clear space clear space clear space white space
A
 r c h i v e s   o f   M a r y l a n d   O n l i n e

PLEASE NOTE: The searchable text below was computer generated and may contain typographical errors. Numerical typos are particularly troubling. Click “View pdf” to see the original document.

  Maryland State Archives | Index | Help | Search		 search for:
clear space
white space
Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 3, Page 340   View pdf image (33K)
 Jump to  
   << PREVIOUS  NEXT >>
clear space clear space clear space white space

840 HIGH COURT OF CHANCERY.
Swann. This gentleman was in no way connected with the
original transaction between Rebecca Dorsey and the Neptune
Insurance Company. But after she had conveyed her equity
of redemption to Edward H. Dorsey, Mr. Swann endorsed
certain notes, given by the latter to the assignee of the Nep-
tune Insurance Company, for interest due upon the mortgage.
The remarks of Chief Justice Marshall, in the case of the
Bank of the United States vs. Winston's Ex'or, 2 Brock. Rep;
254, are well worthy of attention in considering this question;
and certainly are calculated to awaken serious doubts with re-
ference to the rights of a party, not bound by the original
security, to be substituted to all the rights of the original
creditor upon paying him the debt. And these doubts are
strengthened, in this case, by the circumstance that Mr. Swann
never did become the surety of the original principal debtor,
Rebecca Dorsey, but of Edward H. Dorsey, the assignee of
the equity of redemption.
But, it is said, the second mortgagee is in no way injured
by what Swann did, or -by what is now claimed for him;
that the whole amount of the prior incumbrance and
interest, must be paid before the second mortgage can be let
in; and this, of course, is quite true. But it is equally true,
that the interposition of Mr. Swann, in paying this money, has
turned interest into principal, to the manifest prejudice of the
second mortgagee, as upon examining the Auditor's statement
of claims plainly appears. The amount paid by Mr. Swann,
as interest, amounted to $443 55; and this sum is now swelled,
by the interest which has accrued upon it, to upwards of $560.
It is most obvious, that a repetition of this operation, from time
to time for a series of years, as interest upon the mortgage
debt falls in arrear, would most seriously affect the junior in-
cumbrancer, and might, in process of time, exclude him alto-
gether from the benefit of the security, or, at all events, very
much impair his right under it.
I am, therefore, of opinion, that the right of substitution
claimed cannot be maintained; and that the exception of Mr.
Glenn to this claim, No. 12, must he ruled good. The holder

  		clear space
clear space
white space

Please view image to verify text. To report an error, please contact us.
Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 3, Page 340   View pdf image (33K)
 Jump to  
   << PREVIOUS  NEXT >>


This web site is presented for reference purposes under the doctrine of fair use. When this material is used, in whole or in part, proper citation and credit must be attributed to the Maryland State Archives. PLEASE NOTE: The site may contain material from other sources which may be under copyright. Rights assessment, and full originating source citation, is the responsibility of the user.

Tell Us What You Think About the Maryland State Archives Website!

An Archives of Maryland electronic publication.
For information contact mdlegal@mdarchives.state.md.us.

©Copyright  August 16, 2024
Maryland State Archives