Cummings v. Horter
Cummings v. Horter
Opinion of the Court
Opinion by
This suit is upon a mortgage. The plaintiff is an assignee who, it is alleged by the affidavits of defense, took title from an assignee whose assignment was obtained from Edward Twaddell by fraud. Edward Twaddell is named in this action as terretenant. He is a part owner of the land covered by the mortgage, and was so when he owned and assigned the mortgage.
It is contended that as assignor of the mortgage Twaddell has no standing to defend, and that as terre-tenant he is restricted to those defenses which the mortgagor could set up. The position of the defendant as owner of a mortgage upon his own land is unusual. Ordinarily such a condition would result in a merger of the mortgage in the title to the land. As the defendant was, however, but a part owner of the land, he could in equity keep alive the mortgage to secure the debt upon all of the interests in the land.
The plaintiff’s title to the mortgage is based upon an alleged fraud perpetrated against an assignor who is also part owner of the land. The parties here are of necessity, and by the act of the plaintiff, made parties plaintiff and defendant to try the right of the plaintiff to foreclose the mortgage. The defense, as between such parties, raises the question whether the defendant, after fraud committed against him in the procurement of an assign-
The order is affirmed.
Reference
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- Syllabus
- Assignment of mortgage — Fraud in procurement — Equitable defense by defendant who is part owner and mortgagee. An assignor of a mortgage who is also part owner of the mortgaged premises, in a suit brought by the assignee, may set up as a defense fraud alleged to have been committed in the procurement of the assignment upon which the plaintiff’s right to sue is founded. A resort to equity will not be required where the common-law machinery has been set in motion by the plaintiff, and furnishes adequate opportunity for a determination of the pending dispute.