Treat v. Pierce

53 Me. 71
CourtSupreme Judicial Court of Maine
DecidedJuly 1, 1865
StatusPublished
Cited by1 cases

This text of 53 Me. 71 (Treat v. Pierce) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Treat v. Pierce, 53 Me. 71 (Me. 1865).

Opinion

Kent, J.

The principal question presented by the parties is, whether the mortgage given to the demandant’s intestate has been legally foreclosed. The case shows that a notice, sufficient in form, was published and recorded in Dec., 1858, as authorized by statute. This notice was signed "Robert Treat, by John A. Peters, Attorney.” Mr. Peters was not at that time the attorney of Mr. Treat. He had sent word or had written to him asking for authority to foreclose, but had received no reply. Mr. Peters was acting for another party, who had an interest in the right of redemption. Sometime afterward, Treat called at Mr. Peters’ office and expressed bis satisfaction in what had been done in foreclosing the mortgage.

it is clear that, without the subsequent assent or ratification, the notice would not have been sufficient to foreclose the mortgage. Did this subsequent assent render it good [74]*74and effectual as the act of the mortgagee ? It must be his act, as the statute gives this form of foreclosure to a party who, in the exercise of his own judgment, determines that he does not desire to take and hold possession of the premises pending the time of redemption. R. S., c. 90, § 5. The holder of the mortgage must determine in the first place that he will foreclose, and, in the second place, the mode, whether by entry, publication, or by suit, to obtain actual possession. No third party can, without authority, determine these questions for him, and thereupon proceed to foreclose in any form, in his name. Mere silence on his part would not be a ratification of such proceedings by a stranger, because the law would not presume an assent on his part to acts which he might or might not deem advantageous or " desirable” to have done. Story on Agency, §§ 245, 258.

But in this case, sometime after the publication of the notice and the recording of ihe same, the mortgagee " expressed his satisfaction in what he (Peters) had done in foreclosing the mortgage.” Assuming that this was a sufficient recognition and ratification of his acts in signing the notice and the publication and recording, the question is, whether the foreclosure became perfected at the end of three years.

This mode of foreclosure is one given by statute and rests for its validity on the statute alone. In the foreclosure other parties are direbtly interested. By § 6, if the mortgager, or those claiming under him, do not redeem within three years next after the first publication, the right of redemption is forever foreclosed. The time for redemption being thus fixed, to commence from the date of the first publication, the notice must, to be effectual, be binding on all parties at and from that time. If, therefore, a subsequent ratification can be made effectual, it must relate back to, and be operative from the date of publication. There cannot be any time when the notice is not legally binding on all parties. It cannot be conditional or uncertain, de-[75]*75ponding upon contingencies. Otherwise a mortgagee, who had ascertained that an unauthorized person had assumed to act for him, might lie by, until the last day of the three years, and then ratify or not, as his will or wishes might dictate. If the three years would only commence at the date of the assent, then the foreclosure would be kept open six years instead of three. There may be cases where the mortgager, or those claiming under him, would be desirous to have the mortgage foreclosed and the property thus taken in payment of the debt, for which it was security. They have a right to regard the published notice as conclusive as to time, as the statute makes it. Was this notice, when published and for sometime after, binding and effectual? It is admitted that it was not, until the subsequent assent. If no such assent had been given, it is not pretended that the foreclosure would have been perfected at the end of three years. There was a time, between the publication and the assent, when it was inoperative, unless the subsequent ratification can be held to relate back and take effect from the first publication. And this is the question on which the case depends.

The general principle is well settled that, where no rights of third parties are in question, a party may ratify the unauthorized act of another, and such ratification may relate back to the time of the act. But this is not generally so, when third parties are interested.

The precise question here is, whether the unauthorized publication of notice of foreclosure can be made good and operative from its date, by a subsequent assent. It is not a case of contract between parties but an attempt to enforce a legal right by a proceeding partaking of the nature of a judicial proceeding, requiring certain public acts, and a record thereof in the public registry. The rights and interests of other parties are involved. The date of the first publication is the essential thing to determine the future rights of all interested. In Clark v. Peabody, 22 Maine, 500, it was held that the ratification, by the payee of a note, of an [76]*76indorsement thereof, made by one assuming to act as his agent, without authority from him, can operate only as an indorsement made at the time of the ratification. The in-dorsement in that case was made before suit, but the ratification was after the commencement of the suit. The Court held that, " when a certain thing must be done by one having power to do it, as a pre-requisite to constitute a liability of a party who had no agency in the act, the ratification of the performance thereof, by one unauthorized, cannot create a liability where none existed before.”

A subsequent assent does not relate back so as to prejudice a party whose conduct has been guided by the transaction as it actually occurred. Fiske v. Holmes, 41 Maine, 441.

The distinction is, that where an act is beneficial to the principal and does not create a right to have some other act or duty performed by a third person, but amounts simply to the assertion of a' right on the part of the principal, the subsequent ratification will relate back to the time of the act. But if such act would, if authorized, create a right or duty to have some act done by a third party, the subsequent ratification or adoption of the unauthorized act by the principal, will not give validity to it so as to bind such third party to the consequences. A variety of cases illustrating this doctrine may be found in the books. If a lease may be determined by six months notice, such notice given by an unauthorized person will not be effectual, although subsequently ratified. Baron v. Denman, 2 Exchr. Reports, 167.

A notice to quit must be such that the tenant may safely act on it at the time of receiving it, therefore a notice by an unauthorized agent cannot be made good by the adoption of it by the principal afterwards. Doe v. Goldwin, 2 Ad. & Ellis, N. S., 143. The same doctrine is found in Doe v. Walters, 10 B. & Cr., 626; 21 E. C. Law, 139.

The same rule applies to a demand in trover. Soloman v. Dawes, 1 Esp. R. 83. So a demand of payment of a note, [77]*77although ratified afterwards. Stanton v. Blossom, 14 Mass., 116.

We have seen that the foreclosure must begin at the date of publication, by the express words of the statute. No other time can be substituted, and it must continue to run from that date. There was a time, several months, when it did not run.

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Bluebook (online)
53 Me. 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/treat-v-pierce-me-1865.