within the statute, yet such decision, being a legal error, does not bind the courts.
Without deciding, therefore, or expressing any opinion upon the various constitutional objections set out in the bill of complain¬ ants, but simply holding that the admitted facts show no violation of the statutes cited above, but an erroneous order given by the Postmaster General to defendant, which the courts have the power to grant relief against, we are constrained to reverse the judgment of the circuit court, with instruc¬ tions to overrule the defendant’s demurrer to the amended bill, with leave to answer, and to grant a temporary injunction as ap¬ plied for by complainants, and to take such further proceedings as may be proper, and not inconsistent with this opinion. In over¬ ruling the demurrer, we do not mean to pre¬ clude the defendant from showing on the trial, if he can, that the business of com¬ plainants, as in fact conducted, amounts to a violation of the statutes as herein con¬ strued.
Judgment reversed.
Mr. Justice White and Mr. Justice McKenna, believing the judgment should be affirmed, dissented from the foregoing opinion.
JOHN ROMIG and Daniel W. Harding, Appts.,
V.
MYRTLE GILLETT.
(See S. C. Reporter’s ed. 111-117.)
Mortgages — foreclosure — insufficient af¬ fidavit for service by publication — rights of grantee of mortgagor.
1. The grantee of a purchaser at a foreclos-
187 TT. S. U. S., Book 47.
ure sale cannot, because of the Insufficiency of the affidavit for service by publication, be dispossessed or the judgment set aside by a court of equity at the Instance of one claiming under the mortgagor by a deed sub¬ sequent to the mortgage, which remains un¬ paid ; but the latter is only entitled to be let in to make any equitable defense which he may have.
[No. 52.]
Argued October 20, 21, 1902. Decided No¬ vember 17, 1902.
APPEAL from the Supreme Court of the Territory of Oklahoma to review a judgment affirming a judgment of the trial court which had set aside a judgment of foreclosure and all subsequent proceedings, and directed that the grantee of the mort¬ gagor be put in immediate possession of the mortgaged premises. Reversed.
See same case below, 10 Okla. 186, 62 Pac.
805.
Statement by Mr. Justice Brewers *On February 2, 1895, Don A.Gillettmade [118] and delivered to John Romig a note for $700, secured by a mortgage on 80 acres in Garfield county, Oklahoma. On February 6, 1895, the mortgagor sold and conveyed the real estate to Myrtle Gillett. On March 11, 1896, the mortgagee, Romig, commenced an action of foreclosure in the district court of that county against Don A. Gillett and Myrtle Gillett. In the petition, Myrtle Gib lett was alleged to have some interest in th« real estate, but junior and subsequent to plaintiff’s mortgage. A summons was is¬ sued and returned not served, the sheriff certifying that the defendants were not found in Garfield county. On June 2, plain¬ tiff filed an affidavit for publication, which affidavit disclosed fully the nature of the action and the relief sought, and added:
“Affiant further says that he is unable, and that the plaintiff is unable by using due diligence, to obtain service of summons on the said defendants within the territory of Oklahoma.
“Affiant further states that on the — day of March, 1896, he caused a summons to be issued in said cause for said defendants, di¬ rected to the sheriff of Garfield county, Ok¬ lahoma territory. Sheriff made return, ‘Defendants not found in my county.’
“Affiant further states upon information and belief that the said defendants Don A. Gillett and Myrtle Gillett are nonresidents of the territory of Oklahoma, and that serv¬ ice of summons cannot be made on the said defendants Don A. Gillett and Myrtle Gil¬ lett within the said territory of Oklahoma, and that said plaintiff wishes to obtain serv¬ ice upon said defendants by publication ; and further, affiant sayeth not.”
•Publication was mode and proof thereof [11 3] filed as required by the statutes. On De¬ cember 18, 1896, a judgment of foreclosure was entered against both defendants, and a sale of the real estate ordered. An order of sale was issued on January 20, 1897. A sale was made to the plaintiff and confirmed 7 97
Supreme Court of the United States.
