Majority
Headnote
Foreclosure of Mortgage—Pleading—Amendment of Complaint to Conform to Proof—Failure to Answer—When Allegations Deemed Denied.—In a suit to foreclose a mortgage, where the plaintiff, with permission of the court, filed an amended complaint to conform to the proofs and no answer to it was served or filed, and no stipulation was made that the answer to the original complaint should be deemed an answer to the amended complaint, but the case was tried upon the theory that the facts presented by the amended complaint, except as admitted, were denied substantially as appeared in the answer to the original complaint, the allegations of the amended complaint will be treated as denied on appeal.This is an action for the foreclosure of certain mortgages upon real property situated in the city of Sacramento.
Judgment went against defendant Hartley for the several sums mentioned in plaintiff’s amended complaint? as secured by said mortgages and foreclosure was ordered. It was found by the court that defendant, Broooke Realty Company, had no-interest in the subject-matter of the action. Defendant Hartley made default. Defendants Trainor and Bethel answered. Defendant Bethel alone appeals, his appeal being from the judgment and from the order denying his motion for a new trial.
There are two separate transcripts, the present -one, No. 1116, an appeal from the judgment, and No. 1271, an appeal from the order. By stipulation both appeals are presented together in the same brief.
The land involved consists of two separate parcels—one parcel being the north one-half of the south one-half of lot numbered one in the block bounded by T and U and 25th and 26th streets (hereinafter designated as parcel “A”); the other parcel being the south one-quarter of said lot (hereinafter designated as parcel “B”), the two parcels constituting the south one-half of said lot.
It appears that, on and prior to September 30, 1910, to wit, on November 16, 1909, plaintiff and his wife, Belle Morris, were the owners of the said property; on November 16, 1909, they executed their promissory note to Susie Harlow for the sum of two thousand dollars, due one year after date, at ten per cent interest, payable monthly, and if not so paid, an option was given to treat the principal as due. It also provided that if not paid at maturity the note “is hereby renewed from year to year, at the option -of the holder”; plaintiff and his wife, on the same day, executed their mortgage to said Susie Harlow to secure the payment of said note on what we designate as parcel “A.” On November 16, 1909, plaintiff and his wife executed to B. P. McIntyre and Lulu Speer their promissory note for two thousand dollars secured by mortgage on parcel “B.” Neither of these last named persons was made party to the action and, of course, they are not concerned with the decree. The court, however, in ordering the sale of parcel “B,” directed that it be sold subject to the mortgage of McIntyre and Speer.
The amended complaint then proceeds to state what purport to be second, third, fourth, and fifth causes of action. In each of them the averments of the first cause of action are re-averred and made part thereof except, in the fifth cause of action, certain two paragraphs, not important to notice, are omitted. The second cause of action simply repeats Hartley’s liability to pay the Susie Harlow mortgage. The third cause of action alleges that neither Hartley nor "either of the aforesaid subsequent purchasers, has paid” the eight hundred and fifty dollar note and mortgage of Hartley to plaintiff. The fourth cause of action alleges that neither Hartley nor either of said subsequent purchasers, has paid said seven hundred and fifty dollar note and mortgage executed by Hartley to plaintiff. The fifth cause of action alleges that neither Hartley nor either of said subsequent purchasers has paid, except the sum of five hundred dollars, the purchase price for which the said land was sold to Hartley by plaintiff.
The prayer of the complaint is for judgment against Hartley for the sum of five thousand six hundred dollars with
Defendant Trainor answered that the deed of October 5, 1910, from Hartley to him was as security for the payment to him by Hartley of a certain sum which has been fully paid, and that he was ready and willing to reconvey the property to Hartley but that the latter requested him to make and execute a deed of said land to defendant Bethel, which Trainor did, on January 16, 1911.
Defendant Bethel filed a general and special demurrer to the original complaint, which was overruled and he answered the original complaint, admitting many of its averments. He denied that plaintiff was obliged to discharge the Harlow mortgage and alleged that the Harlow note and mortgage were fully satisfied and discharged, on December 5, 1910; admitted the execution of the deed by Morris and his wife, on October 10, 1910, but denied that it was for the purposes of correction only; denied that by paying the Harlow mortgage plaintiff became subrogated and alleged that the two Hartley notes of seven hundred and fifty dollars and eight hundred and fifty dollars were fully discharged, on October 10, 1910.
The court found that all the allegations of the first cause of action set forth in the amended complaint are true; also all the allegations of the third and fourth causes of action; also that all the allegations of the answer of defendant Trainor are true. The court also found that defendant Bethel did not
In defendant Bethel’s answer it was alleged that neither the note nor the mortgage executed by plaintiff and his wife to Susie Harlow for two thousand dollars, on November 16, 1909, is “owing or unpaid from defendant P. J. Bethel”; on the contrary, that both said note and mortgage were fully paid, satisfied, and discharged, on December 5, 1910. The court found that these averments of Bethel’s answer were not true “except-that the mortgage therein mentioned was satisfied of record by plaintiff as an inferior lienor.” The court further found that there is due and owing plaintiff from defendant Hartley the sum of two thousand dollars and interest, upon the promissory note of plaintiff and his wife to Susie Harlow, on November 16, 1909, secured by mortgage upon parcel “A” of said land; also the sum of seven hundred and fifty dollars upon said note of defendant Hartley executed to plaintiff September 30, 1910, secured by mortgage executed by said Hartley on parcel “A” of said land; also the sum of eight hundred and fifty dollars and interest upon said note of defendant Hartley executed to plaintiff on September 30, 1910, secured by mortgage on parcel “B” of said land; that it is necessary to appoint a commissioner for the sale of said premises and that said commissioner be directed to sell parcel “B” subject to the mortgage lien of B. P. McIntyre and Lulu Speer, and from the moneys realized at such sale to pay to plaintiff the sum of $1,072.25, with costs and interest; that such commissioner also sell parcel “A” and out of the moneys realized from such sale, after deducting expenses thereof, to pay to plaintiff the sum of $3,245.20, and if the amount realized from said sale shall be insufficient to pay said sums, then plaintiff may have judgment for any deficiency remaining.
