Natchez Insurance v. Helm
Natchez Insurance v. Helm
Opinion of the Court
delivered, the opinion of the court.
The objects of this bill are twofold; 1st, to vacate a sale of a lot, made under an execution, in favor of Stanton, Buckner & Co., against complainants, at which Helm became the purchaser, and has instituted ejectment for the premises; and if that cannot be done, then, 2d, for relief against an execution in favor of Parker, on the ground that it should be satisfied out of the lot in question, and further to have refunded the amount which complainants paid on an execution in favor of the Planters’ Bank, because that too should have been satisfied in the same way.
Rhasa Parker and the Planters’ Bank had both recovered judgments against the complainants. The executions were levied on the lot, and it was appraised at $35,000. Failing to bring two thirds of its value, the sale was postponed. In the mean time, Stanton, Buckner <fc Co. recovered their judgment for $16,212, which was afterwards reversed, but before the reversal, execution was levied on the same lot which was then under the levy of the two former executions; it was again appraised, and the appraisers deducted from its value the amount of the two executions which were then levied on it, and valued it, subject to the incumbrances, at $10,842. It was offered for sale, and Helm became the purchaser at $7228, and the plaintiffs in execution directed the sheriff to make him a deed, as he had arranged the amount of the bid with them.
The purchase by Helm is attacked on several grounds. It is said that he is not a bona fide purchaser, and is therefore affected by the reversal of the judgment. The bill charges that he either gave his notes for the amount, or it was arranged by liquidating the indebtedness of Stanton, Buckner & Co. to him. A discovery on this subject is called for, and Helm answers that part of the amount bid by him was appropriated by arrangement in satisfaction of the indebtedness of the plaintiffs in execution, and the balance he paid them in cash. If he had paid them the money, it would have been the same thing as though
It is also alleged, that the appraisers transcended their authority in taking into consideration the amount of the two previous executions which had been levied on the property, and furthermore that the property was not subject to sale, as it was then subject to the levy of the prior executions. These questions were also very fully considered in the case in 8 S. & M. The appraisement was sustained, as was also the right to sell the property under this execution. The bill does not set up any circumstances in addition to those which were relied on in the previous investigations. There is nothing therefore which can justify an interference with Helm’s title, and we proceed to the other questions presented by the bill.
It seems that after Helm purchased under the execution of Stanton, Buckner & Co., he purchased the judgments in favor of Parker and the Planters’ Bank, on which writs of venditioni exponas issued after the stay caused by the failure to sell under the first valuation. The levies under the writs of fieri facias were pending on the property at the time Helm purchased; it had been valued with a view to these circumstances, and Helm purchased subject to them. The plaintiffs had not only a general lien by virtue of their older judgments, but they had levied
With regard to the Parker execution, the same rule must apply, so far as to exonerate the complainants from liability, if Helm is the assignee. They are entitled to have the execution perpetually enjoined as to all other property, and this, as to them, is equivalent to an entry of satisfaction, which is prayed for. If Helm desires to sell his own property under his own execution, no very good reason is perceived why he should not be permitted to do so, and perhaps the complainants are the last persons who should complain at such a course.
On motion, the vice-chancellor dissolved the injunction so far' as to allow Helm to sell the lot under the Parker execution, but
The defendant demurred to all that part of the bill, which related to the assignment and subsequent proceedings under the Parker execution, and the prayer that satisfaction might be entered, and that he might be enjoined from further proceedings thereon; and also to all that part of the bill which related to the Planters’ Bank execution, and the prayer that the amount thereof might be refunded.
He further demurred to that part of the bill which relates to the judgment of Stanton, Buckner & Co., including the allegations as to the appraisement, the purchase by Helm, the illegality of his title, the institution of the ejectment, &c. &c.
The first and second demurrers were overruled, and leave given to answer. The third demurrer was sustained, and cross-appeals were prayed for and allowed, the vice-chancellor deeming them necessary to settle the principles of the case.
His decisions seem to have been strictly correct, and are affirmed, and the cause remanded.
Reference
- Full Case Name
- Natchez Insurance Company v. John N. Helm
- Status
- Published
- Syllabus
- The case of Doe on the demise of Helm-v. The Nalchez Insurance Company, 8 S. & M. 197, so far as it relates to the construction of the valuation law, and the mode of appraising property levied on under execution, which is at the time under appraisement from previous levies on other executions; and also so far as it relates to the sale under the last execution of such previously appraised property ; cited and affirmed. The Natchez Insurance Company being the owner of some land, the Planters’ Bank and Rhasa Parker having each judgments against the company, the former for $4397, and the latter for $3761, levied executions on the land ; Stanton, Buckner & Co., after the other judgments also obtained a judgment against the company for $16,212, and levied their execution on the same lot; the two former levies being at the time suspended by the appraisement of the land, and its failure to bring the two thirds of the appraised value, the land under this last levy was appraised subject to the former incumbrances at $10,842, and was sold to Helm for $7228; being two thirds of the last appraisement; Helm afterwards purchased the Planters’ Bank and Parker judgments, and was proceeding to enforce them out of other property of the company ; whereupon the company filed their bill to enjoin their collection and procure their satisfaction : Held, that Helm having bought the property subject to those incumbrances, was bound to extinguish them, and could sell no other property under them but that which he had bought; and if the company had paid any part of these judgments before Helm purchased them, he must refund them the money so paid. A purchaser of property at sheriff’s sale, who settles his bid with the plaintiff in execution, by a debt he holds against the plaintiff, is as much a bonajide purchaser and entitled to the property, as if he had paid money; and it makes no difference if the judgment under which he purchased is after-wards reversed.