Congregation of Sisters of Perpetual Adoration v. Jane
Congregation of Sisters of Perpetual Adoration v. Jane
Opinion of the Court
delivered the opinion of the court.
Appellant, a religious and educational society, instituted this action as plaintiff in the court below against appellee to recover damages for the alleged breach of a general covenant of warranty, evidenced by a certain deed of conveyance executed by appellee, Jane, to appellant for a certain tract of land in Pascagoula, Miss. The land conveyed belonged on ahd prior to the 1st day of
Appellee filed a plea of general issue, and also a special plea setting out the fact that the land at the time of its sale was assessed to the Davis estate, that appellee did not know the taxes were unpaid, and that he did not know the land was sold for taxes until after the sale had ripened into a good title, and further averred that more
The agreed statement, in addition to the facts above detailed, recites that appellant was required to pay fifty dollars and five cents court costs in defending the Lockard suit, exhibits a copy of the decree rendered by the chancery court confirming the title, and recites that possession of the premises was surrendered to Mr. Lockard under the decree, and that the latter is now recognized as the owner of the land. The agreement has the following additional recitals:
“That sixty days before the 5th day of March, 1906,. the date on which said tax title became final by reason of expiration of redemption, that the chancery clerk of Jackson county, Miss., issued a notice in the form prescribed by the statute to the plaintiffs, as the owners of said lands described in said deed, and who were then in possession thereof, of the fact that said lands had been sold for taxes and of the date of expiration of the period
“That the defendant, E. J. Jane, did not, in fact, know that the taxes for 1906 were not paid upon said property at the time of his conveyance thereof, and did not know or learn about said tax sale until after the period of redemption from said tax sale had expired, and that plain
f‘That plaintiffs gave, as a consideration for said lands in the purchase thereof from said defendant, the sum of one thousand six hundred dollars, and that no part of same has been returned to plaintiffs by the defendant.’?
Appellee contends that, while the deed contains a covenant against incumbrances, this, if broken at all, is broken when made; that the measure of damages is compensation for losses proximately resulting from the breach; that the covenant against incumbrances is a contract of indemnity and the covenantee is under obligation to protect himself as much as possible against loss and to reduce his damages. To state the contention otherwise, appellee contends that appellant was under duty to pay the taxes, and at least to redeem the land from the tax sale within the two-year period allowed and thereby prevent a sale by the tax collector. Appellant, on the contrary, contends that the covenantee is under no duty or obligation to discharge or pay off the tax lien, but has a, right to stand on its covenant; to expect payment of the taxes or the discharge of any tax lien by the covenantor; and to recover on the covenant in the event the covenantor fails to perform his duty in providing against any and all liens whatsoever.
■ In our judgment, appellant on the pleadings and agreed statement of facts, was entitled to recover.. There was a paramount lien upon the land for the taxes for 1906 at the time the deed was executed and delivered. Against this lien appellee voluntarily executed his general covenant, and thereby assumed the burden of defending the title and discharging the paramount lien then existing, whether the existence of the lien was known or unknown to either party. Mere knowledge of this lien on the part of appellant could in no wise operate to shift the burden upon it; and the agreed statement demonstrates conclusively that appellant did nothing to mislead appellee. The pleadings and the agreed statement reflect that ap~
For the purposes of this opinion, it may readily be conceded that the warrantee in a deed containing the general covenant “must deal fairly and in fidelity to his warrantor,” as said by our court in Dyer v. Britton, 53 Miss. 270. It is true also that appellant might have paid the taxes or redeemed the land from tax sale and recovered "the amount so paid, as held by this court in Swinney v. Cockrell, 86 Miss. 318, 38 So. 353. The vendee may buy in an outstanding title or incumbrance, and thereby protect his possession. In so doing he acts at his peril in judging whether the outstanding title or incumbrance is
“He has done what was necessary for his own safety, and what was incumbent primarily on the vendor. If h'e had waited until a recovery had, then he could have pursued his covenant, and recovered the price paid for the land. ’ ’
The views expressed by the supreme court of Texas (Carswell v. Habberzettle, 99 Tex. 1, 86 S. W. 738, 122 Am. St. Rep. 597) are apposite to the instant case:
‘ ‘ The covenantee in a case like this makes no promise to the covenantor, and owes him no duty. On the other hand, it is the duty of the latter to remove the incumbrance. Therefore, as we think, that if to the debt of the covenantor, which constitutes the incumbrance on the land, there is annexed, either by law or by contract, some condition, by the happening of which the debt may be increased, and the condition happens, the increment is as much a part of the incumbrance as the original debt; and we also think the rule would apply with peculiar force when the happening of the contingency is the result of the covenantor’s own default.”
The same principle is recognized and enforced in the case of Wm. Farrell Lumber Co. v. Deshon, 65 Ark. 103, 44 S. W. 1036. The court in this case, through Wood, J., says:
“Here the covenant against incumbrances was broken by reason of a forfeiture for the nonpayment of taxes which existed at the time of the execution of the deed containing the covenant. Appellant redeemed one of the tracts, but, failing to redeem the other, the title to this became absolute in the state, and, in order to get title to this, it was compelled to purchase from the state, paying the sum of one hundred and fifty-one dollars. Negligence cannot be predicated upon a failure by appellant to redeem from the tax forfeitures. True, it might have done so; but it was under no duty or obligation of that
If appellant had in any way promised to pay the taxes or had said or done that which threw appellee off guard and caused him to fail or refuse to perform the duty primarily resting upon him, the case might be different. Conceding that appellee did not, in fact, know of the tax lien or sale, and, conceding also the good faith of appellant in relying on the advice of counsel, both are innocent parties, and as between them appellee certainly must suffer the burden he voluntarily assumed.
These views necessitate a reversal of the case, and, there being no dispute as to the amount, judgment will be entered here for appellant.
Reversed.
Reference
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- 1. Covenants. Covenant against incumbrances. Breach. Liability. General covenants. Where a vendor sold land for a valuable consideration by a general warranty deed, the granting clause of which was “do hereby sell, convey and warrant” and further provided,” to have and to hold the samé free from and against the legal claims of all persons whomsoever,” which land had been previously assessed for taxes, and which was sold for taxes, and not redeemed within two years, where such tax lien had been unknown to the vendors and where the vendor, having notice of the tax sale 'in time to redeem, acted upon legal advice and failed to redeem, but in no way misled the vendor. In such case the vendee was entitled to recover of the vendor the consideration paid for the land. 2. Covenants. General covenants. The warrantee, in a deed containing a general covenant must deal fairly and in fidelity to his warrantor. 3* Covenants. Breach. Payment of claim by covenantee. Where a vendor of land in his deed warranted against the legal claims of all persons, and the land at the time was subject to a paramount tax lien, the vendee might pay the tax or redeem the land from a tax sale and recover from the vendor the. amount so paid, and a vendee in such case may buy in an outstanding title or incumbrance to protect his possession, but in so' doing he acts at his peril in determining whether the outstanding title or incumbrances is valid, which right, however, is a mere privilege accorded him, and not a duty imposed by law.