51 Iowa 583 | Iowa | 1879
— I. The defendant George L. Davenport executed a mortgage to Charles E. Putnam to secure the separate claims held by eleven persons against the mortgagor, amounting in the aggregate to over twelve thousand dollars. Plaintiff held a claim of seven hundred and eighty-four dollars andtforty-six cents, which was secured by this mortgage. Prior mortgages had been executed by Davenport upon the property, consisting of city lots upon which were valuable buildings, used for business purposes. The prior incumbrances amounted to more than seventy-five thousand dollars. The rents of the property, which amounted to a large sum
IY. It is charged that taxes remain unpaid, and that one of the lots has been sold for taxes. One of the senior mortgagees made an arrangement with Mr. Putnam to pay the taxes; another took an assignment of a tax sale certificate. It would have been well to have paid the taxes and not to have permitted the property to go to sale. But plaintiff ought not to complain, as he received a part of the proceeds of the rent, which, probably, ought to have been applied in payment of the taxes.
It does not appear that the title of the property sold for taxes is in danger of being divested. It is to be presumed that the parties concerned will not permit this to happen.
It is doubtful, indeed, whether plaintiff, and those secured by the mortgage which he seeks to foreclose, being junior incumbrancers, would realize anything upon the sale of the property. But be this as it may, the rights of plaintiff are not alone to be considered. The senior mortgagees are content with the management of the property, and do not demand a change. We think, under the circumstances, equity would not interfere upon the application of plaintiff, a junior mortgagee, holding a comparatively small claim secured upon the property. The plaintiff can pursue his remedy by foreclosure. We are confident that no loss will result to him from the present management of the property pending his action. We are very clear that the record presents.no grounds upon which a court of equity may justify the appointment of a receiver, thus taking the property out of the hands of the person chosen by its owners to manage and control it.
The order of the judge of the District Court appointing a receiver is
Reversed.