Harkreader v. Clayton
Harkreader v. Clayton
Opinion of the Court
delivered the opinion of the court.
This case has been heretofore in this court, on appeal from the order of the chancellor sustaining the demurrer and dismissing the bill. The cause was remanded, that the heirs of Leroy Wiley, deceased, might be made parties. They were necessary parties, inasmuch as the object of the suit was to specifically enforce the contract of their ancestor, and they, therefore, would be interested in any question affecting the title to the land. The relief sought by the complainant, administrator, etc., of Wiley, was to collect the balance due for purchase-money, by a sale of the land, if the original vendees, the Messrs. Merritt, or their vendee, Harkreader, did not pay it. Many of the questions litigated in this appeal were settled on the former. See report of case, 52 Miss.
A brief summary of the case stated by the complainant is,
On these allegations, this defendant insists that he is a bond fide purchaser, without notice of Wiley’s death, and of the invalidity of the decree and sale; and, secondly, that the withdrawal of the deed of Wiley, with the consent of Messrs. Green, Pickens & Tucker, the solicitors, invested them with the legal title, or the power to pass it to a purchaser.
It is plain that Wiley transmitted the deed to Drane, to be delivered to the Messrs. Merritt on payment of the money. The contract between the vendor and the vendees was, that the title should be retained until payment. Drane had authority to secure the money ; in truth, the deed was sent to him that
Four days before they exhibited the bill against the Messrs. Merritt, Wiley died. His death, as held on the former appeal* put an end to the power of Drane or the solicitors to proceed further in the business. The rights of Wiley in the money and to the land had been transmitted to his personal and legal representatives. When the solicitors took the first step, they occupied no fiducial relation to Wiley; nor could they. In ignorance of his death, they conducted through the Court of Chancery a solemn farce in his name, as the living actor. The Messrs. Merritt, in the like ignorance, bought under the decree.
■ It is urged in argument, on behalf of Harkreader, that, conceding the Messrs. Merritt could not set up the deed of Wiley as against his heirs or devisees, nevertheless the deed was exhibited to him, as part of their chain of title, before he purchased; and, having bought in ignorance of Wiley’s death, he is not chargeable with any of the circumstances that might be set up against them.
That brings us to the inquiry, whether Harkreader occupies a better position than his immediate vendors.
The final and complete act which makes a deed effectual is delivery. Whilst no specific formalities are necessary, the grantor must consent that the deed shall pass irrevocably from his control, and the grantee must accept it. If, from what occurs between grantor and grantee, a delivery and acceptance may be implied, it is equivalent to an actual delivery. It is the assent, express or implied, to the act, which gives it efficacy. Morgan v. Hazlehurst Lodge, 53 Miss. 674. But, if the grantor make and seal an instrument as his writing or escrow, and deliver it to a third person, to be by him delivered to the grantee upon some future event, and it
Following the doctrine to its legitimate logical application,
That precise question was presented in Everts v. Agnes, 4 Wis. 356. Here, the deed was left with Zetler as an escrow, with instructions not to be delivered until certain securities should be given by Agnes. Agnes fraudulently got possession of the deed, by inducing Zetler to deliver it, without executing the securities, and had it recorded, and sold to Swift for a valuable consideration, who was ignorant of the fraud. The court held that Agnes obtained no title, and “ he could not convey any, by any conveyance he could make to another.” The sum of the reasoning is, that obtaining the deed by fraud, larceny, or any means short of the performance of the condition, is against the assent of the grantor; and as assent is necessary to a delivery, and a delivery to the validity of the deed, the grantee got no title, and could not transmit any. If Swift purchased on the faith of the record, the answer was, the registration of an escrow did not give it validity as a deed. That case was afterwards reconsidered, and its doctrine reaffirmed. 6 Wis. 457.
Harkreader, as the vendee of the Messrs. Merritt, stands precisely in their shoes, and the doctrine of an innocent purchaser without notice has no application to him.
