Spratt v. Livingston
Spratt v. Livingston
Opinion of the Court
C. 0. Livingston brought a suit of ejectment in the Circuit Court for Duval county, in March, A. D. 1889, against L. W. Spratt and W. B. Barnett, to recover possession of a certain lot of land described in the declaration and situated in the city of Jacksonville, Du-val county, Florida. A trial of the cause before the ' court without a jury resulted in a finding and judgment for the plaintiff, and the defendants appealed.
To maintain his action the plaintiff first, introduced a deed from J. P. Sanderson and wife bearing date February 7th, A. D. 1870, conveying to the Freedman’s Savings and Trust Company lot eight (8) in block thirty-one (31) as described on the plan of the said city of Jacksonville. This lot embraces the land in controversy in this suit. Next a certified copy of the record of a certain cause in the Duval Circuit Court where Jonathan C. Greeley vas plaintiff and William. L. Trenholm, the Comptroller of the Currency, as Com-missionerof the Freedman’s Savings and Trust Company, was defendant. This suit was commenced by attachment., the affidavit therein alleging that the defendant Trenholm, Comptroller of the Currency of the Uni-.
The defendant appeared by attorneys, and filed pleas to the merits of the cause, which, after issue joined, was referred to a referee for decision. After hearing the testimony offered and argument of counsel the referee rendered judgment in favor of the plaintiff, Greeley, against the defendant, William L. Trenholm,* Comptroller of the Currency, as Commissioner of the Freedman’s pavings and Trust Company, for the sum of $5,186.77, and costs of suit.
The record shows that Greeley’s suit was for moneys paid out by him for costs and expenses incident to litigation over the property held by the defendant, and known as the “Freedman’s Savings Bank Building’’ situated in Jacksonville, Florida, and also for compensation to Greeley for services rendered by him as agent for defendant as such commissioner at Jacksonville.
Following the introduction of this record plaintiff put’in evidence a certified copy of an execution emanating from the judgment rendered, and a deed from the sheriff of Duval county on a sale under said execution conveying the said lot eight (8) block thirty-one ■(31) to the plaintiff in this suit.
A notice of the sale of the “Freedman’s Bank Building” at auction by the commissioner, was shpwn, and -J. C. Greeley for the plaintiff testified that the Freedman's Savings and Trust Company went into possession of the property sued for in this suit in 1870 and remained in possession until the failure of the bank,
Defendants did not offer to show' any paper title to the lot in question but testified that they were present at the sale of lot eight (8) in block thirty-one (81), known as the ‘‘Freedman’s Bank property”, and at this sale and before the bidding began it was announced by the agent of the vendor that there wras some defect in the chain of title which the vendor would have corrected in a few' days, thirty being named as a limit in which this was to be done and a a sufficient title to be made to the purchaser; that the purchaser at the sale was required to make a cash payment of $500.00 and was then to be let into possession of the premises, the balance of the purchase money to be paid when good title was tendered; that Spratt became the purchaser of said lot and paid cash the $500.00, and Greeley, who, as agent for the commissioners, had been renting the building and collecting the rents, directed the tenants to attorn to him, Spratt, and gave him a key to a vacant room in the building; that Barnett did attorn to Spratt and has ever since recognized him as landlord.
Barnett farther testified that he had been in the exclusive and continuous occupation of the premises, sued for since the 2oth of Maich, 1880, as the tenant of his co-defendant, Spratt, and Spratt testified that he had been furnished by the agent of the Commissioners of the Freedman’s Savings and Trust Company, at the time of his purchase, with a list of the tenants and the amount of their rent, and the key to a vacant room in the building, and that he renewed the lease to Barnett and took possession of the vacant room; that
In rebuttal plaintiff put in evidence a bill hied by Spratt and Barnett on the 6th day of November, 1882, against John J. Knox, Commissioner of the said Freedman’ s Savings and Trust- Company, and George Whea-ton Deans as administrator of the estate of Jacob Foreman, deceased. The purpose for which this bill was introduced was to show that Spratt and Barnett recognized the relation of purchaser of the property on the part of Spratt and that he was thereby seeking as such purchaser to have the Commissioner of the Freedman’s Savings and Trust Company to execute a deed to said property by virtue of his said purchase. The allegations of this bill are set out in the case of Knox et al. vs. Spratt and Barnett, 19 Fla., 817. The mandate of this court in the case referred to on a reversal of the decision of the Circuit Court in refusing, to dissolve an injunction therein granted, was also put in evidence. An affidavit of Spratt filed May 2nd, 1884, in a suit then pending in the Circuit Court for Duval county wherein he was complainant and George Wheaton Deans and John J. Knox, as Commissioner of the Freedman’s Savings and Trust Company were defendants, was also introduced in evidence. The purpose being to further show that Spratt still recognized his status as purchaser of the property from the Freedman’s Savings and Trust Company.
