J. N. ACKLEY, PLAINTIFF IN ERROR,
v.
H. W. NOGGLE, L. L. KIRKPATRICK AND C. S. BORDERS, DEFENDANTS IN ERROR
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The Florida Supreme Court reversed a lower court's decision that dismissed a lawsuit. The court held that a plaintiff could sue in special assumpsit (an action at law) to recover mortgage payments he made after the defendants assumed the mortgage in their deed, establishing that such an assumption in a deed creates a direct obligation to the original mortgage holder.
Yes, the plaintiff can recover in special assumpsit. The assumption of a mortgage debt in a deed, when accepted by the grantee, creates a direct obligation to the original mortgage holder, allowing for a suit at law.
“Each of the respective grantees by stipulation in the respective deeds assumed and agreed to pay the debt secured by the original mortgage.”
Establishes the core factual basis for the lawsuit: the defendants' assumption of the mortgage debt.
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Join FLexlaw to unlock all legal intelligenceAckley sued Noggle, Kirkpatrick, and Borders in special assumpsit, alleging they assumed and agreed to pay a $5,000 mortgage on land they purchased fr…
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Buford, J.
In this case Ackley sued Noggle, Kirkpatrick & Borders in an action of special assumpsit. The facts in short as disclosed by the declaration were that Ackley was indebted to one Frank J. Senn in the sum of $5,000.00 and Senn held Ackley’s note and mortgage securing the same in the sum of $5,000.00. The mortgage embraced certain lands the property of Ackley. Ackley sold the lands and conveyed the same to J. Walter Pope, Trustee. Pope conveyed the lands to Realty Holding Corporation. Realty Holding Corporation conveyed the lands to Pope Interests, Inc. Pope Interests, Inc., conveyed the lands to H. W. Noggle, L. L. Kirkpatrick and C. S. Borders. Each of the respective grantees by stipulation in the respective deeds assumed and agreed to pay the debt secured by the original mortgage.
The deed from Pope Interests, Inc., to Noggle, Kirkpatrick & Borders contains the following clause:
This deed is given subject to three mortgages, as follows : ' ‘ One in the amount of $5,000.00, given to Frank J. Senn; one in the amount of $15,000.00, given to J. N. Ackley; one in the amount of $20,000.00, given to Realty Holding Corporation.” Said second party agrees to assume and pay off these mortgages when due.
It is alleged in the declaration that the $5,000.00 mortgage referred to in the deed was the mortgage from J. N. Ackley and his wife, Sarah E. Ackley, made On the 20th day of April, 1923, to Frank J. Senn. It is alleged that the defendants failed and refused to pay the said mortgage indebtedness when it became due and payable, and that Ackley was required to pay and did pay the same and that thereupon the defendants became indebted to Ackley in the aggregate sum of the mortgage indebtedness.
There was a demurrer to the declaration. The demurrer was sustained. The plaintiffs refused to amend the declaration and final judgment was rendered dismissing the suit, to which judgment writ of error was taken.
It was the contention of the appellees in the court below and in this Court that Ackley could only maintain his suit by bill in equity and the case of Keller v. Ashford, 133 U. S. 610, 33 Law Ed. 667, is relied upon to support that contention.
That case originated in the District of Columbia and, therefore, the question of whether or not the action could be maintained at law or only in equity was controlled by the rule applying in that jurisdiction’ and may not be relied upon as authority to settle that question in this jurisdiction.
The question as to whether or not, under the facts stated, Ackley may recover in a proper suit against the defendants here is affirmatively stated by the enunciations in the opinion in the case of Keller v. Ashford, supra.
The promise relied on here is not a promise contained in a sealed instrument executed by the obligor and, therefore, the suit is a proper one in special assumpsit and not in covenant. ' The liability of the obligor in such cases has been fully defined and enunciated by this Court in the case of Bronson v. Hannah, 93 Fla. 223, 111 So. R. 731, in a very clear and exhaustive opinion prepared by Circuit Judge Koonce and adopted unanimously by this Court. See also Exchange National Bank of Tampa et al. v. Clark, Ray, Johnson Co., 95 Fla. 734, 116 So. 648. See also Wright v. Terry, 23 Fla. 160, 2 So. R. 6; Hunter v. Wilson, 21 Fla. 250; Woodbury v. Tampa Water Works, 57 Fla. 249, 49 So. R. 556.
