Commercial Trust Co. v. Peck

135 A.D. 732, 119 N.Y.S. 946, 1909 N.Y. App. Div. LEXIS 4049
Appellate Division of the Supreme Court of the State of New York·Decided December 10, 1909·Published·Cited by 4 cases

Opinion

Burr, J.:

This action is brought to foreclose a mortgage for $2,500 made on December 29, 1896, by one Mary Smith to the administrators, etc., of Leonard Mott, deceased, and assigned to the plaintiff on November 8,1907. Subsequently to the making and recording of said mortgage Mary Smith conveyed the premises to Christopher C. Firth and Robert W. Firth. On December 29,1896, Robert W. Firth executed a paper which was in form a deed and in which his wife, Lily L. Firth, joined, which purported to convey his undivided half interest in the premises to Christopher C. Firth. This instrument was not recorded until May 14, 1898. Before that time Robert W. Firth executed another paper which was in form a deed, which purported to convey his undivided one-half interest in the said premises to his wife, Lily L. Firth. This instrument was dated July 27, 1897, and was recorded November twentieth in the same year, nearly six months before the instrument above referred to which was made to Christopher C. Firth. Each of these deeds contained full covenants and a warranty. On November 4, 1899, Lily L. Firth executed a paper in form a deed with full covenants, including warranty, which purported to convey to Frank S. Pilditch an undivided one-half interest in the premises. It was recorded November 8, 1899. ' On October 3, 1907, the said Pilditch conveyed the said premises, with others, to the defendant Maria A. Bird. While Pilditch claimed to be the owner of this undivided one-half interest through the con[734] veyance above referred to, and on the 8th day of April, 1903, he made a mortgage upon said undivided interest to one Frederick B. Schenck, which mortgage was recorded .Hay 6, 1903. On' October ■ 1, 1906, this mortgage was assigned by the said ' Frederick B. Schenck to the said Frank S. Pilditch by assignment dated on that day and recorded October 22, 1907, and by an assignment dated October 19, 1907, and recorded October 23, 1907, the same mortgage was assigned to one Ernest J. Wells, who is a party defendant to this .action. On Hay 26, 1906, by a paper dated and recorded on that day and which was in form a deed, Christopher C. Firth purported to convey to Walter A. Peck, who is a defendant in this action, the whole instead of an undivided half of the mortgaged premises, and the said Walter A. Peck executed and delivered to him a mortgage purporting to create a lien upon the entire premises to secure the payment of the sum of $30,000. In connection with this conveyance an agreement was executed, which, although it was • dated on the 16tli day of May, 1906, was not acknowledged until, some days subsequent thereto,, and was recorded upon the same day, and immediately after the deed of conveyance to Peck. This agreement was made between Christopher C. Firth, Walter A. Peck, Edward H. Fallows as trustee, who was at that time the owner and holder of the mortgage which is sought to be foreclosed in this action, and Frederick B. Schenck, who was at that time the owner and holder of the $1,000 mortgage above referred to, made by Frank S. Pilditch upon the undivided one-half of the property to which he claimed title through the conveyance from Lily L. Firth above referred to. By that agreement Fallows with the consent of Firth and Peck agreed to subordinate the lien of the mortgage then held by him and which is now sought to be foreclosed ,m this action, to the lien of the said $30,000 mortgage, and Schenck made, a similar agreement in regard in the mortgage held by him. Frank S. Pilditch was not a party to this agreement, although at that time he held a deed from Lily L. Firth purporting to convey to him an undivided one-half part thereof. In October, 1907, in an action in the Supreme Court, brought by the said Walter A. Peck, whose claim to title was under the deed above recited from. Christopher C. Firth and in which action'Robert W. Firth, Lily L. Firth and the said Frank S. Pilditch were defendants, it was adjudged [735] that the said Frank S. Pilditch was the owner of one undivided half part of the premises described in the mortgage in suit herein, and that the instrument made by Robert W. Firth and Lily L. Firth,. his wife, to Christopher C. Firth, dated December 29,1896, although in form a deed, was in fact only a mortgage. Christopher C. Firth and Edward H. Fallows, as trustee, who was at that time the owner and holder of the mortgage in suit, were not parties to that action. When this action was commenced the defendant Maria A. Bird answered, setting up these facts, claiming that the $30,000 mortgage made by Peck is not a lien upon that portion of the premises held by her, and that while the subordination agreement above referred to may operate to make plaintiff’s mortgage a second and subordinate lien to the $30,000 mortgage as to the undivided one-half part owned: by him, it can have no effect as to the part owned by her. Said defendant then asked that the said Christopher C. Firth be brought in as a party defendant to the said action to the end that a full and complete determination of the rights and equities of all of the parties in and to the premises described in plaintiff’s mortgage and the respective priorities of the liens thereon might be had.

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Commercial Trust Co. v. Peck, 135 A.D. 732, 119 N.Y.S. 946, 1909 N.Y. App. Div. LEXIS 4049 (N.Y. Ct. App. 1909).

135 A.D. 732 (Commercial Trust Co. v. Peck) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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