Hart v. Haynes
Hart v. Haynes
Opinion of the Court
delivered the opinion of the court.
By á written contract between Ira E. White and George L. Haynes, executed on the 30th of January, 1866, White
Oh the 21st of May, 1866, White and wife, by deed of that date, conveyed the land to Haynes with general warranty ; and on the same day it was regularly acknowledged by White and wife before justices, and their acknowledgment duly certified ; on which it was, on the next day (the 22d), admitted to record in the clerk’s office of Caroline county.
At the time of the execution of the deed, Haynes owed a balance of $311.83, of the purchase money, with interest from the 1st of January, 1866, for which he was requested by Ira E. White, to execute his bond to the appellee, Smith J. E. White, instead of himself (Ira E. White), which, with the assent of Smith J. E. White (who was present) he accordingly did.
On the 16th of May, 1866, during the term of the county court of Caroline, which commenced on the 14th of that month, the appellants recovered judgments against Ira E. White, which were regularly entered on the lien docket of that county on the 6th day of June, 1866. On the 11th of February, 1861, Eobert Gr. Allen recovered a judgment against I. E. White, which was entered on the lien docket on the 16th of May, 1866 ; and on the 29th of May, 1866, at a term of the circuit court of Caroline, the appellee,
After the bond given to Smith J. E. White for the balance of the purchase money of the land fell due, he brought suit on it and obtained a judgment for its amount. And then the appellee, Haynes, ■ exhibited his bill in the circuit court of Caroline county, setting forth the facts in relation to the purchase of the land and the recovery of the before-mentioned judgments against Ira E. White, and alleging that the said judgment creditors of Ira E. White, claim that their judgments are liens upon the land sold by him to the complainant ; and further averring that he is advised that if they are liens at all, they are only equitable liens and extend only to the unpaid purchase money due on the bond given to Smith J. R. White, which he professes a willingness to pay, and asks that the same may be appropriated to the proper parties, and that he may be quieted in his title to the land so purchased by him. The bill makes Smith J. R. White and the judgment creditors parties, and praj^s for an injunction against the judgment obtained by Smith J. R. White until the rights of all parties can be ascertained, determined and adjusted, which was granted.
The appellants, Hart, Hayes & Co., filed their answer whereby they insisted that their j udgments were liens on the land in question, because the contract of the 30th of January, 1866, was void as to the creditors of Ira E. White for never having been recorded ; and the deed of conveyance was likewise inoperative and void as to them, as it was never made until after their judgments had been obtained ; and that in virtue of the provisions of § 6 and 8 of chap. 186, and the 4th, 5th and 7th sec. of chap. 118 of the Code, they are entitled to have the land in question subjected to the payment of their judgments ; and moreover, that they and Thomas L. Jones’ representative (who ob
Smith J. B>. White also answered, admitting that the bond on which he had obtained judgment against Haynes was executed for the balance of the purchase money of the land; but insists that it was given to pay a debt due from Ira E. White to him ; and that although the j udgments of the appellants were liens upon the land, they are no liens on the bond given, to him, and that he is not affected by any equity Haynes may have against Ira E. White, but is, in any event, entitled to collect the same as held by him on a valuable consideration from said Ira E. White.
