Wood v. Swan

Summary

The case concerns a dispute over the priority of mortgages on the same real estate. The plaintiff held a first mortgage that was assigned to him but the assignment was not recorded until after the defendant bank took assignments of later mortgages. The court held that the bank had constructive notice of the recorded first mortgage and that the mortgagor's payments to the original mortgagee did not bind the assignee because the original mortgagee was not the assignee's agent.

Holdings

1. The prior mortgagee retains priority despite the assignee's failure to record the assignment, because the recorded mortgage itself gave constructive notice to subsequent mortgagees.
2. No agency relationship existed between Wood and Allfree; the Swans paid at their peril to a non-holder, so the mortgage was not discharged.

Questions Presented

1. Whether Wood's failure to record the assignment of his mortgage subordinated his lien to the bank's later-acquired mortgages.
2. Whether Allfree was Wood's agent so that payment or settlement with Allfree discharged the Swans' obligation.

Disposition

affirmed