Baker, Lyons & Co. v. Eliasberg & Bros. Mercantile Co.

79 So. 13, 201 Ala. 591, 1918 Ala. LEXIS 156
CourtSupreme Court of Alabama
DecidedApril 18, 1918
Docket2 Div. 6555.
StatusPublished
Cited by20 cases

This text of 79 So. 13 (Baker, Lyons & Co. v. Eliasberg & Bros. Mercantile Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker, Lyons & Co. v. Eliasberg & Bros. Mercantile Co., 79 So. 13, 201 Ala. 591, 1918 Ala. LEXIS 156 (Ala. 1918).

Opinion

THOMAS, J.

The bill was filed in the circuit court in equity on October 30, 1916, for the redemption of certain real estate sold under the power of a mortgage. The mortgage in question was executed by J. H. Andrews and wife on October 30,1908, to secure an indebtedness due the Monroe County Bank; and on January 4, 1912, the same was duly transferred by said bank to Baker, Lyons & Co. After the giving of this mortgage, and prior to the 13th day of May, 1914, the mortgagor husband died intestate, leaving as bis only heirs at law four children, one of whom was G. W. Andrews. On the 13th day of May, 1914, said G. W. Andrews and his wife, to secure an indebtedness owing to Eliasberg & Bros. Mercantile Company, a corporation, gave that concern a mortgage on tbe undivided one-fourth interest iu said lands vesting in him by descent upon the father’s death. On the 31st day of October, 1914, which was after default, said transferees foreclosed said senior mortgage by sale pursuant to tbe terms thereof, and at such sale became the purchasers of the lands so conveyed, and received an auctioneer’s deed thereto. Within two years after this foreclosure, said Eliasberg corporation, as a junior mortgagee of the undivided one-fourth interest in said lands, conveyed it by G. W. Andrews, served upon the purchasers at the foreclosure sale a written demand for a statement in writing of the debt, together with all lawful charges claimed by them as purchasers, as provided by section 5748 of the Code of 1907, as that section was amended by the Acts of 1911, p. 391. The purchasers failing to comply with such demand, the complainant,, after the expiration of ten days, filed its bill to enforce its rights under the statute. Respondents demurred on the ground that there was “no equity in the bill” and their demurrer was overruled. Complainant’s demurrer was sustained to respondent’s plea, which plea was as follows:

“The act of the Legislature of 1915, page 598, does not confer upon the circuit court jurisdiction to enforce a statutory right of redemption where land is sold under power contained in the mortgage; that said statutory right of redemption is not a ‘matter of equity.’ ” .

The cause was then .submitted for final decree upon the pleadings and an agreed statement of facts, which was, in short, as we have heretofore recited; and the circuit court found that complainant was entitled to ascertainment of the amount due upon the senior mortgage, and to redemption. Complainant having complied with the decree as to redemption by it, a deed was executed to it by the register of the court, and on report thereof it was confirmed by the court.

Pretermitting for the moment consideration of the ruling of the trial court sustaining demurrer to complainant’s plea to the jurisdiction of the circuit court to proceed in equity to a final determination of said cause, we will determine whether or not the Eliasberg corporation, as junior mortgagee, was entitled to redeem under the statute. Code, § 5746 et seq.

[1 ] It cannot be doubted tbat the statutory right of redemption is nonexistent until the equity of redemption is extinguished by a valid foreclosure. Dinkins v. Datham, 79 South. 493. Mr. Justice Mayfield observes that prior to the Code of 1997, redemption was “neither property nor the right of property,” but was “a mere privilege” personal to the debtor; saying, further, that:

“The right was made assignable by the Code of 1907, but only by the mortgagor or owner thereof. It is not yet made subject to sale under execution. It still retains its character of a personal privilege to the mortgagor or owner, or to others mentioned in the statute. The statute does not authorize this right or privilege to be assigned by any one except the debtor; while it confers the right on others specified, it does not authorize such others to assign the *592 right, as it does the debtor.” Leith v. Galloway Coal Co., 189 Ala. 204, 206, 66 South. 149.

Appellants rely largely upon the Leith Case as- an authority that would deny the right of redemption sought by complainant. The question there for decision was whether or not the mortgagor’s statutory right of redemption passed to the purchaser from the trustee of the bankrupt court, “where the equity of redemption had been cut off by a foreclosure, before the mortgagor was adjudicated a bankrupt.” Therein lies the distinction between the facts of the instant case and the facts dealt with by Mr. Justice Mayfield in Leith’s Case. That decision was not an ascertainment and determination by this court of the various classes to whom the Legislature had granted the privilege or right of redemption. It is therein specifically stated that the purpose of the statute is “primarily for the benefit of the debtor, and secondarily fbr the benefit of his creditors and of others mentioned in the statute, by affording him first, and the others mentioned next, the advantage of any increase in the value of the lands during the two years next, after the sale of the property.” That decision does not attempt to define the “others mentioned in the statute,” intended to be included in the several classes to whom the right of redemption is accorded. As thus understood, the Leith Case, supra, is seen not to be in conflict with the decision here made.

[2] The statement of facts showed that the equity of redemption remaining in the original mortgagor dying intestate descended to his sons or to each of them. When one of these sons conveyed his interest to Elias-berg corporation, before the extinguishment, by foreclosure, of the equity of redemption vesting in him on the death of his fáther, did the grantee corporation having such equity of redemption come within the class to whom the statutory right of redemption was secured by statute? Appellants’ insistence is that the statute gives the right of redemption only to a j.unior mortgagee in a mortgage executed by the same mortgagor who executed the senior mortgage. We are of .the opinion that if, at the time of foreclosure sale under a senior mortgage, there is a holder of a junior mortgage executed by the wife, widow, child, heir at law, or devisee, who had taken or inherited from the senior mortgagor an undivided interest in the lands so conveyed by such senior mortgagor, and such title had vested in such junior mortgagor before the foreclosure of the senior mortgage, the junior mortgagee, or vendee or .assignee, of such wife, widow, child, heir at law, or devisee, of the senior mortgagor is entitled to exercise the statutory right of redemption. Code 1907, § 5746. It is insisted that the word, “his,” as used in the statute preceding the words, “vendee, junior mortgagee or assignee of the equity or statutory right of redemption, wife, widow, child, heir at law, devisee,” be construed as limiting the statute, and giving the statutory right or privilege only to a junior mortgagee of the senior mortgagor. The immediate and subsequent use of the words, “or his vendee or assignee of the right to redeem under this Code, from the purchaser or his vendee,” etc., must be held to embrace a vendee, devisee, or assignee, of or from such wife, widow, child, heir at law, or devisee, as the case may be, acquiring the equity of redemption before that right had been extinguished by foreclosure under the terms of the senior mortgage.

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Bluebook (online)
79 So. 13, 201 Ala. 591, 1918 Ala. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-lyons-co-v-eliasberg-bros-mercantile-co-ala-1918.