Jackson ex. dem. Merrit v. Bowen

7 Cow. 13
New York Supreme Court·Decided February 15, 1827·Published·Cited by 49 cases

Opinion

Curia, per Woodworth, J.

There are several questions arising in this cause, which I think unnecessary to consider, inasmuch as a decision upon them, either way, would not vary the conclusion at which I have arrived. I will first examine the objections taken to the defence. The mortgage was prior to the judgment; it was to secure $750, according to the condition of a bond executed to the mortgagees. The bond produced was executed to the mortgagees. ' The reference in the mortgage is not of a bond to them solely; and the addition of two other names is not, therefore, contradictory. The mortgage does not profess to set out the bond particularly. What is stated is matter of description merely, not an affirmation of the *precise form of the bond. The material fact alleged is, that there was a bond to secure $750, to the persons named as mortgages. [19] But whether to them solely or jointly with others is not averred. [1]

[19-1]*19-1It is well settled that even a mistake in a recital to a bond does not vitiate, for it is no direct affirmation and is not an [19-2]*19-2essential part. (5 Cowen, 529; 9 John. 90; 8 John. 457.) In what manner, and at what time the bond was payable, is no where alleged; that necessarily depended on the instrument referred to.[1] The legal presumption is, that this was the bond intended, at least until some doubt was raised, But there is no room for presumption; the fact is [19-3]*19-3es*a^s^e<^ by parol testimony, which, was properly admitted. The condition of the bond recites the giving of a ^ ® note for $750, payable to ¡Noble, or bearer. Here the same principle, that makes the bond admissible under the description in the mortgage, is applicable. The note is substantially described ; the substitution of bearer, for order, according to the doctrine before advanced, is immaterial. It was a misdescription merely. There is satisfactory evidence that this was the note, against which the makers were to be secured. They have taken it up, and were entitled to the benefit of the mortgage, as a valid security.

Whether the proceedings on foreclosure of the mortgage have been regular; or whether the right of the plaintiff is. thereby barred, it seems to me unnecessary to consider. I will, however, remark, that the proceedings appear to have been conducted regularly ; and as to any remaining right in the judgment creditor, after the statute foreclosure, it may be observed, that question does not arise in this cause. If it be conceded that no regular foreclosure has taken place, it appears to me the defence at law is nevertheless perfect, on the ground that the defendants are the lessees of the assignee of the mortgagees in possession.

The deed from Obadiah Boies and Asahel Lyman, to Bufus Boies, was in the usual form of foreclosure, reciting the mortgage and sale. By this act, Bufus Boies acquired all the right and interest of his co-mortgagees in the mortgage, as well as the land; the right to the debt, as well as the pledge, was transferred. They could not, after this, assert any legal claim, and if not, allowing the proceedings to toreclose to have been defective and inoperative,» still Bufus Boies necessarily acquired all their interest .in the mortgage. If Bufus Boies did not obtain an absolute title to the land, it operated as a good assignment of the mortgage, and placed him on the same ground as though he had been sole mortgagee.

The deed from Bufus Boies to Lynde, was intended to convey the title to the land. If it did not perform .that office, still it is enough for the defendants to show, that it may operate as an assignment.

[20] The Question of foreclosure makes no difference between these parties. Boies conveys all his right, title ana interest. It is difficult to conceive what remaining interest he had; his lien on the land by virtue of the mortgage, which was an interest, passed to Lynde; and thereby he acquired the right of an assignee. The intention was, to pass a greater interest. If that failed, it is no objection to the operation of the instrument as an assignment. Valeat quanturn vahrepotest.

But it is contended, that the evidence offered by the plaintiff, to prove that the conveyance made by Boies to Lynde was for the purpose of securing a usurious loan, made by Lynde to Noble, ought to have been received. Boyes agreed to convey, on receiving his money, to any person Noble should direct; and in pursuance of this agreement, Noble procured Lynde to advance the money. The answer is, that the defendants cannot be affected by the question of usury, between Noble and Lynde; it not appearing that they had any knowledge of, or in any way participated in it. (10 John. 185.) Although no regular foreclosure of the mortgage be proved, yet the assignee of the mortgagee being in possession, may protect his possession by it. (10 John. 480.) The defendants are lessees of the assignee of the mortgagee; and are entitled to the protection of bona fide purchasers, so that whether there be usury or not, is, to them, immaterial. I£ there be no usury, they have no occasion to put their defence on the ground of being bona fide purchasers. It is enough, that they are in possession under the assignee, who is protected against the judgment. If, however, by means of the foreclosure, Boies acquired a title, the defendants may safely waive both the preceding grounds, and rest on an outstanding title in Boies, which defeats the action.

As to the effect .of the prior execution; according to the case, Ex parte Lawrence, (4 Cowen, 417,) the levy on sufficient personal property was an extinguishment of the judgment; and the judgment ceased to be a lien. But if it be admitted that a bona fide purchaser, without notice, would, notwithstanding, be protected, Merrit is not entitled [21] to that character. In the first place, White and Noble had actual notice. It is not proved that the money advanced by Noble to White, was the money of Merrit. It is true, Noble so declared; but that is not evidence. That Merrit, sometime before, advanced the money to Noble, for the purpose of being so applied, is no evidence against third persons, that in truth the money received was the money of Merrit. He was not the purchaser at the sheriff’s sale, although the deed proceeded from the sheriff. It was substantially a purchase from White by Noble, the agent of the lessor of the plaintiff. The general rule is, that notice to the agent, is notice to the principal. Amb. 626; 1 Ves. 62; 2 Mad. 257. On this ground, therefore, no title was acquired under the sheriff’s deed.

The motion to set aside the nonsuit must be denied.

Motion denied.

Footnotes

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Jackson ex. dem. Merrit v. Bowen, 7 Cow. 13 (N.Y. Super. Ct. 1827).

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