Green v. McDonald
Green v. McDonald
Opinion of the Court
delivered the opinion of the court.
The appellant filed this bill to enjoin the collection of a note, given to secure the payment of part of the price of a certain lot in the city of Jackson, purchased by appellant of Finucane and Barnes. On this note, McDonald had brought suit and recovered judgment in the circuit court of Hinds. This case, vary
In this bill, the only new or additional grounds taken, may be comprehended in the single allegation, that after the amended and supplemental bill was filed, the heirs at law of James C. Dickson, in an action of ejectment, which was pending at the filing of said bill, recovered judgment against appellant for one undivided half of the lot sold to him by Finucane and Barnes, and for which, in part payment, the' note enjoined in the hands of McDonald was given; that the judgment so recovered was not vacated or reversed, and that unless said judgment in ejectment shall be reversed, he will be turned out of the possession of one undivided moiety of said lot. No evidence of any character was introduced by either party, since the decision of this court reversing the order of the chancellor overruling the motion to dissolve the second injunction. With the exception of the additional matter above stated, the equities of the appellant
Green, at the purchase, knew the character and condition of the vendors’ title; he knew that they held only the title-bond of Caldwell, conditioned to convey upon the payment of the price of the lot by them; and that probably Caldwell’s title was but an equitable one. Finucane and Barnes believed this title to be a good one of its kind, and that a perfect legal title could be obtained, either by the voluntary act of Caldwell or by legal steps taken for that purpose. There is no pretence for charging them with false representations or fraudulent concealment in reference to the condition of their title. ' The defect of the legal
This bill does not aver that Green was disturbed in his possession ; that there had been an eviction in fact. This was perhaps unnecessary, as it seems the objection to granting relief, before eviction, in cases of the failure of consideration arising from defects in the title, is placed chiefly on the ground of the incompetency of a court of chancery, as not'possessing any direct jurisdiction over legal titles. It is conceded that it may try title to land when the question rises incidentally, but it is understood not to be within its province, when the case depends on a simple legal title, and is presented directly by the bill. If this be the true reason why a previous eviction is necessary to authorize the interposition of the court, a judgment at law, establishing a failure of title, would be held sufficient for that purpose, without an eviction. Abbott v. Allen, 2 Johns. Ch. R. 519.
And upon the authority of this case, we might be disposed to
But, were it conceded that.the judgment in ejectment and the admitted insolvency of the vendors, had changed the relations between Green and Finucane, would that affect the claim of McDonald %
No exception whatever is taken to the title to one half of the lot, claimed through Caldwell; and although Green might claim a rescission of the contract, on the ground of a failure of title to the half claimed by the heirs at law of Dickson, as between himself and Finucane and Barnes, yet that fact must have an important effect on the decision of the controversy in reference to McDonald, who is shown to be a bona, fide purchaser, for a valuable consideration, and without notice of Green’s equity, of the note, given for one half of the price of the lot. For although it be generally true, that the maker of a promissory note may avail
Let the decree be affirmed.
Reference
- Full Case Name
- Joshua Green v. H. B. McDonald
- Status
- Published
- Syllabus
- When an appeal has been taken from a decree in chancery, dissolving an injunction, and the decree is affirmed and the case remanded, and an amended bill is afterwards filed, upon which a new injunction is granted, and upon the refusal of the chancellor to dissolve it, it is on appeal dissolved by the appellate court, upon which a supplemental bill is filed and a third injunction granted; this last injunction will be regarded as having been granted exclusively upon the allegations and statements of the last supplemental bill, and the former decisions will be regarded as conclusive on all the rights of the parties to the case, to the extent of the points adjudicated. F. and B., alleging themselves to be the owners of the equitable title to a tract of land, the legal title to which was in C. and D., gave G. a bond, with covenants of warranty, to make him a title to the land, and took from him his notes for the purchase-money, payable in instalments, G. having full knowledge of the nature of the title of F. and B. ; afterwards G. being being sued for the purchase-money by an assignee of F. and B., a judgment at law was obtained against him, and he filed his bill for an injunction, on the ground that, since the rendition of the judgment, the heirs at law of D. had obtained a judgment in ejectment against him for an undivided half of the land, which judgment was in full force and unreversed : Held, that there being no fraud on the part of F. and B., and it not affirmatively appearing that they could not enforce their alleged equitable right to the tract, or that it was any thing more than the naked legal title in the heirs of D. outstanding against them, no sufficient ground was laid for the injunction. It seems, however, as between the original parties it would have been otherwise if the judgment in ejectment had been in favor of one having the paramount legal title, or if it had been made to appear, by proof, that there was ■ a perfect title in the heirs of D., both legal and equitable, so that F. and B. could not coerce title from the heirs of D. and C. for G. Where the vendee of land, knowing that his vendors claimed but equitable titles to the land, took from them a bond to make title with covenants of warranty, and executed his notes for the purchase-money, payable at fixed times, to the vendors, one of which the vendors assigned away for value to a bond fide purchaser; and afterwards, when the assignee sued the vendee upon the note thus assigned, the latter set up in equity, as a defence, that the title to one half the land had wholly failed, his vendors not having even an equitable title to that half: Held, that while it is generally true, that the maker of a note may set up any defence against the payee, yet as the vendee in this case purchased, with knowledge of the defect of title, and protected himself by covenants of warranty, and actually had obtained title to one half the land, it would be inequitable and unjust to allow him to evade the payment of the note in the hands of the assignee without notice. It seems that where relief in equity is sought by the vendee of land against the payment of the purchase of money, on the ground of failure of title, he need not wait until actually evicted before he can apply for relief; it is ordinarily sufficient if a judgment in ejectment has been had against him, though it has not been executed.