Richardson v. Traver - 112 U.S. 423 (1884)
U.S. Supreme Court
Richardson v. Traver, 112 U.S. 423 (1884)
Richardson v. Traver
Submitted November 14, 1884
Decided December 8, 1884
112 U.S. 423
H & M, being owners in common of a tract of land covered by a mortgage to D, from whom they purchased, agreed to partition, H taking tract 1, M taking tract 2, and tract 3 being subdivided between them. M agreed to assume the mortgage to D, and that H should take his portion free from the encumbrance. M sold his interest to Y, who borrowed from R through his agents to make the purchase, mortgaged his interest in tract 2 to secure the money borrowed, and agreed to apply the money borrowed to obtain a release of tract 2 from the mortgage. Instead of doing it, he obtained with it a release of tract 3. Subsequently with money obtained from sale of lots in tract 3 and with other money advanced by them, R's agents acquired the notes secured by his mortgage. Held that under a11 the circumstances of this case, this was to be regarded as a payment of the mortgage notes, and that R as against H was not entitled to be subrogated in the place of D with the right to enforce the mortgage against tract 2.
This was an appeal from a decree in equity of the Circuit Court of the United States for the Northern District of Illinois. The facts which make the case are stated in the opinion of the Court.