Ferris v. Crawford

2 Denio 595
CourtNew York Supreme Court
DecidedDecember 15, 1845
StatusPublished
Cited by41 cases

This text of 2 Denio 595 (Ferris v. Crawford) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferris v. Crawford, 2 Denio 595 (N.Y. Super. Ct. 1845).

Opinion

Bronson, Ch. J.

The motion which has given rise to this appeal was made by the appellants in a foreclosure suit commenced in 1835, by Archibald Watt, complainant, against James Oakley, administrator of William Crawford, the mortgagor, and James Ferris, who had purchased the equity of redemption at a sheriff’s sale. On the death of Oakley in February, 1839, James Crawford, administrator da bonis non of William Crawford, was substituted as a defendant in the place of Oakley. While such was the state of parties, the appellants made their motion in November, 1844—one of them not being a party to the suit, and the other having conveyed all his interest to Floyd T. Ferris in 1839, and having, as he testified, no interest of any nature o; kind in the property. We then have a motion by one who was not a party to the suit, and another who had no interest; and to make the case still more striking, Floyd T. Ferris, to whom the equity of redemption had been conveyed, was not in anyway made a party to the proceeding. I am inclined to think the motion might well have been denied on the ground that the appellants were not in a condition to make it. But. I will not stop further to consider that question; for assuming that the motion was made by proper parties, there was abundant ground for denying it on the merits.

In April, 1830, Crawford, the intestate, was indebted to Watt, the complainant, in the sum of $4500. He executed a mortgage to Watt to secure the payment of $3000 of the debt; and he placed in the hands of Watt and of Mr. Grim, certain collateral securities, from the avails of which were to be paid, first, the debt of $1500 which was not covered by the mortgage; and second, the mortgage debt. Afterwards, in the same month, Crawford sold and conveyed the mortgaged premises to the Harlem Canal Company, subject to the mortgage; and the amount of the mortgage debt was deducted from the price which the company agreed to pay for the land. In other words, the canal company purchased from, and paid Crawford for his equity of redemption, and nothing more. As between them, the justice and equity of the case plainly was, that the mortgage debt should be paid by the company; and not by Crawford, or from his funds. Then [599]*599in December, 1831, the appellant, James Ferris, purchased he equity of redemption at a sheriff’s sale on a judgment against the canal company ; and in March, 1833, he received a deed. He paid only one or two hundred dollars for the property; but whether more or less, he acquired only such rights as the canal company had. He came into their place, and was of course bound in equity and good conscience to pay the mortgage debt.

In May, 1831, seven months before the sheriff’s sale, Crawford, the mortgagor, died, leaving six children, all under the age of twenty-one years; and leaving no widow or other competent person to take charge of his affairs, or protect the rights of his children or creditors. Administration was granted to Oakley, a blacksmith residing in another county. It may be noticed here, that Ferris succeeded in purchasing the equity of redemption for a mere trifle, by representing at the sale that he was a relative of the children of Crawford, and intended to purchase the property for their benefit. He was in truth a cousin to the children : how he intended to benefit them we shall presently see.

In October, 1835, Watt, as before mentioned, filed his bill to foreclose the mortgage. He had, prior to that time, received enough from the collateral securities, to pay the $>500 debt which was not included in the mortgage; and also enough to pay more than three fourths of the amount of the mortgage debt. These payments, it will be remembered, were made from the moneys of Crawford, after he had conveyed the property subject to the mortgage. As between his administrator and Ferris, the owner of the property, there was a plain equity to have the amount which had thus been paid on the mortgage refunded to the administrator for the benefit of the creditors and children of Crawford. All this was well understood by Ferris. He not only knew that he had purchased the equity of redemption, and nothing more; but the whole matter in relation to the collateral securities had been explained to him by Watt soon after the death of Crawford in 1831; and he was then told that if Crawford’s money paid the mortgage debt, Crawford, or more properly his representative, would be substituted in the place of Watt [600]*600as owner of the mortgage. But instead of acting, as he professed to do, as the relative and friend of the children of Crawford, he did all he could to deprive them of their just rights. In his answer to the bill he insisted on having the benefit of the moneys which had been realized from the collateral securities. And what is still more remarkable, Oakley, the administrator, who should have stood up in defence of the children and creditors of Crawford, fully seconded the unjust claim which was set up by Ferris. These two defendants, representing interests in direct hostility to each other, appeared by the same solicitor, and put in substantially the same answer. It is not very important to inquire whether the administrator acted ignorantly, or through design. It is quite clear that Ferris intended to do a wrong to all who had an interest in the estate of Crawford. But truth is mighty; and notwithstanding all the pains which had been taken to' cover it up, the assistant vice chancellor saw through the veil, and frustrated the plan of applying the money of Crawford’s heirs to the payment of the debt of Ferris. By the decree in the foreclosure suit, made on the 15th of April, 1840, the amount remaining due to the complainant, for principal and in terest was1 settled at $1065,85} and the amount which the complainant had received from the collateral securities of Crawford was settled at $4396,05: and out of the moneys arising from the sale of the mortgaged premises, the master was directed to pay the complainant’s costs, and the aforesaid balance of principal and interest due him: the master was then to pay the $4396,05 to the administrator of Crawford; and. the surplus money .was to be paid to Ferris as the owner of the equity, of redemption. This decree rendered equal justice to all parties, by charging the whole mortgage debt on the land where it properly belonged.

Prior to this time Oakley had died, and administration de bonis non of William Crawford had been granted to his son James, who, in February, 1839, was substituted as a defendant in the place of Oakley. Although the decree secured nearly four thousand four hundred dollars to the new administrator, his solicitor strangely enough united with Ferris in an appeal to the chancellor. This leads to the remark, that although James [601]*601Crawford was made a party to the suit in 1839, it was done without his knowledge or consent. The appeal was taken in the same way; and until February, 1843, he had never heard of the decree, nor of the mortgage, nor that this or any other chancery suit was in existence in which the estate of William Crawford had an interest. His name had been used by Ferris, and the solicitor of Ferris, without his knowledge, and in a way which, if he had known anything about it, he would have seen to be alike contrary to his duty as administrator, and against his interest as one of the children and heirs at law of William Crawford.

Having failed in the purpose of getting a decree which would enable him to appropriate to his own use the money of Crawford’s children, and having no hope, beyond delay,-from the appeal to the chancellor, Ferris entered upon another plan for accomplishing his object.

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Bluebook (online)
2 Denio 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferris-v-crawford-nysupct-1845.