Pierce v. Robinson

Citations

• 13 Cal. 116

Syllabus

<p>A mortgagee of land in possession must account for rents and profits; and after payment of the debt for which the mortgage was given, he becomes, by operation of law, Trustee of the surplus for the mortgagor.</p> <p>Where it was agreed between the mortgagor and mortgagee that the land and its proceeds were to be held, not only as security for the debt due the latter, but for debts due third persons, laborers on the land for instance: Jlelcl, that such agreement was an appropriation of said surplus for the benefit of said third persons, not revocable when they have acted on the faith of it, and the mortgagee is a Trustee of the same for said third persons.</p> <p>Such an agreement operates as an equitable assignment of the surplus so soon as any exists, which does not pass to the Administrator of the mortgagee as general assets for the benefit of creditors at large, but is subject, in his hands, to the same trust which attached to it before the decease of the intestate.</p> <p>Equity upholds assignments, not only of ehoses in action, but of contingent interests and expectations, and of things which have no present actual existence, but rest in 'possibility, provided they are fairly made, and are not against public policy ; and an agreement for such interests will take effect as such assignment when the subjects to which they refer have ceased to rest in possibility and have ripened into reality.</p> <p>Parol evidence is admissible in equity to show that a deed, absolute on its face, was intended as a mortgage.</p> <p>Such evidence is not restricted to cases of fraud, accident, or mistake, in the creation of the instrument.</p> <p>Evidence of the circumstances under which the deed was made and of the relations existing between the parties is admitted, not to contradict or vary the deed, but to establish an equity superior to its terms.</p> <p>The rule which refuses the admission of parol evidence to contradict or vary written instruments is directed to the language