The plaintiff also showed by the sheriff of Duval county that he had paid the balance of the proceeds
Counsel for appellants insist here as grounds for reversing (lie judgment appealed from that the appellee, Livingston, acquired no title whatever at the execution sale under the judgment of Greeley against Trenholm, as Commissioner of the Freedman’s Savings and Trust Company, or that he did not acquire from this source such a title as will sustain a recovery in ejectment; and conceding such to be the case, that Spratt had been in actual continuous and adverse possession of the parcel of land in controversy for seven years before the institution of the suit.
It is contended first that Trenholm was the mere trustee and holder of the bare legal title of the lot, and its sale under execution against him transferred no beneficial interest whatever to Livingston. To understand Trenholm’s status to the lot in question at the date of sale a reference to the act of Congress creating the Freedman’s Savings and Trust Company, and the amendments thereto is necessary. By act of Congress approved March 3rd, A. D. 1865, certain named individuals, fifty in number, and their successors were constituted a body corporate by the name of ‘The Freedman’ s Savings and Trust Company” and by that name could sue and be sued in any court of the United States. The corporators named were the first trustees of the corporation, and its business was to be managed and directed by the board of trustees with authority and direction to elect from their number a president and two vice-presidents, and also to appoint such other officers as might be deemed fit. The general business of this corporation was to receive on deposit such sums of
The original act was amended in 1874, Chapter 849, United States Statutes at Large.
The only provisions of this amendatory act necessary to be referred to here are those contained in the seventh section. This section provides “that whenever it shall be deemed advisable by the trustees of said corporation to close up its entire business, then they shall select three competent men, not connected with the previous management of the institution and approved by the Secretary of the Treasury, to be known and styled commissioners, whose duty it shall be to take charge of all the property and effects of said Freedman’s Savings and Trust Company, close up the principal and subordinate branches, collect from the branches all the deposits they have on hand, and proceed to collect all sums due said company, and dispose of all the property owned by said company, as- speedily as the interests of the corporation require, and to distribute the
There was still a further amendment to the charter
By this act. Section seven of the amendatory act of 1874 was repealed, and the Secretary of the Treasury was authorized and directed to appoint the Comptroller of the Currency a commissioner, who was required to give bond and take an oath faithfully to perform his duties, and when the bond was given and oath taken, said commissioner was invested with the possession and legal title of all the property of the Freedman’s Savings and Trust Company for the purposes of this act and the act of 1874, Chapter 349, United States Statutes at Large. Said commissioner was also invested with all the rights, prerogatives and privileges, and required to perform all the duties that were conferred and enjoined upon the three commissioners under the said act of 1874. and from and after his qualification as such commissioner, the duties, rights, and authority of said three commissioners should cease and determine; provided, that nothing in the act should in any way impede or delay any case or cases instituted in any court by or against the said three commissioners appointed under the act of 1874; but every such case should, upon the suggestion of the appointment of the Comptroller as commissioner aforesaid, and due entry of the change on the docket of the court in which such cause was pending, be proceeded with in the name of such Comptroller in the same manner as if such change had not been made.
The act of 1881, Chapter 64, also provides “that said commissioner, with the approval of the Secretary of the Treasury, shall have the right and authority to se 11 any of the real and personal property of said company at public or private sale, as in his judgment he may deem best, and to buy m for the benefit of the com
Such was the relation of William L. Trenholm, Comptroller of the Currency, to the Freedman’s Savings and Trust Company and its property at the time Greeley obtained judgment against him as commissioner of said company. By act of Congress, the same power that created the Freedman’s Savings and Trust Company, he, by virtue of his office of Comptroller of the Currency, was made a commissioner for this institution with the concurrence of the corporators, and a.s such was invested with the full title and possession of all of its property for the propose of closing up its entire business. To this end he had express power and authority to dispose of all the property of the company and to employ such agents as were necessary to assist him in winding up its affairs, and to pay them reasonable compensation for their services out of the corporate funds. The evident design and effect of the act of Congress in making the Comptroller of the Currency a commissioner for the institution named were to confer upon him as such the entire and complete management and disposition of the affairs of said company for the purpose of liquidation. He was the statutory substitute and successor of the company for the purpose mentioned. The record discloses the fact that Greeley’s suit was to recover for expenditures of money and services rendered by him as agent for such commissioner in winding up a branch business of the company at Jacksonville, Florida, the principal office
It is not denied that the title of the Freedman’s Savings and Trust Company to the property involved in the case beforh us was vested in the said commissioner at the time Greeley commenced his suit of attachment against him. Spratt had gone into possession of this property under a contract of purchase from the commissioner, and as a consequence is not in a situation to deny his title. The commissioner, when sued at law by Greeley, did not object to the jurisdiction of the court, but interposed pleas to the merits of the cause, and when the property had been sold under execution, accepted the surplus arising from the sale after paying Greeley’s judgment. Furthermore, it does not ax^pear that any effort was ever made by any beneficiary of the comx^any to arrest the proceedings at law against the commissioner, nor is the title to the Ijroi^erty now called in question by any such jjerson. The question then is, could the legal title held by the commissioner be sold under execution at law and transferred to the xmrchaser? It can not be denied that the title held by the commissioner was coupled with a trust, but that trust was the winding up of the entire business of the corporation. It included the collection of all debts due the company, a sale of all of its property, the x^ayment of all of its debts and necessary expenses in closing up the .business, and the disbursement of the remaining funds to the dex>ositors.
