Geiger v. Eighth German Bldg. Ass'n

• Decision Date: 12 July 1882
• Parties: JOHN W. H. GEIGER v. THE EIGHTH GERMAN BUILDING ASSOCIATION, OF BALTIMORE.
• Court: Maryland Court of Appeals

58 Md. 569

JOHN W. H. GEIGER v. THE EIGHTH GERMAN BUILDING ASSOCIATION, OF BALTIMORE.

Court of Appeals of Maryland

July 12, 1882

APPEAL from The Circuit Court for Baltimore County, in Equity.

The case is stated in the opinion of the Court.

The cause was submitted to BARTOL, C.J., STONE, MILLER, ALVEY ROBINSON, IRVING, and RITCHIE, J.

George R. Willis, for the appellant.

Luther M. Reynolds, for the appellee.

IRVING J., delivered the opinion of the Court.

The appellee is a Building Association, duly incorporated under the laws of this State. The appellant, having two shares of the stock of the Association of the value of two hundred dollars each, executed a mortgage to the appellee to secure the payment of four hundred dollars advanced him, on his two shares, which were thereby declared redeemed and transferred to the Association. The covenant of the mortgage was "to pay the mortgagee the weekly sum of one dollar as weekly dues, and the further sum of sixty cents as weekly premiums on every Monday evening until the dissolution of the said body corporate shall have taken place according to the charter, and the constitution and by-laws thereof, which charter, constitution and by-laws, are made part of this mortgage; also, to pay all ground rent and taxes (State and city) for which the property hereby mortgaged may become liable, when payable. And to pay all fines which may be imposed on him by the said mortgagee, for any failure to perform the requirements of the charter, constitution and by-laws aforesaid." It also provided that all payments and covenants should continue in force until the holder of every share of the stock of the Association shall have received therefor two hundred dollars, when the corporation, by its charter, would be dissolved. The mortgagor consented in the mortgage to a decree for sale in the event of default, and the appointment of Luther M. Reynolds, as trustee, to make the sale, in such case, in accordance with the provisions of sections 782 to 799, inclusive, of Article 4, of the Code of Public Local Laws.

The appellant having failed for two consecutive weeks to pay his weekly dues and premiums, the appellee filed a petition in the Circuit Court for Baltimore county, alleging the default, tendering a bond from the trustee for the Court's approval, and praying the Court to take jurisdiction of the matter. The Court approved the bond, and on the same day the appellant filed his petition praying for an injunction upon the ground that the amount claimed by the appellee, in its petition, to be due, was not due, and submitting a statement of what he claimed was due and had been tendered the appellee. This petition also charges the mortgage to be "illegal, usurious, ultra vires and void, except as security for the payment of the money, and incapable of being enforced either in law or equity for any greater amount of money." Injunction was granted, but subsequently was, by agreement, dissolved by a pro forma order, and this appeal was taken.

The amount in controversy is small; but the question presented is important to the Association and its members. The mortgage cannot be regarded as ultra vires, as contended for by the appellant's solicitor. Nor can it be regarded solely as for a simple loan of money, between borrower and lender. The Peter's Building Association No. 5 of Balto. vs. Jaecksch, 51 Md., 201. To the extent, however, that the appellant is called on by the appellee, to pay as weekly premium a sum larger than six per centum per annum upon the four hundred dollars advanced, the claim is...