Howard v. Stephens
Howard v. Stephens
Opinion of the Court
delivered the opinion of the court.
It is conceded by the appellee that the deed under which O. T. Stephens claims the Durant Hotel, and lots attached thereto, is void as to the appellant, Mrs. M. C. Howard. But, as the legal title to the property stood in the name of Mrs. Howard and Weathersby, it is claimed Stephens acquired the half interest of Weathersby.
It appears that Mrs. Howard and Weathersby bought the property for the purpose of conducting the hotel business in. partnership. Hence the deed was made to them jointly. But the entire purchase money was paid by Mrs. Howard.
In the negotiations between the husband of Mrs. Howard and Stephens, which resulted in Stephens acquiring the interests which gave rise to this suit, it was distinctly recognized by him that Mrs. Howard was the real owner; that Weathersby Avas only connected with the title nominally, and would convey on any consideration Mrs. Howard might receive, and to any person she might indicate. So completely did Stephens regard him as having no interest, that he had no interviews or communications with him, either in reference to the price or title. He
The prominent circumstances attending the transaction are these:
In the autumn of 1869 there was a great deal of sickness in the family of Mrs. Howard; one of her children died. Because of this she became dissatisfied with the hotel, was anxious to sell, and determined to retire to her farm in the country. Mr. Howard was anxious that she should sell the property to Stephens for his half interest in the mercantile business of Helfin & Co., in the same town. Mrs. Howard was unwilling to make the trade, and refused, at the solicitation of her husband and Stephens, to make the conveyance. Mr. Howard, after failing to induce his wife to make the. deed, himself executed a conveyance in her name.
It was represented that there was a stock of goods on hand worth about $8,000; debts to about $2,000 owing, etc. Whilst persuasions were being addressed to Mrs. Howard, she stated to Stephens that she heard that Helfin & Co. were not solvent, to which Stephens replied that Helfin was one of the most solvent men in town.
Mr. Howard, who was evidently not a merchant and but little conversant with that sort of business, looked over the goods with the parties interested, and consented that the stock amounted to the sum above named. No inventory of stock was taken, nor were the usual means employed to ascertain the exact condition and value of the business.
It would appear from the testimony that nothing passed directly between Mrs. Howard and Helfin. No articles of
Mrs. Howard derived no benefit from the stock of goods. Her account for merchandise taken up was about $750. But she turned over, as a credit, twenty-three bales of cotton. If she owes any balance, that passed by the assignment for the benefit of creditors.
Under the statute respecting the separate property of married women, and their capacity to contract, Mrs. Howard could not make a copartnership contract with Helfin, nor become liable to the firm creditors. That was ultra vires.
Whilst the chancellor held the deed to be void, and that she should be restored to an unincumbered title to the hotel property, he charged her with $-, the value of a half interest in the merchandise business with Helfin. Counsel, pressed by the difficulty which arises from her incapacity to incur a copartnership relation, and the responsibility incident to it, in argument attempted to uphold this part of the decree on the ground of equitable estoppel. Since she received Stephens’ property — his half interest with Helfin — it would be uncon-scientions that she should enjoy that, and at the same time recover back the hotel property.
Stephens hardly appears in such character as to successfully advance that claim. He was entirely aware that Mrs. Howard
Mrs. Howard has not consumed or used any of the merchandise for which she did not pay, xinless twenty-three bales of cotton were of less value than $750 — the amount of her account. It is not shown that any act of omission or commission by herself or husband contributed to the insolvency. There remains nothing for her to restore to Stephens.
We have adopted the principle as sound, resting on conscience and morality, that a feme covert can not annul her purchase of property, repudiate the payment of money, and, at the same time, retain the property. But this is not, in its characteristics, that sort of a case. Mrs. Howard did not buy the merchandise interest in exchange for her real estate. Stephens was advised she would not make that bargain. But he seeks to clothe himself with the title to her property by means of the unauthorized act of the husband. If Mrs. Howard had received substantial benefit or profit from the mercantile firm, or if she had any of its assets subject to her control, he might with great show of equity claim that to that extent she should account to him. That would be the utmost extent of his right, if he presented himself as a purchaser, acting in good faith.
We think that, in the circumstances of this case, Mrs. Howard ought to be restored in her title to the statu quo, and that she ought not to be held liable for the $200; and that the proof shows that there is no property, profits, or money derived from the mercantile business for which she ought to account.
Decree reversed and cause remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.