76 Pa. 283 | Pa. | 1874
delivered the opinion of the court, October 12th 1874.
The land, out of which the fund in controversy arose, was, among other liens, subject to two mortgages. The first to Mrs. Harris, recorded July 6th 1869, was given to secure the payment of a bond.for $700; and the second to Mrs. Miller, recorded July
If the fund is to be distributed according to the priority of the lien, the court was clearly right in appropriating it to the judgment assigned to the appellee. The assignment of the judgment transferred the right to the mortgage by which it was secured: Moore v. Cornell, 18 P. F. Smith 320; and both securities being for the same debt, the lien of the judgment necessarily relates back to the date of the lien of the mortgage: McCall v. Lenox, 9 S. & R. 310; Bury v. Grieber, 5 Barr 431; Hartz v. Woods, 8 Id. 471; Commonwealth v. Wilson, 10 Casey 63. The entry of satisfaction of the mortgage by the mortgagee, after the assignment of the judgment, did not discharge the mortgage security, so far as respects the assignee of the judgment: Roberts v. Halstead, 9 Barr 32; nor did it abridge or impair the lien of the judgment. It was a fraud upon the rights of the assignee as the owner of the mortgage-debt, and the subsequent mortgagee not being prejudiced by it, could derive no benefit or advantage from it. The lien of her mortgage remained the same after the entry as before. It was still subordinate to the prior lien of the judgment. The entry of satisfaction was a nullity, so far as it respects the assignee of the judgment and the subsequent mortgagee; and the latter was in no better or worse position after it was made than before. What then is the condition of the appellant ? Has he any greater right or equity than the mortgagee had when she assigned the mortgage ? It is clear that he has not, if he had notice of the fraud, or of such facts as would have led to its knowledge, if proper inquiry had been made. If he purchased the mortgage with the knowledge, or with the means of knowing that the prior mortgage had been fraudulently satisfied, he stands in no better position than the mortgagee, and can claim no greater right or equity than she had. Even if the appellee was guilty of negligence in not taking an assignment of the mortgage, by which his judgment was secured, and entering it of record, the appellant is not in- a position to take advantage of his laches, if he knew, or had the means of knowing, that the entry of satisfaction was fraudulent and void. Undoubtedly negligence in the enjoyment of property or the exercise of a right, is cause of redress in equity or at law; but not if there has
This view of the case renders it unnecessary to consider whether it was the duty of the appellee to take an assignment of the mortgage, by which his judgment was secured, and enter it of record. If he was guilty of no laches in this respect, the case is all the Stronger against the appellant. But if he was, the latter is entitled to no redress, for he had constructive notice of the appellee’s ownership of the mortgage and its fraudulent satisfaction.
Decree affirmed at the costs of the appellant.