Upon authority of the cases cited it may be assumed to be settled in this State that when a deed contains a covenant by the grantee assuming and agreeing to pay a mortgage on the land and the deed is accepted by him, he obligated himself to pay the mortgage debt as conclusively as if he had signed a written agreement to that effect as a part of the consideration to be paid for the lands conveyed and also that by the assumption by the grantee in a deed of a mortgage indebtedness the grantee thereby becomes the primary obligor of the debt. See People’s Savings Bank of Tallassee v. Jordan, 200 Ala. 500, 76 So. R. 442; Eppes v. Thompson, 202 Ala. 145, 79 So. R. 611; Baldwin v. Emory, 89 Maine 496, 36 A. 994; Beeson v. Greene, 103 Iowa 406, 72 N. W. 555; Tenn. Valley Bank v. Sewell, 214 Ala. 362, 107 So. R. 834; Smith v. Davis, 67 Colo. 128, 186 Pac. R. 519; 41 C. J. 744. It, therefore, appears that the judgment should be reversed, and it is so ordered.
Beversed.
Whitfield, P. J., and Strum, J., concur. Terrell, C. J., and Ellis and Brown, J. J., concur in the opinion and judgment.
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Citator
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Am. Sur. Co. of N.Y. v. R. Nelson Smith in Bankr. for Jacksonville Marble & Tile Co., 100 Fla. 1012 (Fla. 1930)…So. R. 883, which was an action at law by a mortgagee against a grantee who had knowingly accepted a deed of conveyance containing a covenant of assumption of the mortgage debt. By a per curiam order, this Court, upon authority of Ackley v. Noggle, 97 Fla. 640, 121 So. R. 883, reversed an order of the circuit court sustaining a demurrer to plaintiff’s declaration. See Slottow v. Hull Inv. Co., 127 So. R. 577, 579. See, also, Tuttle v. Jocksum, 138 Atl. R. 804. In Ackley v. Noggle, supra, in Brownson v. H…
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Donella Proctor v. Hearne, 100 Fla. 1180 (Fla. 1930)…mortgaged land from the mortgagor and assumes and agrees to pay the mortgage thereon, becomes as to the mortgagor, the principal debtor, and the mortgagor a surety. Brownson v. Hannah, 93 Fla. 223, 111 So. R. 731, 51 A. L. R. 976; Ackley v. Noggle, 97 Fla. 640, 121 So. R. 882; 2 Jones on Mortgages (8th Ed.), Sec. 920. See also note 21 A. L. R. 504. [*1185] “There is, however, a marked diversity of judicial opinion as to the effect upon the rights of the mortgagee of the relation thus created between the m…1 / 2
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Alabama-Florida Co. v. Mays, 111 Fla. 100 (Fla. 1933)…l with knowledge of a recital therein that he assumes an indebtedness against the property, and he is as effectually bound as if it were a contract executed under his own hand and seal. Brownson v. Hannah, 93 Fla. 223, 111 So. 731; Ackley v. Noggle, 97 Fla. 640, 121 So. 882 ; 2 Jones on Mortgages (8th Ed.), Sec. 920; Berns v. Harrison, 100 Fla. 1105, 137 So. 238; Proctor v. Hearne, 100 Fla. 1180, 131 So. 173. But the relation thus created does not in itself involve the mortgagee in its legal effects. H'e…
Previewing 3 of 10 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Keller v. Ashford, 133 U.S. 610 (U.S. 1890)
- Brownson v. Hannah, 93 Fla. 223 (Fla. 1927)
- Wright v. Terry, 23 Fla. 160 (Fla. 1887)
- Woodbury v. The Tampa Water Works Co., 57 Fla. 249 (Fla. 1909)
- Hunter v. Wilson, 21 Fla. 250 (Fla. 1885)
- Exch. Nat'l Bank of Tampa v. the Clark-Ray-Johnson Co., 95 Fla. 734 (Fla. 1928)