McCreery v. Roff

155 N.W. 517, 189 Mich. 558, 1915 Mich. LEXIS 822
CourtMichigan Supreme Court
DecidedDecember 22, 1915
DocketDocket No. 14
StatusPublished
Cited by16 cases

This text of 155 N.W. 517 (McCreery v. Roff) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCreery v. Roff, 155 N.W. 517, 189 Mich. 558, 1915 Mich. LEXIS 822 (Mich. 1915).

Opinion

Person, J.

Summary proceedings were begun before the circuit court commissioner by one Vance Mc-Creery to obtain, possession of lands alleged in the petition to be held unlawfully and against his rights by Frank E. Roff and Cyrus C. Sterling. The commissioner rendered judgment in favor of the complainant, and the proceedings were removed to the circuit court by certiorari, where the judgment of the commissioner was affirmed. The case is now brought to this court by writ of error. By some inadvertence the proceedings are wrongly entitled both here and in the circuit court. Mr. Roff is not a relator, but a defendant, and the circuit court commissioner is not a party to the cause at all. This is an action in which Vance [560]*560McCreery is complainant and Frank E. Roff and Cyrus C. Sterling are defendants, and which should have been so entitled. Inasmuch, however, as it has been fully argued for both sides without objection, and the record shows plainly the actual controversy before the court, we will dispose of it upon its merits.

The defendant Roff became owner of the premises through a quitclaim deed from Cyrus C. Sterling and wife, bearing date December 15, 1911. The consideration was mentioned therein as “one dollar and other considerations.” When this conveyance was made to Mr. Roff, the lands were incumbered by two mortgages, the first having been executed to one Joseph Ferguson on April 1, 1909, for $6,000, and interest, and the second to Vance McCreery, on September 28, 1909, for $3,500, and interest. Both were duly recorded. Mr. Ferguson having died, one Charles A. McLees, as the executor of his will, proceeded to foreclose the first mortgage by advertisement, under the statute, and on the foreclosure sale bid in the property as such executor, receiving a sheriff’s deed thereof, bearing date October 15, 1913. After the sale, and before the period for redemption had expired, that is, on the 9th day of July, 1914, Vance Mc-Creery, the complainant, to protect his second mortgage, purchased all of the rights of the executor under the foreclosure sale, paying him $6,647.15, the amount of his bid, with interest, and taking from the executor an assignment of the first mortgage, together with a quitclaim deed of the lands. The deed included an assignment of the executor’s rights under the foreclosure, in the following language:

“And I also assign, transfer and set over all my right, title and interest to the proceedings in foreclosure of the aboVe-described mortgage together with all and singular, the hereditaments and appurtenances thereunto belonging or in any wise appertaining.”

[561]*561After the period for redemption had expired Mc-Creery served notice upon defendants to surrender possession of the premises, and following such notice began these proceedings before the circuit court commissioner, on the 26th day of October, 1914.

To the judgment of restitution in favor of McCreery, rendered by the commissioner, and affirmed by the circuit court, the appellant Roff urges the following objections: That the commissioner lost jurisdiction of the case by refusing to order security for costs; that the only right of McCreery, as junior mortgagee, was to redeem, and that he could not, by purchase from the executor, acquire for himself the benefits of the foreclosure and, through that proceeding, title to the land; that the deed from the executor to McCreery was void, inasmuch as it did not have the approval of the judge of probate, as required by 8 Comp. Laws, § 9361 (4 How. Stat. [2d Ed.] § 11072) ; that McCreery is es-topped from asserting title through the foreclosure proceedings because of a letter written by him to Roff under date of September 22, 1914, whereby the latter was deceived into the belief that McCreery did not intend to rely upon such title. These objections will be considered in their order.

1. On the return day of the summons before the circuit court commissioner, the defendant Roff appeared specially and demanded security for costs from the complainant, McCreery, because the latter was a nonresident of this State. The commissioner declining to make an order requiring such security, the defendant pleaded to the merits and went to trial. It is now claimed by him that in refusing to make the order as requested, the commissioner lost jurisdiction of the proceedings. It is stated in the opinion filed by the circuit judge that the point was not urged before him, although counsel for defendant suggested that he did [562]*562not wish, to abandon it entirely. It is not claimed that there is in the statute conferring jurisdiction in cases of this kind upon circuit court commissioners any provision making it obligatory upon them to require security for costs from nonresidents. . Nor can the law governing the matter in justice’s court (1 Comp. Laws, § 713 [5 How. Stat. (2d Ed.) § 12169]), or that applicable to circuit courts (3 Comp. Laws, § 9990 [5 How. Stat. (2d Ed.) § 12653]), be held controlling. Without some express provision somewhere making it mandatory that security for costs be required of all nonresident complainants in summary proceedings, the propriety of such order must be considered as within the discretion of the commissioner. McDowd v. Circuit Judge, 41 Mich. 551 (49 N. W. 923); Goodenough v. Burton, 146 Mich. 50 (109 N. W. 52).

2. It is admitted by Roff in his affidavit for certiorari that each mortgage was a valid lien upon the land paramount to his rights; but he insists that a junior mortgagee cannot, upon foreclosure of a prior mortgage, acquire the legal title through an assignment from the purchaser at the foreclosure sale. He argues that, because of his fiduciary relations to the mortgagor and those claiming under him, any such attempted purchase by a junior mortgagee, before the sheriff’s deed becomes operative, amounts only to redemption, citing Johnson v. Johnson, Walk. Ch. 331. But the statute relative to redemption has been somewhat changed since that case was decided. It is now settled that the purchaser, at a foreclosure by advertisement, ordinarily acquires an equitable interest in the land which he may, during the period given for redemption, transfer in full to another. And that his assignee, if there is no redemption, will take the legal title when it matures exactly as the original bidder himself would have taken it. Gage v. Sanborn, 106 Mich. 269 (64 N. W. 32).

[563]*563And, in the absence of peculiar and unusual equities, no reason is apparent why the holder of a second mortgage may not purchase this equitable interest, arising on the foreclosure.of a prior mortgage, as well as any one else. There is a marked difference between redeeming, which is a matter of right, and taking an assignment of the equitable interest acquired by the purchaser on foreclosure, which is a matter of contract between the parties. Lieblien v. Hansen, 178 Mich. 11 (144 N. W. 496); Frisbee v. Frisbee, 86 Me. 444 (29 Atl. 1115). Upon redemption the foreclosure deed, by force of the statute, becomes “void and of no effect” (3 Comp. Laws, § 11143 [5 How.'Stat. (2d Ed.) § 13938]) ; but no such result ordinarily follows an .assignment (Gage v. Sanborn, supra).

The right of a subsequent mortgagee to require the assignment to himself of a prior mortgage, after it has •fallen due and before its foreclosure, is no longer a question in this State. Williams Bros. Co. v. Hanmer, 132 Mich. 635 (94 N. W. 176); Lamb v. Jeffrey, 41 Mich.

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Cite This Page — Counsel Stack

Bluebook (online)
155 N.W. 517, 189 Mich. 558, 1915 Mich. LEXIS 822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccreery-v-roff-mich-1915.