Oct. Term.
by the court March 1, 1897, and an order entered directing the sheriff to execute a deed to the purchaser and put him in pos session. A deed was accordingly made and the plaintiff put in possession on March 9,
1897. Thereafter Daniel VV. Harding pur¬
chased the property from the plaintiff Ro mig, received a deed therefor and entered into possession on March 10, 1897. He im¬ proved the property, which up to that time was unimproved prairie land, by the erec¬ tion of three residences and other permanent structures of the value of $2,000, paid taxes to the amount of $200, and has ever since resided thereon.
On May 11, 1898, Myrtle Gillett filed a motion to set aside the judgment, and all proceedings had thereunder, on the ground that the court had never acquired any juris¬ diction; that she was, at all times during the pendency of the action, a resident of the territory of Oklahoma, living in an adjoin¬ ing county and within 20 miles of the mort¬ gaged real estate, and that she had no knowledge of the institution or prosecution of the cause until long after the sale of the land by the sheriff. Upon the hearing of this motion the court entered an order set¬ ting aside the judgment and all subsequent proceedings, and directing that she be put in immediate possession of the premises. This order and judgment of the trial court was affirmed by the supreme court of the territory on June 30, 1900 ( 10 Okla. 186, 62 Pae. 805), whereupon the case was brought here on appeal.
The statutes of Oklahoma of 1893, which were in force at the time of these proceed¬ ings, required that actions for the foreclos¬ ure of a mortgage be brought in the county in which the real estate is situated. Section 3950 authorized service by publication in such cases “where any or all of the defend¬ ants reside out of the territory, or where the plaintiff, with due diligence, is unable to make service of summons upon such de¬ ll 14] fendant *or defendants within the terri¬ tory.” Sections 3951, 3955, and 4498 read as follows:
“Sec. 3951. Before service can be made by publication an affidavit must be filed stat¬ ing that the plaintiff, with due diligence, is unable to make service of the summons upon the defendant or defendants to be served by publication, and showing that the case is one of those mentioned in the preceding sec¬ tion. When such affidavit is filed, the party may proceed to make service by publication.”
“Sec. 3955. A party against whom a judg¬ ment or order has been rendered without other service than by publication in a news¬ paper, may, at any time within three years after the date of the judgment or order, have the same opened, and be let in to de¬ fend. Before the judgment or order shall be opened, the applicant shall give notice to the adverse party of his intention to make such an application, and shall file a full answer to the petition, pay all costs, if the court require them to be paid, and make it appear to the satisfaction of the court, by affidavit, that during the pendency of the
action he had no actual notice thereof in time to appear in court and make his de¬ fense ; but the title to any property, the sub¬ ject of the judgment or order sought to be opened, which by it, or in consequence of it, shall have passed to a purchaser in good faith, shall not be affected by any proceed¬ ings under this section.”
“Sec. 4498. In all cases, any occupying claimant being in quiet possession of any lands or tenements for which such person can show a plain and connected title in law or equity, . . . or being in quiet posses¬
sion of and holding the same by deed . . . from and under any person claiming title as aforesaid, ... or being in quiet posses¬ sion of and holding the same under sale on execution or order of sale against any per¬ son claiming title as aforesaid, ... or any person in quiet possession of any land, claiming title thereto and holding the same under a sale and conveyance made . . .
in pursuance of any order of court or decree in chancery, where lands are' or have been directed to be sold, and the purchasers there¬ of have obtained title to and possession of the same without any fraud or collusion on his, her, or their part, shall not be evicted or 'thrown out of possession by any person [115] or persons who shall set up and prove an adverse and better title to said lands, until said occupying claimant, his, her, or their heirs, shall be paid the full value of all lasting and valuable improvements made on said lands by such occupying claimant, or by the person or persons under whom he, she, or they may hold the same, previous to receiving actual notice by the commence¬ ment of suit on such adverse elaim by which eviction may be effected.”
Mr. A. A. Hoehling, Jr., argued the cause, and, with Mr. Charles 8. Wilson, filed a brief for appellants:
An application to open a judgment ob¬ tained by default, made under a statute, must substantially comply with all of its provisions.
