Armstrong v. Ashley

Citations

• 204 U.S. 272
• 27 S. Ct. 270
• 51 L. Ed. 482
• 1907 U.S. LEXIS 1510

Syllabus

<p>Where the title of one claiming ownership of real estate in bad faith is openly questioned and attacked in actions of ejectment, neither he nor his mortgagee are entitled to an equitable lien on the property for moneys expended thereon.</p> <p>One loaning money on real estate, the title to'which has. been, to his knowledge, attacked in an equity suit which has been dismissed without prejudice and not on the merits, takes the risk of the title and his knowledge eitendd to all property described, not only in the de'claration but also in amended declarations, notwithstanding the failure of the clerk, without any fault of the party filing them, to properly index the amended • declarations.</p> <p>Knowledge of the president of a local board of directors and of the local attorney of a building and loan association in regard to a matter coming within the sphere of their duty and acquired while acting in regard to the same is knowledge of the association, and the fact that they have committed a fraud does not alter the legal effect of their knowledge as against third parties who have no connection with, or knowledge of, the fraud p'erpetrated.</p> <p>While one claiming to own real property cannot stancl by in silence and see another expend money in improving it, he fulfils his duty by notifying the person spending the money and claiming ownership; and, in the absence of knowledge that such person is insolvent, he is not bound to ascertain whether he is making the improvements with money realized by mortgaging the premises and notify the mortgagee also.</p>