Cleghorn v. Minnesota Title Ins. & Trust Co.
Supreme Court of Minnesota
Appeal by Minnesota Title Insurance and Trust Company, one of the defendants, from an order of the District Court of Hennepin County, Thomas Canty, J., made December 14, 1893, overruling its demurrer to the complaint On October 13, 1892, defendant Oliver B. Whitney was indebted to the plaintiff John D. Cleghorn in the sum of $6,000 and interest, past due.
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Appeal by Minnesota Title Insurance and Trust Company, one of the defendants, from an order of the District Court of Hennepin County, Thomas Canty, J., made December 14, 1893, overruling its demurrer to the complaint On October 13, 1892, defendant Oliver B. Whitney was indebted to the plaintiff John D. Cleghorn in the sum of $6,000 and interest, past due. On that day Whitney assigned to plaintiff as collateral security a note and mortgage for $7,000 made to him by George S. Bicknell dated August 25, 1892, and due five years thereafter, bearing six per cent interest. On June 28, 1893,…
1Opinion of the CourtMitchell, J.
The rule of law undoubtedly is that, without express agreement to the contrary, commercial paper pledged as collateral cannot be sold by the pledgee at either public or private sale. The reason for this is that such paper has no market value, and consequently, if exposed for sale, would be liable to be sacrificed.
But the question of the right of a pledgee to come into court, and have a decree for a judicial sale of the pledge, is an entirely different question. This was always a well-recognized head of equitable jurisdiction, even where the pledgee or mortgagee had a right to sell the…
2Cases cited1 opinion
- Donohoe v. GambleCalifornia Supreme Court · 1869
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