472.
The court erred in vacating the title of appellant Harding notwithstanding the ex¬ press statutory provisions that the title of a bona fide purchaser for value, acquired under or in consequence of a judgment there¬ after opened or vacated, shall not thereby be defeated or affected.
Howard v. Entreken, 24 Kan. 428. See also Ouiteau v. Wisely, 47 Ill. 433; Taylor v. Boyd, 3 Ohio, 338, 17 Am. Dec. 603.
To hold that the appellant Harding can be so summarily deprived of his money and property, without redress of any kind, is not only in direct conflict with the laws of Oklahoma, but is subversive of every legal and equitable consideration, even without the aid of statutory enactment.
2 Freeman, Judgm. § 509; Reeve v. Ken¬ nedy, 43 Cal. 649; Hammond v. Davenport,
16 Ohio St. 177 ; Hahn v. Kelly, 34 Cal.
391, 94 Am. Dec. 742; Ogden v. Walters ,
12 Kan. 282; Callen v. Ellison, 13 Ohio St.
187 U. S.
1902.
Romig v. Gellett.
115, 116
448, 82 Am. Dec. 448 ; Payne v. Lott, 90 Mo. 676, 3 S. W. 402; Jones x. Driskill, 94 Mo. 100, 7 S. W. Ill; Schmidt v. A Hemeyer, 100 Mo. 207, 13 S. W. 405; Evans x. Pike, 118 U. S. 241, 30 L. ed. 234, 6 Sup. Ct. Rep. 1090; Donaldson x. Roman, 8 Mart. N. S. 162; Stockton x. Downey, 6 La. Ann. 581; Taylor x. Huey, 11 La. Ann. 614; Brobst x. Brock, 10 Wall. 519, sub nom. Doe ex dern. Brobst x. Roe, 19 L. ed. 1002; Bryan x. Kales, 162 U. S. 411, 40 L. ed. 1020, 16 Sup. Ct. Rep. 802 ; Bryan v. Brasius, 162 U. S. 415, 40 L. ed. 1022, 16 Sup. Ct. Rep. 803; Bryan x. Pinney, 162 U. S. 419, 40 L. ed. 1023, 16 Sup. Ct. Rep. 804.
The right to reimbursement of a pur¬ chaser in good faith and for a valuable con¬ sideration, who has made improvements upon the property, can be supported upon general principles of equity, without regard to statutory provisions.
Bright v. Boyd, 1 Story, 478, Fed. Cas. No. 1,875.
A purchaser at a foreclosure sale who has made valuable improvements in the belief that he has a clear and absolute title is en¬ titled to be paid for them in case the prem¬ ises are redeemed.
The attempted ouster, without due process of law, of a bona fide purchaser for value under said foreclosure proceedings, without reimbursement of purchase money or of amounts expended, in good faith and with¬ out notice, for improvements, is contrary to the express provisions of the statutes of Oklahoma.
Similar statutory provisions have fre¬ quently been passed upon by the courts, and the constitutionality of such legislation up¬ held, and its provisions construed and ap¬ plied in accordance with the manifest pur¬ pose of such statutes “ to secure and give to each one, as near as may be, his own.”
Hentig x. Redden, 1 Kan. App. 163, 41 Pac. 1054; Deitzler x. Wilhite, 55 Kan. 2i>0, 40 Pac. 272; Stephens v. Ballou, 25 Kan. 618 ;
Stebbins v. Guthrie, 4 Kan. 353 ; Glick v. Gregg, 19 Ohio, 57 ; Beardsley v. Chap¬ man,
1 Ohio St. 119.
Mr. Jeremiah M. Wilson filed a brief on behalf of appellants in opposition to mo¬ tions to quash supersedeas and to dismiss appeal.
Mr. William M. Springer argued the cause, and, with Mr. George P. Rush, filed a brief for appellee:
A void judgment may be vacated and set aside at any time on motion of the defend¬ ant, without advising the court that the de¬ fendant has a valid defense to the action in which the pretended judgment is rendered.
