Champlin v. Dotson
Champlin v. Dotson
Opinion of the Court
delivered the opinion of the court.
The bill was filed to enjoin defendant from setting up a defence at law, in a suit brought against him by complainants, and from the decision of the chancellor sustaining a demurrer to the bill, this appeal was taken.
The defence sought to be enjoined arises out of a special contract, made between the defendant and one Flowers, who had indorsed the notes sued on to the testator of the plaintiffs. Flowers sold a tract of land to the defendant for $5000, and procured a title to be made by Harman in whom the legal title then was, under which defendant took possession, and has continued to hold it. Flowers, at the time he sold to defendant, or after-wards, made a written agreement to this effect, “ That if the land should at any time he seized or sold under execution on judgments, either against Harman or himself, he would refund to defendant any money he might have received from him on the notes, and would give up such of the notes as might remain unpaid.”
If the defendant had lost the land by the sheriff’s sale, this contract would have afforded him protection against the payment of the purchase-money. But it is alleged, that the land was purchased, at the sheriff’s sale by the attorney of the plaintiff in execution, to whom defendant applied, very-soon after the sale, to be substituted in his stead as purchaser, which the attorney agreed to, on condition that the whole amount of the judgment should be paid off. Defendant acceded to this proposition, made the payment, and directed the sheriff to make a deed to Harding, which was done, and Harding afterwards conveyed to defendant, without either having given or received any consideration. The bill is very vague on this branch of the case; had it been more specific and certain, much of the difficulty which arises in reference to the conduct of the defendant might have been obviated. If defendant was substituted as purchaser at the sheriff’s sale, he must have been present at the sale, and the substitution must have taken place before the sale was consummated. The defendant must be regarded as-the purchaser at sheriff’s sale. The fact may in truth be otherwise, but the allegations in the bill will not warrant a different conclusion; then what is his condition ?
It is worthy of remark, in the first place, that the defendant was a purchaser from Flowers, with notice of the judgment incumbrance. As against Harman, he had no other protection than such as was afforded by the covenants in the deed, but they were not binding on Flowers, and this contract was given as a cumulative security. It was taken in view of existing incumbrances, and was intended to protect the defendant against loss. In agreeing to refund if the land should be sold, we can only understand the party as providing for the contingency of a loss by such sale. The possibility of a purchase by the defendant at such sale, or an extinguishment of incumbrances by him,
It is a principle of equity jurisprudence, then, that a vendee cannot buy the land under an outstanding incumbrance, and set up an adverse title; he can only claim to be refunded the amount paid by him. If he should claim more than this, a court of equity would interpose to prevent a recovery. The defendant, however, sets up a special contract, and claims un
Reference
- Full Case Name
- Joseph W. Champlin v. William Dotson
- Status
- Published
- Syllabus
- A vendee will not be permitted to buy in incumbrances, and set up an adverse title under them against his vendor. And it will be the same thing if another party purchase in the incumbrance, and the vendee be substituted to his bid. F. sold a tract of land to D., the title to which was in H., who made the deed ■ to D., the price being. $ 5000, for which notes were given by D. to F ; the latter stipulating, “ that if at any time the land should be sold under execution, on judgments against himself or H., he would refund to D. any money he might have paid on the notes, and would give up such of the notes as remained unpaid.; ” the land was afterwards sold under a judgment for $448 against H. for $ 120, and bought by the attorney for the plaintiff in execution, who soon after agreed with D. to substitute him in his stead as purchaser, if D. would pay off the balance of the judgment, which was accordingly done ; D. was afterwards sued for the purchase-money by the assignee of F., and set up as a defence the sale under the execution against H. ; thereupon the assignee of F. filed a bill in chancery, and enjoined D. from setting up the defence : Held, that the bill should be sustained, and D. enjoined from setting up the defence at law beyond the amount he had paid for extinguishing the judgment against H. Equity in such case would exercise jurisdiction, because the remedy there ■ would be more certain and more ample and complete, in being able to give the true meaning to the contract, and relieve one party from the advantage which he. has obtained over the other, growing out of the letter of the contract.