Court Opinion

ID: 9720213
Source: CourtListenerOpinion
Date Created: 2023-08-26 08:20:54.136789+00
Date Added: 2024-06-11T18:24:14.254682
License: Public Domain

HOMEYER, Judge
(dissenting).
*336I dissent. This action originated as an attempt to foreclose a real estate mortgage by action, SDCL 21-47, but in my opinion it was concluded as a foreclosure of mechanics liens under SDCL 44-9 and nothing else. SDCL 44-9-23 provides actions for foreclosure of mechanics liens are begun and conducted in the same manner as actions for the foreclosure of mortgages, except as otherwise provided in that chapter. SDCL 44-9-40 says judgment shall be given in favor of each lienholder for the amount demanded and proved by him and SDCL 44-9-44 sets forth the requirements of the judgment. It appears to me these statutes and procedures were followed.
The judgment in the case at bar gives judgment to four separate holders of mechanics liens for the amount of their respective claims and counsel fees, but in no manner does it purport to give judgment for the mortgage debt. It directs the sheriff to sell the real estate to which the liens are attached to satisfy the amounts of the four mechanics liens and costs “above specified” but it in no way indicates the sale is to be made to satisfy the mortgage debt. It is true the judgment directs application of surplus funds, if any, among subsequent lienholders including the mortgagee in a certain order of priority, but in my opinion this does not constitute a judgment of foreclosure of a mortgage.
SDCL 21-47-14 requires sales of the mortgaged premises “under an order and decree of foreclosure * * * shall be made upon like notice and in the same manner as provided by law for the sale of real property upon execution.” SDCL 15-19-9 requires the notice to state “the amount of the judgment or other lien upon which sale is to be made”.
The notice of sale in this case describes the judgment in favor of the four mechanics lienholders and the respective amounts of the judgments, but it does not mention any mortgage, or any mortgage judgment debt, which it could not, because there was no judgment for the mortgage debt.
In my opinion the mortgage of respondent was never foreclosed and consequently it was under no duty to comply with the provisions of SDCL 21-47-15 to 21-47-17 in order to preserve its right to recover the unpaid indebtedness.