And the cause coming on, on the bill, answers, replications and exhibits (the latter consisting of the contract, deed of conveyance and copies of the judgments against Ira E. White), the circuit court dissolved the injunction as to Smith J. B. White and decreed that Haynes should pay to him the amount of the judgment recovered on the bond given to him for the balance of the purchase money of the tract of land and costs ; and perpetually enjoined the appellants and the other judgment creditors of Ira E. White from proceeding to enforce their judgments against the land sold by him to Haynes. [Judge Wingfield, after reciting chap. 186, sec. 6 and 8, and chap. 118, sec. 4, 5, and 7 of the Code of 1860, proceeds :]
Under the statute of 1819, which provided “that all bar
But in the case of Withers v. Carter and als., 4 Gratt107, decided by a court of three judges, which seems to me to be exactly similar in principle, and only differs in its details from the former in that the contract for the sale and purchase was in writing, and the purchaser (Carter) had only paid two-thirds of the price of the land bought by him from Triplett, and had, according to the terms of the contract, gotten a deed of conveyance, properly acknowledged and certified, which, however, was never recorded in consequence of its having been lost by the messenger by whom it was sent to the clerk’s office to be recorded, a different rule seems to have been laid down. It is true that Judge Baldwin, in his opinion in the latter case, undertakes to distinguish it from “McClure v. Thistle,” upon the ground that there was a pre-existing executory contract for the sale of the land by Triplett to Carter at the time the deed was made, and
I do not think that the English cases cited by Judge Baldwin to show that defective legal titles have been upheld in equity against subsequent judgment creditors, can have much weight as authority in construing our statutes in relation to-
I think it cannot be fairly inferred that the legislature, when it declared that an unrecorded deed should be void as to creditors and purchasers without notice, meant that the party might go behind that and set up an unrecorded executory contract on which the deed was founded, and in that way defeat the very object of the statute. For what good purpose, should the deed (the highest evidence of title) be held void, if behind that, there may be an equitable title resting upon an unrecorded executory contract on which the deed is founded, to the whole beneficial interest which may be protected against the creditors as to whom the deed is void.
But there is no need to quarrel with “Withers v. Carter” now, and whether it can be distinguished from “McClure v. Thistle,” is not now a question of any great interest or importance, because by the 4th and 5th sections of chap. 118 of the Code of 1849, all written contracts in relation to land, are put upon the same footing of deeds, and are declared void as to creditors and purchasers without notice, unless recorded.
The manifest policy of our legislature, for a number of years, has been to avoid all secret contracts and liens in relation to real estate, and to prevent them from being set up against creditors who have given credit to the ostensible owner (who had the legal title) on the faith of his being the actual owner. The obvious policy of the legislature at the revisal of 1849, was to require that all titles to, and all liens upon real estate, should appear of record, and to make all
So it seems that if the doctrine of “Withers v. Carter” ever was good law, it has not been so since the Code of 1849 went into effect.
Yet it would seem that in rendering the decree appealed from in this case, the circuit court must have followed the rule in “Withers v. Carter” without adverting to the fact that the law has been so changed since it was made, as in express terms to make the executory contract void unless recorded in like manner as the deed of conveyance. -I can see no other ground upon which the decree could be based unless, indeed, it was intended to carry the principles of that case still farther, and to set up the verbal contract after both the written executory contract and the deed were set aside, because the two last were void as to creditors and purchasers for the failure to record them in due time. To suppose that the legislature, after having made void all written unrecorded contracts in relation to land, intended that its whole policy in this respect might be frustrated and subverted by allowing a party to set up a verbal agreement which was forbidden and declared void by the statute of frauds, would be to attribute to it the most egregious folly and absurdity. It is true, that courts of equity sometimes enforce the execution of such contracts between the parties themselves when they have been so far executed by one party that it would amount to fraud in the other not to execute it on his part ; the same thing, however, would be held between the parties to an unrecorded written contract;
To hold that an equitable title resting upon a parol contract partly performed could be set up against creditors would tend not only.to defeat the letter and spirit of the statute, but would have a very pernicious and evil tendency in itself, and open a wide door to frauds and perjuries. The remedy allowed the creditor against the lands of the debtor, by the law, is of much more importance and much more frequently resorted to now, than it formerly was — and if the doctrine should be established that such an equitable title can be set up against a creditor, when one under
I think the circuit court was wrong in rejecting the appellants’ judgment liens on the land in question ; and in dissolving the injunction as to Smith J. R. White. The land being-subject to the judgment liens (which amounted to more than the bond) there was a total failure of the consideration of the bond given to Smith J. R. White. Haynes did not undertake to pay to him for Ira E. White a debt previously due to him from Ira E. (as alleged in S. J. R. White’s answer), but undertook to pay his. (Haynes), own debt which he owed for the balance of the purchase of the land, and all parties being present, it was agreed that Smith J. R. White should be substituted as obligee instead of Ira. E. White, and this was done at the request of the two latter. Under these circumstances Haynes is entitled, I think, to every equitable defense against the bond in the hands of Smith J. R. White, that he would have had against it if it had been made payable directly to Ira E. White; he (S. J. R. White) can stand in no better condition than if he had been the assignee of Ira E. White. I think, therefore, the injunction ought to have been perpetuated as to Smith J. R. White.
