LIABILITY OF MORGAGOR.

Auckland Star, Volume LVII, Issue 247, 18 October 1926, Page 9

LIABILITY OF MORGAGOR.

REALISING AN ESTATE. IMPORTANT APPEAL DECISION. ißy Telegraph.—Press Association.) WELLINGTON, this day. At the Court of Appeal this morning, the Chief Justice delivered the judgment of the Court in the case of the Public Trustee v. Bank of New Zealand, heard on September 29, and stated that a mortgagor is not personally liable under a mortgage, and that such liability would be inconsistent with the whole scheme of mortgage. The bank, therefore, was not entitled to its claim. Each party wa-s ordered to pay its own costs. The above case had reference to the will of John Nicholas Gamlin, of New Plymouth, who died in 1923, leaving liabilities to the Bank of New Zealand of some £36,800. Deceased left certain property mortgaged to the bank, but it was not sufficient to satisfy the whole debt to the bank, and the questions placed before the Court of Appeal were whether, under the mortgage, the bank could claim satisfaction out of the remainder of the estate left by the deceased, but not mortgaged to the bank, and whether the bank was entitled to satisfaction of the whole of the amount owed to it.