First Bond & Mortgage Co. v. Quinn

The appellee held a third mortgage upon the property covered by the plaintiff’s mortgage. After a foreclosure by sale of the plaintiff’s mortgage and a supplemental judgment ordering the payment of the amount due on that mortgage and a second mortgage out of the proceeds of the sale, the appellant, trustee in bankruptcy of Quinn, the owner of the equity of redemption, having been permitted to intervene as a party defendant, filed a cross-complaint alleging that the appellee’s mortgage constituted a voidable preference in bankruptcy, and praying that it be set aside as such. The court found…