63 Md. 525 | Md. | 1885
delivered the opinion of the Court.
The hill in this cause charges, that in the month of November, 1870, the appellee held, in the “Sunrise Building Association of Baltimore,” a corporation under the laws of this State, ten shares of stock which, under the regulations of the Association, stood in the name of John Sheppard, as trustee for her; that upon these shares she received an advance of one thousand dollai’S.from the Association, and as collateral security therefor executed a mortgage upon Butcher Stall No. 1, in Belair Market, belonging to her and occupied by her in her business: that this stall was transferred from her name to the “Sunrise Building Association” upon the books of the City Comptroller. It further charges that this loan was fully paid, and she had requested the re-transfer of the “butcher stall ” on the Comptroller’s books to her, but that the same was never done. The bill charges that the appellee had continuously occupied the stall, carrying on her business after the transfer to the Building Association under the mortgage as before it was transferred, and that notwithstanding such occupancy by her, and her right to have the stall transferred back to her on the Comptroller’s books, the Association, which, as complainant was informed, had ceased to do business in 1874, had, through its former
The answer of the “Border State Savings Institute” avers ignorance of complainant’s shares in the “ Sunrise Building Association,” the loan to her on them, and the mortgage of the butcher stall to. secure it, and does not know whether complainant had been in possession of it or not; but avers that these facts cannot affect respondent’s rights to the stall; that whatever might be the relations of complainant and “ Sunrise Building Association,” it had no means of knowing of them, and had no means of knowledge, except that the stall stood on the Comptroller’s
Preliminary injunction was granted before answer filed, •and after answer filed testimony was taken, and the case proceeded to decree, which decree established the right of the appellee to the butcher stall Eo. 1, in Belair Market, ■and directed the “Border State Savings Institute” “to transfer the same on the books of the City Comptroller ” to the appellee upon the payment of such balance as may •be found due from her to the “ Sunrise Building Association ” upon thd loan made by that Association to her.
From this decree “ The Border State Savings Institute ■of Baltimore City ” has appealed.
The appellant contends that its money was advanced in good faith on the security of the market stall, and that it has received a proper transfer of it, without notice of •any claim upon it except John Sheppard’s, with whom it was dealing, and ought to be protected, no matter what the rights of the appellee may be against the “Sunrise Building Association;” and that appellee having exe
The appellee contends, that the decree ought to be affirmed on the proof; because there was a gross fraud perpetrated on her; and though the appellant was also deceived into accepting the market stall as security for a loan, that the appellee had been so long time in the open and notorious possession of the stall, the appellant was put thereby upon inquiry into the nature and character of such possession, and, that having failed to make the inquiry, it should he visited with the consequences of its negligence. The question is simply which of the contending parties has the better equity.
In Rose vs. Mayor, &c., of Baltimore, 51 Md., 256, it was decided, that a market stall is not an interest in land, and is not a freehold estate; but that it is an exclusive right to he exercised in a particular way and for a particular purpose. It is a valuable right and sells for much money. It is transferable — an alienable right. It is a species of property which, in practice, it seems, is used as collateral security for loans. The appellee both transferred on the Comptroller’s books and executed a regular mortgage thereon which was duly recorded among the land records of the city. The appellant took it in secu
But the method of transfer, and the place where it is to be entered, being provided for in the law regulating the subject, we do not think the record of the appellee’s mortgage on the stall gave constructive notice of its existence and provisions. It was not within the registration laws, and the exception to it on that account was well taken. The City Comptroller’s books was the only place one was bound to look, and whatever it disclosed was notice. We think, however, enough was disclosed by those boots, in conjunction with the notorious possession of the appellee of the stall in question, to put the appellant upon further inquiry. • The Comptroller’s books show, that the appellee was the last owner before the “Sunrise Building Association.” The appellant, therefore, had notice, that its title came through the appellee to the “Sunrise Building Association,” and thence to it; and that John Sheppard did not transfer it to the “Sunrise Building Association,” for he is not shown by the books to have ever owned it. The nature of the business of the “ Sunrise Building Association” being that of money-lending and not property buying and selling or renting, and not that of selling butchers’ meats, naturally suggested, that it had taken this stall in security for money loaned to the last owner, whose name was on the Comptroller’s boobs preceding it. That person was the appellee, who for years had occupied that stall on all market days established by city law, which was all the occupancy such place was capable of.
The only record of title showed', prima facie, that John Sheppard could not have pledged it for he did not own it.
Decree affirmed.