Gibbes v. Cobb
Gibbes v. Cobb
Dissenting Opinion
dissenting. I have been unable to concur in this judgment.
The plaintiff is the trustee in a post-nuptial settlement of A. 0. Campbell and wife, executed in 1885. It is unnecessary to notice the deed of 1888. Neither of them was recorded according to law. The trustee resides in Beaufort, Campbell and wife, in Pendleton. By the terms of the instrument, the property was to be held for the joint use of husband and wife, during their joint lives, &e., with a power to the trustee to sell any part of the property and re-invest to the same uses. The trustee, residing in Beaufort, had at one time appointed G-eorge Seaborn as his agent; but, for three or four years prior'to 1st January, 1853, John T. Sloan was the agent of the trustee. He stated in his evidence that at the latter period his agency ceased.
On 29th January, 1853, A. C. Campbell and his wife joined in a bill of sale of four of the negroes included in the settlement to Jesse Cobb, for the sum ,of two thousand six hundred dollars. The whole amount was applied to the payment of the debts of A. C. Campbell, the sum of eighteen hundred dollars being received by John T. Sloan, who had been the agent of the trustee until the first of that month.
The defendant has appealed from the decree, upon the following, among other grounds, viz.:
1. Because the deed of trust is a marriage settlement, and is void and of no effect for want of registry in the offices of the Secretary of State and of Mesne Conveyance within three months from the execution thereof.
2. Because defendant was neither party nor privy to said deed, but is a stranger; and it is insisted that, under a proper construction of the Act of 1823, the deed is, as to him, an absolute nullity, and that even notice to him of its existence would not give it validity.
3. That if notice can be made to supply the place of recording, as to strangers, it must be direct and express notice of the deed itself, and not a vague indefinite impression derived from hearsay, or other unauthentic sources — and neither the plead
It was further insisted that, in any event, the interest of A. C. Campbell in the settlement, should be made available to the defendant for his debts which had been paid from the purchase-money.
In Steele vs. Mansell, 6 Rich. 437, it was held by a majority of the Court of Errors, that an absolute conveyance of land, though not recorded until four years after its execution, had priority over a subsequent conveyance of the premises recorded within six months from the date, but after the prior deed. The Court declared that such had been the current of decisions upon the Acts of 1698 and 1785, but they expressly state, that the decisions had been otherwise in relation to marriage settlements, and that with regard to those instruments, recording is of no avail, if done after the time prescribed by law. “We pretend not,” say the Court, “to assail those decisions. They well consist with what we hold of ordinary conveyances under the joint action of the Acts of 1785 and 1698. In 1785 the provisions concerning marriage settlements were peculiar, and, thence onward, they have been stringent and progressively exacting.” “A marriage settlement is also peculiar, and has been looked on with jealously. It is a restraint upon the marital rights — >a modification of results, which, without it, would have ensued from the marriage; and usually it is contradictory of the evidence which possession and other visible signs give of ownership. Marriage is a conveyance, open and notorious — equivalent to a written instrument duly recorded, and generally extensive in its operation. Strong reasons of policy have been thought to justify the imposition, and stern enforcement of severe terms before priority over it is conceded to a deed of the parties, making for their special case a change of its legal effect, which, if not cautiously guarded, might easily become the means of defrauding innocent third persons.” These remarks strikingly illustrate the distinction which has always
Although, in reference to ordinary conveyances, our Courts have adopted the exception introduced by the English Courts to the registry laws,- yet, as remarked by Chancellor Be Saussure, “ we have followed them ivith rather'more guarded steps. We require the notice of the deed to be brought home clearly and positively.’” It is impossible, from any part of the testimony, to infer any such notice on the part of the defendant,
But the defendant has paid the purchase-money, (two thousand six hundred dollars,) which has been applied to the payment of creditors of A. C. Campbell, and he holds the bill of sale of himself and his wife. In any event, I think, that in the accounting, he is entitled to all the interest of A. C. Campbell in the premises,’and that he is also entitled to be subrogated to the rights of the creditors, whose claims he has extinguished, to the interest of A. C. Campbell in the trust estate under the provisions of the deed.
