10 Barb. 582 | N.Y. Sup. Ct. | 1850
The moneys which are the subject of this litigation, are the proceeds of the sale of that one-fourth of the premises which formerly belonged to John Thomas, the history of which is somewhat material to a decision of the questions before me. The premises were on the 14th of November 1885 owned by Baldwin, Oadwell, Jackson, Dodge and Comstock, who, on that day, executed to the plaintiff in this action the mortgage upon the foreclosure of which they were sold. After this, Baldwin by a deed with full covenants, (that is, covenants of seisin, against encumbrances and for quiet enjoyment,) conveyed three-twentieths of the premises to Thomas, taking back mortgages for parts of the purchase money, and Jackson conveyed to Thomas another one-tenth of the premises, thus vesting in him one-fourth of the whole. May 5th, 1845, Thomas mortgaged one-half of his interest (six-eighths of the premises) to the Albany City Bank, to secure the payment of $6,500 of a debt then due the bank, which debt still remains unpaid. A short time thereafter, by deed dated May 6th, 1845, Thomas conveyed to Tomlinson one-eighth of the premises, for the consideration, as expressed, of $4,500 and with covenants against his own acts. In 1847 Thomas executed to Tomlinson a quit-claim deed of the entire premises.
Baldwin claimed a part of the surplus moneys arising from the sale of the Thomas quarter, in virtue of his mortgages. The Albany City Bank claimed in virtue of its mortgage. The widow of Tomlinson claimed in- right of her dower in the one-fourth, under the grant from Thomas to Tomlinson. The heirs of Tomlinson claimed as owners of the fee at the time of the sale, under the grants to their ancestor, and Oadwell claimed in virtue of an equitable lien for advances made in payment for the erections; insisting, and attempting to prove, that the .first deed from Thomas to Tomlinson was intended as and was in fact a mortgage.
The referee held that such deed was a mortgage, and reported that Oadwell was first entitled to be paid the amount of his claim out of the surplus moneys, and that the Albany Oity Bank was next entitled. These two claims exhaust the fund.
I. I am of the opinion that the referee erred in holding the deed from Thomas to Tomlinson to be a mortgage. First. The evidence, if admissible, is in my judgment entirely too slight to warrant the conclusions of the referee in that respect. It was a remark of Tomlinson, made casually and without any design that the evidence discloses, to influence the action of-any one, and when accuracy of expression was very probably not cared for, and which may not have been remembered with that accuracy and precision that is desirable when important rights are to be affected by verbal declarations and admissions. It may well be that the precise words stated by the witness -were spoken by Tomlinson, without an intent on his part to con
But secondly, I am of the opinion that it was not competent to contradict the terms of the deed of May, 1845, and show by parol that it was intended as a mortgage to secure advances made in the course of the erection of the buildings, and that Thomas-had before the conveyance in 1847 an equity of redemption in that one-eighth. Cadwell alone seeks to establish this fact. The Albany City Bank claim that their mortgage is upon the other one-eighth owned by Thomas. Baldwin claims that his lien is superior to the claim of Tomlinson and his representatives, whether the instrument was a deed or mortgage.
I. On most points the rules of evidence are the same in courts of law and equity, and the doctrine of both courts is the same as to the exclusion of parol evidence to contradict or substantially vary the legal import of a written agreement. (Stevens v. Cooper, 1 John. Ch. Rep. 425. Russell v. Kinney, 1 Sandf. Ch. Rep. 34, and cases cited by Asst. V. C. Story’s Eq. Jur. § 1531. Dwight v. Pomeroy, 17 Mass. Rep. 303.) It is true that equity exercises a jurisdiction to qualify, correct and reform deeds and other written instruments in cases of accident, mistake or fraud. These are well known heads of equity jurisdiction, and in its exercise the court necessarily receives parol evidence to establish the accident, mistake or fraud which render its interposition necessary. And in a clear case the court will reform a contract and make it express the clearly established intent of the parties. (Story’s Eq. Jur. § 1531. Meads v. Lansing, Hopk. 124. Webb v. Rice, Dwight v. Pomeroy, supra. Gres. Eq. Ev. 205. Cowen & Hill’s Notes, p. 1434.) In this case there is nothing which, as between the parties to the deed or their privies, would give a court of equity jurisdiction under either of the heads of accident, mistake or fraud. It does not appear, neither is it intimated, that the deed does not express upon its face precisely what it was designed to express, or that either party mistook or was deceived as to the terms or character of the instrument. It is not sought to reform the deed, to make it express the true contract and understanding between the parties.
