Norton v. Warner
New York Court of Chancery
Samuel R. B. Norton, the present complainant, while holding and owning a large mortgage made by the defendant, Effingham H. Warner, obtained ten thousand dollars from the defendants, The Long Island Farmers’ Fire Insurance Company, on pledge of such mortgage and assigned it for security. The face of the assignment, recorded, showed that it was a pledge.
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Samuel R. B. Norton, the present complainant, while holding and owning a large mortgage made by the defendant, Effingham H. Warner, obtained ten thousand dollars from the defendants, The Long Island Farmers’ Fire Insurance Company, on pledge of such mortgage and assigned it for security. The face of the assignment, recorded, showed that it was a pledge. Before any re-assignment or re-payment of the ten thousand dollars, Norton became complainant in the present suit to foreclose the mortgage itself. The bill alleged that the company had refused to proceed and recover the amount due on the…
1Opinion of the Court
The Vice-Chancellor :
This demurrer is clearly not August 14. well taken.
The complainant has not divested himself of all interest in or control over the mortgage. The assignment is but a partial one, made to secure to the Long Island Farmers’ Fire Insurance Company the payment of ten thousand dollars borrowed on interest, being less than the amount due on the mortgage. In equity, he is still the owner, subject only to the lien or pledge for the ten thousand dollars. The company might have filed a bill of foreclosure against the original mortgagor and all parties in interest, and in that case…
2Cited by10 opinions
- Williams v. . IngersollNew York Court of Appeals · 1882
- Graydon v. ChurchMichigan Supreme Court · 1859
- Peabody v. RobertsNew York Supreme Court · 1866
- MacFarlane v. ThompsonMassachusetts Supreme Judicial Court · 1922
- Derechinsky v. EpsteinNew Jersey Court of Chancery · 1925
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