Robinson v. Willoughby.Robinson v. Willoughby.
As thе entire contract between the plaintiff and Christenbury was in writing, and there was no evidence of any fact tending to show fraud or ‘ mistake, his Honor rightly considered the nature and effect of the contract, to be a matter •of law, and for his decision. If his Honor permitted the evidenсe of Stillwell, that he considered the transaction a conditional sale, and not a mortgage, and that such was the intention of the parties, to have any weight with him, we think he •erred in doing sо. The evidence of the witness on that point, was not as to any matter of fact, but merely his opinion on a matter of law, and was therefore of no weight or value whatever.
We think his Hоnor committed an error in holding that the •contract, or transaction, between the plaintiff and Christen-bury was not a mortgage.
A mortgage is a conveyance by a debtor to his creditоr, or to some one in trust for him, as a security for the debt. Whatever is substantially this, is held to be a mortgаge in a Court of Equity and the debtor has a right to redeem ; Coote. Mort. 22, Fisher Mort. 68.
It is immaterial whether the contract be in one writing or in several, Mason v. Hearne, Bus. Eq., 88, and it is also immaterial (as between the parties) whether the agreement for redemption be in writing or oral; and such agreеment may be implied from the attending circumstances. Of these principles, and of the cirсumstances, which will cause a deed absolute on its face to be construed as a mоrtgage, numerous illustrations may be found in the treatises above cited, and in our own 'Reports.
In the present case, the express terms of the writings indicate a mortgage, and the circumstаnces do not contradict, but .sustain this view.
Christenbury being indebted to the plaintiff) applies to Stilliwell tо become his personal surety for a part of the indebted *523 ness, upon which he says he аdvised him to sell his lands to ¡the plaintiff to pay his debts to him.
After this advice, and perhaps in consequence of it, the plaintiff and Ohristenbury apply to the witness to draw the writings necessary to cаrry out their understanding. He accordingly draws them, and they are executed by the parties.
1. A deеd from Ohristenbury absolutely conveying the land to the plaintiff'.
2. A note from Ohristenbury to the plaintiff for $310, that bеing the amount of his indebtedness.
3. A bond from the plaintiff' to Ohristenbury, by which, he agrees, that if Ohristenbury shall pay him $310, on or before the 25th of December, 1867, to make him a title to the land on which he resides; which is the same that was described in the ■deed, and is that now in controversy. After the execution ox these writings, Ohristenbury remained in possession, until after ’his conveyance to the defendant on 17th January, 1867, when the defendant took possession. In determining the question whether a transaction amounted to a mortgage, or to a defeasible purchase, it has always been considеred of the greatest .importance, whether the vendor was a debtor to the vendee: :and if he was, and if after the supposed sale he continued to be a debtor, the inferenсe was irresistible, that the transaction was a mortgage, and that he could redeem by paying the debt. (Coote. Mort. 24.) Otherwise the debtor would have parted with his land without any consideration whаtever.
In this case, there was an antecedent debt, and it was provided as a part of the agreement, that the debt should continue lfor the plaintiff, while he surrendered the old evidences of indebtedness, and took a new note for the amount of them, which he still holds.
If a transаction be a mortgage in substance, the most solemn ■engagement to the contrary, made at the time, cannot deprive ¡the .debtor of his right to redeem ; such a ease being on grounds *524 of equity, an exception to the maxim “ modus et comentó» vincmit legem.”
Nor can a mortgagor, by any agreement at the time of the execution of a mortgage, that the right to redeem shall be lost if the money be not paid by a certain day, debar himself of such right; for in such a contract, time will not be regarded as of its essence. Mason v. Hearne, Bus. Eq. 88.
In addition to this the fact that the supposed vendor, continued in possession after the sale, without the demand or payment of rent, is a circumstance, which remaining unexplained, is inconsistent with the idеa of an absolute sale. Taking this view of the case, Ohristenbury retained an equity of redemрtion, which at least his deed conveyed to Willoughby.
On the pleadings as they stand, however, n,o quеstion arises upon that.
As we think his Honor erred, in holding the transaction not a mortgage between the parties, it follows that there must be a new trial, and it is unnecessary to consider the othеr question raised by the defendant, whether the deed to- the plaintiff was fraudulent, as to a subsequent purchaser for value from the grantor.
Pee Curiam. Venire, de novo.