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and 111 New York State Reporter

an incident to the obtaining payment of the debt by legal process, and when one of the partners was found acting in that undertaking the presumption is that he had the countenance and assent of the other partner."

Objection is also made to the reception of evidence in behalf of the plaintiff as to transactions between her and the persons from whom she purchased the property in question, on the ground that these were res inter alios acta. In a case of this kind, however, where the defense is based upon an averment that there never was any bona fide transfer of the property to the plaintiff, such proof is necessarily admitted, as without it the plaintiff would be deprived of any opportunity of establishing her ownership. Nor is the party claiming to own the property limited to putting in evidence simply the instrument assuming to transfer the title. The attending circumstances may also be shown as bearing upon the question of good faith.

The learned trial judge undoubtedly committed an error in refusing to allow counsel for the defendants to take exceptions to his charge before the jury had rendered their verdict. Counsel was entitled to take such exceptions, notwithstanding the fact that the jury had retired. If the judge deemed the presence of the jury necessary, he might have had them recalled. In view of this error, the charge has been examined in order to ascertain whether any portion of it, if an exception thereto had been taken, would require a reversal of the judgment. This examination discloses no erroneous instruction.

There are three passages of which particular complaint is made by counsel for the appellants:

The first is merely a statement of the plaintiff's position in the case, and a summary of her testimony, which seems to be correct. This furnishes no valid ground for exception.

The second is in these words:

"The other defendants are Richard and Henry Pritchard, said to be father and son, who were the plaintiffs in the judgment and the execution against the husband of the plaintiff. It is claimed that the one actively participated in the wrong, and that in so doing he was the agent and representative of the other, who was bound by his acts."

This was nothing more than a statement of the contention of one of the parties, and an exception to it would have been unavailing.

The third instruction was as follows:

"The transaction in question being just at that special day of the year -the day before Easter-when, as it is claimed, the business of florists is better than on almost any other day in the year, if you think that the action of the defendants, or either of them, was willful, wanton, and malicious, you may take that into consideration, and, if you think the case calls for it, give damages by way of punishment in addition to damages for the loss of the actual value."

The rule in this class of cases appears to be tolerably well settled that exemplary damages may be recovered if the injury was wantonly inflicted. See Cable v. Dakin, 20 Wend. 172; Brizsee v. Maybee, 21 Wend. 144; Schofield v. Ferrers, 46 Pa. 438; Single v. Schneider, 30 Wis. 570. By "wanton action" is meant action "reck

lessly disregardful of right or of consequences." Cent. Dict.; I Sedgw. Dam. (8th Ed.) § 366.

Complaint is also made that the comments, remarks, and interruptions made by the learned court during the trial seriously prejudiced the defendants' rights before the jury. We have examined the record with great care in reference to this assertion; and, while the judge who presided at the trial seems to have indulged in some severity toward counsel, the cause for which is not disclosed by the appeal book, we are not prepared to say that it affected the result. The charge was perfectly fair, and the conclusion of the jury. seems to be fully justified by the evidence. We conclude, therefore, that the judgment should be affirmed.

Judgment and order affirmed, with costs. All concur.

(73 App. Div. 412.)

JACOBSON v. SMITH et al.

(Supreme Court, Appellate Division, First Department. June 13, 1902.) 1. MORTGAGES-PROPERTY SUBJECT TO-INTEREST OF BENEFICIARY IN WILLAFTER-ACQUired ProperTY

Testator devised real estate to his wife for life, with directions to his executors, on the death of the wife, to sell the property, and pay the proceeds to a daughter, or, if the latter were dead, to the children of such daughter. During the life of the life tenant the daughter and her children executed an instrument purporting to mortgage all their interest in the property. Held, that as the interest of the children in the testator's estate subject to the power of sale was a mere chose in action, the instrument could not, as against them, be construed as a mortgage which could be foreclosed before the death of the daughter, but only as an agreement to give a mortgage which could be enforced against the children only in equity on their acquisition of the property. 2. SAME-DECREE OF FORECLOSURE-VALIDITY-PARTIES IN DEFAULT.

