Cowen v. Withrow
Cowen v. Withrow
Opinion of the Court
It is provided by section 1, chapter 147, Acts of 1885, that “No conveyance of land * * * shall be valid to pass any property as against creditors or purchasers for a valuable consideration from the donor, bargainor or lessor, but from the registration thereof.” This language is very plain as to purchasers, and their rights attach as against an unregistered deed from the time of their purchase and the execution of a deed to them. As to creditors' the intention is not so clear, and whether their rights attach from the contracting of the indebtedness, the docketing of a judgment, or sale under execution, is left an open question. Assuming, however, that the creditor’s rights as against an unregistered deed attached from the docketing of a judgment, we are at a loss to discover any reason for exempting him from the proviso of
The incongruity of the supposed distinction is well illustrated by the contention in this case that the purchaser at the execution sale is unaffected by actual notice of Mrs. Withrow’s claim under her unregistered deed, while a purchaser who pays out his money and takes a deed from her grantor would, under similar circumstances, take subject to her equitable estate. The reasons assigned for the distinction when the case was formerly before us (109 N. C.) are not, upon a consideration, deemed satisfactory to us; and indeed it is clearly intimated that they have no application whatever when actual notice is given.
Thus much have we said for the purpose of showing that the words of the proviso should receive a liberal construction so as to give full force and effect to the spirit and intention of the act. We should be slow to adopt such a strict and narrow construction of a statute as reverses the respective standing of creditors and purchasers as fixed by the entire course of judicial decision in this State. The language should be very clear before we can attribute such an intention to the Legislature. Wo think that the proviso was intended to save the rights of the holder of an unregistered deed against these undefined creditors, as well as against purchasers who actually paid out their money upon
It is insisted, however, that this intention was clearly indicated by the language of the proviso, which is as follows: “Provided, further, that no purchase from any such clorior, bargainor or lessor shall avail or pass title as against any unregistered deed executed prior to the 1st of December, 1885,” where there is constructive or actual notice. It is urged that, notwithstanding the superior rights of the equitable owner as against judgment creditors, which have ever been recognized and enforced by our Courts, the words “donor, bargainor and lessor” should, in order to defeat them, be construed so strictly as to exclude from their meaning one who purchases land at an execution sale. In other words, because the purchaser acquires his title through the instrumentality of the Sheriff's deed, he is not to be deemed-a purchaser from the “donor, bargainor or lessor,” and like them affected with notice. This is too great a refinement — nam qui haeret in litera, haeret in eortice — and should not be permitted to defeat a clear, equitable right of which the purchaser has actual notice.
That the late Chief Justice did not intend that such an inequitable result should follow is entirety clear from his reasoning, as well-as his plain and unmistakable intimation. AVhatever he may have said in the discussion of the case, it is perfectly manifest that he never contemplated that Mrs.
It will be observed that most of the opinion is directed against the impolicy of applying the doctrine of constructive notice by possession to execution sales, but as to actual notice it is assumed that it was sufficient. If this is not so, it is difficult to account for the following language: “Moreover persons so claiming under an unregistered deed are charged with notice of docketed judgments against the donor, etc., under whom they claim; they have constructive notice of the Sheriff’s sale of land, and it is their own laches if they fail to give notice at the sale of their claim and unregistered deed.” Such is the just and equitable view as to the effect of actual notice in this case which the lamented Chief Justice entertained, and this was so evidently his meaning that his Honor below seems to have had but little hesitation in acting upon it. We did the same upon the appeal and are unable to see any reason why the judgment should be disturbed.
No objection was made to the introduction of the deed to Mrs. Withrow because it was not registered within five years.
Petition Dismissed.
Dissenting Opinion
dissenting: One of the most beneficial laws enacted of late years is chapter 147, Acts of 1885, commonly known as “Connor’s Act,” from having been drawn and introduced in the General Assembly by Judge Connor, now of the Superior Court bench, but at that time a member of the State Senate. One of the settled rules of construction is to consider the mischief to be remedied. The object of the act is thus referred to by Avery, J., in Hughes v. Hodges, 102 N. C. (on p. 240): ■“ It has been repeatedly declared to be sound public policy to remove every obstacle to the ready sale of real estate upon the market in order to
When the judgment was docketed it became a lien in favor of the creditor on the debtor’s realty (The Code, §435), which could not be divested by the subsequent registration of either deed or mortgage from the debtor. By such docketing the rights of the creditor to have the land applied to his debt becomes vested. The purchaser at the execution sale buys the land to the full extent of the creditor’s lien on it. He is not limited to the interest which the debtor would have as between himself and his grantee or mortgagee under an unregistered deed or Mortgage, for as between the parties the deed or mortgage would be good without registration. The statute, as we have seen, makes no exception which divests the lien of a docketed judgment in favor of an unregistered deed. The exception is only (and only, too, as to deeds executed prior to December 1, 1885) that the unregistered deed is good as to a purchaser from the donor, bargainor or lessor when such purchaser has notice by possession or otherwise of the rights of the holder of the unregistered deed.
■ It is not required to find a good reason for an act of the Legislature in order to support the validity of the distinction made by the act, but in fact a very good reason is pointed out by MekriMON, C. J., in this case, 109 N. 0., 636, in that a purchaser, up to December 1, 1885, though not since, if careful, would inquire of his bargainor as to unregistered deeds, and secure himself from them bjr a proper warranty, while a purchaser at an execution sale would not have that advantage, and, therefore, by the terms of the act is protected against unregistered deeds or anything not appearing on the record, exactly as against unregistered mortgages. Indeed, as this (hurt has held, a docketed
The feme defendant has no cause to complain. The act was ratified February 27, 1885, and she, as well as the rest of the world, was notified that the extension of the time within which her unregistered deed would be good against the rights of creditors was limited to the 1st of January following. It is singular that though she claims that her husband made her the deed in 1882, yet, notwithstanding the publicity of advertisement arid the subsequent sale under the creditor’s judgment lien on December 11, 1888, her deed was not recorded till near a year thereafter, November 27,1889, when the purchaser was endeavoring to obtain possession. The Act of 1885, eh. 147, provides: “No con- . veyanco of land shall bo valid to pass any property as against creditors but from registration thereof in the county where the land lieth.” There is no exception as to the rights of married Women or any other exception of any kind whatever affecting this case, and the Court has power to interpolate none.
When this case was here again (111 N. C., 306) the Court correctly held that notice to the agent, acting in the scope of his employment, was notice to the principal. But it was an inadvertence to hold that the proviso in the act applied to purchasers at an execution sale who buy the creditor’s rights. What is the intent and effect of docketing the judgment but that the interest acquired by such docketing shall be sold and pass to the purchaser at the execution sale? The proviso, by its plain, unmistakable terms as ■as well as by the former decision of this Court (109 N. C., 636), contains, as already stated, no exception as to creditors, but is restricted to purchasers from the donor, bargainor or lessor.
Reference
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- J. C. COWEN v. T. J. WITHROW
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