Jones v. Maney
Jones v. Maney
Opinion of the Court
delivered the opinion of the court.
On the 11th of February, 1871, the complainant and others obtained a judgment in the circuit court of Knox county for upwards of $2,500 against Joseph A. Mabry. On the 21st of March, 1871, Mabry conveyed by deed, with general warranty, to the complainant two lots of land, in or near the city of Knoxville, in part satisfaction of said judgment, the deed being duly registered on the next day. Several judgments for money in favor of other parties had been rendered by the same court against Mabry at former terms, other judgments were also rendered against him at the same term that complainant's judgment was rendered, and still others were rendered at subsequent terms of said court. There were also decrees for money in the chancery court at Knoxville. All of these judgments and decrees, except complainant’s judgment and one other, were taken by appeal, or appeal in error, to the supreme court at Knoxville, and were all affirmed at the September term, 1871. On the 9th of March, 1872, the several judgments and decrees were assigned to Geo. Maney and Maria E. Crutcher, part to one and part to the other, but all for the benefit of the Tennessee & Pacific Kailroad Company. Within twelve months from the affirmance of said judgments and decrees said parties were proceeding, by virtue of process issued thereon, to sell a
If the case stood alone upon the allegations of this bill, it is doubtful whether the question so ably argued by counsel, and upon which the m.erits of the controversy really depend, would be fairly presented; but the cross-bill states the case more fully, and fairly presents the questions discussed.
Without entering into detail in regard to the various judgments and decrees, ' so as to show which constituted valid liens upon the property in question superior to the title of the complainant, it may be stated in general terms, that part of said judgments are conceded to have constituted a lien upon the two lots conveyed to the complainant superior to- his title; as to the others, it is conceded that the complainant’s title is perfect As we understand the record, the process in each case was levied upon all the separate pieces of property. The answer and cross-bill were
The property was purchased for the benefit of the Tennessee & Pacific Railroad Company, the beneficial owner of the judgments, and • by direction of Maney, its agent, the net proceeds of the several sales were so credited upon the several fi. fa.’s and orders of sale as to leave an unpaid balance on one or more of those judgments, the lien of which on complainant’s lots is conceded to be superior to his deed, and to satisfy these balances the cross-bill prays to have complainant’s lots sold, and so the chancellor decreed. But it appears that of the proceeds of said sale large sums were, by the direction of Maney, credited on those judgments which were inferior to complainant’s title — or, as they have been termed in argument, the “junior judgments” — paying, it is said, these judgments, or some of them, in full. It seems not to be denied that- if the proceeds of the sale had been applied in
The question upon this state of facts is, whether the complainant is entitled to an injunction, or has the defendánt the fight to satisfaction of the balance of the “senior judgments” out of complainant’s lots?
We may treat the question as unaffected by the fact that all the judgments were at the 'time of the sale, and now are, owned by the same person. We may concede that' the assignee may stand with respect to each judgment upon the right of the assignor thereof, and we speak of the several judgments as if still owned by the original parties. It is conceded that if any balance legitimately remains unpaid on the “senior judgments,” the complainant cannot resist a sale of his lots in satisfaction .thereof. A purchaser of property subject to a lien, has, in equity, the right to have the lien debt discharged out of the debtor’s remaining property in exoneration of the property so purchased; or, if his property be taken to satisfy the debt, he may be substituted to the creditor’s rights against the debtor and his remaining property. This principle has been applied in various forms, such as the purchase of property subject to a mortgage or vendor’s lien. Where there have been successive sales of property so incumbered, the incumbrance, it has been frequently held, shall be enforced against the several parts of the property in the inverse order of the sales. It is not always, however, that courts of equity will in
So, in this case, the complainant had a clear equity to have the “senior judgments” satisfied out of the remaining property of Mabry before selling the lots con.veyed to the complainant. If the controversy were alone between the complainant and the holders of the “senior judgments” — that is, assuming that there were no other judgments — the complainant’s right to be thus protected, either by compelling the creditor to go upon the other property or by way of substitution, would be beyond doubt. It is, furthermore, 'not questioned but what ihe “senior judgments” were a prior lien over the “junior judgments” upon Mabry’s remaining property — that is, the other property sold on the 27th of April, 1876, and if the proceeds of that sale had been applied in accordance with such priority, the “senior judgments” would all have been satisfied out of the proceeds of the sale, leaving the deficit upon the “junior judgments,” and this would, have resulted in the complete exoneration of complainant’s lots, as there was no lien thereon in favor of the “junior judgments.” This result, however, was prevented by a different application of the proceeds of the sale. This application was made by the officer under the direction of the owner of all the judgments. As between
We have seen that/as between the complainant and the holders of the “senior judgments,” equity required their satisfaction out of Mabry’s remaining property; as between the “senior” and “junior” judgments, the former had a prior lien upon and right of satisfaction out of said property. This prior lien was fixed and settled by positive statute and settled rules of law. It was the absolute duty of the officer •making the sale to appropriate the proceeds accordingly. If the holders of the “senior judgments” chose to wnive this fixed legal right in favor of the “junior judgments,” they did so at their peril. They ought not thereby to be allowed to prejudice the rights of the complainant, or acquire any greater right to satisfaction out of his property than they would have otherwise had. Equity will consider that done which ought to have been done — that is, we will consider the proceeds of the sale of the 27th of April, 1876, applied as they ought to have been applied. They ought to have been applied according to the prior liens of the several judgments, — this being done, the “senior judgments” are satisfied and complainant’s lots exonerated. This must be so, unless the holders of the “junior judgments” have an equity to compel sat
In Guion v. Knapp et al., 6 Paige, 35, the mortgagee, with notice of several successive alienations of the mortgaged property, released the part primarily liable. He was not permitted to charge other portions of the premises with the mortgage debt without deducting the value of the part of the property released. See, also, 2 Paige, 200; 9 Cowen, 403; 5 Johns; Ch. Rep., 33; 8 Paige, 278; 56 Geo., 609.
The decree of the chancellor will be reversed, and a decree rendered for the complainant, with costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.