Reybold v. Herdman

2 Del. Ch. 34
CourtCourt of Chancery of Delaware
DecidedSeptember 15, 1837
StatusPublished
Cited by1 cases

This text of 2 Del. Ch. 34 (Reybold v. Herdman) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reybold v. Herdman, 2 Del. Ch. 34 (Del. Ct. App. 1837).

Opinion

Johns Jr., Chancellor.

The 1st, 2d, and 3rd objections to the bill apply to one of the complainants, the President, Directors and Company of the Farmer’s Bank of [38]*38the State of Delaware. They may all be disposed of by considering the effect and operation of the sale under the mortgage to Tat nail. If the title conveyed by virtue of the sale under the levari facias has not affected any legal right' or remedy of the Bank, as a judgment creditor of Alexander Jamison, deceased, then,as to that complainant’s claim, there can be no necessity for the interposition of this Court. The title mortgaged is the title sold. The sale by the Sheriff, under the levari facias, transfers it to the vendee, conveying all the title of the mortgagor—the consideration money representing his interest, and being applicable to liens or incumbrances affecting that interest. If this be not the case, then the contract of the heir by a mortgage, in the case of a bill to foreclose, would require not only the money loaned upon the mortgage to be repaid, but all judgments against the ancestor. The scire facias, under our act, is only a more speedy mode of enforcing payment of the sum secured; and it only contemplates a sale for so much as will pay the debt, interest and costs. If it is to be considered as having a more extensive operation, so as to sell and convey a title clear of all liens and incumbrances, as well of the ancestor as of the heir, then the judgment of the Court upon the mortgage, when proceedings are taken by scire facias, will have an effect much more extensive than the contract of the parties; and in all cases, where the land has been assigned to more than one heir, if only one mortgages his part, on sale thereof it may be applied to pay the debts due by judgment from the intestate, although all the lands of the intestate are equally liable and could not be sold except upon an inquisition taking all into consideration; or by order of the Orphans Court, although the heir has a right, by tendering his pro rata contribution, to exonerate his share. Hence, by considering the proceeds of sale under a levari facias upon the heir’s mortgage as applicable to the judgment due from the intestate manifest injustice might be done. If I am [39]*39correct in considering the sale under the levari facias as transferring no more or greater interest than the mortgagor had at the time of the mortgage executed, then it follows that the purchase money only represents that interest or estate, and the vendee takes the title subject to all paramount liens and incumbrances. If so, then the proceeds of sale can only be applicable to the liens or incumbrances discharged by virtue of the sale, and must necessarily be confined to the payment of the liens or incumbrances created by the mortgagor. Hence, I apprehend the interest or estate transferred by the Sheriff’s sale must be ascertained by the extent and operation of the contract under which the lien accrues. The mortgagor conveys the title as he had it, and can do ño more.

John S. Van Dyke and wife held the estate they conveyed by the indenture of mortgage to Tatnall, subject to the liens and incumbrances on it created by Alexander Jamison, the intestate, from whom the land descended. They conveyed the title as it existed in them. The judgment on that mortgage could only be against the mortgagors and terre tenants. The heirs and personal representatives of Alexander Jamison deceased could not be parties. The judgment could, therefore, only affect those legally parties and their interest. Hence, the only interest sold was the derivative, or the estate of John S. Van Dyke and Jane his wife in the premises, and not the title as it existed in Alexander Jamison. That interest remained unaffected and still subject to all legal liabilities. I am, therefore, of opinion that the demurrer must be allowed with respect to the claim of the Farmer’s Bank. They yet have their judgment and a full and complete legal remedy.

The next inquiry relates to the claim of the other complainant, Philip Reybold. His claim is founded on the contract of indemnity contained in the indenture of mortgage executed by John S. Van Dyke and wife, [40]*40and the bond of John S. Van Dyke and the judgment thereon. The premises mortgaged were, by the terms of the contract, conveyed to Reybold, not to secure the payment of a sum of money, but, as stated in the complainant’s bill, to indemnify him against the claim under the Tatnall mortgage upon the ten acres of marsh sold and conveyed by John S. Van Dyke and wife for the sum of $210.00 to Philip Reybold, and also against the unsatisfied judgments recovered against Alexander Jamison in his lifetime. The bill states the sale under Tatnall’s mortgage of this ten acres of marsh, as also of all the premises embraced in the mortgage of indemnity to Reybold. The demurrer admits the facts, as alleged, and also the amount of damage; for that is stated and claimed in the billas being the consideration money paid for the ten acres of marsh. But this complainant not only comes for relief on the ground that he is deprived of the real estate mortgaged as an indemnity, but additionally to be relieved against the prior judgment of Elizabeth Van Dyke, which he alleges to be fraudulent. The admiustrator, d. b. n., of Elizabeth Van Dyke, deceased, has not answered, but has joined in the general demurrer. The parties on whom the fraud is charged have united in the demurrer, which insists that this complainant is not entitled to relief on several grounds;—

First: For want of privity between the complainants, whose interests are distinct. With respect to the Farmer’s Bank this objection need not be considered; because I have already held the 2d and 8d objections to be valid against the claim of the Farmer’s Bank. The claim of Reybold, the other complainant, stands upon totally different grounds. Should it be found, on examination, that the other objections are not tenable as against his claim, and that if, as a sole complainant, he would be entitled to relief, the present objection founded on the misjoinder of [41]*41the Bank as a complainant is such as could he met by an amendment of the bill.

Second: I shall, therefore, proceed to the next cause of demurrer, viz : that the complainant, Reybold, has an adequate remedy at law. The mortgage to Tatnall having been given prior to that made to Reybold, it is apparent that by the sale under it any interest of Reybold in the mortgaged premises has been utterly defeated; and unless he can reach the proceeds of the sale as representing the land he is remediless. Ho process at law can affect the land; the remedy contemplated by the mortgage in rem has failed. The security by bond and the judgment thereon only affected the husband’s interest. The substantial security was the fee-simple interest of the wife, which by the mortgage was conveyed, and by the conveyance constituted the substantial indemnity. The mortgage having been executed, not to secure the payment of a sum of money, but to indemnify Reybold as the purchaser of the ten acres of marsh, it may be considered doubtful how far the claim of Reybold by any proceeding at law upon the Sheriff’s recognizance would have availed. The facts necessary to establish the right must have been ascertained and judicially decided; and this could not be except as against parties and privies to the contract of indemnity. Hence, the remedy at law does not appear to me to be complete and perfect.

Third:

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Bluebook (online)
2 Del. Ch. 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reybold-v-herdman-delch-1837.