Pritchard v. Kalamazoo College

• Decision Date: 31 October 1890
• Citation: 82 Mich. 587,47 N.W. 31
• Court: Michigan Supreme Court
• Parties: PRITCHARD v. KALAMAZOO COLLEGE et al.

47 N.W. 31

82 Mich. 587

PRITCHARD v. KALAMAZOO COLLEGE et al.

Supreme Court of Michigan

October 31, 1890

Padgham & Padgham, for complainant. Howard & Roos, for defendants.

LONG J.

The bill in this cause was filed in the circuit court for Van Buren county in chancery to foreclose a certain mortgage therein mentioned. The cause was put at issue by filing the general replication, and was heard in the court below under the following stipulated facts: "In this cause it is stipulated and agreed by the complainants and the defendant the Kalamazoo College by this, their stipulation that the following statement of facts shall be deemed and considered to be the testimony in this suit: First. That on the 17th day of June, A. D. 1872, Ingram E. Eaton owned and was seised of the land described in the bill of complaint in this cause. Second. That on the 17th day of June, A. D. 1872, Ingram E. Eaton executed and delivered to the defendant the Kalamazoo College a mortgage covering said land to secure the payment of the sum of $2,000, and interest for money loaned to him on that day which mortgage was duly recorded in the register's office for Van Buren county, June 21, 1872. Third. That on the 10th day of September, A. D. 1874, said Eaton sold and conveyed said land by deed of conveyance to one Peter Van Alstyne; and on the same day said Van Alstyne executed and delivered to said Eaton a mortgage upon the same land to secure the payment of the sum of $4,000 in installments evidenced by four notes, the first of which was for the sum of $1,000 bearing same date. A certified copy of the record of said mortgage is hereto annexed and made part of this stipulation, which mortgage was recorded April 7, 1875, at 7 o'clock P. M. Fourth. That on the 27th day of February, A. D. 1875, said Ingram E. Eaton assigned said first note of $1,000 and said mortgage to Benjamin D Pritchard, the complainant, in trust, a copy of which assignment is hereto annexed and made a part of this stipulation, and was recorded in the register's office of Van Buren county, November 16, A. D. 1881, in liber 24, at page 418. Fifth. That on the 8th day of March, A. D 1875, said Peter Van Alstyne executed and delivered a mortgage upon said land to the defendant the Kalamazoo College to secure the payment of the sum of $600 and interest for money loaned him on that day, which mortgage was recorded in the office of the register of deeds in Van Buren county on the 7th day of April, A. D. 1875, a certified copy of the record of which mortgage is hereto attached and made a part of this stipulation. Recorded in liber 10, at page 296. Sixth. That on the 27th day of November, A. D. 1875, said Van Alstyne reconveyed said land to said Ingram E. Eaton by deed bearing said date, and recorded in said register's office, in liber 43, at page 292, on the 3d day of June, A. D. 1876, a copy of which deed is hereto annexed and made a part of this stipulation. Seventh. That said Eaton, on the 1st day of June, A. D. 1876, executed and delivered to said Kalamazoo College a mortgage upon said land to secure the payment of the sum of $3,200 and interest, which mortgage was made up of and included the said $2,000 mortgage, and the said $600 mortgage, and accrued interest upon both, and was recorded in said register's office on the 3d day of June, A. D. 1876, in liber 7, at page 475, a copy of which mortgage is hereto annexed and made a part of this stipulation. Eighth. That on the same day, to-wit, the 3d day of June, 1876, the said Kalamazoo College discharged the said $2,000 mortgage, and said $600 mortgage, by discharge recorded in the said register's office in liber 15, at page 426, on the 3d day of June aforesaid. Ninth. That on the 15th day of November, A. D. 1883, the said defendant the Kalamazoo College obtained a commissioner's deed of said premises upon the foreclosure of the said $3,200 mortgage, which was recorded in the said register's office on the same day in liber 59, at page 18, and the foreclosure proceedings in said cause were regular, but the complainants in this cause were not made parties thereto. Tenth. That on the said day the Kalamazoo College had no knowledge of the assignment of said mortgage and note to Benjamin D. Pritchard, except as appears from the records of deeds and mortgages in Van Buren county. Eleventh. That there was owing from said Eaton to the several persons named in said assignment the several sums named therein. Twelfth. That the several statements of facts in the bill of complaint and answer in this cause is admitted to be true, and treated as if proved, except where the same or any part thereof are different or inconsistent with the statements made in this stipulation. Dated May 31, A. D. 1889. PADGHAM & PADGHAM, Solicitors for Compl'ts. HOWARD & ROOS, Sol'rs for Def't the Kalamazoo College." On the hearing in the court below the court dismissed the bill as to the Kalamazoo College. Complainant appeals.

The contention of the defendant the Kalamazoo College is that by Van Alstyne redeeding the land in question to Eaton, and Eaton having exclusive title of record to this $4,000 mortgage, there was a merger of the mortgage into the greater title of that of the fee, and thereby worked a legal discharge of the mortgage so far as the Kalamazoo College is concerned. In other words, it is contended on behalf of the college that it is an innocent purchaser for value of the land in question, without notice, actual or constructive, of the complainant's claim, and that, under the recording statutes of this state, the mortgage of $3,200 given by Eaton is and ought to be considered a prior lien to the complainant's interest in the $4,000 mortgage. The $3,200 mortgage was given June 1, 1876, and was recorded on the 3d day of the same month. Complainant's assignment was not recorded until the 16th day of November, 1881. The complainant's contention is that at the time the Kalamazoo College took the $3,200 mortgage from Eaton, and discharged its other two mortgages, viz., June 3, 1876, the $4,000 mortgage which had been given to Eaton by Van Alstyne was on record, and one of the notes secured by that mortgage had been assigned to complainant in trust; that the reconveyance deed from Van Alstyne to Eaton of November 27, 1875, was also recorded at that date, viz., June 3,...