Goebel v. . Iffla
18 N.E. 649 · New York Court of Appeals · 1888
Facts
A trustee applied for and received leave to mortgage real estate to raise funds for its preservation or improvement. The mortgage covered the interests of the trustee, beneficiaries, and persons entitled in remainder upon the trust's expiration. These remaindermen were subsequently made parties to the foreclosure of the mortgage. They were given the opportunity to pay off the mortgage or defend against its enforcement but chose to do neither. The current dispute concerns the validity of the title tendered to a purchaser following this foreclosure.
Procedural history
The case involved an appeal from an order. The court agreed with the conclusion reached by the General Term. The underlying action was a foreclosure of a mortgage, where the remaindermen were made parties.
Issue
Is the title tendered to a purchaser good and complete when persons entitled in remainder were made parties to a mortgage foreclosure action but failed to defend or pay off the mortgage?
Holding
Yes, the title tendered to the purchaser is good, and the purchaser should be required to complete the purchase.
Rule
A judgment rendered by a court with competent authority over the subject-matter and jurisdiction over the parties is final and conclusive between them. This rule applies even if a defendant, instead of demurring, answers and litigates, or if they fail to answer, resulting in a judgment by default. If facts are stated that, if admitted, subject a party's title to the plaintiff's mortgage and sought relief, that party is estopped from later asserting their interest against the foreclosure judgment. What binds one party cannot be questioned by another.
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