Spencer v. Welch

Citations

• 51 La. Ann. 753
• 25 So. 405
• 1899 La. LEXIS 466

Syllabus

<p>Syllabus.</p> <p>A. sells certain landefl property to B. and takes B.’s promissory notes for part of the purchase price, secured by special mortgage, containing the non alienation clause, on the property sold.</p> <p>B, without paying the 'notes, sells the property to C (a corporation). Subsequently C, with its property and effects, passes into the hands of a receiver appointed by the United States Circuit Court.</p> <p>A purchaser of the notes from A, suing in a State Court on the notes, praying judgment against the maker with recognition of mortgage rights, is met by an exception that the property, upon which the mortgage securing the notes rests, is in the custody of a Federal Court, and, therefore, the State Court is without jurisdiction to proceed with the suit.</p> <p>Judgment sustaining this exception held to be error. A suit to recover judgment establishing plaintiffs’ claim against the maker of the notes and recognizing their mortgage rights brings about no conflict of interest so far as the receiver is concerned, and no conflict of jurisdiction so far as the Federal Court is concerned. When it comes to selling the property under the mortgage and judgment, another question arises not here presented.</p>