The referee thinks that it is immaterial whether the instrument is held to be a deed or mortgage. I agree with him; but think that in either case a rest should be made in the account at the time of the severance of the interest of Thomas. Cad-well’s claim is that of an equitable lien, and should be enforced so as to do equity to all. By the mortgage to the City Bank and the conveyance or mortgage to Tomlinson, third persons acquired legal as well as equitable interests in distinct portions of the premises before then owned by Thomas, and the equities of Cadwell should be treated with a view to preserve the equitable rights of the mortgagees, as between each other, and if one of the mortgagees or grantees has from that time paid the proportion of the cost of the improvement of the premises properly chargeable to the part conveyed to him and to preserve his lien, it would be manifestly wrong to charge it with an additional sum which was in fact advanced for another interest in the same premises. In truth it would seem by the report and the evidence that the effect of the report was to charge upon Tomlinson’s one-eighth the whole amount of advances made upon the one-fourth, and the greater part of which were in fact
Upon the assumption, therefore, that Mr. Cadwell has a lien for his advances towards the expenses of the improvements, beyond his share, as is claimed, the referee should have charged upon the whole Thomas quarter, the amount advanced and paid by Cadwell, in respect to that quarter, up to the time of the division of the interest of Thomas, and from that time the account should have been stated separately in respect to each one-eighth, and each parcel charged with the amount advanced and paid in respect to it.
Before reaching this point of the examination in this case, I had designed to rest the decision of this matter for the present, upon the point already examined, to refer the matter back for a re-hearing, and to leave the examination of the other questions until they might arise upon a future report, when other evidence might possibly be before the court, which would affect the result. But upon reflection, I have thought it more advisable to decide such of the questions argued before me, as upon the evidence and report can be definitely passed upon, to the end that the parties interested may at once appeal from the order which I
II. As to the claim of Mr. Cadwell. ■ It is established by the proof that he" advanced towards the erection .of the Empire Block an amount exceeding his proportion of the cost, and that none of the other owners, except'Thomas, were in arrears ; so. that it follows that the advance was in respect to. the portion of the premises owned by Thomas. And I, am of the opinion, without a very- close examination of the evidence, that ■ there is proof that, would warrant a court or jury to find a request on the part of Thomas, to Cadwell to- make- the advances, and a. promise to repay him, and that Cadwell could, in an action for money paid, and advanced, have recovered. The erections were' expensive and valuable improvements, not, repairs in- the strict sense of that. term. They were not necessary to preserve the premises from, dilapidation and ruin, and to save the property. They were not a matter of necessity, and hence the comr mon law writ, de reparatione faciendo would not have IainOne of the tenants in common could not by any act of the others and- against his consent, have been compelled to unite in making these improvements. (Story’s Eq. Jur. § 1235.) And. even in the case of repairs it does-not appear to be well settled that in this country, in the absence of any statute, one tenant in common can make the.necessary repairs, and charge his co-tenants in an action for the amount,.in.the absence of any con-' tract. (Loring v. Bacon, 4 Mass. Rep. 575. Converse v. Fern, 11 Id. 325. Doane v. Badger, 12 Id. 65.) He can. not do this without first requesting his co-tenant to unite in-making the repairs. (Mumford v. Brown, 6 Cowen, 475.) But whatever may be the rule as to necessary repairs, it can not, be prer tended that one tenant in common can be made liable to-the others for - improvements of the character of those made- in this case, in. the absence, of an express or implied- contract to
In Lake v. Craddock, (1 Eq. Cas. Abr. 29; S. C. 3 P. Wms. 158,) lands had been bought by several, with a view to an expensive improvement by draining, &c. and for a time all advanced money. At length Craddock, apprehending a loss, abandoned the work and property, and withdrew from the enterprise, and sometime afterwards died. His copartners went on with the work, and some thirty years after Craddock abandoned, Lake, one of the proprietors, brought his bill against the rest, including the representatives of Craddock, for an account and division of the partnership estate. The principal question was whether the proprietors were joint tenants, and as to the right of survivorship. The master of the rolls held,, (and his decree
