Conrad v. Harrison
Conrad v. Harrison
Opinion of the Court
The only serious question in this case, is that which has been raised, and very well argued, on the subject of contribution. I have laboured exceedingly, to understand it; but l feel doubtful of my success; especially, as the present inclination of my mind seems opposed to my former opinion.
I premise, that I do not think this question at all affected by the exception or reservation in the deed from Sisson to Koontz for the benefit of TIarrison and Cravens, nor by the understanding, .which the appellant’s counsel supposed, existed between the parties to that deed. For the intent and design of the parties, we must consult the deed itself. That gives a lien on Sisson’s land, except 75 acres on the east side of the tract. As to the land thus excepted, Harrison and Cravens have no claim on it as a security for the debt due them : but that is all: they say nothing as to the effect of Brock’s lien upon it; much less do they stipulate to relinquish any right, which their position as incumbrancers may give them, to throw Brock’s lien on this excepted land. We must, then, decide this as a general question.
Considering Conrad’s claim to preference over Harrison, by throwing Brock’s lien off the 75 acres, wholly unfounded, has he a right to stand on equal ground with Harrison? to claim a rateable contribution of him, in the payment of Brock’s debt ? It lies at the very root of this doctrine of contribution, that the parties shall stand in cequali jure. The vendor or his heir can never call on his vendee for contribution. Suppose, after Sisson’s deed to Harrison
If it be asked, how I can reconcile this decision with that of Beverley v. Brooke, in which I sat, and agreed fully with the rest of the court? I answer, that I cannot reconcile them to my own satisfaction. I can only say, that, in each, I have decided as I thought right. I well remember to have examined with care, the authorities cited in Beverley v. Brooke, by our excellent and learned brother [ Green, J.] whose aid I most sincerely wish we had now; and to have thought his deductions from them correct. In that case, the decisions of chancellor Kent now cited, so powerful in their reasoning, seemed to have escaped both the bar and the bench. There was no reference to them. The counsel, indeed, took the ground in argument; but we thought all the authorities were the other way.
I am for affirming the decree.
As to the first point, it is enough to say, that I concur with judge Carr, that the exception of the 75 acres out of the deed of trust of February 1822, to secure the debt due Harrison and Cravens, furnishes no ground to sustain Conrad's claim to priority of satisfaction out of that reserved parcel.
All mortgages, whether original or subsequent, are regarded, in a court of equity, as mere equitable incumbrances for the security of the debt; and it is the business of that court, so to mould and direct these equities, as to effect the purposes of justice.
If there were no other persons concerned in this case, than Sisson the mortgagor, Brock the first mortgagee, and Harrison and Cravens the second mortgagees, all would admit, that a court of equity, in providing payment for Brock’s debt, ought so to direct it as not unnecessarily to lessen or impair the security of Harrison and Cravens; and, consequently, that Brock’s lien ought to be made to fall, in the first place, on the 75 acres not included in the mortgage to Harrison and Cravens, and in which Sisson and Brock were alone interested. If this would be so, in that case, I cannot conceive how the alienee of Sis-son’s equity of redemption, can stand on better ground than Sisson himself. And, accordingly, there never has been a case, where one of two subsequent mortgagees were held to be contributory to the other. They are not in equal right; but the last mortgage takes in subordination to him who precedes him.
It is supposed, that the case of Beverley v. Brooke is in conflict with these principles. But that case is different from this, in some important respects. That was not the
I concur in the opinion, that the decree should be affirmed.
The rights of the parties in this case, must first be examined upon general principles of law, independent of the influence, which the exception in the deed of trust of February 1822, is supposed to have upon it. In this regard, Conrad's pretensions will be found to rest on no reasonable foundation. Brock having a deed of trust on the whole land, and Harrison and Cravens a subsequent deed of trust on one part of it, and Conrad a still later deed of trust on the whole, it is found, that there will not be enough to pay all. Brock must be paid, for he has the first lien. Harrison and Cravens, or Conrad, must lose. Which ought to be the loser, the prior or the subsequent incumbrancer? The latter, assuredly. Conrad does not think so: but he can sustain his claim, only by shewing that he has a right, either to throw the whole burden from his
That Conrad should throw the whole burden upon liarrison and Cravens, who obtained their lien before he obtained his, would indeed be without example. The principle is clear, that where a first incumbrancer (as Brock in this case) has two funds to resort to, and a subsequent incumbrancer but one, the latter may compel the former to seek satisfaction out of that on which he has no lien, provided he does not thereby interfere with the superiour rights of a third person. Thus, if Harrison and Cravens had no incumbrance, Conrad might demand that his 75 acres should be relieved, and the burden thrown on that portion which would yet have remained in the debtor’s hands. But Harrison and Cravens have an incumbrance on that part; an incumbrance prior to Conrad’s ; and it would reverse the order of things, and upturn the established principles of equity, if he, who is subsequent in point of time, should be prior in point of right. Conrad, therefore, has no pretension to throw the whole burden upon Harrison and Cravens.