Hanson x. Wolcott, 19 Kan. 207 ; Bond x. Wilson, 8 Kan. 228, 12 Am. Rep. 466; Gapen v. Stephenson, 17 Kan. 616; Mastin x. Gray, 19 Kan. 468, 27 Am. Rep. 149; Kirkwood v. Reedy, 10 Kan. 453; Green x. MoMurtry, 20 Kan. 193; Pierce x. Butters, 21 Kan. 124; McNeill v. Edie, 24 Kan. 110; Valley Bank & Sav. Inst. x. Ladies? Cong. 187 U. S.
Seunng Soc. 28 Kan. 424; Tracy x. Gunn,
29 Kan. 510; Reynolds v. Fleming, 30 Kan.
106, 46 Am. Rep. 86, 1 Pac. 61; Williams x. Moorehead, 33 Kan. 618, 7 Fac. 226.
When a judgment is sought to be set aside because of some defect in the affi¬ davit of publication, the constant practice in Kansas is to do so by motion filed in the original case.
Harrison x. Beard, 30 Kan. 532, 2 Pac.
632; Hanson x. Wolcott, 19 Kan. 207; Washburn v. Buchanan, 52 Kan. 417, 34 Pac. 1049; Grouch x. Martin, 47 Kan. 313,
27 Pac. 985; Long v. Fife, 45 Kan. 271, 25 Pac. 594.
Under the Kansas practice such a judg¬ ment as this can be impeached and set aside, even in an action in ejectment, upon proof aliunde to show that the court did not have jurisdiction.
Mastin x. Gray, 19 Kan. 458, 27 Am. Rep.
149; McNeill x. Edie, 24 Kan. 110; Kay x. Walter, 28 Kan. 115; Perry v. St. Joseph do W. R. Co. 29 Kan. 424; Brinkman x. Shaffer, 23 Kan. 531.
The doctrine of estoppel or limitation does not apply to a void judgment.
Okla. Stat. 1893, § 4471; Freeman,
Judgm. § 117.
A mortgagee in possession may be ousted before his debt is paid.
Jones, Mortg. § 717; Humphrey x. Hurd,
29 Mich. 44; Caruthers x. Humphrey, 12 Mich. 270; Whetstone v. Coffey, 48 Tex.
270; Mills v. Heaton, 52 Iowa, 215, 2 N. W.
1112; Newton x. McKay, 30 Mich. 380; Parker v. Dacres, 2 Wash. Terr. 439, 7 Pac.
893; Jones, Mortg. § 1678; Payne x. Long- Bell Lumber Co. 9 Okla. 683, 60 Pac. 235.
Mr. Justice Brewer delivered the opin¬ ion of the court:
The supreme court of Oklahoma was of opinion that the affidavit for service by pub¬ lication was wholly insufficient in that it alleged the nonresidence of defendants sim¬ ply upon information and belief, and not positively; that being so insufficient the defendant Myrtle Gillett was not brought into court, and the judgment and all sub¬ sequent proceedings were, as to her, abso¬ lutely void. On the other hand, it is con¬ tended by the appellants that a separate ground for service by publication is “where the plaintiff, with due diligence, is unable to make service of summons . . . within the territory;” that the affidavit for publi¬ cation stated positively such inability ; that, therefore, it was strictly within the statute, and authorized the publication of notice; that the publication was duly made, the defendants were thereby brought into court, and the judgment and all subsequent pro¬ ceedings were regular and valid. It may well be doubted whether this contention of appellants can be sustained, at least in cases like this of direct, and not collateral, attack, even if the inability to obtain per¬ sonal service by the exercise of due dili¬ gence is a distinctive ground for service by publication. It would seem that the facts tending to *3 how such diligence should be[Ii$.
99
H8-H8
Supreme Court of the United States.
