Arnold v. Watson

121 S.W. 354, 91 Ark. 328, 1909 Ark. LEXIS 207
CourtSupreme Court of Arkansas
DecidedJuly 12, 1909
StatusPublished

This text of 121 S.W. 354 (Arnold v. Watson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arnold v. Watson, 121 S.W. 354, 91 Ark. 328, 1909 Ark. LEXIS 207 (Ark. 1909).

Opinion

Wood, J.

(after stating the facts). Appellant urges the following grounds for reversal:

1st. Because the substituted trustee had no power to sell, the contingency never having arisen giving the beneficiary the night to appoint a substituted trustee.

2d. Because there was no real appraisement of the lands as contemplated by the statute, the appraisement being fixed by the agent of the beneficiary, who was also the purchaser, and not by the appraisers.

3d. Because the purchaser by fraud and collusion prevented other bidders from participating'at the sale.

We shall dispose of these in the order named.

1. Thos. J. Watson was the trustee named in the deed of trust. The deed of trust contained the following provision: “But, should said Thomas J. Watson die or neglect to carry out this trust, then said Elbert L. Watson, or the holder of said notes, may by indorsement hereon or on the margin of the record of this deed name and appoint any other suitable person to act as such trustee, and such person, when so appointed, shall have all the authority herein given to said Thomas J. Watson.” The deed of trust is indorsed on the margin as follows, “I, Elbert L. Watson, hereby appoint and designate J. A. Watkins as trustee to execute the within trust, and confer upon him all the power and authority for such purpose as the within deed of trust confers upon Thomas J. Watson, the trustee herein named; who has neglected to execute this trust. Newport, Arkansas, September 27, 1893. E. E. Watson.”

This statement of the beneficiary in the deed of trust is certainly evidence to be considered by the chancellor in determining whether the contingency arose which gave the benficiary the right to substitute a trustee who could better determine than the beneficiary whether the trustee had neglected to carry out the trust. This statement of the beneficiary shows that he did determine that the trustee had neglected to carry out the trust, and that should end the matter, especially in the absence of any evidence to the contrary. Such evidence as the record discloses tends to confirm the statement of the beneficiary, that the trustee had neglected to execute the trust. For it appears that prior to September 27, 1893, and “soon after the opening up of Oklahoma, he (the trustee) went over there,” that “he was out of the State, and not in a position to act.” The evidence is almost conclusive that the condition had arisen that authorized the beneficiary to appoint J. A. Watkins trustee. In the case of Stallings v. Thomas, 55 Ark. 326, the contingency that authorized the substitution had not arisen. The mortgage provided in that case that the beneficiary might substitute another trustee in case the trustee named in the mortgage “should die, be absent from the county or fail or refuse to execute if.” The opinion states that the trustee “was alive and in the county at the time of the sale, he was not requested to execute the power, and did not refuse or fail to do it.” The case is authority for the position that a trustee can not be substituted for the trustee named in the mortgage unless the conditions which authorize the substitution are found to exist. Here it is clearly shown that they did exist. In Stallings v. Thomas, supra, it appears affirmatively that the trustee named in the mortgage was not requested to execute the power, and that he was in the county where he could have executed it if the request had been made. But here the facts are different. The trustee named in the deed “was out of the State, and not in a position to act.” That being true, a request to act could not have been complied with, and its necessity therefore was eliminated. Moreover, there is no affirmative showing here that the beneficiary, Watson, proceeded to substitute a trustee without requesting the trustee named in the deed to act." The language of the indorsement, “who has neglected to execute this trust,” implies that the beneficiary had done whatever was necessary for him to do under the circumstances. Otherwise he could not have said that the trustee “had neglected to execute the trust.”

2. To be sure, the recitals in the deed of J. A. Watkins as trustee could not be taken as prima facie evidence of the validity of his own appointment, that being the subject-matter of the inquiry. But, the validity of such appointment' being established by evidence aliunde, as we have shown, then the recitals of his deed, showing substantial conformity to the- requirements of the deed of trust, are prima facie true, and the burden of showing their falsity is upon the party assailing the deed. McConnell v. Day, 61 Ark. 464; Ingle v. Jones, 43 Ia. 286; Beal v. Blair, 33 Ia. 318; Tartt v. Clayton, 109 Ill. 579. See also 28 Am. & Eng. Enc. L. 825, notes 10 and xi; Naugher v. Sparks, 110 Ala. 572; Tew v. Henderson, 116 Ala. 545. See note to Tyler v. Herring, 19 Am. St. 263. Where the trustee’s deed is the subject-matter of attack, the same rule should apply in equity as at law. The doctrine is applicable generally only to-the grantor of the power in the mortgage or deed of trust and his privies, and there can be no good reason why it should apply at law and not in equity.

The trustee’s deed contains the following recital: “And whereas the said J. A. Watkins, at the request of said E. E. Watson, did, prior to said day of sale, to-wit, on the 17th day of October, 1893, cause said lands to be duly appraised by W. T. Blackford, S. W. Howard and H. H. Munsel, three householders of said Eawrence County, Arkansas, who were duly appointed by D. S. Jasper, a justice of the peace in and for said county, as the law directs, at which appraisement (Then follows a description, of the lands by legal subdivisions, as called for in the deed of trust, together with a separate appraised value as to each subdivision) which appraisement totaled $3/600.” According to the rule above announced, the foregoing recitals must be taken as prima facie true. The appellant has undertaken to show that the lands were not “duly appraised” by John Arnold, who testified, on this point, as follows: “Appraisers never went to look at the farms. John Glass stated to the appraisers that they wanted it appraised, so it would bring the debt, so it would sell, and to appraise it down so they could have it.” And by William Crane, who testified: “I heard John Glass tell the - appraisers they wanted it appraised so it would bring the debt and expenses, so the boys could buy it in.” It was also shown by appellant that. Glass was E. E. Watson’s agent. It was in evidence that John Arnold lived upon the lands in question at the time the alleged appraisement was made, and that the appraisers met at his house. So when the witness says they never went to-look at the farms, he must have meant that they did not ride or walk over the farm to look at them. The testimony does not show that the appraisers could not and did not view the lands from John Arnold’s house, where they met. In Merryman v. Blount, 79 Ark. 4, we said: The object of the appraisement was to ascertain the true value of the land and to insure, as far as possible, the sale of the land at a fair price, to prevent the possibility of the land being sacrificed at a grossly inadequate price. The report of the appraisers is, of course, made after they are sworn, and the presumption is that they will do their duty and ascertain the value of the land as'the law requires, and that this shall be done, not by report or hearsay, but by actually viewing the property.

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Related

Naugher v. Sparks
110 Ala. 572 (Supreme Court of Alabama, 1895)
Tew v. Henderson
116 Ala. 545 (Supreme Court of Alabama, 1897)
Stallings v. Thomas
18 S.W. 184 (Supreme Court of Arkansas, 1892)
McConnell v. Day
33 S.W. 731 (Supreme Court of Arkansas, 1896)
Tartt v. Clayton
109 Ill. 579 (Illinois Supreme Court, 1884)
Beal v. Blair
33 Iowa 318 (Supreme Court of Iowa, 1871)
Ingle v. Jones
43 Iowa 286 (Supreme Court of Iowa, 1876)

Cite This Page — Counsel Stack

Bluebook (online)
121 S.W. 354, 91 Ark. 328, 1909 Ark. LEXIS 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arnold-v-watson-ark-1909.