Cupples v. Galligan
Cupples v. Galligan
Opinion of the Court
delivered the opinion of the court.
This is an action of ejectment. The answer is a general denial; and also sets up, as a matter of special defence, that the plaintiff derives title only through foreclosure of a certain deed of trust, and the deed of the trustee made in consequence of such foreclosure, and that in a suit between the parties to this action the foreclosure was set aside and the deed of trust declared null. The answer further alleges that the foreclosure sale was in fact null because all money due was tendered before foreclosure, and the power of the trustee to sell thus taken away.
On the trial, the plaintiff, in support of his title, offered a deed of trust from Andrew J. Whelan and others to one Reilly as trustee, to secure the payment of certain notes, and also a deed of the trustee conveying the property in question to plaintiff as purchaser at the sale foreclosing the deed of trust. Defendant introduced the record of a suit in the Circuit Court of St. Louis County, in which defendant Whelan was plaintiff, and Cupples, the plaintiff in this suit, together with Reilly, the trustee, were defendants. From this record it appeared that the object of that action was to set aside the foreclosure of the deed of trust under which plaintiff in this action derives title, and to annul the deed of the trustee to plaintiff, on the ground that the amount due on the notes, and all costs, were tendered to plaintiff and also to the trustee, before the sale, and were refused. Answers were filed by Cupples and Reilly; and a decree was rendered in that cause, wherein it is recited that the court finds that at and prior to the date of the sale under the deed of trust the amount due and all costs and expenses were tendered by Whelan to Cupples and Reilly, and refused by them; and that on payment by
Defendants asked the court to declare that on all the evidence plaintiff was not entitled to recover. This instruction was refused, and there was a finding and judgment for plaintiff; from which defendants appeal.
It is claimed by respondent that the decree of the Circuit Court was conditional, and that, its terms not having been complied with, there is no decree setting aside the decree to Cupples, and that he ought, therefore, to recover upon his legal title. It is’contended by appellants that whether the decree of the Circuit Court be absolute or conditional is immaterial; that the fact that all amounts due on the deed of trust, and all costs, were tendered before the sale, was found by the court in a suit between the same parties; that this question is therefore res adjudicate, between them; and that as tender and refusal are equivalent to performance, in their operation upon the power of the trustee to sell, he could not sell, there being no default, and the equity of redemption did not pass, therefore, from Whelan to Cupples by the pretended sale.
Let it be conceded that the fact that the amount due and all costs was tendered to the cestui que trust and to the trustee, or to both, before the sale, and refused, has been litigated by the parties and decided, and that Cupples is estopped to deny it: a tender of the amount due on a mortgage, after breach, does not at common law operate as a discharge. In case of a mortgage, a failure to pay on the day named forfeits the estate, leaving the mortgageor only an equity of redemption, which equity will give effect to by compelling a reconveyance on equi
In New York, after many contradictory decisions, it seems at last to be held that tender of the amount after the day is a discharge of the lien of a mortgage, in the same way that a tender on the day is the discharge of the lien at common law. And the New York rule is followed in Michigan. Counsel for appellants refer us to the leading cases on this subject in those States; but we do not think that they have been followed in Missouri. And had they been followed here, it would not avail him, because everywhere the tender, to discharge the lien, must be a tender of the whole debt secured by the mortgage, and not merely the portion of the debt due at the time of the tender. And it is not found by the decree in Whelan v. Cupples that the whole amount secured by the deed of trust was tendered, but only the amount due at the time the tender was offered; in other words, that the default in payment of interest was cured by the tender, and that
In the case before us, the trustee sold, the debt secured by the deed of trust being then due, and the whole debt having matured, according to the strict terms of the contract between the parties, by reason of non-payment at maturity of the interest-notes. By that sale, unless such a tender was made as would have the effect in law of a payment of the whole debt secured, and thus avoid the deed of trust by its terms (and it is not pretended, and is not found by the decree in Whelan v. Reilly, that any such tender of the debt secured was made), the naked legal title passed, at least, that being vested in the trustee. Whether the equity of redemption also passed by that sale to the purchaser, was a question on which a court of equity
The judgment of the Circuit Court is affirmed.
Reference
- Full Case Name
- Samuel Cupples v. Henry Galligan
- Cited By
- 1 case
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- Published