Mr. Perry, in his book on' Trusts, Section 321, says: “As a general rule, the legal estate in the hands of a trustee has at common law precisely the same properties. characteristics and incidents, as if the trustee were the absolute beneficial owner,” and he also states that the trustee may sell and devise the estate held by
But it is further insisted for appellee that as the Freedman’s Savings and Trust Company was a foreign corporation doing business in this State, the commissioner, appointed by authority of law to represent and .act for it in winding up its business, came within the provisions and spirit of our attachment statute, ■and suits could be instituted against him as against the corporation itself on all liabilities properly incurred by him in closing up the business of the corporation, and that for this purpose, to the extent of the powers conferred, the commissioner stood as a corporation sole li
The case before us is to be distinguished from one of un ordinary trustee holding the bare legal title in trust for another in this, that the commissioner is vested by legislative authority with all the rights, powers and liabilities, for the purposes of liquidation, that the orig
The other ground of defense relied upon in the trial court, of adverse possession, can not be maintained, It is clearly shown and not denied that Spratt went into possession of the property sued for under an agreement to purchase it from the Commissioner of the Freedman’s Savings and Trust Company. The record before us shows that Spratt has persisted in the possession of the property under a claim of right as ven-dee from said commissioner, and has sought in the courts a partial specific performance of the agreement to convey the property to him. It seems that a deed was tendered to him by the commissioner but was declined on the ground (that there was a partial failure
Upon a review of the entire record we think the cle •cisión rendered in this case was correct, and the judgment is therefore affirmed.
Reference
- Full Case Name
- L. W. Spratt v. C. O. Livingston
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- 1 case
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- Published
- Syllabus
- 1. By the act of Congress passed in 1881, Chapter 64, United States Statutes at Large, amending- the original and amend-atory act creating the Freedman’s Savings and Trust Company, the Secretary of the Treasury was authorized and directed to appoint the Comptroller of the Currency a com-missioner of said company for the purpose of disposing of its property and winding up its business. Upon his qualifying by taking the oath and giving the bond prescribed in the . act, the Comptroller of the Currency, as such commissioner, became invested with the legal title and possession of all the property of said company, and clothed with all the rights and privileges, and required to perform all the duties of the three commissioners appointed under the amendatory act of 1874, Chapter 349, whose functions ceased upon the appointment and qualifieat'on of the Comptroller as such commissioner. T. The purpose, as well as the effect, of the amendatory act of Congress making the Comptroller of the Currency a commissioner of the Freedman’s Savings and Trust Company, was to invest him, as such commissioner, with the property, management and disposition of the affairs of said company for the purposes of liquidation, and he thereby became the statutory substitute and successor of the corporation itself, and not a mere trustee of the bare legal title of its property. 3. C. instituted a suit of attachment in the State Circuit Court against the Comptroller of the Currency, as Commissioner of the Freedman’s Savings and Trust Company, to recover for services rendered and money expended by him as agent of said commissioner in winding up a branch business of said company in the State; the commissioner appeared and interposed ideas to the merits of the suit, and after trial, judgment was rendered in favor of G., and real ■estate in possession of the commissioner was sold under execution emanting from the judgment, and L. became the purchaser at said sale ; no objection was made by any depositor or beneficiary of the company to the legal proceedings against the commissioner, and after paying the judgment. in favor of G., a balance of the purchase money arising from the execution sale was paid to the commissioner : Held, that L. acquired the legal title to said real estate at said sale, and could recover the same in an action of ejectment against S., who had gone into possession of the property under a contract of purchase from the commissioner, but had refused to comply with the terms of his purchase, and was not entitled to a specific performance of his contract. •4. The possession of real estate by one who enters under an agreement to purchase from the ovner, but without paying the consideration price, can not be adverse until lie repudiates the seller’s title and asserts his own title to the property.