Horner v. Corning
Horner v. Corning
Opinion of the Court
The suit in which this petition is presented was for the foreclosure of a mortgage on about five hundred acres of land in the township of Pompton, and county of Passaic. Large and valuable steel and file factories, and also an extensive body of water and water-power, are included in
Hpon the argument of the petition, her right to be let in to answer and to have the sale stayed, was contended for under the- seventy-third section of the chancery act (Rev. p. 117); the 'counsel of petitioner insisting that by the true construction and meaning of that section, her right to the relief sought for in her petition was not dependent upon the discretion of the court, but was absolute and unrestricted by any terms or conditions other than those named in the section itself. Meritorious defences were claimed to
“ That in all cases of a decree for sale of mortgaged premises against any absent defendant, if such defendant shall at any time before sale made by the sheriff, in. pursuance of any writ of execution, cause his appearance to be entered in court, and shall pay such costs to the complainant as the court shall think reasonable, then it shall and may be lawful for the said court, by a writ of supersedeas, directed to the sheriff or other officer, to stay his proceedings on the execution for the sale of such mortgaged premises, and thereupon shell proceedings shall and may be had as if an appearance had been entered within such time and in such manner as, according to the rules of the court, tl\e same ought to have been entered in case the first process in the suit had been duly served.”
Eo judicial interpretation of the foregoing provisions seems ever to have been made by the courts of this state. Previous to the argument of this petition, I had supposed them to authorize the opening of a decreé and the stay of proceedings, upon grounds only of surprise and merits; and this, I think, has been the construction of them generally made by the profession. The different meaning contended for by the petitioner’s counsel, has, however, been supported with so much force of reason and by the rulings of Chancellor Walworth upon a similar statute of the state of Eew York, that I have been constrained to regard the true construction as involved in difficulty and doubt. But, upon the best consideration I have been able to give, I cannot hold the language of this section to be peremptory and exclusive of the question of merits. I shall, therefore, advise that the prayer of the petition be denied and the rule to show cause be dismissed; but, regarding the question as one of no small importance to the parties in this suit and of great importance in itself, I will advise that the sale be adjourned by the master for the further period of
In the defences set out in the petition I can find nothing which I have not already held to be insufficient on the final hearing of the cause. So far as the matters contained in the petition -would be admissible as defences to the present bill of foreclosure, they were insisted on by the counsel of Mrs. Buckingham, and an answer by the petitioner would he only a rehearing of the cause. If the views upon which the decree was then advised by me were mistaken, the remedy was by an appeal.
I will advise as above.
The opinion of the court was delivered by
The appellant is an absent defendant in a foreclosure suit in the court of chancery. After decree pro confesso, final decree and execution, which appear to be entirely regular, the appellant, before sale of the mortgaged premises, entered her appearance under the seventy-third section of the chancery act (Rev. p. 117), and thereupon filed her petition, claiming the right to have a writ of supersedeas issue to the master to stay the sale of the mortgaged premises, and to have the final decree opened or set aside, to the end that she might make her defence, the same as if she had been served with process, and had appeared on return thereof, as required by the rule and practice of the court.
It is claimed that the statute referred to is mandatory, and that under the 'circumstances it is the legal right of the appellant now to appear and defend the suit. In my opinion, the statute will not bear the construction contended
Another ground for relief urged by appellant is, that the proceedings, though regular upon their face, are not so in fact. It appears that appellant was not advised of the proceedings against her, and had, in fact, no knowledge of the existence of the suit. It, however, very satisfactorily appears that the complainant did all that the law required him to do in order to bring in the appellant as an absent defendant. The solicitor of the complainant made inquiries of the proper person as to the residence of the appellant, upon making such inquiries, received correct information, upon which he acted, and sent the notice required by the statute to the legal residence of the appellant. That the
It is, in the next place, urged by counsel of appellant that, assuming the proceedings to be regular in form and fact, the appellant has certain equitable defences against the complainant’s mortgage, of which, without fault or laches on her part, she has not been able to avail herself, and in respect to which she is now entitled to be heard, and that for this reason the court, in the exercise of its discretion, ought to open the decree and let her in to defend, upon such terms as may be equitable. The complainant denies that appellant has shown or suggested to the court any equitable or legal defence against the mortgage in question.
I think that the appellant, at this stage of the case, in order to entitle herself to the interference of the court in her behalf, should clearly show, as against the complainant’s mortgage, some equitable and meritorious defence. Has she shown any such ? Her first ground of defence is that the mortgaged premises ought not to be sold to pay complainant’s mortgage, until certain equities of some-of the defendants against another are settled, and that one of the defendants, as receiver of certain personal estate and of the rents and profits of the mortgaged premises, ought to be first required to pay the complainant’s mortgage out of the moneys and assets in his hands as such receiver, before the mortgaged premises are resorted to. But it is not shown, nor is it alleged, that the complainant is in anywise affected by these alleged equities. There is no question about the validity of complainant’s mortgage, nor the amount due upon it; and upon what equitable or legal principle he should be compelled to run the hazard of delay until a controversy among the defendants is determined, I have not been able to see. It was suggested, on the argument,
The next ground of defence urged is, that there is error in the final decree, in that the mortgaged premises, being subject to a mortgage prior to complainant’s, are ordered to be sold in parcels. I have no doubt that the decree was made in this form advisedly, for reasons which at the time appeared satisfactory to the court. If, thereby, any inequity has been done the appellant, it is not a defence to the suit which can be interposed by plea, answer or demurrer. It has not been alleged that the complainant, in his bill or otherwise, asked the court to order a sale of the mortgaged premises in the mode directed by the decree. The fair presumption is that it was so ordered in consideration of the equities of some one or more of the defendants. If the appellant is in anywise aggrieved by the form of the decree, her remedy, if any, is not by petition to open or set aside the final decree and decree pro mifesso. Her application should be to the court of chancery, to so amend the final decree as to preserve her rights; or, perhaps, she may have relief by appeal.
The result is that the decree of the court of chancery must be affirmed, but, under the somewhat peculiar circumstances, I think the affirmance should be without costs in this court.
Decree unanimously affirmed.
Reference
- Full Case Name
- Susan Horner, and Erastus Corning
- Status
- Published