Haverford Loan & Building Ass'n v. Fire Ass'n

Citations

• 180 Pa. 522
• 37 A. 179
• 1897 Pa. LEXIS 956

Syllabus

<p>'Tenants in common — Mortgage—Subrogation.</p> <p>If one tenant pays a mortgage, tax lien or other incumbrance upon the property, he may be subrogated to sucli lien to secure contribution from his cotenants.</p> <p>A person who has lent money to a debtor for the purpose of discharging a debt may be subrogated by the debtor to the creditor’s rights, and if the party who has agreed to advance the money for the purpose employs it himself in paying the debt and discharging the incumbrance on land given for its security, he is not to be regarded as a volunteer. After such an agreement with the debtor he is not a stranger in relation to the debt, but he may in equity be entitled to the benefit of the security which he has satisfied with the expectation of receiving a new mortgage or lien upon the land for the money paid.</p> <p>A husband supposing that under his wife’s will lie was the owner of certain real estate mortgaged it to a building and loan association, and the latter also supposing him to be the owner loaned him the money, but at his request applied part of it to Hie payment of a prior mortgage. It turned out that the husband owned only an undivided fifth of the land as tenant in common with his four children. The husband subsequently died, and the building and loan association filed a bill in equity against the first mortgagee and the children for relief. Held, (1) that as the husband had relieved the common estate of an incumbrance, he was entitled to contribution from his cotenants; (2) that the building and loan association succeeded to his right of subrogation, inasmuch as it was not a mere volunteer, and no other interests had intervened; (3) that the satisfaction of the first .mortgage should be canceled, and that the same should be held a valid lien to the use of the building and loan association upon the whole property, and that the second mortgage should be a valid junior lien upon the undivided estate of the husband in the premises.</p>