[Judge Wingfield then proceeds to show that the judgment
I am of opinion to reverse the decree and remand the cause back to the circuit court with directions to cause the bill to be amended so as to make Ira E. White a party, in order to give him an opportunity to show, if he can, that the judgments or any part of them have been paid or otherwise discharged ; and in order that Haynes may have a decree over against him for the money he has paid in the case the land is charged with the payment of the judgment liens ; and unless it shall be shown that the judgments have been satisfied, to direct a sale of the land, to be applied first to the payment of Allen’s judgment, ratably to the judgments of the appellants if it should not sell for a sum sufficient to pay them all, and to perpetuate the injunction as to the judgment recovered by Smith J. E. White against Haynes.
Concurring Opinion
I concur as to the decree to be entered and in the reasoning in the opinion just delivered, so far as it is necessary to the decision of this case.
I do not consider the correctness of the decision of Withers v. Carter, 4 Gratt. or the effect of a parol contract partly performed as involved in the decision of this case.
Concurring Opinion
I concur with the president of the court in most of his reasoning, in his conclusions and in the decree, but I do not concur in his criticism upon the case of Withers v. Carter. That was a case arising before the Code of 1849, and I do not deem it necessary to a proper decision of this ■case to pass upon the correctness of that decision.
NOTE.
The decision in the principal case re-affirms the principles settled toy McClure v. Thistle’s Executors, 2 Gratt. 182, but does not nec
It is impossible to tell from the report of McClure v. Thistle’s Executors, what were the precise facts of that case. But they appear in the subsequent case of Withers v. Carter, in the opinion of Judge Baldwin, which was concurred in by Cabell, P., and Allen, J., all three of which judges sat in the case of McClure v. Thistle’s Executors; and the accuracy of Judge Baldwin’s statement is rather supported (if it needs support) by the reporter’s syllabus and statement in McClure v. Thistle’s Executors. In that case (as far as the record showed) there was no executory contract or possession prior to the deed. The vendee relied solely upon his deed, his possession under it, and his payment of the purchase money. There were no such circumstances, apart from the deed, as would confer an equitable title. Possession was taken and held, and title set up and claimed, under, the deed alone. Of course there was, as in the nature of things there must always be, a verbal negotiation and understanding more or less prior in point of time to’ the execution of the deed; but that oral agreement was not disconnected from the deed, but formed a part of the same transaction, and, in legal sense, was contemporaneous therewith. No one supposes that under such circumstances the oral agreement could be made the foundation of an equitable title, by reason of the subsequent admission of the vendee into possession; for that possession was not referrible to the oral argeement (which circumstance would be essential to give rise to the equitable title by the doctrines of the court of equity) but was under and in pursuance of the deed alone. In McClure v. Thistle’s Executors, the vendee never had less than the full legal title; he never had an equitable title. The oral agreement alone could not have vested in him such equitable title, or any title at all — and the subsequent possession could not have the effect to give rise to it; for that possession was taken not under the oral agreement, but under the deed-Never having- had anj-thing but the legal title, and that being void for failure to record the deed, there was no equitable title to fall back upon; all the title the vendee ever had failed, and the judgment’s creditors were held to be entitled. In that case there was no room for the doctrine of merger; it was not decided upon the ground that the equitable was merged in the legal title, but on the ground that there was not, and never had been, an equitable title in the vendee. In the subsequent case of Withers v. Carter, there was an executory contract whereby the vendee acquired the equitable title. This contract was not required to be recorded as the
The only cases which can now fall under the influence of Withers v. Carter, are those where there has been a verbal contract attended with circumstances of part performance. We will premise, that it is now well settled that, except perhaps in a few excep
So far we have discussed the parol agreement, partly performed, in the absence of any subsequent deed; such deed when made would bring the case directly under the influence of Withers v. Carter. The effect of that decision has been already considered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.