Whittell v. Pinney

The defendants have appealed from a judgment of foreclosure of mortgage, which was rendered against them. The mortgage contains a clause to the effect that it was executed to insure the mortgagee against loss on account of his purchase of certain shares in a Texas oil company. It is contended this clause creates a condition precedent to the right of foreclosure of the mortgage, and that the mortgage was rendered invalid by plaintiff’s commencement of an independent action to rescind the purchase of the oil stock.

In October, 1931, the defendant, Plarry J. Pinney, bought from E. S. Price for…