Wright v. Union Cent. Life Ins. Co., 26782.

• Decision Date: 02 April 1937
• Docket Number: No. 26782.,26782.
• Citation: 212 Ind. 214,7 N.E.2d 206
• Parties: WRIGHT et al. v. UNION CENTRAL LIFE INS. CO.
• Court: Indiana Supreme Court

212 Ind. 214

7 N.E.2d 206

WRIGHT et al.

v.UNION CENTRAL LIFE INS. CO.

No. 26782.

Supreme Court of Indiana.

April 2, 1937.

Action by Union Central Life Insurance Company against Walter C. Wright and others. Judgment for plaintiff, and defendants appealed to the Appellate Court, by which the cause was transferred to the Supreme Court under Burns' Ann.St.1933, § 4-217.

Affirmed.Appeal from Jay Circuit Court; Hanson F. Mills, Judge.

Samuel E. Cook and Homer E. Bailey, both of Huntington, and Wheeler Ashcraft, of Portland, for appellant.

Roscoe D. Wheat, of Portland, for appellee.

FANSLER, Judge.

Prior to 1931, appellant James M. Wright mortgaged the farm, the possession of which is here in question, to appellee. Thereafter in 1931, his wife joining him, he conveyed the property to his son, Walter C. Wright, subject to the mortgage. On June 9, 1934, appellee obtained a judgment foreclosing its mortgage in an action in which James M. Wright and Walter C. Wright were both parties defendant. On July 12, 1934, the property was sold by the sheriff in satisfaction of the judgment. It was purchased by appellee, who received a sheriff's certificate of sale. On October 30, 1934, James M. Wright filed a petition in bankruptcy, under section 75, subsection (s), of the Bankruptcy Act (Frazier-Lemke Act, 48 Stat. 1289). In his petition in bankruptcy he scheduled the real estate in question, which he did not own. On April 13, 1935, Walter C. Wright and others deeded the real estate to James M. Wright. On May 27, 1935, in Louisville Joint Stock Land Bank v. Radford, 295 U.S. 555, 55 S.Ct. 854, 79 L.Ed. 1593, 97 A.L.R. 1106, the Frazier-Lemke Act was declared unconstitutional. On August 2, 1935, appellee surrendered its certificate of sale and received a deed to the land. On August 28, 1935, Congress enacted a new Bankruptcy Act (Frazier-Lemke Farm Mortgage Act), 11 U.S.C.A. § 203(s). See Lafayette Life Ins. Co. v. Lowmon (C.C.A.) 79 F.(2d) 887. On September 13, 1935, appellee brought this action against appellant Walter C. Wright and Virgie M. Wright, his wife, alleging that appellee is the owner of the real estate in question, and entitled to possession thereof; that defendants are holding possession without right, and have unlawfully kept the plaintiff out of possession; and asking damages in the sum of $100. Appellant James M. Wright petitioned to be, and was, admitted as a party defendant. Defendants answered, setting up the petition of James M. Wright in bankruptcy; that he had been declared a bankrupt; that the court had no jurisdiction; and that Walter C. Wright and Virgie M. Wright held possession of the real estate as tenants of James M. Wright. Afterwards Virgie M. Wright filed an answer disclaiming any interest in the real estate. There was a trial, and...