Galey v. Guffey

Citations

• 248 Pa. 523
• 94 A. 238
• 1915 Pa. LEXIS 604

Syllabus

<p>Contracts — Obligation of contracts — Unlawful impairment by courts.</p> <p>1. It is not within the power of courts of equity to restrain secured creditors of an individual whose estate has been placed in the hands of a receiver from adopting and applying such legal remedies as are allowed them by the terms of their contract and at such time as that contract by its terms permits.</p> <p>2. While the legislature may not impair the obligation of a contract, it may modify the remedy; where, however, the parties contract concerning the remedy, the remedy becomes part of the obligation of the contract and any subsequent statute which affects the remedy, impairs the obligation thereof and is unconstitutional.</p> <p>3. The obligation of a contract which cannot be impaired by the legislature, cannot be impaired by the courts.</p> <p>4. Where a mortgage on real estate provided that in the event of default, scire facias might issue on the mortgage and be prosecuted to judgment and execution for the collection of principal, interest, fees, cost and expenses, and after the execution of such mortgage the court appointed a receiver for the mortgagor’s estate and enjoined secured creditors from proceeding on their securities, it was error for the court to refuse an application by certain mortgagees for leave to collect their debt from the mortgaged estate in the hands of the receiver in accordance with the terms of their contract.</p>