The original complaint was filed January 18, 1911, to which defendant Bethel filed a general and special demurrer, on February 4, 1911. The court overruled the demurrer, on April 10, 1911, and, on October 27, 1911, defendant Bethel filed an answer to plaintiff’s original complaint. The cause came on for trial February 23, 1912, “and the same was continued to the 27th day of February, 1912, and upon completion thereof, upon motion of plaintiff’s counsel, the court allowed the complaint herein to be amended to conform to proofs adduced at the trial.” On March 8, 1912, plaintiff served and filed his amended complaint and, on March 14, 1912, the court made its findings and filed its judgment and, on March 15, 1912, said judgment was duly entered. On March 28, 1912, defendant Bethel served and filed a motion to strike the amended complaint from the files, which purports to have been “based upon the pleadings and records in the action and the affidavit of James D. Meredith, attorney for Bethel, and upon oral testimony to be adduced at the hearing of said motion.” The record contains no affidavit .or testimony in support of the motion. On May 13,1912, this motion and the settlement of the bill of exceptions came on to be heard. The motion was denied and appellant given to May 20, 1912, “to prepare and serve a statement on motion for a new trial and the settlement of bill of exceptions.” No answer to the amended complaint was filed, although it was served and filed six days before findings and judgment, and no stipulation appears that the answer to the original complaint should be deemed an answer to the amended complaint. The case, however, seems to have been tried upon the theory that the facts presented by the amended complaint, except as admitted, were denied substantially as appeared in appellant’s answer to-the original complaint, and we shall so treat the record. We cannot, however, so treat the demurrer. It is well settled that an amended complaint supersedes the original complaint and furnishes the sole basis of plaintiff’s cause of action. If defendant, Bethel, had desired to avail himself of objections, other than to the sufficiency of the amended complaint to state a cause of action, he should have renewed his special demurrer. We are satisfied that a cause of action is stated in both complaints.
Some objection is made of the form of the judgment, and it must be admitted that in some respects it is open to appellant’s criticism. For example, it adjudges that the land “be and hereby is declared a valid lien for the payment to plaintiff,” etc. And it is claimed that “nowhere is it decreed and adjudged that any of the mortgages set forth in the complaint are a lien upon the premises involved, or that the plaintiff is entitled to the foreclosure of such a lien on the premises involved. ’ ’
Section 2931 of the Civil Code provides that “a mortgagee may foreclose the right of redemption of the mortgagor in the
Rehearing
The judgment is affirmed.
Hart, J., and Burnett, J., concurred.
Petition for a rehearing of this cause and of Morris v. Hartley, (Civ. No. 1271), post, p. 804, [ 146 Pac. 78 ] were denied by the district court of appeal on December 31, 1914, and the following opinion then rendered thereon:
Appellant petitions for a rehearing. The point especially urged is that the court erroneously held that the demurrer to the original complaint could not be considered as a demurrer to the amended complaint.
As shown in the opinion, heretofore filed, the judgment was entered six days after the amended complaint was filed. Appellant contends that he was entitled to ten days in which to demur or answer. It frequently happens that amendments are made by leave of court to conform to the evidence adduced at the trial. We do not understand that in such cases the opposing party can stand by without answering or demurring and, after the court has made its findings and entered its judgment, claim that he was deprived of his right to answer or demur. If he has objection to the amended complaint as allowed by the court he should seasonably make such objection
It is further contended that the amendments to the complaint were trivial and did not require a new demurrer. Citing Flood v. Templeton, 148 Cal. 374 , 376, [ 83 Pac. 148 ], The amendment was, we think, something more than trivial and was to meet a very important issue in the case as to which there was evidence and a finding of the court. There was an amendment showing that the property was owned by Morris and his wife, whereas the original complaint alleged that Morris was the owner. There was also an amendment that, on October 10, 1910, Morris and his wife conveyed the premises to Hartley merely by way of correcting the deed made by Morris alone and with no intention that it should affect the mortgages given by Hartley. One of appellant’s contentions at the trial—strongly urged—was that this deed “absolutely released and discharged the two mortgages of Hartley to Morris (one for $750.00 and one for $850.00) and merged them in Hartley and had the operative effect of absolutely releasing and discharging said two mortgages of A. F. Hartley to Isidor F. Morris” and that appellant took the title freed from these mortgages. This issue was fully exploited at the trial and evidence admitted tending to show that the purpose of this deed of October 10th was well known to all the parties. In his motion to strike the amended complaint from the files appellant states, among other grounds, that it “radically changes and alters the alleged causes set forth in plaintiff’s original complaint on file herein”; that it “set forth matters and issues entirely new, wholly distinct and completely different from those embraced in the original complaint.” Appellant would hardly seem justified in now claiming that the amendments were trivial and such as were referred to in the case above cited. Besides, in the case cited the demurrer was general and the court stated that' the objections to the complaint could be made at any time. We still think that he should have renewed his demurrer if he intended to rely upon it.
Furthermore, we are of the opinion, if we are in error upon this point, that the matters called to the attention of the court by the special demurrer (it is not contended that there was
The petition is denied.
Cases cited
- Flood v. Templeton 148 Cal. 374 at 376 p. 73
- Stein v. United R.R. of S.F. 159 Cal. 368 p. 74