108 N.J. Eq. 412 | N.J. Ct. of Ch. | 1931
Complainants move that defendants be enjoined from collecting the rents of the mortgaged premises and from interfering with complainants' collection thereof, and that the tenants be restrained from paying the rents to anyone except complainants and that the tenants be ordered to pay their rents to complainants pending the suit. Complainants hold two mortgages, each encumbering a twenty-one family apartment house. Each mortgage contains this provision —
"That in the event of any default in any covenant in said bond contained, said mortgagee may enter, take possession of the mortgaged premises and collect the rentals therefrom, which said rentals are in the event of any such default hereby assigned to the mortgagee."
Default has been made in covenants for the payment of the mortgage debts, the interest thereon and taxes on the mortgaged premises. The mortgagor remains in possession and collects the rents as they accrue.
An assignment of rent enables the assignee to maintain an action in his own name for the rent against the tenant, even though the reversion is not transferred and the tenant does not attorn. Ryerson v. Quackenbush,
By reason of the defaults in the conditions of the bonds, the assignments of the rents have become absolute and entitle complainants to the rents as against defendants, namely the mortgagor and subsequent lienors. Should complainants have the aid of this court in the collection of their rents? I think so. There are about forty tenants in the two apartment houses; if they remain in doubt as to the person entitled to the rents, complainants will be put to the necessity of suing each tenant and will likely be met in many of the suits by bills of interpleader. This court will act to prevent a multiplicity of suits and circuity of action. Feigenspan v. Nizolek,