Warder v. Newburgh
Warder v. Newburgh
Opinion of the Court
delivered the opinion of the Court:
The vital question in the case arises on the exception taken to the introduction in evidence of the conveyance in trust to Adriaans. It is the settled law of this District that a deed tainted with champerty is void, and therefore passes no title to the grantee. Johnson v. Van Wyck, 4 App. D. C. 294, 5 L.R.A. 520; Peck v. Heurich, 6 App. D. C. 273, s. c. 167 U. S. 624, 42 L. ed. 302, 17 Sup. Ct. Rep. 927. In those cases the title had been conveyed to trustees for the purpose of bringing actions for the recovery of the land conveyed. That the costs and expenses of the litigation were to be paid by the trustee was expressly stipulated in the conveyance held void in Johnson v. Van Wyck. In Peck v. Heurich there was no such express covenant, but it was implied from the provision for the division of the results of the litigation. There is no such covenant in the conveyance under consideration; nor is the provision for division of the proceeds in the same or similar language; there is no mention of costs and expenses.
As contracts for contingent fees are not now necessarily regarded as champertous in this jurisdiction, it is contended that this conveyance amounts to such an undertaking and nothing more. There is a material difference, however, between a contract for a contingent fee, fairly made, where an attorney undertakes to prosecute an action on behalf and in the name of his client, and a conveyance to the attorney of all the right, title,
The doctrine above enounced was expressly recognized in Peck v. Heurich by Mr. Justice Morris in delivering the opinion of the court, as follows:
“There was considerable argument on behalf of the appellants expended in an attempt to show that the deed, which contained the agreement of the parties, did not expressly provide for the payment of the costs and expenses of the litigation by the attorney; and that he might be regarded as advancing the costs in the shape of a loan to his clients. It may be admitted that the contract contains no express covenant that the attorney shall pay the costs of litigation. But no express covenant for that purpose is required, if that was the necessary result of the contract. The title, so far as the clients had title to convey, was vested in the attorney and his cotrustee for the express purpose of instituting suits in their own names and in their own rights; and if the contract were wholly silent on the subject, the plain*390 inference would be that they should pay the costs and expenses. Costs and expenses were to be paid; costs and expenses, we presume, were paid; and plaintiffs are primarily liable for such costs and expenses.” (6 App. D. C. 284-285.)
It is true that this was not essential to the decision of that case, but it was a question raised on the argument and incidentally decided. In our opinion it declared a sound principle of law, without the observance of which the law against champerty would become a mere matter of form. But we are not left to presumption in this ease. Catherine Buck, one of the grantors in the deed to Adriaans, was introduced as a witness on behalf of the plaintiff to prove the relation between the grantors in said deed and the common source of title, Thomas Bitter.
On cross-examination she said: “That she had received no part of the purchase price involved in the sale by Adriaans to plaintiff; that she had paid no part of the costs of this or any other proceeding for the recovery of the property, and had not agreed to defray, or aid in defraying, such costs, and that she was not expected to put up any costs.” This statement was uncontradicted. We think it was error to permit the introduction of the deed. Plaintiff’s chain of title is necessarily broken in two, and the deed from Adriaans to him has no effect.
It is further contended on behalf of the appellee that Adriaans was in actual possession of the premises through a tenant who unlawfully attorned to the appellant Wilson, and thereby was entitled to recover, without proof of other title, against a mere intruder or trespasser, under the authority of Bradshaw v. Ashley, 14 App. D. C. 485, s. c. 180 U. S. 59, 45 L. ed. 423, 21 Sup. Ct. Rep. 297. See also Rowlett v. Nash, 38 App. D. C. 598.
There is nothing upon which to found this contention. The evidence introduced by the plaintiff shows that at the death of Ann Catherine Bitter, the widow of Thomas, the tenant in possession attorned to Mary S. Wilson, one of her heirs, and paid rent to her; from July 23, 1906, to February 20, 1907, he paid the rent to Adriaans by direction of Mary Wilson; on the last-named date he ceased payment to Adriaans by her direction.
The foregoing conclusions render it unnecessary to consider the assignment of error founded on exceptions taken to certain evidence introduced by the plaintiff to establish the relationship of the grantors in the deed to Adriaans, to Thomas Ritter.
For the reasons given, the judgment is reversed with costs, and the cause remanded, with direction to set aside the verdict and award a new trial. Reversed.
Reference
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- Champerty; Deed; Effect. 1. A deed tainted with champerty is void and passes no title to the grantee. (Citing Johnson v. VanWyok, 4 App. D. C. 294, 4 L.R.A. 520, and Peck v. Eeurieh, 6 App. D. C. 273.) 2. In the case of a deed made to a trustee to perfect title to land, but which contains no recitals as to who shall pay the cost and expenses of doing so, the presumption is that the grantee is to pay them. (Citing Peck v. E&wrieh, supra.) 3. A deed executed to a trustee for the purpose of perfecting title and selling the land will he held void for champerty, where the grantor received no part of the proceeds of the sale, and paid no part of the cost and expenses of suit for perfecting title (citing Johnson v. Van Wyck, and Peck v. Eeurieh, supra), and a deed executed by the trustee to another is therefore of no effect. 4. One who received a deed as trustee to perfect title, from the heirs of an intestate whose widow remained in possession of the property until her death, cannot, upon the failure of his deed on the ground of champerty, in an action of ejectment against the heir of the widow, claim a right to recover on the theory of actual possession through a tenant who unlawfully attorned to the heir of the widow, and who paid rent for a time to the trustee at the direction of such heir, where such direction was made before the deed of trust was executed. (Distinguishing Bradshaw v. Ashley, 14 App. D. C. 485, and Rowlett v. Nash, 38 App. D. C. 598.)