Boley v. Daniel

CourtUnited States State Supreme Court of Florida
Writing for the CourtWHITFIELD, J.
Citation72 So. 644,72 Fla. 121
Decision Date27 July 1916
PartiesBOLEY v. DANIEL.

72 So. 644

72 Fla. 121

BOLEY
v.
DANIEL.

Florida Supreme Court

July 27, 1916


Appeal from Circuit Court, Escambia County; A. G. Campbell, Judge.

Suit in equity by Lee Daniel against Louis Boley and others. On the death of the defendant, Louis Boley, his executor, M. C. Boley, was made defendant in his stead. From a decree for complainant, defendant appeals. Reversed.

Syllabus by the Court

SYLLABUS

Subrogation is the substitution of one person in the place of another with reference to a lawful claim or right.

Subrogation arises by operation of law where one, having a liability or a right or a fiduciary relation in the premises, pays a debt due by another under such circumstances that he is in equity entitled to the security or obligation held by the creditor whom he has paid. This is called 'legal subrogation.'

'Conventional subrogation' depends upon a lawful contract, and occurs where one, having no interest in or relation to the matter, pays the debt of another, and by agreement is entitled to the securities and rights of the creditor so paid.

When a first mortgage lien existing against real estate is paid off and the lien discharged, the lien of a second mortgage thereon becomes at once, by operation of law, a first lien on the property; and this first lien, and the right to enforce it as such, are vested rights.

Courts of equity will not apply the doctrine of subrogation where to do so would be to deprive a party of a legal right.

Where a party who is under no duty, legal or otherwise, to pay a first mortgage debt, and has no interest in the property, loans money that is used to pay off such first mortgage, and takes a mortgage on the same and other property, with an understanding with the mortgagor 'that he was to have a first lien on the property covered by said mortgage,' and 'in the belief that there were no other liens on the property caused to be satisfied on record the first mortgage,' with no agreement that the security of the first mortgage shall be kept alive for his benefit, there is no clear showing of a right to a conventional subrogation.

COUNSEL [72 Fla. 122] E. C. Maxwell, of Pensacola, for appellant.

Watson & Pasco, of Pensacola, for appellee.

OPINION

WHITFIELD, J.

This suit was brought against Louis Boley and others. After Boley's death his executor was made a party defendant in his stead. The purpose of the suit is to have a mortgage held by Daniel decreed to be a first lien on property upon which Boley has a mortgage prior in time to Daniel's mortgage, and for incidental relief. From a decree on the pleadings granting the relief, the defendants appealed. [72 So. 645]

It appears that one Waters mortgaged property described as lot 4, block 131, to Leslie E. Brooks, to secure the payment of a note for $500. Brooks assigned the note and mortgage to a third party. Brooks acquired the property covered by the mortgage, and, the note being past due, Brooks borrowed $500 from Lee Daniel for the purpose of paying up the mortgage indebtedness, and executed to Lee Daniel a note for $500, with a mortgage on lot 4 and the south five feet of lot 5, block 131. Lee Daniel made the loan and took the mortgage from Brooks 'in the belief that there were no other liens on the property, and caused to be satisfied on record the first mortgage' given by Waters to Brooks. Leslie E. Brooks conveyed the property to Bessie B. Brooks, wife of Harry L. Brooks. After the execution of the mortgage from Waters to Leslie E. Brooks, 'and while...

