McBride v. Wright
| Decision Date | 15 June 1881 |
| Citation | 46 Mich. 265,9 N.W. 275 |
| Court | Michigan Supreme Court |
| Parties | MCBRIDE v. WRIGHT. |
A mortgage to secure the payment of certain judgments was given to a trustee for the benefit of different judgment creditors each of whom already held separate mortgages on other property securing the same judgments. The holder of an interest in parcels covered by all these mortgages negotiated for a release and obtained one which purported to discharge from the earlier mortgage only, but whch was evidently understood by all parties to release from the later one also. The creditors afterwards obtained an assignment from the trustee and sought to foreclose. Held, that a release by the cestuis que trust was good in equity and discharged the later mortgage; that their bill should be dismissed, and that a cross-bill was not necessary for establishing a defence thereto.
Appeal from Gratiot.
Benton Hanchett, T.W. Whitney, J.K. Wright, W.L. Anderson, C.J Willett, and S.J. Scott, for defendant.
The facts in this case are somewhat complicated, and as the questions involved are questions of fact, we shall content ourselves with stating conclusions.
On the second day of September, 1859, the copartnership of the McBride Bros. of the city of New York had a judgment against Lewis M. Clark and Richard G. Hillyer for the sum $670.10 and the copartnership of Archibald Young & Hoaglan had a like judgment for the sum of $1,476.93. To secure the payment of these debts the creditors held separate mortgages on lands in Gratiot county. On the day above named the debtors executed to William L. Webber as trustee for the two copartnerships a third mortgage. The nominal consideration for this was $800 but it was conditioned for the payment of the two judgments.
The complainants in this suit are the members or representatives of the two copartnerships named. The Webber mortgage covered blocks 7, 8 and 17 of the village of Pine River, which were embraced in neither of the other mortgages. In January, 1866 the judgments remained unpaid, and Henry L. Holcomb, who had acquired an interest in the lands covered by the Webber mortgage, and also in certain parcels covered by the others, went to New York to negotiate for a release. He there saw the members of the two copartnerships, and agreed with them for a release of certain described lands included in blocks 7, 8 and 17 above mentioned, for the sum of $700 which he paid. Whether...
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