Citizens Trust Co. v. Paoli

This is a suit to foreclose a mortgage which is defended only by one John Dughi who is the holder of the second mortgage. While such second mortgagee, he purchased a tax sale certificate covering the premises on December 15th, 1937, and also paid taxes on the premises for the years 1937 and 1938. He contends that these items are paramount to the lien of complainant's mortgage. During all the time involved this mortgage was in default.

Defendant Dughi had been acting as agent of the owner and of Paoli.

On January 30th, 1939, the owner entered into a lease with a cleaning and dyeing company for a…