Lee v. Fellowes & Co.
Lee v. Fellowes & Co.
Opinion of the Court
delivered the opinion of the Court.
W. & C. Fellowes, Whitlock & Kaye, Longstreth & Bouldin, and Summers & Simmons, judgment creditors of Crist & Simmons, being unable to coerce their several demands by execution, each exhibited a bill in chancery to set aside, as fraudulent, a mortgage made by Jonathan Simmons, one of the firm of Crist & Simmons, to Lee, on land and negroes, and a mortgage to JohnS. Simmons on three slaves. If the transactions are not decreed to be fraudulent, they then seek to reduce the amount secured, by cleansing the transactions of usury. In the progress of the cause, various amended bills .and answers were filed by the respective parties,
Where the borrower has paid usurious interest, his creditor cannot, without his consent, sue for and recover of the usurer the amount of the usury so paid. But where the usury has not been paid, and where the matter in contest between creditors is, what sum each may lawfully and equitably assert against the debtor, whose means are insufficient to pay all his debts, we apprehend that the rule is, and ought to be different. The sum legally due to a creditor, is all that, in good conscience, he ought to be permitted to assert, to the prejudice of the claims of other bonafide creditors. It does not at all affect the usurer’s demand against his debtor, as
The next subject of inquiry is, the purchase, by Lee & Simmons, at the execution sale,, of the mortgaged property. Simmons does not controvert the charge that the sale to him was in gross. Lee, in his first answer on that subject, admits it; in his second, he does ■not remember; and in his third, says the land and slaves were each sold separately. The Sheriff’s return was that of a sale in gross. ITe subsequently amended it, and made it a sale in parcels, and has given In his deposition to sustain his amended return ; but the- evidence is very clear, not only by witnesses on the ground' at the time of the sale, but by the statements of the Sheriff and Lee, that the sale was in gross ; that is, that the land and negroes were all set up at once, and one bid was made for the whole.
The statute which subjects mortgaged property to sale under execution, expressly enacts, that it shall be sold “ in the same manner as such property might have been sold if no such incumbrance (as the mortgage) had existed(1 Stat. Law, 653.) If sold absolutely, and not subject to the mortgage, it would not be controverted, that the land, and each slave, should have been separately sold, and a sale in gross, in each case, would be set aside. The sale subject to the mortgage is, by the above cited statute, required to be made in the same manner. A sale in gross would be often detrimental to the best interests of debtor and creditor,.and ought not to be countenanced, independently of the statute. There was no error in the decree disregarding the sales and purchase, and subjecting the property to a re-sale. We do not perceive any error in the details of the de
Reference
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- Lee &c. v. Fellowes & Co.
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