Oct. Term,
disclosed, and that an affidavit merely al¬ leging inability was one of a conclusion of law, and not Of facts. McDonald v. Cooper, 32 Fed. 745; Carleton v. Carleton, 85 N. Y. 313; McCracken v. Flanagan, 127 N. Y. 493, 28 N. E. 385; Ricketson v. Richardson, 26 Cal. 149; Braly v. Seaman, 30 Cal. 610; Kahn v. Matthai, 115 Cal. 689, 47 Pac. 698; Little v. Chambers, 27 Iowa, 522; Thompson v. Shiawassee County Circuit Judge, 54 Mich. 236, 19 N. W. 967 ; Alderson v. Mar¬ shall, 7 Mont. 288, 16 Pac. 576. Nor is this inability shown by the mere fact that a summons issued to the sheriff of the county in which the land is situated is returned not served, for in cases of this kind, by i 3934, a summons can be issued to and served in any county of the territory.
But while the affidavit for publication may have been insufficient, we are unable to concur with the supreme court of Oklahoma in its conclusions. A publication of notice was in fact made, and a publication based upon an affidavit which, however defective it may have been, was intended to be in compliance with the statute. It was ap¬ proved by the court, which upon it rendered a decree of foreclosure, which was executed by the proper officers in the proper way. By virtue of the proceedings -the mortgagee v^as put into possession, — a possession, which he transferred to the appellant Harding. Under those circumstances, what right has the appellee, a grantee from the mortgagor? The foreclosure was a proceeding in equity, although its various steps were prescribed by statute. Equitable principles must con¬ trol the measure of relief. Even if the publication had been founded upon an affi¬ davit perfect in form, and the decree and all proceedings had been in strict conform¬ ity to the statute, yet, by § 3955, the de¬ fendant would be let in to defend, upon compliance with certain conditions.
Assuming that that section is not fully applicable because of the defect in the af¬ fidavit, yet the appellee comes into a court of equity seeking relief against the fore¬ closure of a mortgage. In such a case there are almost always certain conditions of re¬ lief. If the mortgage be valid the rights of the mortgagee and those claiming under him are to be protected. Generally, such rights are protected by requiring pavment (117] of the mortgage debt, *and granting a right of redemption. It is true that this right of redemption is a favored right. Russell v. Southard, 12 How. 139, 13 L. ed. 927; Villa v. Rodriguez, 12 Wall. 323, 20 L. ed. 406; Bigler v. Waller, 14 Wall. 297, 20 L. ed. 891; Noyes v. Hall, 97 U. S. 34, 24 L. ed. 909; Shillaber v. Robinson, 97 U. S. 68. 24 L. ed. 967. But it is only a right of re¬ demption which in this case and under the facts disclosed the appellee is entitled to. She does not pretend in her affidavit that the mortgage was invalid, ot that it had been paid. She claims by a deed subsequent to the mortgage, and simply insists that she has not had her day in court, and there¬ fore her rights, which, so far as appears, Are only the rights of redemption, have not been cut off. Harding, as the grantee of 100
the purchaser at the foreclosure sale, stand* in the shoes of the mortgagee. Bryan v. Brasius, 162 U. S. 415, 40 L. ed. 1022, 16 Sup. Ct. Bep. 803. As shown by the opin¬ ion in that case and cases cited therein, a mortgagee who enters into possession, not forcibly, but peacefully and under the au¬ thority of a foreclosure proceeding, cannot be dispossessed by the mortgagor, or one claiming under him, so long as the mort¬ gage remains unpaid.
Under § 4498 the appellant Harding has all the rights of an occupying claimant, for he was “in quiet possession, claiming title and holding under a sale and conveyance made in pursuance of a decree in chancery, where lands have been directed to be sold, and the purchasers thereof have obtained title to and possession of the same without any fraud or collusion.” 'Of course, this section applies to proceeding* which are de¬ fective, for, if not defective, by S 3955 a purchaser in good faith has title, and can¬ not be Evicted upon any terms.
The decree of the Supreme Court of Okla¬ homa will be reversed and the case remand¬ ed to that court, with instructions to set aside the order of the trial court, and to direct the entry of one which, without dis¬ turbing the possession of Harding, will give to the appellee the right to appear, plead, and make such defense as, under the facta of the case and the principles of equity, she is entitled to.