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85 practice notes
  • Transamerica Ins. Co. v. Barnett Bank of Marion County, N.A., No. 86-1328
    • United States
    • Court of Appeal of Florida (US)
    • 24 Marzo 1988
    ...§ 27 (1978). 4 Commercial Bank in Panama City v. Board of Pub. Instruction of Okaloosa County, 55 So.2d 552 (Fla.1951). 5 Boley v. Daniel, 72 Fla. 121, 72 So. 644 (1916); Eastern Nat'l Bank v. Glendale Fed. Savings and Loan Assoc., 508 So.2d 1323 (Fla. 3rd DCA 1987); 73 Am.Jur.2d Subrogatio......
  • Zurich Am. Ins. Co. v. Southern-Owners Ins. Co., Case No. 3:15-cv-1041-J-34PDB.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Middle District of Florida
    • 30 Marzo 2017
    ...an agreement that the party paying the debt will have the rights and remedies of the original creditor." Id. (citing Boley v. Daniel, 72 Fla. 121, 72 So. 644, 645 (1916) ). Distinctly, legal or equitable subrogation—the doctrine at issue in this action—arises from "the legal conse......
  • Kumar Corp. v. Nopal Lines, Ltd., No. 83-2317
    • United States
    • Court of Appeal of Florida (US)
    • 15 Enero 1985
    ...v. Butler Const. Co., 100 Fla. 1252, 131 So. 126 (1930); Meyer v. Florida Home Finders, 90 Fla. 128, 105 So. 267 (1925); Boley v. Daniel, 72 Fla. 121, 72 So. 644 (1916); Price v. Scharps, 405 So.2d 1043 (Fla. 3d DCA 1981); Furlong v. Leybourne, 138 So.2d 352 (Fla. 3d DCA 1962); Ulery v. Asp......
  • Kala Investments, Inc. v. Sklar, No. 86-3004
    • United States
    • Court of Appeal of Florida (US)
    • 31 Enero 1989
    ...must have some right or interest of his own to protect and must not be a mere volunteer acting without obligation. Boley v. Daniel, 72 Fla. 121, 72 So. 644 There is substantial support for Kala's claim that it has a cause of action against the co-defendants for equitable subrogation. In Wes......
  • Request a trial to view additional results
85 cases
  • Transamerica Ins. Co. v. Barnett Bank of Marion County, N.A., No. 86-1328
    • United States
    • Court of Appeal of Florida (US)
    • 24 Marzo 1988
    ...§ 27 (1978). 4 Commercial Bank in Panama City v. Board of Pub. Instruction of Okaloosa County, 55 So.2d 552 (Fla.1951). 5 Boley v. Daniel, 72 Fla. 121, 72 So. 644 (1916); Eastern Nat'l Bank v. Glendale Fed. Savings and Loan Assoc., 508 So.2d 1323 (Fla. 3rd DCA 1987); 73 Am.Jur.2d Subrogatio......
  • Zurich Am. Ins. Co. v. Southern-Owners Ins. Co., Case No. 3:15-cv-1041-J-34PDB.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Middle District of Florida
    • 30 Marzo 2017
    ...an agreement that the party paying the debt will have the rights and remedies of the original creditor." Id. (citing Boley v. Daniel, 72 Fla. 121, 72 So. 644, 645 (1916) ). Distinctly, legal or equitable subrogation—the doctrine at issue in this action—arises from "the legal conse......
  • Kumar Corp. v. Nopal Lines, Ltd., No. 83-2317
    • United States
    • Court of Appeal of Florida (US)
    • 15 Enero 1985
    ...v. Butler Const. Co., 100 Fla. 1252, 131 So. 126 (1930); Meyer v. Florida Home Finders, 90 Fla. 128, 105 So. 267 (1925); Boley v. Daniel, 72 Fla. 121, 72 So. 644 (1916); Price v. Scharps, 405 So.2d 1043 (Fla. 3d DCA 1981); Furlong v. Leybourne, 138 So.2d 352 (Fla. 3d DCA 1962); Ulery v. Asp......
  • Kala Investments, Inc. v. Sklar, No. 86-3004
    • United States
    • Court of Appeal of Florida (US)
    • 31 Enero 1989
    ...must have some right or interest of his own to protect and must not be a mere volunteer acting without obligation. Boley v. Daniel, 72 Fla. 121, 72 So. 644 There is substantial support for Kala's claim that it has a cause of action against the co-defendants for equitable subrogation. In Wes......
  • Request a trial to view additional results

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