Reynolds v. Miller
Reynolds v. Miller
Opinion of the Court
Opinion by
If the mechanics’ hens claims in this case had been entered of record before the mortgage was entered, as a matter of course the mortgage would not have been the first lien, and it would have been divested by the sale. It seems to be conceded in the
Now in the present case it happens that the mortgage which was taken by Peter A. Miller, and which is claimed to be the first Ken, contains a distinct recital of the buildings on the land bound by the mortgage, including the factory building in question. The words of the mortgage are, “ The improvements on said land are as follows, to-wit; two’dwelling houses and one barn and one factory building, including all the machinery therein, engine and boiler attached thereto.” As there is no pretense that there was more than one factory building on the premises, the mortgagee had distinct notice of its existence prior to the date of his mortgage. If there were any question upon this subject it would have to be left to the jury to determine. So far then as the mortgagee is concerned he had distinct notice by his mortgage that the building had been, at least commenced, before he took his mortgage. He also had notice because of the visible erection of the building which was proceeding on the ground. In Reading v. Hopson, 90 Pa. 494, we said, Sharswood, C. J., “ It did not appear on the face of the claim when the building was commenced. The question then is, whether the purchaser at the sheriff’s sale can give parol evidence of this fact so as to show that the Ken of the mortgage was divested. As between the claimant and the mortgagee this undoubtedly might have been done for the reason, that if the fact were so, the mortgagee was bound to take notice of it. He is affected by the actual state of things on the ground. If when
Upon the foregoing reasoning we held that the purchaser at the sheriff’s sale was not bound by the constructive knowledge of the mortgagee, and he could not show by parol testimony the fact of the commencement of the building before the mortgage was taken, in order to discharge the lien of the mortgage by proving a prior lien. Following this ruling we held the same doctrine in Wilson’s Appeal, 172 Pa. 354. But the whole force of the ruling is based upon the proposition that the prior commencement of the Building did not appear upon the record at the time of the sheriff’s sale, and therefore the bidder was not bound to regard the fact, and his title must be adjudged by the state of the record as he found it. In the present case however this reasoning is inapplicable. The face of the record did show affirmatively, and positively, that the building, or a building of the character described in the claims, was erected on the ground before the mortgage was given. And it is the record of the mortgage itself which contains this information. An intending bidder therefore upon examining the record before his bid was made would find precisely the facts which would, or might, discharge the lien of the mortgage by the sale. Having this knowledge apparent upon the record before
The decree of the court below is reversed at the cost of the appellees, and the record is remitted with direction to distribute the fund in accordance with the first report of the auditor.
Reference
- Full Case Name
- William N. Reynolds v. Peter A. Miller
- Cited By
- 4 cases
- Status
- Published
- Syllabus
- Mechanics' liens — Mortgage—Discharge of mortgage — Assignee's sale. Where a mortgage recites the existence of certain buildings upon the mortgaged premises, and there are mechanics’ claims filed subsequent in date to the mortgage, showing on their face that material and work was furnished for the buildings prior to the date of the mortgage, a purchaser at a sheriff’s or assignee’s sale of the premises may assume that the lien of the mortgage will be discharged by the sale.