Terhune v. Colton
Opinion of the Court
I do not see anything in this case to justify me in going behind the decree of this court of the 7th of February, 1887. No one can question it, except a party to that decree, or some one whose rights are impaired by it. If its object was to defeat creditors who then had existing claims, or to protect the property of the mortgagor from future creditors, such creditors would be at liberty to impeach it. The complainant does not claim under any party to the decree. His lien upon the mortgaged premises was acquired subsequent to it. He does not impeach it for fraud, mistake, or accident; on the contrary, the bill admits that the decree was entered in good faith between the parties. Nor is there anything connected with the suit, or the manner in which the decree was entered, or in the claims upon which it was founded, to justify the court in refusing to protect and enforce the rights of the respective parties under the decree. The rights of the complainants under it are not controverted; but it is the claim of Asa S. Colton and his wife, and of William Schenck, that is questioned.
But as this is a. case of great interest and importance to the complainant, and as he must be an innocent sufferer and remediless, if he cannot obtain relief in this suit, it may afford him some satisfaction to know that the court has not neglected to give due consideration to every feature of the case, presented by his counsel with an ability which, in a doubtful case, would have commanded success.
What then was the claim, upon which that part of the decree in favor of the Coltons and of William Schenck
Eirst; it is said that the settlement of John C. Schenck, • as executor, in the Orphans Court, operated to release the land. In the final settlement of his accounts, John C. Schenck prayed allowance for this legacy, and it was charged to him as executor: it is insisted, that by this settlement, the land was released. In the account,
Again, it is insisted that the marriage settlement between Margaret Schenck, Asa S. Colton, and John C. Schenck, operated as a legal release and discharge of the mortgaged premises from the said legacy; The object of that settlement was to make John C. Schenck a trustee, in order to secure to Margaret her separate estate free from the control, and liability of her intended husband. The question is, whether there is anything in the settlement to show that it was the intention of the parties, by that deed, to release the land, and to take the personal security of John C. Schenck for the legacy, or whether the legal construction of the deed must necessarily produce that effect ? The deed, sifter reciting particularly the
I have referred to all the parts of this deed upon which the complainant relies to show the intention of the parties, and the legal effect of the deed upon the question in controversy. I do not see anything in the deed to show that it was the intention of the parties that its mere execution should deprive Margaret Schenck of the then existing lien upon the land for her legacy. Nor do I consider that such is the legal construction or effect of the
These were all the questions that appear to have been in controversy between the parties in the suit upon which
The next position taken on behalf of the complainant is, that the decree has been satisfied. Before examining this part of the case, however, it is proper that I should not overlook a matter of much controversy between counsel on the argument—the validity and effect of the agreement upon which the decree was entered. On behalf of the complainant, it was contended that the decree must be enforced according to the terms of the agreement. On behalf of the defendants, counsel insisted that the agreement is not binding on their clients, because their solicitor had no authority from them to make it, and because it was not within the scope of his retainer, as their solicitor, to enter into such an agreement on their behalf. I think the solicitor had not the power to enter into an agreement, by which the lien of his clients upon the mortgaged premises was postponed in payment to a subsequent encumbrance. 'He had no right to do it fo,r a pecuniary consideration, nor in consideration that it prevented further controversy in the suit. An attorney has no right to give up the security of his client, unless he receives actual payment, or is specially authorized to do so. Tankersley v. Anderson, 4 Dess. 44. The authorities are numerous and very uniform against the authority of an attorney, without special authority, to enter into an agreement of this kind. But I think there is evidence enough of the acquiescence of the defendants in the agreement to infer that the solicitor had special authority
Has this decree been satisfied ? If it has, it must have been by actual payment, or by the receipt of some specific thing given and received in satisfaction, or by release. A release is not alleged; nor is there any evidence of the defendants having received any specific thing in satisfaction of their claim. As to payment, the bill states “that; in what way the legacy due Margaret and William was satisfied, the complainant, at this distance of time, and in consequence of the death of John 0, Schenck, has not been able to ascertain, but that it was considered settled
The testimony of Mr. Green and of Mr. Meld is, that they understood that the decree was settled by the parties, and that John C. Schenck represented it to be settled. But no one says that either Colton, or his wife, or William Schenck, was a party to that understanding. Ho one says that either of them was present when any such understanding was had, or that they assented to it. Was there any one authorized by them to bind them by such an understanding ? Mr. Green was their solicitor, and he says he had no communication with either of them upon the subject. He was not authorized to bind them in such an agreement. .Nor could John C. Schenck bind Colton and wife, although ho was Mrs. Colton’s trustee. Situated as he was, the common debtor of all the parties to the decree, for him to have executed an actual release without receiving payment or satisfaction would have been a fraud, and such release would have been void. IIow, then, can this court, upon the allegation of the most respectable witnesses that they understood the decree was settled, and that such was the general understanding of the parties, declare this decree satisfied, when it appears that these defendants were not present at such an arrangement, and in the absence of all proof that they were cognizant of such an understanding ? But it is said that their future conduct showed an acquiescence in this understanding, and that they had relinquished their rights under the decree.
