12 A.2d 336 | Pa. | 1940
In this proceeding plaintiff building association invokes equity's aid to secure a lien against a property, title to which is in Francis J. Kasprzak and Tessie Kasprzak, husband and wife, as tenants by the entireties. Francis J. Kasprzak is a weak-minded person and appears through his guardian, Provident Trust Company, also named as a defendant. After hearing, the chancellor dismissed the bill, from which action the appeal is taken by plaintiff. A decree pro confesso was entered against the wife.
The Kasprzaks desired to purchase a dwelling and applied to plaintiff building association for a loan of $7,500 to enable them to acquire the property. The loan was approved. On September 24, 1928, the deed was delivered and simultaneously the bond and mortgage to the *200
association for $7,500 was executed, the association having paid the $7,500 to the seller. Deed and mortgage were duly recorded. It was a purchase money mortgage: Com. T. Ins. T.Co. v. Ellis,
Under the law of unjust enrichment, the defendants should be required to reimburse plaintiff for the money lent to buy the property as far as equitably proper to do so. "A person who has been unjustly enriched at the expense of another is required to make restitution to the other": Restatement, Restitution, Sec. 1. Defendants purchased the property almost entirely with plaintiff's money. "Incapacity to enter into a contract . . . is not in itself a defense in an action for restitution": Restatement, Restitution, Sec. 139. "The reasons which cause incapacity to make contracts . . . do not apply to actions for restitution which are based upon unjust enrichment. It is fair that married women, insane persons and infants, even if they are not required to perform their promises . . . should be required to return benefits which they have received, at least if they are still in possession of the subject matter or its proceeds": Ibid, comment a, p. 559.
That equity has power to fix a lien upon the property cannot be questioned: People's National Bank of Pittsburg v. Loeffert,
We conclude that plaintiff is entitled to an equitable lien against the property. Defendant, Provident Trust Company as guardian, is entitled to have preserved to it such sums as its ward had put into the property by payment of part of the purchase money or by payments on account of the mortgage. In the event that the property hag to be sold in order to work out the equities, the equitable lien of plaintiff and the beneficial interest of the guardian in behalf of its ward shall be treated as of a parity in distribution of the proceeds of sale.
The decree of the court below dismissing the bill as to Francis J. Kasprzak is reversed; the bill is reinstated for relief in accordance with this opinion. Costs to abide final determination.