Mechanics' Bank v. Edwards
New York Supreme Court
In EauiTY. The plaintiffs filed their bill to foreclose a mortgage executed by the defendant Edwards, on a lot known as No. 23 Nassau-street; and upon a sale on that foreclosure there was a surplus of $3439,15. The Farmers’ Loan and Trust Company interposed a claim to that surplus, by virtue of a decree of the late court of chancery, in their favor, against Edwards and one Morgan L. Smith, for $8399,30, docketed 20 December, 1839, which was a general lien, and not a specific…
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In EauiTY. The plaintiffs filed their bill to foreclose a mortgage executed by the defendant Edwards, on a lot known as No. 23 Nassau-street; and upon a sale on that foreclosure there was a surplus of $3439,15. The Farmers’ Loan and Trust Company interposed a claim to that surplus, by virtue of a decree of the late court of chancery, in their favor, against Edwards and one Morgan L. Smith, for $8399,30, docketed 20 December, 1839, which was a general lien, and not a specific one, on the mortgaged premises. Henry Cotheal claimed the surplus under a mortgage on the same premises, No. 23…
1Opinion of the CourtEdmonds, J.
It is unquestionably á rule in equity that where one creditor has a lien on two funds, and another creditor has a lien upon only one of those funds, the latter has a right to demand that the former shall have recourse first to the fund on which he alone has a claim, before resorting to the other, to which alone the latter can betake himself for satisfaction of his claim.
I will not stop to consider the question raised at the bar, whether the matter now before me is in such a shape as to allow that principle properly to be carried out in this case; because if I shall fin'd it to be applicable,…
2Cases cited4 opinions
- De Wolf v. JohnsonSupreme Court of the United States · 1825
- Lockwood v. SturdevantSupreme Court of Connecticut · 1827
- Cole v. SavageNew York Court of Chancery · 1844
- Inhabitants of Reading v. Inhabitants of WestonSupreme Court of Connecticut · 1829
3Cited by7 opinions
- Sands v. . ChurchNew York Court of Appeals · 1852
- Matthews v. OrmerdCalifornia Supreme Court · 1903
- Lee v. FeamsterWest Virginia Supreme Court · 1882
- Boughton v. SmithNew York Supreme Court · 1853
- De Lisle v. HerbsNew York Supreme Court · 1881
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