Michigan Wineries, Inc. v. Johnson

In this appeal we are faced with the question of which of two established principles governs the right of a party that has assumed a mortgage to raise defenses contesting the validity of the mortgage.

Defendant Loretta O. Johnson executed and de*307livered a mortgage to plaintiff-appellee Michigan Wineries, Inc., on March 5, 1963. The mortgage was in the amount of $82,000 at 3% interest with payments of $500 per month. Then on May 31, 1967, defendant Johnson deeded the mortgaged premises to defendant-appellant Detroit Beverage Corporation. The deed was expressly subject to the mortgage to Michigan…