Griffin v. Griffin
Griffin v. Griffin
Opinion of the Court
The opinion of the Court was delivered by
Two opinions have already been rendered in this cause on demurrers to the complaint. 70 S. C., 220, 49 S. E., 561; 75 S. C., 249, 55 S. E., 317. The judgment of the Circuit, Court, overruling the demurrer to the amended complaint, having been affirmed by this Court, the cause was heard by Judge Memminger on the evidence taken'by a referee. The defendant, Joseph D. Griffin, appeals from the judgment of the Circuit Court, on the questions of subrogation and the accounting by the plaintiff for rents as a mortgagee and cotenant in possession.
The inquiry then, is, what was the equity of the plaintiff who bought and took a deed from a mortgagee in possession under the bona ñde belief that the mortgagee was the owner and that he was receiving a good title ? The answer can not be other than that he is entitled to have from the mortgagee subrogation or an equitable assignment of the mortgage to the amount of the money paid by him and the interest thereon. This was the subrogation asked for by the plaintiff in his complaint. His right to it was settled by the former decree in this language: “It is not necessary to the plaintiff’s right of subrogation to allege and prove that either Ferdinand Levi or Moses Levi honestly believed the sale to be valid and the title made under it good, for the deeds being actually ineffectual to convey the title, the mortgage was not discharged by it, and when the plaintiff actually paid his money and took the deed from the mortgagee, not as a speculative volunteer, but in good faith, believing his title to be good, he was entitled to have from the mortgagee the benefit of the mortgage to the extent of the purchase money paid by him. On this point the case of Sims v. Steadman, 62 S. C., 300, 40 S. E., 677, is conclusive. The correlative equity of the mortgagor and those holding under him is 'to have credit on the mortgage debt for at least $650, the amount of the original bid, as the proceeds of the sale of the land, even if at the resale now demanded the land should bring less than that sum, for the reason that the mortgagor was in no way *260 responsible for the failure to pass a good title by the deeds made under the former auction sale.”
It is true, in the course of the discussion in Givins v. Car roll, the Court does say that the price paid at the invalid sale under the mortgage was an extinguishment of so much of the mortgage debt, as was secured by the mortgage. But this proposition was not necessary to the decision of the case; and, after careful consideration, we think it unsound. The sale under the mortgage being invalid and not depriving- the mortgagor of the land, it left the lien of the mortgage as to the mortgagor undisturbed. The mortgagor pays nothing and loses nothing. Hence, there is no obstacle which the mortgagor can interpose to a valid foreclosure for the entire mortgage debt.
The next question is, What was the purchase money paid by the plaintiff. The consideration expressed in the deed is one thousand dollars for eight-elevenths of the land. The mortgage from Joseph D. Griffin called for six-elevenths of the land, but it turned out that he owned only five-elevenths. After the execution of the mortgage, Moses Levi acquired by purchase three-elevenths from other persons interested; and his deed to the plaintiff for these three shares was a good conveyance. Therefore, the real sum to be regarded as received by Moses Levi, as the consideration for the attempted conveyance of the mortgaged property, which was five-elevenths of the land, was five-eighths of one thousand dollars. It follows that under his right of subrogation to the rights of Moses Levi, the mortgagee, the plaintiff was entitled to set up the mortgage against the defendant for the *261 sum of six hundred and twenty-five dollars, the purchase money.
The defendant alleges in his answer, however, that Moses Levi was in possession of the land from 1884 to 1891, and that the plaintiff has been in possession since that time; and that the amount of six hundred and twenty-five dollars, due to the plaintiff under his right of subrogation, must be credited with the rents for the entire period of the possession of Moses Levi and the plaintiff. In the Circuit decree, the plaintiff is charged with the rents received by Moses Levi, but nothing is charged against him for the time that he has himself occupied the land. As we understand, appellants’ counsel in their argument do not contend that the plaintiff is chargeable with rents received by Moses Levi, but only with the rents and profits accruing while the plaintiff himself was in possession. The rents collected by Moses Levi were received by him before plaintiff had taken a deed from him, and Moses Levi, and not the plaintiff, was chargeable with these rents as credits on his mortgage. After allowing these credits, there was far more due on the mortgage than the sum of six hundred and twenty-five dollars, the portion of the mortgage to which the plaintiff was entitled by subrogation.
Under the principles and the conclusions announced, the account will stand thus:
Due by subrogation to the plaintiff, 17th January, 1891:
5-8 of $1,000 ..............................$625 00
Interest to 1st January, 1892, at 7 per cent........ 41 80
$666 80
Dess 5-11 of rents for that year................. 67 20
$599 60
*263 Interest to 1st January, 1893.................. 41 97
$641 57
Less 5-11 rents for that year................... 67 20
■ $574 37
Interest to 1st January, 1894.................. 40 20
$614 57
Less 5-11 rents for that year................... 67 20
$547 37
Interest to 1st January, 1895................... 38 31
$585 68
Less 5-11 rents for that year................... 67 20
Balance due, 1st January, 1895............$518 48
Interest at 7 per cent, to 1st October, 1907...... 462 69
Total.................................$981 17
Taxes and interest thereon as stated inCircuit decree 132 82
Amount due..........................$1,113 99
The amount due, therefore, on 1st October, 1907, is $1,113.99 instead of $2,028.15, and the judgment of this Court is, that the judgment of the Circuit Court be modified accordingly.
Reference
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- Syllabus
- 1. Mortgages. — Where a mortgagee makes an invalid sale under a power in the mortgage his deed conveys no title, mortgagor has no valid defense therefrom against foreclosure of the mortgage and in such foreclosure is not entitled to have his mortgage debt credited with amount land was bid off at, at such invalid sale. Givens v. Carroll, 40 S. C., 413, modified. O. Ibib.- — Subrogation.-—Where a mortgagee makes an invalid sale of mortgaged premises under power in the mortgage, makes deed to the purchaser, afterward takes a deed from purchaser to himself and goes into possession, he is a mortgagee in possession and his grantee may have foreclosure of mortgage and should be subrogated under the mortgage, to the amount he paid for the land less the rents accruing during his possession. 3. Rents.- — One tenant in common is liable to others for the rents and profits actually received by him for so much of the land as he used over his share, hut not for rental value.