Neal v. Bleckley
Neal v. Bleckley
Opinion of the Court
The opinion of the court was delivered by
In the early part of the years 1882, ’83, ’84, ’85, and ’86, Sarah C. Neal, a married woman, owning a small separate farm (75 acres), and her husband, John B Neal, holding and controlling another adjoining farm as the trustee of his children, contracted with the defendants, Bleckley, Brown & Fretwell, merchants at Anderson, by their joint notes and mortgages, executed each succeeding year in different amounts for supplies and advances for the two farms, and for other goods and merchandise needed by them. Each of these mortgages embraced the farm of Mrs. Neal, some personal property of the husband, John B. Neal, and rents of the two places, and each contained a power, delegated to the mortgagees, to sell the land upon default of payment. Various payments were made upon the successive mortgage debts in each year by proceeds of crops, but, as alleged, none of the debts were fully discharged.
In 1887, the unpaid balances amounting to a considerable sum, the defendants advertised the land of Mrs. Neal for sale under the mortgage of 1883, which represented the largest balance alleged to be still due. On Saturday preceding the day appointed for the sale, Mrs. Neal presented a complaint to his honor. Judge Fraser, who was holding court in Anderson, to enjoin the advertised sale, and asked for the usual restraining order. The judge intimating that he would refuse the order, the complaint was withdrawn, and the sale proceeded without any objection and without any attempt at revoking the power of sale contained in the mortgage. The land was sold at public auction on salesday of March, 1887, and the defendants, through a friend, were the highest and last bidders for the same, who were let into the possession and leased the same as their property.
Matters stood in this condition until 1888, when Mrs. Neal, alleging that no part of the consideration of the mortgages (specifying those of 1883 and 1885), were given for the benefit of
From this decree the defendants, Bleckley, Brown & Fretwell, appeal to this court upon the following grounds: 1. Because his honor erred in holding that the mortgage of 1888, in so far as it affected the land of the plaintiff therein mortgaged, was void; when he should have held that it was made in reference to her separate property in part, and therefore valid, and that she was estopped by the recitals in the mortgage from denying its validity. 2. Because he erred in not holding that from the course of dealing of the parties, the husband being the duly authorized agent of the wife, both in farming her lands and in purchasing and paying for supplies therefor, the defendants could not be prejudiced without express notice of the particular farm for which supplies were furnished. 3. Because he erred in not holding that the power of sale contained in the mortgage was an exercise of the power of alienation, and being unrevoked, when executed was binding upon the plaintiff. 4. Because his honor erred in finding that the mortgages of 1882, 1884, 1885, and 1886 were, or should have been, satisfied by a proper application of receipts from plaintiff’s farm for those years, when he should have held
It will be observed that this is not the ordinary case of a creditor suing a married woman to recover a.debt against her, alleged to have been contracted by her with reference to her separate estate; but an action of the reverse character on the part of a married woman, to undo what she had already done, and to set aside a sale which had already been made under her own authority.
Could it alter the case, that the husband of Mrs. Neal, who had charge of another place and needed supplies for that, joined
Besides, Mr. John B. Neal was the authorized agent of his wife, and conducted most of the business for both places. He made the payments from time to time, and credits were entered by his direction or assent. Yearly statements by the book-keeper as to how the accounts stood were submitted to the Neals, and during the long progress of the business, no objection was made thereto. According to the account thus kept for a series of years, the master reported that in 1887, when the action was brought, there was a balance due on each of the mortgages —the exact amount not stated; and for the payment of these balances, the land was advertised under the power in the mortgages (specifying the one of 1883). As we understand it, Mrs. Neal does not claim that all the mortgages are paid in full, but that, being a married woman, she has the right to disregard the application of payments made by her avowed agent, with a view of limiting her liability for only such advances as can now be shown to have been actually used upon her farm. Mr. John B. Neal was the agent of his wife in this whole business, and she is bound by his acts. It is elementary “that an agent with power to conduct a business, has
But without going further into that matter now, from the view which the court takes we feel constrained to hold that these proceedings came too late. Five different mortgages, each being a confirmation and substantially a copy of the one preceding it, contained, among other things, the following power of attorney : “But if said proceeds be insufficient to pay off said debts with all interest, &c., then I, the said Sarah 0. Neal, do hereby give to the said Bleckley, Brown & Fretwell the right, and I do hereby authorize and empower them as mg attorneys, to sell and convey all my right, title, and interest in fee of said land hereinbefore described without process of law, first advertising the same for three weeks and selling at public outcry, on such terms as they may deem best for the interest of all parties concerned, and out of the proceeds thereof pay the costs, &c., pay the balance of the debts due them and the Wando Phosphate Company, returning the surplus, if any, to me (Mrs. Neal); at which sale they shall have the right to become the purchasers, &e., and execute title deed necessary to convey the title in fee simple to the purchaser,” &c.
None of these powers of attorney were ever revoked by Mrs. Neal, and the mortgagees advertised the land, sold it on March 9, 1887, and at that sale it was bid off by a friend for the defendants, who seem to have been let into the possession, and to have received the rents and profits. If this sale had been made under an order of court in a proceeding to foreclose the mortgages, or any one of them upon which there was a balance due, it is quite clear that the plaintiff would have been estopped from repudiating the whole proceedings and now having them set aside as illegal and void by that kind of estoppel known as ures adjudicata.” See Jennings v. Harrison, 33 S. C., 209: Crenshaw v. Julian, 26 Id., 283; and Shuford v. Shingler, 30 Id., 612. In this case there was no order of sale by the court, but there was a sale under the power of attorney of Mrs. Neal in which she expressly stipulated in advance that if the sale became necessary, it “should he without process of law.”
In the view the court takes, Bleckley, Brown & Fretwell are trustees under the powers of sale in the mortgages; and the plaintiff may, if so advised, have an account to ascertain the exact balances, if any, still due on the different mortgage debts.
Subject to this qualification, the judgment of this court is, that the judgment of the Circuit Court be reversed, and the cause remanded to the Circuit for such further proceedings as the parties may be advised, in accordance with the conclusions herein announced.
Concurring Opinion
concurred in the result for the following reasons: The potver of alienation conferred upon a married woman by the terms of the Constitution, being without any limitation or qualification such as that found in the statute as to her power to contract, it seems to me that the plaintiff had full power to sell her separate estate, without regard to the purpose of such sale, or the application to be made of the proceeds, either by herself or by her agent. Having such power to sell, she could lawfully delegate it to another; and this, I think, she did, and hence she cannot impeach such sale except for fraud, which is neither alleged nor proved.
Judgment reversed.
Reference
- Full Case Name
- NEAL v. BLECKLEY
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- Published
- Syllabus
- 1. Married Women — Mortgage—Power of Sale. — A married woman joined with her husband during several successive years in executing mortgages, which embraced her land and its rents, together with some personal property and rents of the husband, given, as alleged in the mortgages, for supplies to be advanced to the wife’s farm and to another farm controlled by the husband. The advances were not separately charged, and were received by the husband, and payments, derived in part from proceeds of the wife’s farm, were credited on the general account. These mortgages authorized a sale by the mortgagees on default of payment. A balance being past due and the powers of sale unrevoked, the mortgagees advertised the wife’s land under one of these unpaid mortgages, sold, purchased, and went into possession. Afterwards this married woman brought this action to set aside this sale and for recovery of the land. Held, that she was not entitled to such relief. 2. Mortgages — Accounting.—But mortgagees being trustees, she could demand of these mortgagees an accounting, so as to ascertain the balance due on the mortgages.