In re Life Association of America

• Decision Date: 20 December 1888
• Parties: In re LIFE ASSOCIATION OF AMERICA.
• Court: Missouri Supreme Court

10 S.W. 69

96 Mo. 632

In re LIFE ASSOCIATION OF AMERICA.

Supreme Court of Missouri.

December 20, 1888.

MORTGAGES — FORECLOSURE — LIABILITY OF PURCHASER TO FIRST MORTGAGEE.

A deed of trust, after describing the land in the granting clause, added: "Together with the net income realized from said property as the rents thereof." There was no express stipulation that the trustees might take possession on default of interest; and no demand was made for the rents, or for an accounting. Held, that the purchaser at a sale under a second deed of trust, who took possession, was not liable to the trustee for the rents accruing while he was in possession, and before the trustee attempted to take possession on default.

Appeal from St. Louis circuit court; GEORGE W. LUBKE, Judge.

A petition by M. A. Rosenblatt, asking that the superintendent of insurance, in possession of the property of the Life Association of America, — a corporation which had been dissolved, — be required to pay to him certain rents, was denied, and the petitioner appeals.

Geo. W. Taussig, for appellant. Wm. S. Relfe and Hough, Overall & Judson, for respondent.

BLACK, J.

The petitioner, M. A. Rosenblatt, filed two applications in the matter of the Life Association of America, asking that the superintendent of insurance be required to pay to him the net rents arising from property known as the "Masonic Building." The court declined to make the orders prayed for, or either of them, and he appealed. These claims for the rents grow out of the following agreed facts: The Masonic Hall Association owned a parcel of ground in St. Louis, and the building thereon; and on the 1st of June, 1869, made a deed of trust to secure the payment of 140 bonds of that date for $1,000 each, due in 15 years, bearing interest at 8 per cent. per annum, payable semi-annually, on the 1st days of June and December, as evidenced by attached coupons. The deed of trust, after describing the real estate, goes on to say: "Together with the net income realized from said property as the rents thereof, after expenses of collection and repairs shall be reserved therefrom." The deed of trust contains the usual power of sale, to be exercised upon the failure of the Masonic Association to pay the bonds and coupons, or any them, when due, or upon failure to keep the property insured in the amount of $150,000, for the benefit of the owners of the bonds. The Masonic Association made a second and subsequent deed of trust on the property, and, at a sale made thereunder, the Life Association purchased the property on the 10th November, 1873, and at that date took possession thereof. In 1874 the Life Association erected on a then vacant portion of the lot a new building at a cost of $23,356. After this, and on the 10th November, 1879, the Life Association was dissolved by an order of the circuit court, and its affairs were then put in the hands of the superintendent of insurance, who held possession of the property to the 28th March, 1881, at which date he sold the interest therein owned by the dissolved corporation. In the following April the property was sold under the first deed of trust, and the petitioner became the purchaser at a price which paid about 50 per cent. of the bonds. At that date he owned the bonds and the unpaid coupons. The first claim of the petitioner is for the rents from 10th November, 1873, to 10th November, 1879, and the second is for the rents from that date to 28th March, 1881, both claims covering the entire time that the property was in the possession of the Life Association, and the superintendent of insurance. In the view we take of the case, it is unnecessary to separate these claims; and it is sufficient to say...