St. Paul daily globe., 1895-01-09
GAN COLLECT RENT.
Canty Files a Decision in the Old
RYAN Case

Ryan Case.
Seven decisions were handed down by
the supreme court yesterday, all written
by Justice Canty. In two of the cases
the order and Judgment of the lower
courts are reversed, and in the decision
in the case of Margaret j. Mitchell
against William B. Mitchell Justice
Buck dissents from the opinion of the
majority OF the court.
The case of Matthew Cullen against
Silas B. Foot, respondent, and the Min
nesota Loan q Trust Company. as
trustee. is q very important one, and is
better known as the Ryan case.
Mr.. Ryan mUrtgaged To the Trust
company the property ON which the
Ryan hotel stands and the property on
which the building owned by Foot.
Schultz Il Company stands, for the
sum of $3.50, 900. He afterwards con-
yeyed to Cullen, the plaintiff
in this case, the Foot, Schultz
property, but not the other piece. Ac
cording to the terms of the mortgage the
Trust company could collect rents on
the property to pay taxes, assess
ments and interest on the mortgage.
The Trust company found S40,-
900 worth OF taxes. etc, that
had never been settled on the
hotel property, and they went
10 Foot, Schultz & Co. to collect rents to
pay the indebtedness on the Ryan prop
erty. Cullen brought &n action against
Foot. Schultz IL Co. Tor two months
rent. The firm paid the rent into court
and then had the trust COM
pany substituted as defendant. In
the action thus brought the
court decided against the trust COM
pany
In the second action, brought by Gull
len against Foot, Schultz Il Co.. the
trust company interviewed and the case
was decided against them. The lower
court held that the terms of the mort
gage cannot be construed to mean
that the trust company could collect
rents, while the supreme court holds
that the company can collect rent on
the Foote-SchultZ property and use 1t II
necessary TO satisfy taxes and assess
ments. and unless Mr.. Cullen can prove
that rents collected on Ryan property
are sufficient to cover taxes on tnat
property that the Trust company can
collect rents on the other piece OF prop
erty TO cover the deficit. The title
ana syllabus Of the case follows:
Matthew Cullen, plaintiff, respondent,
VS.. SiIas B. Foot, ct al, defendant, re-
spondent; Minnesota Loan u Trust
Company as truStee; lnteryenor. ap-
pellant.
Syllabus-WheTe a mortgage on real
estate provides that Oh default in the
payment of interest, taxes or insurance
the MORTGAGE may collect the rents ac-
cruing from the mOCtgaged premises
and apply them in payment OF the same.
and after making the mortgage the
grantee of the mOrtgagor leased the
premises.
Held, the tenant stands on the same
footing as the mortgagor, and the mort
gagee cannot acquire the benefits or
fruits Of the possession by collecting
the rent due from such tenant TO pay
the mortgage debt, but that the same
cOntraVeneS the statute which provides
that a mortgage shall not enable the
mUrtgagee TO take possession Without
foreclosure.
But, Held such rents may be so col
lected Tor the purpose OF preserving the
mortgage property by paying The taxes
and Insurance.
Where a part OF the mOrtgaged prop
erty was thus convey ed to said grantee,
Held the mortgagee cannot be COM
PEELED to exhaust its mortgage Oh the
properly not conveyed before il can
collect such rents accrulng from the
property so conveyed, TO pay the taxes
and Insurance due on the property not
conveyed. out it can be compelled
to exhaust the rents on the property
not conveyed to pay the taxes and in
surance on that property before resort
ing to the rents accruing on the prop
erty conveyed TO pay the same. Judg-
mentS reversed. CAVITY. j.