Wing v. . De La Rionda

30 N.E. 243, 131 N.Y. 422, 43 N.Y. St. Rep. 305, 86 Sickels 422, 1892 N.Y. LEXIS 1035
New York Court of Appeals·Decided March 1, 1892·Published·Cited by 6 cases

Opinion

Peckham, J.

Upon the last appeal in this action * we held there was no finding and no uncontradicted evidence proving that Blanco ever accepted the letter of Jackson to Mm so far as to make a contract between them, or that he went into possession under the contract so formed. We also said that if the orders in the foreclosure smt were void because Blanco ■had no notice of application for them, it would seem that a *427 defense to this action would in that event he made out, even if the defendant did not connect himself with the rights of Blanco. This was upon the theory that the plaintiff, in case: the orders in the foreclosure case were entirely void, would in that event fail in showing any legal title in himself because-, his title was based upon the proceedings in the foreclosure-suit, which were themselves largely founded upon those orders. We did not decide or intimate that the orders were void, but on the contrary we held that upon the facts as then developed they were entirely valid.

We did not decide that in case it were proved that Blanco and Jackson did make this contract, and that Blanco obtained possession by reason of it and expended money upon the real estate, that a failure to give Blanco notice of further proceedings in the foreclosure case would render those proceedings void, and, therefore, would show a failure of title in the. plaintiff. We said in order to raise those questions there must be a proper finding as to the contract and the possession under it and payment by reason of it, or the facts should appear by uncontradicted evidence. In the absence of both we held the questions did not arise.

The defendant now claims he has proved the writing and acceptance of the letter, possession taken by Blanco by reason of it and the expenditure of money thereafter upon the premises. He says, therefore, that being so in possession Blanco or his representatives were entitled to notice of all further proceedings in the foreclosure action, and that a failure to give such notice was fatal to the existence of any title to the realty covered by the mortgage foreclosed under such a state-of facts.

It is-unnecessary to recite the other facts in this case as to the rights of Wing under the power of attorney from Jackson to him. We are of the- opinion that under that instrument. Wing had power to go on with the- foreclosure proceedings and sell the property without any further notice to Jackson. The legal title to the realty never was in Jackson and upon the sale by Wing all Jackson could have done was to have *428 called Wing to account for the moneys (if any) realized by him from the sale.

Certainly the regularity of the sale under the foreclosure decree was in no manner affected by the failure to give notice to Jackson or to Blanco if he were then in possession of the premises by reason of the letter or contract already spoken of. Wing was acting under the authority conferred upon him by Jackson himself, and the court having obtained and retaining jurisdiction over the subject-matter in the foreclosure suit and over the parties thereto, had jurisdiction under these circumstances to proceed with the execution of the decree for the sale of the premises without notice to Jackson or Blanco, if the latter were then in possession. Whatever equity might attach to the possession of Blanco on account of the failure to give him notice of the foreclosure proceedings by reason of which Blanco might have a cause of action against Jackson or Wing for damages or for an accounting, such .equity did not affect the validity of the proceedings in the foreclosure suit and consequently did not prevent the purchaser at the foreclosure sale from obtaining the legal title to the premises. "Notice of proceedings conducted in his name was not required to be given Jackson, for he by reason of the terms of his appointment of Wing had dispensed with notice of any proceedings which Wing in carrying out that agreement might think proper to take. By permitting Blanco to take possession Jackson conveyed to him no greater legal right to notice of the proceedings in the foreclosure suit than Jackson himself had. They were both subject to the jurisdiction of the court in the foreclosure suit. The rights of Blanco being, therefore, nothing more than equities and not affecting the legal title transferred to the purchaser at the foreclosure sale, it is clear such equities under the old rules governing the case would have constituted even in favor of Blanco no defense to the action of ejectment where the legal title alone prevailed and a court of law gave judgment accordingly. (Adams on Ejectment, p. 44 [4th ed.], 1854; Jackson ex dem. Potter v. Sisson, 2 John. Cas. 321; Jackson ex dem. Smith v. Pierce, 2 John. 221.)

*429 In our union of courts and remedies an equitable defense by and in favor of the party defendant may now be proved as against a plaintiff in ejectment, and as a defense to the legal title. But where a plaintiff proves a legal title, and the defendant can show nothing but a mere equity in favor of a third person, such as a simple right to an accounting, or some such remedy, with which equity the defendant does not in any manner connect himself as interested therein, so that he could enforce it, then the superior1 legal title must prevail. It was formerly held that even a superior outstanding title in a third person, under whoin defendant did not claim, must, in order to constitute a defense, be subsisting and available, otherwise merely showing title out of plaintiff was no defense. (Foster v. Joice, 3 Wash. C. C. R. 498.) There is a learned note to Robinson v. Campbell (3 Wheat. 212, 224) upon the subject of the availability of a defense of title in a third person not connected with defendant, where plaintiff shows a superior title to defendant. The writer is evidently of the opinion it does not in all cases make a defense. I think there is no doubt of the correctness of the rule which holds that in an action of ejectment proof of some equitable right or title in a third person, with whom the defendant does not connect himself, is no defense to a superior legal title in the plaintiff. (Den ex dem. Dimon v. Dimon, 5 Hals. [N. J.] 156.) The case of Cagger v. Lansing (64 N. Y. 417) seems" to be decisive of this question, and that case holds no new doctrine. This is not the case of an assignee of a mortgagee, in possession and defending his title against a third party, such as was the case of Jackson ex dem. v. Minkler (10 John. 480). In that case the mortgagee conveyed by deed to the defendant subsequent to default in the payment of the mortgage, and the defendant asserted his right as against the lessor of the plaintiff, the original mortgagor, while here there is only a taking possession of the premises by an individual under a mere license from the mortgagee, and such licensee sets up his possession against a regular foreclosure of the mortgage, followed by the claim of the right to the immediate possession on the part of the purchaser *430 ¡at the foreclosure sale, and sustained by the deed of the referee •conveying title to him under the mortgage.

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Wing v. . De La Rionda, 30 N.E. 243, 131 N.Y. 422, 43 N.Y. St. Rep. 305, 86 Sickels 422, 1892 N.Y. LEXIS 1035 (N.Y. 1892).

30 N.E. 243 (Wing v. . De La Rionda) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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