Lindley v. O'Reilly

15 A. 379, 50 N.J.L. 636, 1888 N.J. Sup. Ct. LEXIS 64
Supreme Court of New Jersey·Decided June 15, 1888·Published·Cited by 25 cases

Opinion

The opinion of the court was delivered by

Depue, J.

Patrick O’Reilly died in 1881. In his lifetime he was seized of a tract of land in-the county of Atlantic, in this state, the subject of controversy in this suit. By his will, dated December 5th, 1877, proved before the surrogate of Atlantic county July 5th, 1881, and letters testamentary granted thereon, he devised his entire estate to the plaintiff, his wife, for life. Exception was taken to the admission of a certified copy of this will, but the printed case does not'contain a full copy of the will, nor does any assignment of error touch the competency of this evidence. It must be assumed that this will was duly executed to devise lands under the laws of this state, and -that the same was duly probated to make a certified copy competent evidence. On this presentation of title, the plaintiff would have been entitled to a verdict.

The obstacle in the way of the plaintiff’s recovering, in virtue of her title under her husband’s will,-arose from a deed made by O’Reilly and wife to one Henry Francis Felix, on the 14th of January, 1861. This deed purported to be an absolute conveyance, in fee simple, for the consideration of $18,000. To sustain title under her husband’s will, it was necessary for the plaintiff to overcome or extinguish the legal title thus conveyed.

The plaintiff contended, at the trial, that the deed to Felix was, in fact, a mortgage, and that the debt or liability for which it was given was paid and satisfied, and that on the discharge of the obligation for which the conveyance was made, the estate of the mortgagee was extinguished. In a trial at [639] law it is not competent to show, by oral testimony, that an absolute deed was, in reality, a mortgage. In our judicial system, the jurisdiction to convert an absolute deed into a mortgage, by parol evidence, is exclusively in the equity courts. The competency and effect of the evidence produced by the plaintiff for this purpose, are the issues raised by 'the bill of exceptions and assignments of error.

Felix died in 1866. By his will he gave all his property for the benefit of his wife, Alicia Kate, and a charitable society known as the Sisters of the Immaculate Heart of Mary, and made the Eight Eeverend James F. Wood, Boman Catholic Bishop of Philadelphia, executor.

Felix, at the time of his death, resided at Eeading, in the county of Berks, Pennsylvania. On the 4th of December, 1867, O’Beilly filed a bill of equity in the Court of Common Pleas of the county of Berks, against the Eight Eeverend James F. Wood, executor of the last will and testament of Henry F. Felix, Alicia Kate Felix, widow of said Henry F. Felix, and the religious order of the Sisters of the Immaculate Heart of Mary.

The bill set out, that the Eight Eeverend James F. Wood was a resident of Philadelphia, that Alicia Kate Felix resided in Eeading, and that the religious order of the Sisters of the Immaculate Heart of Mary was a society established in Eeading. It charged that the deed of conveyance made by O’Beilly to Felix was, in legal effect, a mortgage; that the same was made as security to indemnify Felix against his liability on certain promissory notes made by O’Beilly and endorsed by Felix, and discounted by the Farmers’ Bank of Eeading, and under protest, and that, subsequently, the said notes were fully paid and satisfied by the said O’Beilly; that the said Felix sustained no loss or damage in consequence of the said endorsements, and prayed a reconveyance of the legal title. The defendants named in the bill appeared and filed an answer. By consent of parties an examiner was appointed January 27th, 1868, who filed his report November 1st, 1869, and in September, 1880, the case was brought on for hearing, by con[640] sent, on the bill, answer and report of the examiner; and on the 20th of September, 1880, a decree was signed, in which, after reciting that the court being satisfied that the allegations of the plaintiff’s bill were correct and true, and that all the notes endorsed by Felix, and liabilities incurred by him for O’Reilly, had been, by O’Reilly, fully paid, discharged and satisfied, it was ordered and decreed that the Right Reverend James F. Wood, executor of the last will and testament of deceased, should execute and deliver to Patrick O’Reilly, a deed of reconveyance of the premises in fee simple.

All the parties to the suit resided in Pennsylvania. The Pennsylvania court had jurisdiction of the parties and also of the subject-matter of the suit. The contested problem is the effect of its decree upon the title to lands in this state. If the decree can affect the title to lands in this state, it extinguished the Felix title without a reconveyance, for in this state a mortgage is regarded as a mere security for the debt or liability for which it is given, and payment or satisfaction of the debt or liability discharges the mortgage, and revests the mortgaged premises in the mortgagor without a reconveyance. Shields v. Lozear, 5 Vroom 496; Kloepping v. Stellmacher, 7 Id. 176; Jackson v. Terrill, 10 Id. 329; Schalk v. Kingsley, 13 Id. 32.

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Lindley v. O'Reilly, 15 A. 379, 50 N.J.L. 636, 1888 N.J. Sup. Ct. LEXIS 64 (N.J. 1888).

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