Court Opinion

ID: 9865457
Source: CourtListenerOpinion
Date Created: 2023-09-25 17:55:13.018661+00
Date Added: 2024-06-11T12:50:07.214116
License: Public Domain

On Rehearing.
Opinion filed February 23, 1933.
Per Curiam.
This case is before us on rehearing. On November 28, 1932, we affirmed the final decree appealed from. That decree simply dismissed the bill without prejudice to appellant’s right of redemption, if any. It had already determined that appellees had a superior equitable right in the property involved as against appellant’s mortgage, which by that decree, was held to have been an inferior lien as against a prior mechanic’s lien.
Our conclusion on rehearing is that our previous opinion should be adhered to, but that the final decree appealed from should only be affirmed in part, and not unconditionally affirmed as first decided by us.
Insofar as the final decree appealed from held that appellant’s mortgage lien was inferior to' Patchen’s fee *872simple deed, derived by him under a deed acquired from the purchaser at a mechanic’s lien foreclosure sale of the mortgaged property, it was proper and should be affirmed. But in all other respects the final decree should be set aside, and the cause remanded to the court below with 'directions to reopen the proceedings, allbw an amendment of the pleadings, and take such other and further testimony as may be necessary to enable the Court to finally dispose of all the equities involved, without the necessity of a new suit.
On appeals in chancery cases, where upon the record presented, a just and equitable decree cannot be rendered by an appellate court upon the real controversy and the essential equities necessarily involved in making a final decision, the practice seems to have become well established to remand the cause to the court of original jurisdiction, with a direction that such court reopen the cause, hear further testimony, if necessary, and make a full determination of all the equities, after allowing the parties to so', amend their pleadings, as may be proper to present fully the facts and contentions upon which they rely and obtain the relief which they seek. See Citizens Bank of Warrenton v. Moore, 20 Fed. (2nd) 791; Tallahassee Variety Works vs. Brown, 106 Fla. 599, 144 Sou. Rep. 848. See also Cowdery vs. Herring, 106 Fla. 567, 144 Sou. Rep. 348 (on rehearing).
In this case, Patchen, as the successor in title to the property under foreclosure of a mechanic’s lien, occupies the status of a first lienor, who has foreclosed his lien, and acquired the legal title under foreclosure, without having made a junior mortgagee lienor a party to the mechanic’s lien foreclosure suit. Kurz, as assignee of the junior mortgage lien, occupies the status of an inferior lienor, who- has brought suit against the holder of the legal title to the mortgaged property, but against one who also happens to *873be the holder of that legal title by virtue of the foreclosure of a first lien oh the property in a suit prosecuted to final decree and sale, without making the junior lienholder of record at the time of the prior suit, a party to the first lien foreclosure proceedings.
A superior lien holder, who has foreclosed and acquired the legal title to the incumbered property, without making an inferior lienholder of record a party to his suit, is simply entitled to bring a new suit against the inferior lienholder, to compel redemption by him within a short time of the superior claim, or be barred. See Quinn Plumbing Co., v. New Miami Shores Corp., 100 Fla. 413, 129 Sou. Rep. 690.
On the other hand a mortgagee has the right to foreclose his mortgage against the mere holder of the legal title to the property, whether the property is subject to a superior lien to another or not. The only way his right in this respect can be cut off is for the superior lienholder to first foreclose the superior lien and join, as a party to the superior lien foreclosure suit, the inferior lienholder, so as to bar his right to redemption of the property from the superior lien.
The fact that in this ease the inferior lienholder, or mortgagee who was not made a party to the superior lien foreclosure suit, has now brought a suit of his own against the holder of the legal title, who perchance also happens to be, as to complainant, a superior lienor, does not alter the rights of the mortgagee and his assignee, against the mortgagor and his successors in the legal title. Here all the parties having an interest are now before the Court, and their respective rights can be adjusted in the present suit on proper pleadings, and be given effect by a single decree in the pending case. See Brogan v. Ferguson, 101 Fla. 1311, 133 Sou. Rep. 317, 2nd head-note.
A proper course of procedure in cases like this wohld be *874for the court to ascertain and fix, first, the character and extent of the liens involved. This has already been done in this case by that part of the decree which has already been affirmed and which is now reaffirmed. Thereupon the court should require the inferior lienholder to redeem from the superior lien by a short day to be named, or stand barred and the title confirmed in the superior lienholder, in accordance with the principles applied in Quinn Plumbing Co. vs. New Miami Shores Corp., 100 Fla. 413, 129 Sou. Rep. 690.*
Contingent upon the redemption having been made from the superior lien, the Court should require the holder of the legal title, as such, to redeem from the inferior lien, in default of which, the usual decree of foreclosure should be ordered to enforce the inferior lien as against the holder of the legal title and those claiming under him, quoad hoc, and incident to this latter decree, the property should be ordered sold to satisfy the inferior lien foreclosure decree if not redeemed in due course by those who are bound in law to redeem from such a decree.
The decree appealed from is affirmed in the particulars hereinbefore mentioned, but is otherwise set aside and the cause remanded to the Court below with directions to reopen the pleadings, take further testimony if necessary, and enter such further decree herein as will be according to' equity and not inconsistent with the original opinion in *875this cause, as supplemented and modified by this opinion on rehearing.
Modified decree of affirmance entered on rehearing.
Davis, C.J. and Whitfield, Terrell and Bufoed, J.J., concur.
On Motion To Tax Costs of Appeal.
Order entered April 7, 1933.
Per Curiam.
Upon motion to retax the costs of the appeal in this case, and it appearing that due notice of said motion has been served upon counsel for the opposite party, and it appearing from the record of our judgment herein that the final decree appealed from in this ease was affirmed as to' all matters presented to the Circuit Court for decision, but was set aside for further proceedings with reference to other equities appearing to be involved, and not theretofore decided, it is thereupon considered by this Court that the costs of the appeal should be retaxed herein upon the authority of Masser v. London Operating Co. (Fla.), 145 Sou. Rep. 72, and that it should now be ordered that the costs of the appeal heretofore decided by this Court on the 23rd day of February, A. D. 1933, should be, and they are hereby taxed against the appellant in this cause, all of which is ordered to be duly certified by the Clerk of this Cohrt to the Court below, there to be included in the mandate of this Court heretofore issued.
So ordered.
. Davis, C.J. and Whitfield, Terrell, Beown and Bufoed, J.J., concur.

 Wilson & Herr vs. Hayward, 6 Fla. 171, holding that in case of sale by a prior incumbrancer, the subsequent incumbrancer can only complain by showing fraud in the sale, or that the property was more than sufficient to pay both debts, and that something remains for his benefit has no application to foreclosure in equity as now provided by law. The foreclosure in that case was a foreclosure, instituted by petition on the law side of the Court under a special act authorizing the foreclosure of mortgages in the courts of common law. The case there dealt with is analogous to the levy and sale of property under a prior judgment which would leave a subsequent judgment creditor with no ground of complaint except to show fraud in the sale under the prior judgment, or that the property was more than sufficient to pay both debts, or that something remained for the second judgment creditor.