Fredonia National Bank v. Perrin
Fredonia National Bank v. Perrin
Opinion of the Court
Opinion by
Though the transactions involved in these cases were somewhat complicated, the really essential facts may be stated in brief compass. Waterhouse was the owner of the premises in question, subject to the mortgages now in suit. There appears also to have been a prior mortgage to Pratt and Phillips with which we are not now concerned. In September, 1891, Water-house sold the timber on the mortgaged land to Collins the appellant. The price was paid by check and notes which were deposited by Waterhouse with Green the cashier of the Fredonia National Bank for collection, and were subsequently paid by appellant to that bank. At that time the land was being operated for oil, and by arrangement between the owner of the land and the holders of the notes secured by the mortgages, the proceeds of the oil were paid to Green to be applied to the reduction of the mortgages. The purchase money of the timber was handed over by Green to Waterhouse, and used in defraying the expenses of operating the land for oil. The appellant’s claim is that as his money, which he paid for the timber, was used for the expenses of operating and thereby increased the profits from the oil which went to the reduction of the mortgages, it should in equity be treated as if it had been applied directly to that purpose, and the timber thereby released from the lien of the mortgages, in accordance with the principle heretofore laid down in this case in Pratt v. Waterhouse, 158 Pa. 45, and Waterhouse v. Borden, 166 Pa. 177.
It is hardly necessary to say that when this case was here before (166 Pa. 177) is was decided on the facts as they appeared in the affidavit of defense. On the trial the appellant failed to establish the principal averment that the proceeds of the timber were paid over to and received by the bank, and the case as now presented fails in its most important point.
Judgment affirmed.
Reference
- Full Case Name
- Fredonia National Bank, Assignee of J. A. Waterhouse v. H. P. Perrin and A. Borden, T. D. Collins, Terre Tenant., Appellant Fredonia National Bank, Assignee of J. A. Waterhouse v. H. P. Perrin and A. Borden, T. D. Collins, Terre Tenant, Appellant H. P. Perrin, A. Borden and H. J. Pemberton in part for Use of Fredonia Nat. Bank and in part for Use of Farmers' Bank of Springville, N. Y. v. J. A. Waterhouse and W. B. Hooker, T. D. Collins, Terre Tenant
- Cited By
- 1 case
- Status
- Published
- Syllabus
- Mortgage — Trust and trustees — Timber—Application payment. Where a person purchases timber without knowledge or inquiry as to the existence of mortgages upon the land, and gives checks and notes which are deposited by the owner in a bank for collection, and the proceeds of which when received are used by the owner in developing the land for oil, and it appears that the cashier of the bank which had collected the checks and notes was a trustee for the mortgagees to apply the proceeds of oil from the land in reduction of the mortgages, the purchaser of the timber has no standing to claim that the proceeds of the timber should be applied in reduction of the mortgages and in relief of the timber where there is no evidence of any agreement among the parties, or any trust by which the bank or its cashier was to apply the proceeds of the timber towards the payment of the mortgages.