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Case Summary: Smith v. Smith, Supreme Court of Colorado (Dec. 7, 1924; Rehearing Denied Nov. 10, 1924)

Factual and Procedural Background

Mary A. Smith homesteaded the disputed premises in 1913. In 1917 she conveyed the premises to her son, Thurston H. U. Smith, without the knowledge of her husband, W. H. Smith; the deed was not recorded by the son until after Mary A. Smith's death (she died intestate November 1, 1919). On September 7, 1920, the son made a formal homestead entry on the margin of the record of the deed from his mother.

W. H. Smith (the plaintiff) later brought suit to cancel the deed from Mary A. Smith to the son on the ground the instrument was testamentary in character and void, and to cancel the son's homestead entry on the deed's margin. In that suit the son filed no answer; the district court found that W. H. Smith and the son were the sole heirs and owners of undivided one-half interests and decreed that the son's homestead entry of September 7, 1920, was null, void and cancelled of record.

Thereafter, as administrator of Mary A. Smith's estate, the plaintiff recovered a $2,000 judgment against the son; execution issued, the son's interest was sold at sheriff's sale, and the plaintiff received a sheriff's deed dated March 6, 1923. The plaintiff then brought an action for unlawful detainer in justice court; the case was certified to the district court, which, after a bench trial, entered judgment for the defendant (the son). The plaintiff (now plaintiff in error) appealed to the Supreme Court of Colorado.

Legal Issues Presented

  1. Whether a district court decree cancelling a homestead entry can be collaterally attacked by the party whose homestead entry was cancelled, despite that party's failure to appear or defend in the prior proceeding.
  2. Whether a sheriff's deed conveying the defendant's interest is void because of the defendant's asserted homestead entry and because the execution sale did not realize an amount in excess of the defendant's homestead exemption.

Arguments of the Parties

Plaintiff (Appellant) — W. H. Smith

  • The plaintiff asserted title and pursued unlawful detainer based on title claimed through a judgment against the defendant, execution sale, and sheriff's deed conveying the defendant's undivided one-half interest.
  • Implicit in the plaintiff's position (as reflected by the prior suit) is that the deed from Mary A. Smith to the defendant was void and that the defendant's homestead entry on the deed's margin should be cancelled.

Defendant (Respondent) — Thurston H. U. Smith

  • The defendant contended that the sheriff's deed was void because his homestead entry dated September 7, 1920, remained effective and exempted his interest from sale.
  • The defendant also contended that the execution sale did not realize a sum in excess of his statutory homestead exemption, implying the sale could not divest his homestead-protected interest.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court's analysis proceeded from the fact that a prior district court decree had adjudicated and cancelled the defendant's homestead entry of September 7, 1920. The Supreme Court held that the cancellation decree cannot be collaterally assailed in the unlawful detainer action even though the defendant did not appear or defend in the prior proceeding. Because the earlier decree had adjudicated the homestead entry null and void, the defendant's claimed homestead exemption was not in existence at the time of the judgment, levy, execution sale, and sheriff's deed.

Applying that conclusion to the facts, the court determined the sheriff's deed (based on the execution sale of the defendant's undivided one-half interest) effectively left the defendant without any right or title to the premises. Therefore, the court found the district court's judgment in the unlawful detainer action (which had been for the defendant) was incorrect.

Holding and Implications

REVERSED.

Holding: The Supreme Court reversed the district court's judgment for the defendant and remanded with directions to enter judgment for the plaintiff.

Direct effect on the parties: The defendant's prior homestead entry, having been cancelled by decree, did not preserve a homestead exemption against the execution sale and sheriff's deed; the plaintiff is entitled to judgment for possession based on the sheriff's deed acquired after execution sale. The opinion does not announce broader new legal principles beyond affirming that a decree cancelling a homestead entry cannot be collaterally attacked and thus controls the status of the homestead for subsequent proceedings.

SMITH v. SMITH.

1. JUDGMENT — Collateral Attack. A decree of the district court cancelling a homestead entry cannot be collaterally assailed although defendant did not appear or defend.

2. Sheriff's Deed — Homestead. The contention by a defendant that a sheriff's deed was void because of a homestead on the property, overruled, it appearing that the homestead entry had been cancelled by judicial decree.

MR. JUSTICE WHITFORD delivered the opinion of the court.

THIS is an action for unlawful detainer brought by the plaintiff in error in the justice court. The allegation of title in the plaintiff was put in issue by the verified answer of the defendant, and the case was certified to the district court, where the trial, without a jury, resulted in a judgment for the defendant. Plaintiff below brings the case here for review.

Mary A. Smith, who died intestate November 1, 1919, was the wife of plaintiff and the mother of defendant. She homesteaded the premises in controversy in 1913. The defendant, the plaintiff's son, married in 1911, and made his home with his parents on the premises now in controversy. In 1917, without the knowledge of the plaintiff, the mother conveyed the premises to the defendant, but he did not place the deed of record until after the death of the grantor. On September 7, 1920, the defendant made a formal entry of a homestead on the margin of the record of the deed to him from his mother. The plaintiff thereafter brought suit against the defendant and his wife to cancel the deed from Mary A. Smith to the defendant, on the ground that the instrument was testamentary in character and void, because the homestead entry of Mary A. Smith, his wife, inured to his benefit under the statute, and also to cancel the homestead entry made by the defendant on the margin of the deed of his mother to him. In that suit the defendant filed no answer. The court entered a decree finding that W. H. Smith, the plaintiff, and the defendant Thurston H. U. Smith, were the sole and only heirs at law of Mary A. Smith, deceased, and that each of them were owners of an undivided one-half interest in the property. And the court further found and decreed "that the alleged homestead entry of said property by the defendant on the records of said City and County of Denver, made on the 7th day of September, 1920, is also null and void and ought to be cancelled of record, and it is therefore considered, adjudged and decreed that the said homestead entry be and the same is hereby cancelled of record, and the said homestead entry is hereby declared null and void." Thereafter the plaintiff, as administrator of the estate of Mary A. Smith, deceased, recovered a judgment against the defendant for $2,000, and, by virtue of an execution issued on the judgment, caused to be sold at sheriff's sale the interest of defendant in the premises in controversy, and plaintiff received in his own name a sheriff's deed therefor dated March 6, 1923.

It is contended by defendant that the sheriff's deed to plaintiff was void because of his homestead entry dated September 7, 1920, and that the attempted sale of the premises under execution did not realize a sum in excess of the defendant's homestead exemption under the statute. This contention cannot be sustained. The defendant's homestead exemption was not then in existence. His homestead entry of September 7, 1920, had been previously cancelled and adjudged null and void by the decree of the district court, and that decree cannot be collaterally assailed. The defendant did not defend in that proceeding, but nevertheless the decree there entered cancelling his homestead concludes him in this action. The judgment, levy and execution sale, and the sheriff's deed conveying defendant's undivided one-half interest in the premises to the plaintiff, left the defendant without any right or title to the premises. The judgment below should have been for the plaintiff.

The judgment is reversed and the case remanded, with directions to enter judgment for the plaintiff.

MR. CHIEF JUSTICE TELLER and MR. JUSTICE DENISON concur.

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SMITH v. SMITH
(Jul 7, 1924)