Terhune v. Colton

10 N.J. Eq. 21
CourtNew Jersey Court of Chancery
DecidedFebruary 15, 1854
StatusPublished

This text of 10 N.J. Eq. 21 (Terhune v. Colton) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terhune v. Colton, 10 N.J. Eq. 21 (N.J. Ct. App. 1854).

Opinion

The Chancellor.

I do not see anything in this case to justify me in going behind the decree of this court of the 7th of February, 1887. No one can question it, except a party to that decree, or some one whose rights are impaired by it. If its object was to defeat creditors who then had existing claims, or to protect the property of the mortgagor from future creditors, such creditors would be at liberty to impeach it. The complainant does not claim under any party to the decree. His lien upon the mortgaged premises was acquired subsequent to it. He does not impeach it for fraud, mistake, or accident; on the contrary, the bill admits that the decree was entered in good faith between the parties. Nor is there anything connected with the suit, or the manner in which the decree was entered, or in the claims upon which it was founded, to justify the court in refusing to protect and enforce the rights of the respective parties under the decree. The rights of the complainants under it are not controverted; but it is the claim of Asa S. Colton and his wife, and of William Schenck, that is questioned.

But as this is a. case of great interest and importance to the complainant, and as he must be an innocent sufferer and remediless, if he cannot obtain relief in this suit, it may afford him some satisfaction to know that the court has not neglected to give due consideration to every feature of the case, presented by his counsel with an ability which, in a doubtful case, would have commanded success.

What then was the claim, upon which that part of the decree in favor of the Coltons and of William Schenck [29]*29was founded ? Joseph Schenck, the grandfather of Margaret Colton and William Schenck, bequeathed to them, by his will, two legacies, one of $8547, and another of $1958. The testator made this last legacy a lien upon his homestead farm which he had devised to his son John C. Schenck. The will directed the legacy to be paid in three annual instalments without interest, and his executors, John C. Schenck and Elias T. Schenck, to invest the same, and apply the interest to the support and education of the legatees until they should respectively arrive at the age of twenty-one years, at which periods their respective proportion of the principal was to be paid them. John C. Schenck mortgaged one hundred and fifty-three acres of the homestead farm (the whole farm embracing two hundred and fifty-three acres) to Caleb and Enoch Johnson, for about $8200. The Johnsons filed their bill to foreclose their mortgages, and made the Coltons and William Schenck parties defendants in the suit, alleging that they claimed some lien by virtue of the legacy of $1953 under the will of their grandfather. John C. Schenck, only, answered the bill, and he set up the legacy as a subsisting lien, alleging that no part of it had been paid. The complainants filed a replication. The parties then, by their respective solicitors, entered into the agreement in writing, and in conformity to this agreement the decree was made. It is now said, that the legacy was not, at that time, a lien on the mortgaged premises, and that no decree should have been entered for it. That this legacy had not at that time been actually paid, is beyond dispute. How, then, had the land been released from the encumbrance ?

Eirst; it is said that the settlement of John C. Schenck, • as executor, in the Orphans Court, operated to release the land. In the final settlement of his accounts, John C. Schenck prayed allowance for this legacy, and it was charged to him as executor: it is insisted, that by this settlement, the land was released. In the account, [30]*30which. I have before me, this legacy is not allowed. If there is an exhibit showing this allowance, it has escaped me. But admitting that such settlement was made, how does it operate to release the land from this legacy ? The will directed that the legacy should be invested, and the interest appropriated for the benefit of the legatees; and it secured the payment of the legacy, by making it a lien upon the land. Could John C. Schenck discharge the land by simply charging the legacy to himself as executor ? If he could, the land was no security for the legacy; and the legatees had nothing better than the mere personal security of the executor. The will makes the legacy a lien upon the land until it is actually paid. Suppose the executor had prayed allowance for payment of a debt owing by the testator at the time of his decease, could he plead, or set up in any way, such an account as payment or settlement in a suit brought against him for that debt? Much less could he, when he was the debtor, by any such act change the character of the debt, or its security. But, besides, Margaret and "William Schenck were then infants. Under such circumstances, whatever the accounts of the executors before the Orphans Court may show, they cannot be permitted to operate, in the slightest degree, to the prejudice of these defendants.

Again, it is insisted that the marriage settlement between Margaret Schenck, Asa S. Colton, and John C. Schenck, operated as a legal release and discharge of the mortgaged premises from the said legacy; The object of that settlement was to make John C. Schenck a trustee, in order to secure to Margaret her separate estate free from the control, and liability of her intended husband. The question is, whether there is anything in the settlement to show that it was the intention of the parties, by that deed, to release the land, and to take the personal security of John C. Schenck for the legacy, or whether the legal construction of the deed must necessarily produce that effect ? The deed, sifter reciting particularly the [31]*31character of the legacies, then recites further as follows: “ And whereas the said Margaret Schenck, one of the children of the said William C. Schenck, deceased, hath attained the age of twenty-one years, and hath had a full settlement with the said John C. Schenck, acting executor of the said Joseph Schenck, deceased, on which settlement there appears cine to the said Margaret Schenck the sum of $4256.92 from the said John C. Schenck, executor as aforesaid; and whereas a marriage is agreed upon and intended to he shortly solemnized, hy and between the said Asa S. Colton, of the first part, and the said Margaret Schenck, of the second part, and upon the treaty of the said intended marriage it was agreed upon, and that the said Margaret Schenck should assign, transfer, or otherwise convey, the fortune to which she is entitled under and hy virtue of the last will and testament of Joseph Schenck, deceased, her grandfather, or from any other source whatever, unto the said John C. Schenck, upon the trusts herein after expressed and declared of and concerning the same.” Margaret then formally assigns to John C. Schenck all and any sum and sums of money which she was entitled to under the will of Joseph Schenck, deceased, and all the property which at law or in equity she was entitled to, to have, hold, take, and receive the same in trust for the said Margaret until her intended marriage; and immediately after the solemnization thereof, to place out the same at interest on bond and mortgage, or otherwise, as the said John C. Schenck might think best, and to change and alter,” &e.

I have referred to all the parts of this deed upon which the complainant relies to show the intention of the parties, and the legal effect of the deed upon the question in controversy. I do not see anything in the deed to show that it was the intention of the parties that its mere execution should deprive Margaret Schenck of the then existing lien upon the land for her legacy.

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Bluebook (online)
10 N.J. Eq. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terhune-v-colton-njch-1854.