Montclair Trust Co. v. the Russell Co.

This is a foreclosure suit. Among the defendants are the owners of certain lots which were once part of the mortgaged premises and which were released from the mortgage. They are joined in order to cut them off from the benefit of a covenant restricting the use of other parts of the mortgaged property. Are they entitled to the benefit of the covenant as against the complainant mortgagee? The case turns on estoppel.

In 1937, complainant held two mortgages aggregating $150,000 on a large tract of vacant land in Montclair, legal title to which was vested in the Montclair Holding Company. The…