Greenwich Bank v. Loomis

2 Sand. Ch. 70, 1844 N.Y. LEXIS 480, 1844 N.Y. Misc. LEXIS 77
CourtNew York Court of Chancery
DecidedAugust 9, 1844
StatusPublished

This text of 2 Sand. Ch. 70 (Greenwich Bank v. Loomis) is published on Counsel Stack Legal Research, covering New York Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenwich Bank v. Loomis, 2 Sand. Ch. 70, 1844 N.Y. LEXIS 480, 1844 N.Y. Misc. LEXIS 77 (N.Y. 1844).

Opinion

The Assistant Vice-Chancellor.

The allegation that the decree in the suit of Loomis against Stuyvesant and others* was unduly or fraudulently obtained, is not supported by any proof; and the complainants are entitled to no relief on that part of their bill.

The next important inquiry relates to their right to be heard in reference to the matters directly and inferentially settled by that decree.

Mr. Loomis filed his bill to foreclose the mortgage of Peter Stuyvesant in February, 1840. Joseph R. Stuyvesant was made a defendant, and a notice of the pendency, and objects of the suit was filed in the county clerk’s office, pursuant to the statute, on the 2d of March, 1840.

[73]*73On the 20th day of October following, and during the pendency of that suit, the complainants purchased of J. R. Stuyvesant the judgment in question.

They cannot complain of want of notice of Mr. Loomis’s claim. Aside from the effect of the lis pendens, they had actual notice that the mortgage was executed for the same debt which was secured by the judgment. If they had followed up that information by an examination of the records, they would have learned that it was not only executed but had been assigned by J. R. Stuyvesant to Mr. Loomis. And an inquiry made of him, or a search for notices of lis pendens, would have led directly to all the information which they now possess. They however relied upon (he assurance of J. R. Stuyvesant or those acting in his name, that the mortgage had never been accepted, and they must abide the consequences.

This court is bound to treat the case precisely as if the complainants were fully informed of the pending foreclosure, when they received the assignment of the judgment. With or without actual notice, they were bound by the pending litigation into which they had purchased. Actual notice would have an important influence upon their efforts to be heard in the litigation.

I need not cite authorities to the point that a purchaser, pendente lite, will be bound by the decree in the suit; and that the complainant in the suit need not make him a party or otherwise notice his purchase. If he desires to defend the suit, he may make himself a party by a supplemental bill. (1 Daniell’s Ch. Pr. 378 ; Foster v. Deacon, Madd. &c Geld. 59.) And in an extreme case, it is probable that this might be done after decree. (See Milspaugh v. McBride, 7 Paige’s R. 509.) But the circumstances of this case would scarcely warrant such leave after decree. The court refused leave to a complainant in Pendleton v. Fay, 3 Paige’s R. 204, where it did not appear that she was ignorant of the matters sought to be set up in the supplemental bill, when she took her decree.

Mr. Loomis’s bill was taken as confessed by J. R. Stuyvesant, after an ample opportunity to answer; and on the 3d day of August, 1841, he obtained a decree of foreclosure and sale, which establishes his title to the mortgage, and that the amount of it [74]*74is due to him, and expressly forecloses J, R. Stuyvesant and all claiming under him, from all claim and demand to the mortgaged premises.

On the same day that this decree was made, the now complainants applied to the Chancellor by motion in the name and behalf of! their assignor, to set aside the default against him, and be let in to defend. This motion was denied by the Chancellor.

In September, 1841, they moved the Chancellor in their own behalf, to be let in to defend the suit under the provisions of the act of 1840, relative to the foreclosure of mortgages in this court. The Chancellor held this motion under advisement, and ultimately denied it in December, 1843. But without awaiting his decision, the complainants filed this bill, in which they ask to have Mr. Loomis’s mortgage declared void and inoperative, ah initio, that the judgment be declared a valid lien, and superior to his claim under the mortgage, and that the execution of the decree be perpetually stayed.

This certainly, is an anomalous suit. It is not in form or effect a bill of review, for that lies only after enrolment and for error apparent on the decree, or pre-existing matter which was discovered after the decree. Nor is it a bill in the nature of a bill of review, for that must be exhibited before the decree has been enrolled.

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Related

Loomis v. Stuyvesant
10 Paige Ch. 490 (New York Court of Chancery, 1843)

Cite This Page — Counsel Stack

Bluebook (online)
2 Sand. Ch. 70, 1844 N.Y. LEXIS 480, 1844 N.Y. Misc. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenwich-bank-v-loomis-nychanct-1844.