It is not pretended that any memorandum in writing was made as to any arrangement or understanding, nor can any witness tell the terms of any arrangement, either verbal or written, upon which such an understanding was founded. The declaration of Colton and wife, that the decree was satisfied, would not bind them. A debt of record cannot be released by parol. How far such a de
The docket of the shériff is appealed to as evidence of the settlement. On the 30th of March, 1837, Mr. Field, as the solicitor of the complainants in that suit, gave to the sheriff a receipt for $10,203.99, in full of the principal and interest due the complainants. On the 22d of September following, Mr. Green made the following entry, at the request of the sheriff: “ 1837, Sept. 22d. Stay further proceedings on the above decree, as respects Asa S. Colton and TPm. Schenck, till further orders. Jas. S. Green, their solicitor." Mr. Green says he considered the decree as settled, and that is the reason why the entry was made. But the receipt itself will not bear such a construction. He does not say he was authorized by his clients to enter satisfaction. His general authority, as solicitor, did not authorize him to settle that execution in any way, except by receiving the money. The receipt he gave involved him in no such responsibility as a receipt for the satisfaction of the decree would have imposed upon him. The solicitor having no authority to enter satisfaction, if the entry he did make could be construed to have that effect, he would be responsible to his clients for the amount due them on the execution. Such a construction cannot be put upon it, and it could not have been so intended by the solicitor. That entry is evidence, that at that time the execution was not settled, and that the solicitor was not willing to give the sheriff a receipt to that effect.
There is another matter in connection with the receipts in the docket. On the 30th of March, 1837 the date of Mr. Field’s receipt the homestead farm of John O. Schenck was sold by his assignee, under the general assignment made by Schenck,.for the benefit of his creditors. The sale was made subject to this decree and execution, and the property was purchased by "William Gulick for $67. On the same day, the mortgage was executed to Bishop, on the 157 acres of the homestead, for
But for the complainant, it is further contended, that by the subsequent conduct of the Coltons and William Schenck, they abandoned their rights under the decree. It is asked, why was this decree allowed to sleep for eleven years? John C. Schenck was dead. Slo mere respect, or kind feelings for their uncle, could have induced the defendants to acquiesce in this delay. The only answer given is, that
First; as to "William Schenck. It is said he presented his claim to the assignee of John C. Schenck, and that it was passed upon by the court, and rejected by the court. The only evidence respecting this is an exhibit showing an order made by the court upon exceptions filed to the claims of certain creditors. The order declares, “ the claim of John O. Schenck, as executor of Joseph Schenck, for the legacy of William Schenck of $4843.11; the claim of Enoch Johnson of $2646.23; the claim of Caleb Johnson of $15,583.88 i the claim of Isaac Story, executor of James Stoddard, deceased, of $2566.32, having been paid out of the real estate, the court order that the same be not allowed. This order shows that William Schenck was no party to the proceedings; that he did not himself present the claim, but that it was presented by John C. Schenck, as executor. William Schenck, then, is neither bound by the adjudication of the court upon his claim, nor can he be prejudiced by the fact, that his claim was presented. But if he had presented the claim himself, that circumstance would not have prejudiced his rights under the decree. The Orphans Court might properly have turned him over to his lien upon the land, unless he would consent to release it for the benefit of the creditors at large.
As to Asa Colton and wife’s acts under the assignment Of John C. Schenck. In August, 1886, six months prior to the decree, John C. Schenck, as trustee, presented a claim to his assignee for the amount of $4843:11. This amount included the legacy in question, and also the other legacy given to Margaret by the will of Joseph Schenck. To the claim presented, John C. Schenck annexed his affidavit; and, on the same paper, Asa Colton and wife
But the argument was presented in a more forcible manner as to the abandonment of the decree. Admit, it is said, that no one of these acts referred to amounts to a legal or equitable discharge of the decree, it is proved that there was an understanding that the decree should be considered satisfied, and all these acts together show that Asa Colton and wife and "William Schenck acquiesced in that understanding. These acts all show one thing most incontestably, and it is this, that if any one ever understood the decree was satisfied, no one understood or supposed that the debt secured by it was paid or settled. All these acts, which are now brought up in judgment against the defendants, as evidences against them, were nothing more than honest efforts on their part to secure their debt. They are all consistent with the fact, that the debt was acknowledged due, and was secured by that decree. They do not prove that these defendants, without any consideration, released the only security which they had for
It is said, however, that the complainant stands in a very different position from that of John C. Schenck. True, he does. But let us see whether his equities, as against these defendants, are superior to those of John C. Schonck.
