Leonard v. New England Mortgage Security Co.
Leonard v. New England Mortgage Security Co.
Opinion of the Court
1. An equitable petition will lie at the instance of a judgment creditor of the true owner of land, to enjoin the sale thereof under an execution in favor of a non-resident corporation having no place of business in this State, against a third person apparently clothed with the legal title under a deed from such true owner; the petition in effect alleging that this deed was in fact fraudulent and void, and that though the non-resident execution creditor seeking to bring the land to sale as the property of the grantee in that deed had, at the time of the creation of the debt upon which its execution was founded, taken title derived from such grantee as security therefor, it did so with knowledge of facts sufficient to put a prudent person upon inquiry as to the true character of such deed, these facts being set forth, and the petition praying for the cancellation of that deed as a cloud upon the title of the plaintiffs' debtor.
2. The court erred in dismissing, on demurrer, an equitable petition of the nature above indicated. Judgment reversed.
Reference
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