Gage v. Jenkinson

24 N.W. 815, 58 Mich. 169, 1885 Mich. LEXIS 489
Michigan Supreme Court·Decided September 29, 1885·Published·Cited by 6 cases

Opinion

Sherwood, J.

On the 26th day of 'June, 1877, the defendant Jesse C. Tryon was owner of 117 acres of land in the township of Brady, Kalamazoo county. On this land, previous to the commencement of this suit, he gave the following mortgages: November 1, 1871, to F. W. Curtenius, $2500 ; April 5,. 1876, to William Jenkinson, $500; May 27, 1876, to Bradley S. Williams, $472; November 13,1876, to Scott & Sabin, $400 ; November 13, 1877, to Charles Gage, $600. The bill in this case is filed to foreclose the last-mentioned mortgage by Mrs. Gage, as administratrix of her husband’s estate.

On the 26th day of J une, 1877, aforesaid, Tryon and his wife made a quitclaim deed of the land to defendant William [170] Jenkinson. On that day large amounts of unpaid interest had accumulated on these mortgages, and Tryon was further indebted to Jenkinson in items amounting to about the sum of $700. The mortgage given to Curtenius was subsequently assigned by him to Charles Bell, and is called in the pleadings in this case the Bell mortgage.

The bill was filed on the 30th day of October, 18S0, for the purpose of foreclosing the Gage mortgage, and for the further purpose of obtaining a personal decree against the defendant Jenkinson. The bill avers that at the time Jenkinson received said quitclaim deed of the mortgaged premises the purchase price agreed to be paid by him therefor was $G000, which, by the agreement between him and defendant Jesse Tryon, was to be paid and applied as follows : $2991 to the payment of the Bell mortgage; $561 to the payment of the Jenkinson mortgage; $523 to the payment of the Williams mortgage; $642.70 to the payment of the Gage mortgage; $672 to the payment of other indebtedness from Tryon to Jenkinson ; and for the payment of the balance of the $6000 said Jenkinson gave said Tryon his promissory note; that the conveyance from Tryon to Jenkinson was for such agreed consideration; and that the amount above stated of the purchase price was left in the hands of Jenkinson by Tryon, as aforesaid, in trust for the payment of the mortgages above mentioned, including the mortgage to the complainant’s intestate; and that Jenkinson became a trustee under such agreement to the amount of the Gage mortgage, and liable for the payment thereof. Complainant further avers that Jenkinson lias had the rents and profits of the farm ever since he received his conveyance from Tryon, and neglects to discharge his trusts by payment of the Gage mortgage; and that the defendant Thompson is Jenkinson’s lessee, and claims to be the owner of the Jenkinson and Williams mortgages. Complainant further avers that Jenkinson transferred his mortgage to Thompson, for the purpose of keeping it in existence as a prior mortgage to that represented in this suit by complainant.

[171] The bill was taken as confessed by defendant Tryon, and Jenkinson and Thompson filed their several answers.

Thompson, in his answer, admits the deed from Tryon to Jenkinson ; denies upon information and belief that Jenkinson agreed with Tryon to pay $6000 for the farm, or that he was to pay the same as alleged in the bill of complaint; avers he is the owner of the Jenkinson and Williams mortgages, and has redeemed the premises from the lien of the Bell mortgage, and that they are all valid liens upon the property, the Bell mortgage being a first lien; that the mortgages amounted, at the time he purchased the Williams and Jenkinson claims, to more than the property was worth; that when he received possession of the farm of Jenkinson, he expected to buy in all the claims against the property if he could make the necessary arrangements therefor, and ultimately own the property; that he has no knowledge of the amount due or owing upon the Gage mortgage, but avers that he purchased the claims he has stated in good faith, and that they are prior liens to .the Gage mortgage, and insists that any decree for sale made in'this suit to satisf}7 the last-named mortgage must be subject to his aforesaid liens.

Jenkinson, in his answer, admits the Gage mortgage, and that he received from Tryon and wife the quitclaim deed mentioned in the bill, but denies that the purchase price agreed upon to be paid by him was $6000, when the deed was made, or that there was any agreement made by which he was to pay the outstanding mortgages, or any part thereof ; and avers that in taking the deed of the land from Tryon he purchased merely the equitj7 of redemption of Tryon in the same, and made no agreement to assume and pay off the incumbrances. And, further answering, Jenkinson avers that at the time he took said deed, Tryon was owing him, besides what was secured by his mortgage, upwards of $400, and was at the time insolvent, and that his object in purchasing the equity of redemption was to realize, so far as possible, the amount of said indebtedness. He further denies that by agreement with Tryon, or in any other way, he ever became liable to pay complainant’s mortgage, or any part [172] thereof, and admits by an agreement in writing he did, after receiving the deed, let defendant Thompson in possession of the farm.

This statement from the pleadings is all we deem necessary for the consideration of the case as presented upon the record. It was heard on pleadings and proofs before Judge Mills, who after a careful examination of the matter entered the usual decree of foreclosure, and held Jenkinson not personally liable. We think his decree ivas right and ought not to be disturbed. The complainant appeals.

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Gage v. Jenkinson, 24 N.W. 815, 58 Mich. 169, 1885 Mich. LEXIS 489 (Mich. 1885).

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