Eastern Building Loan Association of Syracuse New York v. Welling

This action was commenced in the court of common pleas of Darlington county, South Carolina, by Welling and Bonnoitt, to recover of the Eastern Building & Loan Association of Syracuse, New York, the penalty provided by the statutes of South Carolina for wrongfully failing to enter in the proper office satisfaction of a mortgage which had been executed by Welling and Bonnoitt to the association.

The controversy presented by the issue joined was whether the mortgage in question secured merely the payment of seventy-eight promissory notes, each maturing monthly, and aggregating $6,065.10, or whether in addition such mortgage secured the payment of the dues and assessments upon certain shares of stock in said association which had been subscribed for by Welling and Bonnoitt. The trial court ruled that the mortgage secured only payment of the notes. A judgment entered in favor of the plaintiff upon the verdict of a jury was subsequently affirmed by the supreme court of South Carolina. 56 S.C.. 280, 34 S. E. 409. Thereupon a writ of error was allowed.

Messrs. ''Wm. Hepburn Russell, Wm. B. Winslow, and D. A. Pierce'' for plaintiff in error.

Mr. Henry A. M. Smith for defendants in error.

Statement by Mr. Justice White:

Mr. Justice White, after making the foregoing statement, delivered the opinion of the court: