LAW.coLAW.co

Norton, Appellant, v. Highleyman et al.

Supreme Court of Missouri1886-04
88 Mo. 621

Summary

Holding. The court affirmed the trial court's judgment, holding that Norton, as a mere volunteer who paid another's debt based on a mistaken understanding of the legal effect of that payment and without either the mortgagor's request or a legally protectable interest of his own, is not entitled to subrogation to the mortgagee's rights.

In 1866, Jesse Fowler mortgaged land to Pettis County to secure a debt. In 1874, after Fowler defaulted, the sheriff advertised the land for sale. Norton, who owned adjacent property and wanted to purchase at the sale, told the sheriff and Highleyman he would pay more than the debt and costs. He was informed the sale was postponed and left the premises. However, the sale proceeded, and Highleyman purchased the land for $183.68 (the debt plus interest and costs) without immediately paying his bid. When Norton learned of this, he paid the $183.68 to the county court, believing he would thereby acquire Highleyman's rights and receive a deed. The mortgage was satisfied, but Norton received no title. Highleyman later conveyed the land to Cook and others.

Norton sued seeking repayment of the $183.68 with interest and requesting that the sum be declared a lien on the land, with his rights substituted for those of the mortgagee. The trial court dismissed the petition by sustaining a demurrer. Norton appealed, but the court affirmed, holding that Norton was merely a volunteer who made a legal mistake when he paid Highleyman's bid without any request from the mortgagor or any legally protectable interest of his own at the time of payment.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a volunteer who pays a mortgaged debt without request or pre-existing interest can be subrogated to the mortgagee's rights
  • Whether a mistake of law alone (as distinguished from fact) justifies equitable relief
  • Requirements for subrogation in mortgage foreclosure contexts

Procedural posture

The trial court sustained a demurrer to Norton's petition and rendered judgment for the defendants, and Norton appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Noiiton, J.

In September, 1866, one Jesse Fowler, was the owner of certain land described in the petition, . and mortgaged the same to Pettis county, to secure the, payment of a debt for §135.55, with ten per cent, inter-. est. Highleyman, one of the defendants, subsequently, on the fifteenth of June, 1874, acquired title to the land . subject to said mortgage. On the nineteenth of May, 1874, default having been made by Fowler in the payment of the debt secured by the mortgage, the county court ordered the sheriff to sell the premises to pay the debt, in pursuance of which the sheriff advertised the land for sale on the fourteenth of September, 1874. Said land adjoined a farm owned by plaintiff, and wishing to , buy at said sale, he came to the place of sale on the day the land was advertised for sale and informed Highley-man and the sheriff that he was willing to pay at the sale all that the land was worth, and more than the debt, interest, and costs, for which it was to be sold, and that he was informed by them that the sale was postponed, and would not take place, on which plaintiff relied and went away. Notwithstanding this the land was sold to Highleyman, who bid $183.68, the amount of principal, interest and costs, .but did not at the time pay his bid. Seven days afterwards, on the twenty-first of September, 1874, the county court being in session, plaintiff informed the judges of these facts, who ordered him to pay the sheriff the $183.68 so bid by Highleyman, together with the cost of making a deed, and plaintiff, believing that by so doing he would succeed to. the right of Highleyman under said bid and get a .deed, paid the money and the mortgage was entered satisfied. Iri December, 1877, Highleyman conveyed said land to defendant, W. H. Cook, who convejmd part of the same to other defendants, and still owns part himself, all of whom bought with notice.

The petition in this case is based on the above state of facts and asks judgment for $183.68, with interest, and that the same be declared a lien on the land, and that plaintiff be substituted to the rights of Pettis county under said mortgage. The trial court sustained a demurrer to the petition, and rendered judgment for defendants, from which the plaintiff has appealed.

A mere mistake in a matter purely of law does not afford any ground for relief in a court of equity. Price v. Estill et al., 87 Mo. 378. The mistake made by plaintiff, according to his own showing in the petition, was in supposing that in paying the amount of Highleyman’s bid, even though made without his consent or knowledge, would entitle him to a deed and invest him with title to the land. In making this payment plaintiff was a mere volunteer, and the mistake he made, as to the legal effect of such payment, was one of law, unmixed with any mistake of fact.

Before a third ppirty, making payment of a debt secured by mortgage, can be subrogated to the rights -of the mortgagee, he must show either that he made the payment at the request of the mortgageor, or to protect some interest he had of his own at the time of the payment. Wolff v. Walter, 56 Mo. 293 ; Evans v. Halleck, 83 Mo. 376. The payment in this case was not influenced by either of these considerations, but has the appearance of having been made by plaintiff in order to give him an advantage over Highleyman.

The demurrer was properly sustained and the judgment is hereby affirmed.

All concur.