Stoeckle v. Rosenheim
Court of Chancery of Delaware
Bill to Restrain the Sale of Property Under Foreclosure Proceedings. Chilinsky being the owner of a hotel in Delaware City, on April 3, 1906, made three mortgages which obtained priority in the following order: First, to Eliza Bell Pattison, for $11,000; second, to Joseph Stoeckle Brewing Company, for $7,500; and third, to the firm of H. Rosenheim & Son, for $1,500. Then Harry J. Stoeckle, president of the company, in order to protect the second mortgage, procured from „…
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Bill to Restrain the Sale of Property Under Foreclosure Proceedings. Chilinsky being the owner of a hotel in Delaware City, on April 3, 1906, made three mortgages which obtained priority in the following order: First, to Eliza Bell Pattison, for $11,000; second, to Joseph Stoeckle Brewing Company, for $7,500; and third, to the firm of H. Rosenheim & Son, for $1,500. Then Harry J. Stoeckle, president of the company, in order to protect the second mortgage, procured from „ Chilinsky and wife a deed, dated July 11, 1907, conveying the premises to himself for a nominal, consideration, and without…
1Opinion of the Court
The Chancellor.
The case is simply this: There were three mortgages. The second lien was held by a corporation, and the president of it, to protect the interests of the company obtained for a nominal consideration a deed conveying the mortgaged premises to himself. Then the company paid off the first mortgage, payment of it having been demanded. As a junior creditor, the company had a right to pay the prior mortgage and be substituted for the creditor. A junior mortgagee may pay the prior lien for his protection, and probably acquire an assignment of it; but whether assigned or not, it exists…
2Cases cited8 opinions
- Geib v. ReynoldsSupreme Court of Minnesota · 1886
- Gerdine v. MenageSupreme Court of Minnesota · 1889
- Cobb v. DyerSupreme Judicial Court of Maine · 1879
- Marshall v. RenchCourt of Chancery of Delaware · 1868
- In re McFarlinOrphan's Court of Delaware · 1910
3 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Ward v. LymanSupreme Court of Vermont · 1937
- Clifton Mfg. Co. v. United StatesCourt of Appeals for the Fourth Circuit · 1935
- Home Life Insurance Co. of America v. McCarnsCourt of Chancery of Delaware · 1940
- Stoeckle v. RosenheimCourt of Chancery of Delaware · 1915
- Conservative Life Insurance v. National Exchange Bank of WheelingWest Virginia Supreme Court · 1933
8 more not listed; retrieve them via the Exa API.