A deed contrived to injure and defraud creditors is the deed of the grantor ; it has become complete by delivery. A purchaser from the fraudulent grantee, in good faith, without notice of the fraud, acquires the title, acquitted of the equity in favor of creditors of the grantor. The deed was competent to convey the title, subject to be avoided by creditors, provided they assailed it before it had been transmitted to a bona fide purchaser. So, a purchaser of the legal estate will hold it, discharged of all secret equities of which he had no notice. But in all cases where the plea of an innocent purchaser can be interposed, the party must have acquired the
There are cases which hold, with great plausibility and force of reasoning, that if the agent of the grantor delivers the deed to the grantee without conditions performed, an innocent purchaser from the grantee will be protected. Blight v. Schenk, 10 Pa. St. 293; Pratt v. Holman, 16 Vt. 530. But it has been urged that Harkreader has the better equity. We think that the superior equity is with the heirs and devisees, who have never realized the price of the land. At all events, it is equal to that of Harkreader; and when the equities are equal, the legal title will prevail. 4 Kent’s Comm. 459; Frost v. Beckman, 1 Johns. Ch. 248; 1 Story’s Eq. Jur., sects. 75, 76; Everts v. Agnes, 4 Wis., supra. If Messrs. Tucker, Green & Pickens, the solicitors, had paid the money collected from the Messrs. Merritt to the personal representative of Wiley, there would have been a satisfaction of the debt, and the Merritts could not have been disturbed in their right. Their equity would have been complete. The payment of the money to Mrs. Drane, the administratrix of her husband, was unauthorized.
An effort was made to prove that Wiley, the testator, was indebted to Drane, and that the money was paid to Mrs. Drane because of that indebtedness. The proof is quite clear that the estate of Wiley, through the executor in Georgia mainly, and partly by the administrator here, had paid this indebtedness, and that no credit inured to Wiley’s estate because, of the money handed to Mrs. Drane. It was shown that she had never accounted for the money, as administratrix, in any way.
The respondents set up a tax title, derived through a sale
The facts herein (before recited), sufficient for the decision of this case, have been derived from the pleadings and proofs, independent of the depositions of Merritt and Harkreader, which were suppressed by the chancellor because of the alleged incompetency of the witnesses. It is unnecessary, therefore, to review his ruling on that question.
The respondents did not, by any of their defences, obviate the complainant’s equity.
The decree is affirmed.
Reference
- Full Case Name
- A. G. Harkreader v. T. J. Clayton, Administrator
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- Syllabus
- 1. Deed. Delivery. Acceptance. A deed becomes absolute and effectual, by delivery by the grantor and acceptance by the grantee, and the acceptance may be express, or implied from circumstances ; but until delivery the instrument is not the grantor’s deed. 2. Same. Escroto. Condition. Second delivery. A written instrument signed, sealed, and acknowledged by the grantor, and by him delivered to a third person, to be by such person delivered to the grantee upon the happening of some future event, is an escrow, which takes effect upon the second delivery; and if the grantee obtains possession of it before the event happens, the grantor may avoid it on the plea of non est factum,. 3. Escrow. Delivery. Relation bade. While the estate does not pass until the second delivery, in the case of an escrow, yet in some instances, to prevent a failure of justice, — as, where the grantor dies before the second delivery, and the like, — the deed will be held to relate back to the first delivery. 4. Same. Payment to agent. Void delivery. Where the obligor in a bond for title sends the deed, signed, sealed, and acknowledged, to a third person, to be delivered to the obligee in said bond when the latter shall have paid the purchase-money, and such obligee, without having paid such purchase-money, surreptitiously obtains possession of the deed, it is void; and if such obligor, and also such third person, are both dead when said deed is obtained by the obligee, who, purchasing the land conveyed under a void chancery decree, pays the purchase-money to an attorney-at-law employed by such third person, while alive, to enforce specific performance of the bond for title, who pays said money to the administratrix of such third person, so-that it never comes to the heirs or the representatives of the obligor in the bond for title, such payment is unauthorized, the condition never performed, and the escrow in the hands of the obligee in the bond for title is absolutely null and void. 5. Bona Fide Purchaser. Escrow. Equities. No title vests in the grantee who obtains possession of an escrow without the performance of the condition, but the legal title remains in the grantor, or, if he is dead, in his heirs; and as one, to maintain the plea of an innocent purchaser, must have acquired the legal title which he thus seeks to protect against some undisclosed equity or charge on the land, a purchaser from such grantee cannot maintain the plea of a purchaser bond fide, although he bought on the faith of the grantor’s possession of the escrow deed; but on the contrary, the original grantor has the legal title, and the grantee having no legal title, can convey none; while the equities of such second grantee, and of the heirs of the original grantor, being equal, or the equities of such heirs being superior, the legal title,' which still remains in such heirs, will prevail. 6. Tax Sale. Wrong day. Title void. A tax sale on August 7, 1871, for the taxes of 1870, being on an improper day, is void. 7. Vendor and Vendee. Vendee purchasing tax title. The obligees in possession under a bond for title, as purchasers of land, cannot acquire a tax title thereto and set it up as adverse and paramount to that of the obligor in the bond for title under which they entered.