An action on such mortgage was commenced before the death of the daughter, and foreclosure was prayed for, but no demand made for the enforcement of any equitable lien, on any interest that might accrue to the children. The children, though made parties, did not appear, and a decree was rendered foreclosing the mortgage as to all parties. Before the sale the daughter died, and without notice to the children the decree was amended, directing the sale of any interest of the children in the land, or in the real or personal estate of testator. Held, that under Code Civ. Proc. § 1207, providing that no greater relief shall be granted as against parties not appearing than is demanded in the complaint, the interest of the children in the estate was not affected by the decree. 8. SAME FORECLOSURE SALE-MOTION TO VACATE-LACHES.

The interest of the children in such estate was sold January 3, 1896, the deed was delivered January 23d, and the children had notice of such fact. Held, that as the children were ignorant of their rights until the death of the life tenant, July 23, 1901, they were not precluded by laches from moving to vacate the sale February 17, 1902.

Appeal from special term, New York county.

Suit by Marie E. Jacobson against Elizabeth Smith and others to foreclose a mortgage. From an order denying motion to vacate sale under the decree, defendants appeal. Modified and affirmed. Argued before HATCH, MCLAUGHLIN, PATTERSON, INGRAHAM, and LAUGHLIN, JJ.

77 N.Y.S.-4

and 111 New York State Reporter

James MacGregor Smith, for appellants.
O. J. Wells, for respondent.

INGRAHAM, J. It appears that under the will of William Moore, deceased, which was admitted to probate October 10, 1883, the testator's real and personal estate was devised and bequeathed to his widow, Margaret Moore, for life, and upon her death the executors were directed to sell and dispose thereof, and to divide the proceeds among the testator's children in equal shares and proportions. The will further provided that in the event of the death of either of his children before the death of his wife, bearing lawful issue, the executors were to divide the share of such child so dying among the children of such deceased child in equal shares and proportions. The defendant Elizabeth Smith was one of the children of the testator, and the appellants are her children. On the 2d day of December, 1889, Elizabeth Smith borrowed from the plaintiff the sum of $1,250, and arranged to give as security for such loan a mortgage upon her share in the real estate of William Moore, deceased. After this loan had been arranged the appellants were informed that the loan would not be made unless they would unite in the mortgage, as in the event of Elizabeth Smith dying before the life tenant the share would vest in them. They objected to joining in this mortgage, but upon going to the office of Mr. Wells, the attorney for the plaintiff in making the loan, they were induced to sign the mortgage. In November, 1894, this action to foreclose the mortgage was commenced, and the summons and complaint were served personally upon each of the defendants who failed to appear or answer, and judgment of foreclosure and sale was entered on the 1st of February, 1895. There was a sale under the judgment on January 6, 1896, when the plaintiff became the purchaser, and on the 23d day of January, 1896, the referee's deed was delivered. It further appeared that after the entry of judgment, but before the sale, Elizabeth Smith, one of the children of the testator, died during the life of the life tenant, the widow of the testator leaving, her surviving, the appellants. The mortgage sought to be enforced in this action is in form a conveyance by the three defendants of six separate parcels of land separately described, and also "all the undivided part or interest, present or prospective, of the defendants Elizabeth Smith, Carrie A. Fithian, George W. Smith, or either of them, as heirs at law, devisee, legatee, or otherwise, of, in, and to the real and personal estate, claims, demands, and choses in action, of whatsoever kind and wheresoever situate, whereof William Moore, late of the city of New York, died seised or possessed, or to which his estate is or may be entitled," with a provision that the grant is intended as a mortgage to secure the payment of $1,250 on the Ist day of January, 1895, with interest. When this mortgage was executed these appellants had no interest whatever in the property therein mortgaged. The will of William Moore gave to his wife his estate, real and personal, for her life. Upon her death his executors were given a power of sale, with directions to sell the estate, and divide the proceeds among his children equally. The remainder

in the property after the death of the life tenant vested absolutely in his children, subject to the execution of the power of sale given to the executors upon the death of the life tenant. Upon the execution of the power of sale, however, the interest of the children in the property would be a mere chose in action, they being entitled to receive a portion of the money realized by the executors upon the execution of this power of sale. During the lifetime of their mother these appellants had no title to the property, nor did they have any interest in the estate of their grandfather, and this was the condition when this mortgage was executed. The mortgage was ineffectual to create a lien upon the specific real estate, because the appellants had no interest therein. The instrument, however, transferred "all the undivided part or interest, present or prospective, of the parties of the first part ** in and to the real and personal estate, claim, demands, or choses in action of whatsoever kind and wheresoever situate whereof William Moore, late of the city of New York, died seised or possessed, or to which his estate is or may be entitled."

