Placerville Gold Mining Co. v. Beal

ANGELLOTTI, J.

This is an appeal from a judgment foreclosing a mortgage. The mortgage was executed by defendant C. N. Beal to the El Dorado Water and Deep Gravel Mining Company (a corporation), hereinafter designated the El Dorado Company, to secure the payment of three notes in . the sums of forty thousand dollars, forty thousand dollars, and forty-two thousand five hundred dollars, respectively. The mortgagee transferred all of its interest in the notes and mortgage to the plaintiff. Beal conveyed the mortgaged property to defendant Sierra Water Supply Company, hereinafter designated the Sierra Company, which, in turn, conveyed to the defendant San Francisco-Oakland Terminal Power Company, hereinafter designated the Power Company. The Power Company never assumed the payment of the mortgage

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debt. The two forty thousand dollar notes were paid. The forty-two thousand five hundred dollar note not having been paid, plaintiff commenced this action to foreclose against Beal, and the Sierra Company, the Power Company, and the Mechanics Trust Company, of New Jersey. All the defendants except Beal were joined simply as holders under Beal subject to the mortgage, no relief being asked against any of them except that such interest as it has be adjudged subject to the lien of the mortgage. A deficiency judgment was asked against Beal only.

The joint answer originally filed by the Sierra Company ¿ the Power Company, and the Trust Company contained a further defense and counterclaim on the part of the Power Company only, for $1989.75, for water furnished by the Sierra Company to plaintiff prior to March 11, 1912, the claim for which had been assigned to the Power Company; and also a further defense and counterclaim on the part of the Power Company only, for $1012.50 for water furnished by the Power Company to plaintiff. Plaintiff demurred to the “answer” of the defendants, oh the ground, among others, “that said answer does not state facts sufficient to constitute a defense.” The demurrer was sustained, and said defendants subsequently filed another joint answer which contained no counterclaim.

The action was tried upon these pleadings, and judgment was given determining the amount due on the note, adjudging the interest of said three defendants to be subject to- the lien of the mortgage, directing a sale of the premises to satisfy plaintiff’s claim, and directing the entry of a deficiency judgment against Beal for the amount remaining unpaid, if any, after the sale of the property.