In Scott v. Nesbett, (14 Vesey, 437,) an allowance was made for advances for supplies to a West India estate, not on the ground of a lien, but on account of the nature of the subject and as distinguished from a mere landed estate in England. See also Putnam v. Ritchie, (6 Paige, 390,) in which the doctrine of lien for advances in the improvement of estates is examined to some extent, by the chancellor. I think it will be found that a court of equity has, in but few if any cases, established a lien which did not arise out of a contract, or was not established by usage ; unless under peculiar circumstances, and when the party against whom, or whose property the lien was established, came to the court for relief, and the lien was enforced as a condition to the relief granted. In this proceeding, those claiming under Thomas are not asking the aid of the court against Cadwell. They are merely asserting their legal as well as equitable right to the fund in court, and Cadwell is doing the same. Both parties are actors. It is not a proceeding instituted by the grantees of Thomas against Cadwell to take from him any thing which he now has. Cadwell is in no better situation than he
My conclusion is, that the referee erred in reporting in favor of Cadwell, for his claim. ■
III. As to the claim of Mr. Baldwin. He claims so much of the surplus moneys, as arise from the sale of one-tenth and one-tWentieth of the property covered by his mortgages, and this claim brings him, to a small amount, in conflict with the Albany City Bank. The surplus in court arose from the sale of one-fourth of the property, the whole at one time owned by Thomas. One-tenth was not covered by Baldwin’s mortgages,and the Albany ’City Bank having a mortgage upon one-eighth, prior to the eon- ' veyance of the one-eighth to Tomlinson, have the right to insist that they took by- virtue of their mortgage that part which was unincumbered; or in other words, the mortgages to Baldwin must be satisfied first, out of the part last conveyed, and that part is the interest conveyed to Tomlinson. So that in the view I take of the case, the Albany City Bank are entitled to one-tenth of the whole- surplus, which is nearly one-half of the amount in court.
The whole amount now in court is $5,731 77
To four-tenths of this, or one tenth of the whole, the bank is entitled, which is . . . . $2,292 70
For one-tenth of this surplus, the bank and Mr.
Baldwin are in conflict,.....$573 17
And, as between these claimants, I am of the opinion that the bank is to be preferred. I am not called upon to decide whether an action at law could be maintained against Thomas upon his bonds, after an eviction from the premises. Whether .such action could be maintained or not, it is quite clear that equity would interfere and stay proceedings upon such terms as should be equitable.
Neither is it necessary to hold tnat tne mortgage is void. I do-not think it is so. It by no" means follows that Mr. Baldwin has lost his lien upon the interest which he had in the premised
The mortgage could, notwithstanding the eviction, be enforced against the premises, although the mortgagor might not be liable upon his covenant to pay. (Banks v. Walker, 2 Sandf. Ch. R. 344. Leggett v. McCarthy, 3 Edw. Ch. R. 124.) This would however, as before said, be subject to all equities of the grantee and mortgagor, growing out of the transaction.
If, instead of a sale of the whole premises upon the Taylor mortgage, only one-half of that part conveyed by Baldwin to Thomas, had been sold, it is quite evident that Thomas’ title to the part unsold would have been good, subject to the claim of Baldwin under his mortgage, and in any attempt of the latter to enforce his mortgage, Thomas would, in equity, have been permitted to recoupe the damages sustained by an eviction from the one-half sold, and to have applied in part payment of the purchase price of the part which he retained, what he had paid towards the whole. Baldwin’s claim and Thomas’ liability would have been made to accord with the altered state of things and change of interests. So when the land is represented by a fund in court, the result is the same. Thomas, upon the occasion of his purchase, paid to Baldwin, $1,500. This exceeds the amount in controversy between the latter and the City Bank. It is true, that Thomas has had the rents and profits for seven years, and
1. Thomas paid upon the occasion of his purchase, $1,500 00
2. His one-tenth which was not covered by the Baldwin mortgages, paid of the Taylor mortgage, 2,312 29
3. The improvements made, say one-half of the whole amount raised by sale. Then the improvements upon the one-tenth and one-twentieth which were covered by the Baldwin mortgages, paid towards the Taylor mortgage,....... 1,734 21
Making, . . . ■ . . . . $5,546 "50