The Montgomery advertiser., 1904-02-20

g. Redemption by mcrtgsgor from mort gagee In possession; proper mode of rent ling property.--A corporation which was a mortgagee, sold lands under the power of sale contained therein and became the purchaser at such sale, without being given authority in the mortgage so to do. The lands 50 n1ortgaged and sold consti- tuted a very large plantation. Snbse- quently there was a disafirmance of the sale and the mortgagor sought to redeem from the mortgagee In possession. Upon the question as to the proper mode of renting the property, the evidence showed that there was in vogue with ordinarily prudent and diligent owners of largo tracts of land in the country where the said plantation was situated, a custom of letting plantation In parcels to farm laborers severally, charging them so much for each parcel. graduated by the number of mules each tenant employed, and also by renting the land by leasing the planta- ton as a whole to one man. It was fur ther shown that the renting in parce's s was ordinarily productive of considerably larger total net rent than the other meth cd, and that 1t was practicable for the mortgagee to have thus farmed out the plantation; but it also appeared that this method involved a certain care and sur veiilance on the part of the landlord, at
 
 might also involve the necessity for the landlord to advance supplies to the ten- ants; and further. that none of such in- fiirmative considerations obtained to the quentiy rents out eaid lands as whole tenant. Held: That the duty of the mortgagee in possession was fully dis charged by exercising the care and dili- gence an ordinarily prudent and active owner would have exercised in leasing the t-~H- ~1,-N- AA 0wat aNA hnH It's liability to account for rent was to be measured accordingly. .'- ..,. | 10. Same, with what rents the mort gagee chargeable.-A mortgagee in pos session of the mortgaged premises, ia chargeable with the fair rental value of the property, which Is, generally speak ing. such as an owner of ordinary pru- dence could secure by the exercise of req ] sonable diligence: and in the absence of proof of willful defaiut- or gross negli- gence on the part of the mortgagee, the rent received by him in such case is to be taken as measuring the result of the exercise of due care and diligence. and beyond the rent so received. he can not be charged. (, .-. il. Equity pleading; review of rulings of register-Where. in holding a reference for an accounting, register in chancery proceeds upon correct principles to. ascer- tain on testimony before h1m, the amount of each item on the acconnt to be stated by him. his conclusions stand upon the footing of a verdict of jury. and should not be disturbed by the chancellor or the appellate court, unless 1t is plainly erron- eous; but when 1t appears that the regis ter has proceeded upon incorrect princi- pies to the conclusions he reaches and re- ports, and in consequence his finding i1 not wholly the result of his consideration of the testimony upon the issue. but Is referable la a material degree to a mis- take of law or the misapplication of law | to the facts before him, his finding carries no presumption of correctness with 1t be- fore the chancellor, nor brings any such presumption to the appellate court. F. Redemption by mortgagor from mortgagee; rental value of lands not en- hanced by permanent Improvements Where mortgagee at a foreclosure sale under the power contained in the mort gage, becomes the purchaser without be- ing authorized so to do in the mortgage, and subsequently, makes contract of sale to third party for the lands so pur- chased, and snch vendee makes rerma- nent improvements upon the lands, upon the redemption of said lands by the mort gasor, the mortgagee should not be charged with, the enhanced rental value of the land due to the permanent im- l proyements made by the vendee of the mortgagee.
 Modified and affirmed.
 Opinion by Mcclellan. c. J.