Woonsocket Inst. for Savings v. American Worsted Co.

• Decision Date: 19 February 1881
• Citation: 13 R.I. 255
• Parties: WOONSOCKET INSTITUTION FOR SAVINGS v. AMERICAN WORSTED COMPANY et als.
• Court: Rhode Island Supreme Court

13 R.I. 255

WOONSOCKET INSTITUTION FOR SAVINGS v. AMERICAN WORSTED COMPANY et als.

Supreme Court of Rhode Island.

February 19, 1881

A mortgagee purchasing at his mortgage sale under Pub. Laws R.I. cap. 719, of June 20, 1878, may by deed convey the purchased property directly to himself.

Such deed of conveyance is an execution of the powers contained in the mortgage, and is to be construed as the deed of the mortgagor when the powers were created.

Under a mortgage containing the usual powers of sale making the mortgagee, his executors, administrators, and assigns the attorneys irrevocable of the mortgagor, and giving full power of substitution, an assignee of the mortgagee after default advertised and sold the property. The advertisement did not give the name of the assignee, nor cite the record of the assignment, nor show that it ever was recorded. The assignee purchased the property and conveyed it to himself.

Held, that the advertisement was sufficient, and that the sale and conveyance were valid.

BILL IN EQUITY for specific performance.

Francello G. Jillson, for complainant.

Thomas C. Greene, for respondent.

DURFEE C. J.

This is a suit in equity to enforce the specific performance of a contract between the complainant corporation as vendor, and the defendant corporation as purchaser, for the sale and purchase of certain real estate. The estate, on January 20 1868, belonged to one Simeon S. Cook, and on that day was mortgaged by him to one Willis Cook, who, on June 20, 1879 assigned the mortgage to the complainant. The mortgage contained the usual power of sale, constituting the mortgagee, his executors, administrators, and assigns the attorney or attorneys irrevocable of the mortgagor, with full powers of substitution, and authorizing him or them, in case of default, after advertisement, to sell the mortgaged estate at public auction, and to convey it to the purchaser either in the name of the mortgagor, or in his or their own name or names.

The assignment of the mortgage contained a substitution of the complainant as assignee to the place of the mortgagee as attorney for the mortgagor under the power of sale. On July 15, 1879, the complainant, after advertisement, in which it gave notice of its intention to bid, under Pub. Laws R.I cap. 719, of June 20, 1878, sold the estate at public auction to itself, being the highest bidder, and thereupon conveyed it in its own name, without the intervention of any other party, directly to itself. The defendant is willing to take the estate in fulfillment of its contract if the complainant has a good...