I shall examine this part of the case in the most favorable light it can be viewed for the complainant. I shall consider him as standing in the place and stead of James Bishop, and entitled to all the equity which Bishop could have claimed under his mortgage.
On the 30th of March, 183T, the amount of the lien on the decree first to be satisfied was $10,203.99, On that day, this amount was paid off, and on the same day James Bishop advanced to John Gulick, who had purchased, and then held the equity of redemption in the premises embraced in the decree, $5969.46. It is alleged that this money was appropriated to pay, in part, the first lien on the decree. This was not proved, but may, I think, be admitted without affecting the controverted question. John Gulick gave to Bishop his bond, to seoure the money he had advanced, and a mortgage upon the premises. The bill charges, that on the same day the execution upon the decree was settled between the parties, and a new arrangement made between them; that the mortgage from Gulick to Bishop was made cotemporaneously with the settlement of the execution.
Then the bill states, “ the arrangement that was made, as
It thus appears that Bishop advanced his money under the belief, and with the understanding that the Chancery execution was satisfied and arranged, and the property free from encumbrances. It turns out, however, that the execution was not satisfied, and that although the parties supposed it was, there was a misunderstanding upon that subject. The question is, are these defendants responsible for the misunderstanding? Was anything done by them to mislead Bishop, and which makes it inequitable that they should be permitted to enforce their execution ? The bill does not allege that the defendants took any part in the proceedings, or that they, or either of them, ever held out to Bishop, or any one else, that the execution was satisfied or arranged. It charges the arrangement was satisfactory to the defendants’ solicitor. He had no power to enter into any arrangement to satisfy the decree, except upon a receipt of the money due upon it. He com' ploted all the arrangement he was authorized to make,
Have the defendants, since Bishop advanced his money, done anything to prejudice his security, or the rights of any person claiming under it ? The mere delay has not prejudiced any right. If they delayed to enforce their rights under the decree, they have been vigilant in their endeavors to secure their debt. The subsequent acts of the defendants, so far from prejudicing, have benefited the complainant. The substitution of the bond and mortgage of John O. Sehenck for those of John Gulick was an act for which the complainant is alone responsible.
My conclusion is, that the complainant has not made out a case to justify me in enjoining the defendants from proceeding to enforce their execution. There must be a reference to a master to take an account of the amount due the complainant upon the decree and execution, after crediting upon the same such payments as have been made thereon.
There are one or two observations, which it appears to
The bill alleges that William Schenck’s interest was satisfied by certain bonds and mortgages, which were afterwards paid up, with the exception of a small balance of $96.24, for which he received in payment a note of John C. Schenck. The evidence is clear that the bond and mortgage given by John C. to William Schenck, of the 7th of August, 1837, for the sum of $3283.40, was in payment of what is called, the Slaybaek legacy, and has no connection with the legacy in question. This is proved by Mr. Green’s docket; and the correspondence of the amount of the bond and mortgage with that due on the legacy, with the correspondence of dates, place this matter beyond dispute. As to the appropriation of payments made by John C. to William Schenck, and of which no special appropriation has been made between the parties, whether they are to be applied upon the decree or upon other claims of William against John O. Schenck, is left an open question for the master; the parties being at liberty to take such additional evidence as they may see proper.
In reference to the payments to be allowed on the amount decreed in favor of Asa S. Colton and wife, there is more difficulty. It appears, from the evidence now in the case, that if all the payments made were credited upon the decree, it would be satisfied. Colton and wife allege that they had another claim against John C. Schenck for the Slaybaek legacy, and that the payments made, or a part of them, have been appropriated upon that claim.
Tor the Slaybaek legacy, there was a decree in favor of AsaS. Colton and wife for $8187.82, and in favor of William Schenck for $3187.82. The prior encumbrances amounted, on the 21st July, 1837, to $8840.47. The property was sold under and by virtue of the decree, and the net proceeds of sales amounted to $12,889.50. William
Case-law data current through December 31, 2025. Source: CourtListener bulk data.