Manley v. Debentures \B\ Liquidation Co.

Citations

• 64 Kan. 573
• 68 P. 31
• 1902 Kan. LEXIS 246

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Taxation — Purchase Held to be a Payment. Where one has secured his obligation by the pledge of the note of another, secured by mortgage on real estate, he cannot, as against his creditor, decrease the value of such security by purchasing such real estate at a tax sale. Such a purchase, as between such parties, will be held as a payment of the tax.</p> <p>2. -Equitable Estoppel. It is the duty of one so collaterally pledging a real-estate mortgage to preserve the value of such security, and the law will not permit him to decrease it to his own profit and to the detriment of the one holding the note thus collaterally secured.</p> <p>3. - Certificate Held by Third Party with Notiee. One receiving from such debtor a tax-sale certificate, obtained under circumstances indicated above, as security for a debt owing to him from the tax-sale-certificate holder, with knowledge of all the facts, stands in no better position than the original tax purchaser, and equity will cancel and set aside such tax-sale certificate in the hands of such person, at the suit of one wronged by the issuance of the certificate.</p> <p>4. Jurisdiction — Parties to Action. One not made a party to an action is not bound by the judgment rendered therein nor can he claim advantages growing out thereof.</p>