J. N. DUNHAM ET AL., APPELLANTS,
v.
D. P. SMITH, TRUSTEE, APPELLEE
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The Florida Supreme Court affirmed the trial court's order striking a second mortgagee's cross bill seeking to foreclose its mortgage in a suit by a first mortgagee to foreclose the first mortgage. The court held that a second mortgagee cannot maintain a cross bill for affirmative relief against co-defendants without alleging facts sufficient to establish that the cross bill will increase the amount likely to be realized at the foreclosure sale or seeking relief against the original complainant.
A cross bill by a second mortgagee seeking affirmative relief against co-defendants only, without filing in aid of any defense, without seeking relief against the original complainant, and with insufficient allegations that the cross bill will increase the amount realized at the foreclosure sale, cannot be maintained and should be stricken.
“A cross bill interposed by a second mortgagee who is made a party defendant to a bill to foreclose a first mortgage, not filed in aid of any defense, but to obtain affirmative relief against co-defendants only, by having the surplus expected to be realized at the foreclose ure sale under the prior mortgage applied to the payment of the second mortgage, which seeks no relief against the complainant in the original bill, and which fails to allege that there is likely to be a surplus, or that an adjudication in favor of the cross-complainant upon the matter of the cross bill will tend to increase the amount likely to be realized at the sale of the mortgaged property, cannot be maintained as against the complainant in the original bill, and his demurrer for want of equity thereto should be sutained.”
Establishes the legal standard for when a second mortgagee's cross bill is impermissible.
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Join FLexlaw to unlock all legal intelligenceD. P. Smith, as Trustee holding a first mortgage, instituted a foreclosure suit. The owner and holder of a second mortgage inferior to the first was m…
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Buford, J.
In this case D. P. Smith, as Trustee, being the holder of a first mortgage made to him as Trustee, instituted suit to foreclose the mortgage.
The owner and holder of a second mortgage inferior in dignity to the first mortgage was made defendant. This de fendant filed a cross bill seeking to foreclose the second mortgage in the same suit. A motion by the complainant in the original suit to strike the cross bill was granted. A motion for rehearing was filed and denied. Application to file an amended cross bill was also denied. Prom these orders appeal was taken.
It was said by this Court in Jackson et al. v. Dutton et al., 46 Fla. 513, 35 So. R. 74:
A cross bill interposed by a second mortgagee who is made a party defendant to a bill to foreclose a first mortgage, not filed in aid of any defense, but to obtain affirmative relief against co-defendants only, by having the surplus expected to be realized at the foreclose ure sale under the prior mortgage applied to the payment of the second mortgage, which seeks no relief against the complainant in the original bill, and which fails to allege that there is likely to be a surplus, or that an adjudication in favor of the cross-complainant upon the matter of the cross bill will tend to increase the amount likely to be realized at the sale of the mortgaged property, cannot be maintained as against the complainant in the original bill, and his demurrer for want of equity thereto should be sutained.” See also Turner v. Utley, 112 So. R. 837.
It appears that in the instant case an effort was made by the owner and holder of the second mortgage to place himself on ground to maintain his suit by incorporating in the cross bill the following language:
Your orators would further allege that there is likely to be a surplus, and that an adjudication in favor of your orators, herein, upon the matter of the cross bill will tend to increase the amount likely to be realized upon the sale of the mortgaged property. This allegation is insufficient. The bill does not allege that the original complainant has any interest in the matters stated in the cross bill and no relief is sought against the original complainant by the cross bill. The cross bill sets up no matter of defense to the suit of the original complainant.
This Court 'in Jackson et al. v. Dutton et al., supra, has indicated the course to be pursued by the holder of a second mortgage under circumstances like those obtaining in tEe instant case, in the following language:
Upon application of a second mortgagee made a party to a bill to foreclose a first mortgage, the court has power to direct the surplus, if any, upon a sale under the first mortgage, to be deposited in the registry of the court, and upon the deposit of such surplus the second mortgagee can by petition intervene and have the court adjudicate his right thereto, but he cannot have such relief by merely setting up a claim therefor in his answer to the original bill.
We find no error in the orders of the chancellor appealed from and the same should be affirmed. It is so ordered.
Affirmed.
Whitfield, P. J., and Strum, J., concur. Terrell, C. J., and Ellis and Brown, J. J., concur in the opinion and judgment.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
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Blue Heron Land Co. v. Brown, 98 Fla. 1238 (Fla. 1930)…s’ objection be permitted to foreclose his second mortgage in the suit, when he does not show or allege that the complainant has any interest in the matters stated in his claim and no relief is sought by him against the complainant. Dunham v. Smith, 97 Fla. 386, 120 So. R. 761; Turner v. Utley, 93 Fla. 910, 112 So. R. 837. It is ordered that the final decree, in so far as it ordered defendants to pay taxes, not advanced or paid out by complainants, before being permitted to redeem, and in so far as it und…
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Sydnor J. Tucker v. Crown Corp., 136 Fla. 517 (Fla. 1938)…Crown Corporation is permitted to raise any question as to the disposition of the surplus fund it should pay the surplus into the registry of the court, appellant cites Jackson v. Dutton, et al., 46 Fla. 513, 35 So. 74, and Dunham, et al., v. Smith, 97 Fla. 386, 120 So. 761. In neither of the cited cases was the purchaser at the foreclosure sale one holding a junior mortgage on the property or any lien or claim as to the surplus. In both cases the junior mortgagee was attempting to establish his rights to…
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D.A.D., Inc. v. Poole, 407 So. 2d 1072 (Fla. 4th DCA 1981)…the foreclosure of a senior mortgage was after foreclosure and sale when the second mortgagee could have the trial court adjudicate his rights to any surplus proceeds from the sale. Jackson v. Dutton, 46 Fla. 513, 35 So. 74 (1903); Dunham v. Smith, 97 Fla. 386, 120 So. 761 (1929); and Riggs v. East Coast Grocery Co., 101 Fla. 1048, 132 So. 693 (1931). Currently, Florida Rule of Civil Procedure 1.170(g) states: A pleading may state as a crossclaim any claim by one party against a co-party arising out of t…
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- Jackson v. Dutton, 46 Fla. 513 (Fla. 1903)