Decree modified.
Opinion of the Court
The opinion of the Court was delivered by
I cannot concur in the decree against the defendant, Seaborn.
It is true that this defendant, (having been agent of the trustees,) is chargable with notice of the trusts, though he never saw or read the deed. But the offence for which the decree makes him responsible, is the having been a party to the purchase of the trust property, with a view to its being carried off: which is far from a necessary consequence of his knowledge of the trust deed.
It appears to me that Seaborn is shown to be above all suspicion in this matter. He cautioned E. M. Cobb against having any thing to do with the purchase; and the only fact that connects his name with the transaction, is, that one of several blank notes, which he had previously executed by way of lending his name as surety to Cobb for general purposes, was filled up and used by the latter for the purpose of taking up the demands of Campbell’s creditors. This was done in the absence of Seaborn, and without his knowledge.
With regard to the defendant, E. M. Cobb, I am of opinion the decree is sustained by the facts put in evidence, and the reasoning of the Chancellor; — to which nothing need have been added, had not a new point been suggested in the argument here.
The trust deed, (properly regarded as a post-nuptial settlement,) was not duly registered under the statute of 1823. The decree, however, holds the deed to be effectual as to E. M.
It is admitted to have been settled in the case of Fowke vs. Woodward,
It has always been the law, — and the authorities quoted in Fowke vs. Woodward, show it, — that it is fraud in any party, whether party to the instrument or stranger, to do any act going to frustrate or defeat the rights created by or arising under a deed of which he is cognizant: and the act done by him is set aside for that fraud, and the deed declared to be unaffected by it.
It is true that if the deed be incomplete, — if it be not fully executed, — and if it be left in that condition, — and there be no consideration in the case upon which a complete execution can be enforced; then, not only strangers, but the parties themselves, may disregard the instrument, notwithstanding their knowledge of what has been done towards its execution. It is null, and cannot affect them. But if all has been done that is necessary
Now, in Fowke vs. Woodward, it was settled, as a necessary point in the case, that the statute of 1823, does not contemplate registration as part of the 'execution of the instrument. The terms of the statute were considered, and compared, among others, with those of the statute for the registration of leases, and the Pennsylvania statute for recording mortgages: and, taking the decisions in these analogous cases into consideration, it was deliberately held that the instrument was complete as to its execution the moment it was delivered. Besides being expressly decided, it was a necessary point in the judgment; for how could the Court make the deed binding on the parties, any more than on strangers, unless it was executed, so as to be in fact and in law a deed ?
If the deed, while unregistered, is a deed between the parties, why may it not be a deed as to third persons ? It is a deed between the parties because of their knowledge: why should it not operate as to others having knowledge ? It is a deed, a valid and effectual instrument, as to all who have knowledge or notice, whether party or stranger; and, if it be not so regarded in law, an agent by whom the instrument is transmitted for registration, may keep it off the registry for the statutory period, and then purchase and hold the property.
“ The Legislature,” as observed by Chief Justice McKean, in Levinz vs. Will,
If I am not grossly mistaken, it is impossible to sustain the objection made in this case, without trenching upon the substance of what is decided in Fowke vs. Woodward. But there is a subsequent case which in my opinion very materially bears upon the objection brought forward here. I mean the case of Footman vs. Pendergrass.
That was the case of a voluntary post-nuptial settlement made by a husband on his wife and children, which was not recorded. Several years after its execution, the husband borrowed money from a person who was held to have had notice of the deed, which debt he secured by a mortgage on the settled personal property. The difference between that case and the present, is, that in that case the defendant was a subsequent creditor; — here, he is a subsequent purchaser, or assisting in a subsequent purchase.
That difference was held, by Chancellor D unkin, in that
And in that case it was held that the subsequent mortgagee was so affected by notice of the settlement, that his mortgage was disregarded, and the rights of the parties under the settlement enforced.
It is ordered that the bill be dismissed as against the defendant Seaborn; in all other respects the decree is affirmed and the appeal dismissed.
Speer Eq. 233.
6) 1 Dallas, 430.
3 Rick. Eq. 33.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.