Jones v. Parsons

Citations

• 25 Cal. 100

Syllabus

<p>Mortgage of Interest of one of several Partners.—If two or moro persons are partners in the ownership and management of real estate, and owe partnership debts, and one of the partners mortgages his interest in the property to secure his individual debt, the mortgagee acquires only the mortgagor’s interest in the surplus after the payment of the partnership debts; and if these debts equal or exceed the value of the property, and it is afterwards sold by the partners to pay the partnership debts, the mortgagee, as against the purchaser, holds no interest in the property, liable in equity to be sold, and the mortgage cannot be foreclosed.</p> <p>Partnership Debts—Sale of Property to Pay.—The purchaser of partnership property, who pays or becomes liable for partnership debts, equal in amount to the value of the property, has a valid defense against a suit in equity, brought to foreclose a mortgage executed by one of the partners for his individual debt on his interest in the partnership property.</p>