Neither is he entitled to throw any part of the burden upon them. Before he purchased, no person had that right. His purchase was made with knowledge of their lien, and of Brock’s incumbrance, and with presumed knowledge of the legal effect of those liens. Would it be just or reasonable, that Harrison and Cravens, without any fault, or assent on their part, should thus be incumbered with any part of this burden? Far otherwise; for they not only have a right to resist Conrad’s pretensions to throw the burden on them, but if Brock himself had been about to do so, they would have been entitled to demand that the whole burden should have been thrown upon Conrad. This is a necessary consequence of the principle of equity, already stated, that whore a first incumbrancer has two funds to resort to, and the subsequent incumbrancer can only charge one of them, the first incumbrancer shall be compelled to seek re
Now, if upon the execution of the deed of trust to them, Harrison and Cravens had this right against Sisson, they must have the same right against Conrad, because when Conrad purchased, he took his 75 acres, subject to its liability in the hands of the debtor, in preference to the land already incumbered to Hamson and Cravens. He sits (as has been well said) in the seat of his grantor, and must take the land with all its equitable burdens. It cannot be in the power of the debtor, by the act of selling the remaining land to discharge it, and throw the burden back upon Harrison and Cravens. If so, we should then have this unheard of state of things, that one man shall lose his rights and property, without his fault or his assent, and another shall be enabled to take them away without an equivalent. The equity of Harrison and Cravens, therefore, as against Sisson, to throw the burden upon his 75 acres, still subsists as against Conrad, who purchased from him with a full knowledge of all the facts, and a presumed knowledge of all the legal consequences of those facts.
But it is said to be settled, that all the alienees of the lands of a debtor, are bound to contribute, rateably, to the
That the principle contended for is in direct conflict with that which, I think, has been already shewn to be established, is sufficiently obvious. That it is in conflict with the reason of the thing, seems equally plain. “ If,” says chancellor Kent, “ there be several purchasers in succession, at different times, I apprehend, that, in that case also, there is no equality, and no contribution as between those purchasers. Thus, for instance, if there be a judgement against a person owning three acres of land, and he sells one acre to A. the two remaining acres are first chargeable in equity, with the payment of the judgement debt, whether the land be in the hands of the debtor or of his heirs. If he sells another acre Lo B. the remaining acre is then chargeable, in the first instance, with the debt as against B. as well as against A. and if it should prove insufficient, then the acre sold to B. ought to supply the deficiency, in preference to the acre sold to A. because, when B. purchased, he took his land chargeable with the debt in the hands of the debtor, in preference to the land already sold to A. In this respect, we may say of him, as is said of the heir, he sits in the seat of his grantor, and must take the land with all its equitable burdens. It cannot be in the power of the debtor, by the act of assigning or selling his remaining land, to throw the burden of the judgement, or a rateable part of it, back upon A.” Upon these principles, set forth in Clowes v. Dickenson, chancellor Kent proceeded in that case, and on the same principles, he had previously decided the case of Gill v. Lyon. I do not perceive how the reasoning, or the conclusion, of the judge can be successfully controverted. His decisions, indeed, are not binding authority upon this court; but wc are bound to follow the light of reason, from whatever luminary it may be poured upon us.
While, however, the case of Beverley v. Brooke stands as the law of the court, we are not justified in taking a distinction from the difference of the tribunals of law and equity: that was a case in equity as well as this. But that was the case of a judgment; this, of a mortgage : and if I could see no distinction between them, I should not be disposed to extend to this case, as it is not identical, a principle with which my reason is not satisfied. There is, however, some distinction between the cases. The right of the purchasers, as we are told in the authorities cited, is not to compel each other to contribute, but to force the plaintiff in the judgement, by audita querela or scire facias, to issue his execution against all. If this is not done and one pays all, it would seem he is without remedy. 3 Co. 14. b. But, in the case of the mortgagee, there are no means of compelling him, at law, to turn all the parties out of the mortgaged premises. His title is at law absolute as to the whole. The incumbrancer who would enforce contribution, can only have it in equity: and if he asks it there, he must shew that he has equityi and this, I take it, the last incumbrancer cannot shew, as against the prior mortgagee.
Decree affirmed in omnibus.
Reference
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- Conrad v. Harrison and others
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