Leird v. Abernathy
Leird v. Abernathy
Opinion of the Court
delivered the opinion of the court.
.The defense i^ by answer and cross-bill, charging the utter insolvency of the vendor, and that in said sale a fraud was perpetrated upon the defendants in that the vendor represented that he was clothed with a good title to the land when he well knew that his title was bad.
The cross-bill sets up in circumstantial detail the . ■alleged defects of the vendor’s title, and demands a rescission, an account for permanent improvements, a repayment of the amount paid, or that the complainants be required to deraign and show a good title. The cross-bill was demurred to, but the demurrer was disallowed and thereupon the Chancellor proceeded to decree, a sale of the land before answer filed on the cross-bill. The defendants appealed.
We think the action of the Chancellor was erroneous. The counsel for the complainants rely upon the cases of Hurley v. Coleman, 3 Head, 266, and Card v. Davis, 1 Heis., 574, to sustain it. The first of these cases simply holds that upon a bill to enforce a lien for purchase money, the vendor need not file the evidences of his title. The vendee cannot resist merely for an insufficient title in the vendor. This was, as we understand it, where the defence was
But a covenant of seizin made by one who has no title, gives a right of action as soon as the covenant is made, and no eviction as in covenants of warranty is necessary, and when the vendor is insolvent a court of equity will enjoin the collection of the purchase money. Ingram v. Morgan, 4 Hum., 66; Woods v. Worth, 6 Hum., 309. And a bill lies in such case to rescind by reason of the circumstances of fraud and imposition, lb. A court of equity, however, will not interpose in such case unless upon the ground of fraud, or the insolvency of the vendor, or some other distinct ground of equitable jurisdiction. Barrett v. Clark, 5 Sneed, 436; and to the samé effect is the case of Young v. Butler, 1 Head, 640.
The cross-bill in this case alleges both fraud and insolvency and points out the defects in complainants’ title, with that particularity the law seems to require
The decree will be reversed and the cause remanded for answer to the cross-bill and further proceedings.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.