Munson v. American Savings Bank & Trust Co.

Citations

• 43 Wash. 549
• 86 P. 1047
• 1906 Wash. LEXIS 746

Syllabus

<p>Pledges — Foreclosure of Collateral by Pledgee — Accounting— Rights of Pledgor. Where a debtor assigned as collateral security, notes and a mortgage which he was foreclosing to his creditor, a bank, with the understanding that the bank would complete the lore-closure, and the parties afterwards entered into a written agreement to the effect that the bank should make further advances to acquire prior liens and perfect the title, agreeing to hold the same for eighteen months and convey the same to the debtor upon repayment of all sums due and all advances and expenses, the debtor agreeing to pay any balance remaining due, the bank, after bidding in the property for a sum in excess of the debt and all advances with intent to perfect its own title, and holding the same for said eighteen months, and selling the same on the debtor’s failure to redeem it, at an undisclosed price, is bound to account to the debtor for the difference between the price bid with interest and the amount of the debt due, advances and costs; since a pledgee acquiring title in his own right at a fair valuation with the knowledge and consent of the pledgor holds the title for his own benefit and not in trust and must account to the pledgor for the valuation at which he acquired the title (Rudkin, J., dissenting).</p>