*

The utmost that could be claimed for this is that it was an agreement to give a mortgage on or pledge of any interest or right that they might subsequently acquire in the estate of the testator, and that such an agreement could be enforced in equity. The rule is well settled that a mortgage upon subsequently acquired property is void at law, but such a mortgage would be construed as an agreement to give a lien which, as between the parties, takes effect and attaches to the subject of it as soon as it comes into the ownership of the mortgagor. In Kribbs v. Alford, 120 N. Y. 519, 24 N. E. 811, Judge Parker, writing the opinion of the court, says: "As between the mortgagor or his assignee and the mortgagee, therefore, the chattel mortgage operated to create a lien in equity as to the chattels purchased and placed upon the property by the mortgagor subsequent to its date." But the distinction between a mortgage of a chattel or chose in action and an equitable lien which would be created by an agreement to give a mortgage upon property subsequently acquired is illustrated by the opinion of Judge Gray in Distilling Co. v. Rasey, 142 N. Y. 570, 37 N. E. 632, 40 Am. St. Rep. 635. There Judge Gray says:

"The idea of a chattel mortgage is that of a conveyance of personal property to secure the debt of the mortgagor, which, being conditional at the time, becomes absolute if at a fixed time the property is not redeemed, and the statute makes it valid as against creditors of the mortgagor only when filed as directed. Regarding the chattel mortgage in question as a mere executory agreement to give a lien when the property came into existence some further act was necessary in order to make it an actual and effectual lien as against creditors."

This mortgage, therefore, created no lien upon this property or interest in the estate which these appellants should subsequently acquire, and there was no property or interest of these appellants that the mortgagee could foreclose until the interest in the estate had become vested in the appellants by the death of their mother prior to the death of the life tenant.

and 111 New York State Reporter

The complaint in this action alleges the execution of the bond by the defendant Elizabeth Smith, the mother of these appellants, and who was entitled to the remainder in the property of the testator, and the execution as collateral security for the payment of the indebtedness therein evidenced by the defendants of a mortgage whereby they had granted, bargained, and sold to the plaintiff certain specific real estate of which the testator had died seised, and also the interest in the estate of the said William Moore, as described in the mortgage; that each and all of the defendants have or claim to have some interest in, or lien upon, the said mortgaged premises, or part thereof, which interest or lien, if any, had accrued subsequent to the lien of the said mortgage, and is subject and subordinate thereto; and demands judgment that the defendants herein, and all persons claiming under them, or either of them, subsequent to the commencement of the action, may be forever barred and foreclosed of all right, claim, lien, and equity of redemption in the said mortgaged premises; that the said premises may be decreed to be sold according to law; that the moneys arising from the sale may be brought into the court, and that the plaintiff may be paid the amount due on the said bond and mortgage, with interest to the time of such payment; and that the defendant Elizabeth Smith may be adjudged to pay any deficiency arising upon such sale. As at the time this action was commenced neither of these appellants had any right, title, or interest in the property of the testator, or any interest in his estate, any interest that they should subsequently acquire other than through their mother would not be affected by the foreclosure of this mortgage; and under the prayer for relief the plaintiff could obtain no greater relief than that demanded, viz., a sale of the interest of these defendants in this specific real property, or in the estate of the testator, when the action was commenced, and the application of the proceeds of the sale for the payment of the mortgage. All of the defendants being in default, a judgment was rendered in conformity with the prayer of the complaint. By that judgment a referee was appointed who was directed to sell the mortgaged premises de scribed in the complaint, or such part thereof as was sufficient to discharge the mortgage debt, and which may be sold subsequently without material injury to the parties interested, and the property to be sold was this specific real estate described in the mortgage, and also the undivided part or interest, present or prospective, of the defendants Elizabeth Smith, Carrie A. Fithian, and George W. Smith, or either of them, as heirs at law, devisee, legatee, or otherwise, of, in, and to the real and personal estate, etc., whereof William Moore, late of the city of New York, died seised or possessed, or to which his estate is or may be entitled. After the entry of this judgment the defendant Elizabeth Smith, the mother of these appellants, died, and thereupon there accrued to these appellants under the will of William Moore a right to the distributive share realized upon the sale of the real and personal estate of the testator.

I do not think that a sale under this judgment, entered before these appellants became entitled to any portion of this property, would devest them of the right or interest in the estate of the testator which had vested in them subsequent to the commencement of the action and the

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