Opinion ID: 1724216
Heading Depth: 1
Heading Rank: 2

Heading: Defendants also contend the trial court erred in establishing the claim of plaintiff as a prior lien on the property.

Text: The homestead was not included in the lien impressed properties. It was properly excluded. Hall Roberts' Son, Inc. v. Plaht, 253 Iowa 862, 114 N.W.2d 548. Also, the prior mortgage encumbrance of about $800 was given proper recognition. Apparently defendants lean heavily upon Hall Roberts' Son, Inc. v. Plaht, supra, to support their claim, but that case is not in point. In the cited case a husband had transferred an undivided half interest in some heavily encumbered lands to his wife. This court held, except as to an unencumbered 10 acre tract, there was insufficient showing the husband had parted with property having substantial value, or that the complaining creditor had been harmed. In the case before us the record is devoid of any evidence disclosing Alma ever contributed funds to aid in acquiring any part of the real estate here involved. Her rights could rise no higher than those possessed by Melvin, so neither of them have standing to assail the stamp of priority placed upon plaintiff's claim, and Melvin's rights were inferior to those of plaintiff. VII. However, the court did include in the properties covered by the impressed lien a tract of land referred to as the Johnson 20 which stood in the name of LaNonne A. Cormaney. Without here deciding the issue, this tract might have been subjected to plaintiff's lien had proper proceedings been followed. The record discloses it was not included in the lands attached under plaintiff's petition when first filed. In fact plaintiff endeavored to include this land in the proceedings only by a third amendment, filed at the close of the trial, but did not then or thereafter take any steps to bring it within the jurisdiction of the court by any writ of attachment. Neither was LaNonne made a party to the action. In fact, she was not even called as a witness. Also, this tract was not included in any lands which Melvin conveyed, or tried to convey to Alma. The record does disclose the name of LaNonne, as grantee, had been superimposed on the instrument of conveyance over an erased name, and there was some evidence presented indicating the deed to this tract had never been delivered to LaNonne. Such alone is not enough. The court never acquired requisite jurisdiction either in rem or in personam to determine rights as to this property, and any order, judgment or decree entered as to same was of no legal force or effect. Chapter 639, Code 1962; Federal Land Bank of Omaha v. Jefferson, 229 Iowa 1054, 295 N.W. 855, 132 A.L.R. 1282; Rules of Civil Procedure 48, 58 I.C.A.; and 20 Am.Jur.2d Courts, section 94, page 455; and section 105, page 464. VIII. The verdict rendered by the trial court is also assailed as being excessive. The audit disclosed a total of $56,760 embezzled by Melvin. Plaintiff bonding company paid $50,603 to Cargill. Then, through a crediting process, the amount sought by plaintiff was ultimately reduced to $49,628.34, and judgment for that sum was granted. Defendants admit the audit properly reflected shortages in local sales, conversion of Cargill checks, issuance of checks to fictitious payees, checks to Cormaney and Strable, and storage charges, but generally dispute the audit as to gross bushel shortage, overpayments to Melvin on purchases, and undercharges to Melvin on sales. The audit by Cargill was carefully scrutinized by competent auditors employed by defendants. The record discloses some differences in thought by the two auditing groups as to methods or techniques, but no material variances as to findings made by the Cargill audit. Defendants' auditors admitted a net bushel method of auditing was impossible, and that in the acknowledged absence of proper records, a test check of dollar profits could not be made. The books and records of the Cargill elevator at Cumming, Iowa, were utilized in effecting the computation. Known buyers were contacted and their records checked against those in the elevator. As a result some 3200 altered documents were discovered. Twenty boxes of original books and records consisting of thousands of instruments used in making the audit were in the court room during trial, and were made available for inspection by the court or by counsel for defendants. The Cargill auditors were called as witnesses, testified and were cross examined at length as to their findings. Also, a summary of the audit was presented in evidence. The record made was proper and sufficient. Gregg v. Middle States Utilities Co., 228 Iowa 933, 944-945, 293 N.W. 66, 132 A.L.R. 415; 20 Am.Jur., Evidence, section 449, page 399; and 32A C.J.S. Evidence § 789, page 111. The trial court granted plaintiff judgment in a sum substantially less than that disclosed by the audit. We find no reason to disagree with the amount determined by the court to be due plaintiff. IX. Plaintiffs prayer the deed to the 20 acre tract designating LaNonne A. Cormaney as grantee, be adjudged ineffective, null, and void as a conveyance to her, and that it be subjected to plaintiff's lien should have been denied. We are satisfied that save and except for inclusion of this 20 acre tract as one of the properties impressed with plaintiff's lien, the trial court did equity. Affirmed in part, reversed in part, and remanded for entry of decree not inconsistent herewith.