Ramsburg v. Campbell

• Decision Date: 14 January 1881
• Citation: 55 Md. 227
• Parties: SARAH M. RAMSBURG, by her husband and next friend NEWTON A. RAMSBURG v. LAURA CAMPBELL, by her husband and next friend ROBERT CAMPBELL.
• Court: Maryland Court of Appeals

55 Md. 227

SARAH M. RAMSBURG, by her husband and next friend NEWTON A. RAMSBURG v. LAURA CAMPBELL, by her husband and next friend ROBERT CAMPBELL.

Court of Appeals of Maryland

January 14, 1881

APPEAL from the Circuit Court of Baltimore City.

The case is stated in the opinion of the Court.

The cause was argued before BARTOL, C.J., BOWIE, MILLER, ROBINSON and IRVING, J., for the appellee, and submitted on brief for the appellant.

Edgar H. Gans, for the appellant.

W B. Trundle, for the appellee.

BOWIE J., delivered the opinion of the Court.

In the month of March, 1877, Messrs. Campbell & Ramsburg, partners in trade, failed in business, and became applicants for the benefit of the Bankrupt Act.

Their wives, Laura Campbell and Sarah M. Ramsburg, being each possessed of a separate estate through their respective agents, entered into an agreement, that Mrs. Campbell should purchase the claims of the creditors of Campbell & Ramsburg at the rate of seventy-five cents on the dollar, amounting to the sum of $16,985, for one-half of which she should be indemnified by Sarah M. Ramsburg, and that the said Sarah should be entitled to recover one-half of the dividends to be realized from said claims, beyond the amount necessary to pay said sum.

In consummation of this agreement, as a security for the sum of two thousand dollars, part of the indemnity aforesaid, a mortgage dated the 20th of October, 1877, reciting the agreement aforesaid, and that Mrs. Campbell, had paid $3000 in cash and executed a mortgage to Wm. A. Fisher, as trustee for the creditors, to secure the sum of $13,985.85, and that it was agreed as part of the indemnity aforesaid these presents should be executed, was signed and sealed by Mrs. Ramsburg and her husband, and ostensibly acknowledged in due form of law, before a justice of the peace of the City of Baltimore, and delivered to Wm. A. Hammond, Esq., agent and attorney for Mrs. Campbell, by Newton A. Ramsburg, one of the mortgagors, or by the justice of the peace, with his privity and consent.

The mortgage of the Ramsburgs, purported in consideration of the premises above recited, and therein set forth to convey certain leasehold property in the City of Baltimore to Laura Campbell, her executors and administrators, with the proviso, that if Sarah M. Ramsburg should pay to Wm. A. Hammond, trustee of Laura Campbell, one-half of said sum of $13,985.85, secured to be paid to Wm. A. Fisher, trustee, for said creditors, by mortgage from said Laura on or before the 18th of October, 1878, etc., and should fully indemnify and save harmless the said Laura, as to one-half of said mortgage debt, and perform the covenants therein contained, on her part to be performed, the same should be void. The mortgagors, also assented thereby to the passage of a decree by any Court of competent jurisdiction for the sale of the mortgaged premises according to the provisions of the Public Local Code, etc., and contained the usual provisions for a sale of the premises in case of default.

Mrs Ramsburg, through her husband, Newton A. Ramsburg, on the 20th October, 1877, paid to Mr. Hammond, trustee for Mrs. Campbell, $3500 in cash, and delivered certain stocks, to be sold, at such times as should seem most advantageous, and the proceeds, together with the sum of $2000, (secured by mortgage) to be applied to the payment of one-half the mortgage debt, secured by the mortgage of Mrs. Campbell to Fisher, trustee, for the creditors of Campbell & Ramsburg; the other $1500 to be paid at once to said Fisher as trustee as aforesaid, as one-half of the $3000, agreed to be paid in cash, besides the mortgage above referred to. Mrs. Campbell's mortgage to Fisher, was paid in full by Hammond as her trustee, with funds derived partly from money raised by Mrs. Campbell, and partly from the sale of the stocks of Mrs. Ramsburg, and cash received from Mrs. Ramsburg, and partly from collections from claims purchased, but Mrs. Ramsburg's proportion of payments being short, and the time allowed for the payment of the $2000 indemnity, secured by the mortgage of Ramsburg, having expired, the appellee, by her next friend, filed her petition on the 3rd of November, 1879, in the Circuit Court of Baltimore City, with the original mortgage annexed, alleging there was a default, and praying a decree for sale. A decree for sale was passed on the 4th of November, 1879, and on the 29th of same month, the appellant,...