Ramsburg v. Campbell

Bowie, J., delivered the opinion of the Court. In the month of March, 1877, Messrs. Campbell & Bamsburg, partners in trade, failed in business, and became applicants for the benefit of the Bankrupt Act. Their wives, Laura Campbell and Sarah M. Bamsburg, being each possessed of a separate estate through their respective agents, entered into an agreement, that Mrs. Campbell should purchase the claims of the creditors of Campbell & Bamsburg, at the rate of seventy-five cents on the dollar, amounting to the sum of $16,985, for one-half of which she should be indemnified by Sarah M. Bamshurg, and that the said Sarah, should be entitled to recover one-half of the dividends to be realized from said claims, beyond the amount necessary to pay said sum.

In consummation of this agreement, as a security for the sum of two thousand dollars, part of the indemnity aforesaid, a mortgage dated the 20th of October, 1877, reciting the agreement aforesaid, and that Mrs. Campbell, had paid $3000 in cash and executed a mortgage to Wm. A. Eisher, as trustee for the creditors, to secure the sum of $13,985.85, and that it was agreed as part of the indemnity aforesaid these presents should be executed, was signed and sealed by Mrs. Bamsburg and her husband, and ostensibly acknowledged in due form of law, before a justice of the peace of the City of Baltimore, and delivered to Wm. A: Hammond, Esq., agent and attorney for Mrs. Campbell, by Newton A. Bamsburg, one of the mortgagors, or by the justice of the peace, with his privity and consent. The mortgage of the Bamsburgs, purported in consideration of the premises above recited, and therein set forth to convey certain leasehold property in the City of Baltimore to Laura Campbell, her executors and administrators, with the proviso, that if Sarah M. Bamsburg should pay to Wm.

A. Hammond, trustee of Laura Campbell, one-half of said sum of $13,985.85, secured to he ²²⁹ paid to Wm. A. Eisher, trustee, for said creditors, by mortgage from said Laura on or before the 18th of October, 1878, etc., and should fully indemnify and save harmless the said Laura, as to one-half of said mortgage debt, and perform the covenants therein contained, on her part to be performed, the same should be void. The mortgagors, also assented thereby to the passage of a decree by any Court of competent jurisdiction for the sale of the mortgaged premises according to the provisions of the Public Local Code, etc., and contained the usual provisions for a sale of the premises in case of default. Mrs. Ramsburg, through her husband, Newton A. Ramsburg, on the 20th October, 1877, paid to Mr. Hammond, trustee for Mrs. Campbell, $3500 in cash, and delivered certain stocks, to he sold, at such times as should seem most advantageous, and the proceeds, together with the sum of $2000, (secured by mortgage) to be applied to the payment of one-half the mortgage debt, secured by the mortgage of Mrs. Campbell to Eisher, trustee, for the creditors of Campbell & Ramsburg; the other $1500 to he paid at once to said Eisher as trustee as aforesaid, as one-half of the $3000, agreed to be paid in cash, besides the mortgage above referred to.

Mrs. Campbell’s mortgage to Eisher, was paid in full by Hammond as her trustee, with funds derived partly from money raised by Mrs. Campbell, and partly from the sale of the stocks of Mrs. Ramsburg, and cash received from Mrs. Ramsburg, and partly from collections from claims purchased, hut Mrs. Ramsburg’s proportion of payments being short, and the time allowed for the payment of the $2000 indemnity, secured by the mortgage of Ramsburg, having expired, the appellee, by her next friend, filed her petition on the 3rd of November, 1879, in the Circuit Court of Baltimore City, with the original mortgage annexed, alleging there was a default, and praying a decree for sale. A decree for sale was passed ²³⁰ on the 4th of November, 1879, and on the 29th of same month, the appellant, Sarah M. Ramsburg, her husband as next friend, filed in the same Court, a bill against the mortgagee and Robert Campbell, her next friend, praying that an account be had, that the sale may be stayed by injunction, subpoenas, etc. An injunction was issued as prayed. Answers being filed, the cause was referred to the auditor to take testimony, and state an account, and after various intermediate orders and proceedings, the auditor’s account being amended and filed, it was on the 25th of May, 1880, ordered by the Circuit Court of Baltimore City, in the case of Campbell, et al. vs. Ramsburg, that the defendant bring into said Court on or before the 14th of June, 1880, the sum of $2090.14, to he paid to the complainant, (Laura Campbell) and in default thereof, it is further ordered, that the injunction be dissolved, and the mortgage premises sold by the trustee, etc. From which decree this appeal is taken. The two cases seem both in the Court below, and in this Court, to have been treated as one, and we shall consider them as such, although the record