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4 Sarat. Ch. Sent. 621

Smack v. Duncan

New York Court of Chancery

Decided June 12, 1847

New York Court of Chancery · decided 1847-06-12

These were separate foreclosure suits, the complainant’s mortgage in each, being upon a single house and lot. The defendant, N. C. Ely, had a single junior mortgage, embracing all three houses and lots. He entered his appearance in each suit, and his solicitor attended the references and sales in each. The reference, and the sale in each case, were conducted by different masters;. The decrees were in the usual form, not mentioning any of the junior liens.

Decided 1847-06-12

The Vice-Chancellor,

¶1said it was proper for the junior mortgagee to appear, so as to watch the proceedings and protect his rights. This is established by The Merchants Insurance Co. v. Marvin, 1 Paige, 557. Having appeared properly, the suits could not be discontinued, without paying him his taxable costs. In The Mutual Safety Ins Co. v. St. Peter's Church, (14th April, 1845,) the defendants, paid the interest and costs, due the complainants, after which the latter moved for leave to dismiss the suit; but the late vice-chancellor would not permit it, except upon payment of the costs of all the defendants who had appeared.

¶2In this case, Duncan’s tender is equivalent to an attempt to dismiss the two suits as to Ely, the second mortgagee; and that can be done only on payment of his costs. He is entitled to re*quire the surplus to be paid into court, and to have a reference in each suit, in order to protect himself in respect of his debt and costs ; and he can be deprived of that right only by full payment of both. The justice of the matter is with him, and I think the law also. He must be paid his necessary taxable costs in each suit.

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