Schneider v. Ferrigno

Ethel M. Holmes Case issued a fourth mortgage to Paradise in the amount of $15,475. Paradise sold its interests to David Miller. Miller sold his interests to Baggish and to Samuel Schneider (defendant). Schneider purchased the equity of redemption and took title to his one-half interest subject to the four existing mortgages. Schneider and Guiseppe Ferrigno (plaintiff) then negotiated to exchange Schneider’s interest in the premises for certain real estate owned by Ferrigno. Schneider did not want to assume the mortgages on Ferrigno’s real estate, so Schneider transferred his interest in the premises to be conveyed to Ferrigno to his brother-in-law. As part of Schneider’s transfer to his brother-in-law, his brother-in-law assumed and agreed to pay the mortgages on the premises. Schneider’s brother-in-law then made the exchange on Schneider’s behalf, with each party assuming and agreeing to pay the respective mortgages on the conveyed properties, which was expressly acknowledged as consideration. Shortly thereafter, the premises Schneider conveyed to Ferrigno through his brother-in-law were subject to a strict foreclosure of a prior lien. Ferrigno ultimately lost title to the premises conveyed on Schneider’s behalf. Ferrigno brought suit against Schneider, and the trial court found that Schneider could not be found liable because his interest in the premises was subject to the mortgages and he had never assumed the mortgages. Therefore, Schneider was never personally responsible for the prior debt. Ferrigno appealed the trial court’s determination.