, issues, and profits, and the mortgage further provided for the appointment of a receiver to collect the rents, issues, and profits during the pendency of a suit for foreclosure and up to the time the purchaser at foreclosure would be entitled to possession. The mortgage was indexed and recorded as a real estate mortgage, but was not indexed or filed as a chattel mortgage.

On January 23, 1934, approximately five weeks after the execution of the lease from Thompson to White, the two rent notes, indorsed by Thompson without recourse, were purchased for value by the City National Bank of Clinton, Iowa, from Flambeau River Lumber Company, the holder thereof, and both notes and the lease were delivered to said bank.

On or about April 1, 1934, an action was commenced to foreclose the mortgage, and Thompson and White were made defendants. The City National Bank of Clinton was not made a party defendant, and no notice of the foreclosure action was served upon it. Thompson appeared and filed an admission that he had no claim in the land superior to that of the plaintiff, and White made no appearance.

On the 10th day of August, 1934, a decree was entered in that action foreclosing the mortgage and appointing J. H. Peterson, clerk of the district court, receiver. Shortly thereafter, the receiver told White that the rents would be the same as in the lease with Thompson, but that they would have to be paid to the receiver. On the 15th day of December, 1934, the day upon which the first of the notes became due, the lessee White instituted the instant action in which J. H. Peterson, clerk of the district court of Clay county, Iowa, as receiver in the foreclosure action, and the City National Bank of Clinton, Iowa, were made defendants.

In his petition said White alleged the execution of the lease and notes, the foreclosure of the mortgage, the appointment of the receiver, the conflicting claims for the rent made by the receiver and by the bank. He offered to pay the $600 into court, and asked that he be released from further liability for rent, and that the receiver and the bank be required to settle between themselves the dispute as to which of them was entitled thereto.

To this petition the defendant City National Bank of Clinton filed an answer and an amendment thereto. The defendant receiver also filed an answer to the petition and a reply to the answer of the bank. The Brotherhood of American Yeomen, although not a party to the action, also filed a separate answer to the petition and a separate reply to the answer of the bank. Upon the trial of the case some of the facts were stipulated and evidence was received

[269 N.W. 880]

as to others. It was also stipulated that the petition of interpleader filed by White should be sustained, that the parties would have the right to file further pleadings and briefs, and that the court could take the case under advisement and render judgment in vacation. Additional pleadings were thereafter filed by both parties, the material allegations of which will be hereafter referred to. Briefs were filed, and on the 31st day of August, 1935, the court filed his opinion and decree holding that the $600 rent fund belonged to the receiver. From this decree the defendant City National Bank...