Atkinson v. Washington & Jefferson College

46 S.E. 253, 54 W. Va. 32, 1903 W. Va. LEXIS 96
CourtWest Virginia Supreme Court
DecidedNovember 14, 1903
StatusPublished
Cited by28 cases

This text of 46 S.E. 253 (Atkinson v. Washington & Jefferson College) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atkinson v. Washington & Jefferson College, 46 S.E. 253, 54 W. Va. 32, 1903 W. Va. LEXIS 96 (W. Va. 1903).

Opinion

POEEENBARGER, JüDGE:

John H. Atkinson, the appellant, held a lien by deed of trust upon the property of the American Fire Clay Company in Hancock County, for a debt amounting to something oyer six thousand dollars, prior to which another lien on the same property was held by a Mrs. Donaldson for something over two thousand dollars, and, to enable his debtor to borrow ten thousand dollars from the Washington and Jefferson College, a Penns3dvania corporation, with which to pay, among other things, the debt due Mrs. Donaldson, he released his lien in the year 1890; and the Washington and Jefferson College loaned the Fire Clay Company ten thousand dollars and took a deed of trust on the property, executed to G. L. Cranmer, Trustee, bearing date July 28, 1890, and afterwards, said Fire Clay Company executed its note to said Atkinson for the sum of $6.824.00, and a deed of trust upon the same property to secure the payment thereof, in which Albert Haigh was made trustee.

Both debts being unpaid, as well as a large amount of other indebtedness due from said company to other parties, Cranmer, Trustee, at the instance of the college, and after due advertisement according to the terms of the deed of trust, as is claimed, sold the property on the 2oth day of November, 1898, for $12,910.00, announcing that James M. Porter was the purchaser.

At January Rules, 1899, Atkinson filed his bill in equity against the college, Cranmer, Trustee, the American Fire Clay Company, Albert Haigh, Trustee, Hugh L. Irwin, Trustee, and James M. Porter, setting up all of the foregoing facts and, in addition thereto, that there was a third lien by deed of trust on the property, in which said Irwin was trustee in favor of numerous creditors for amounts aggregating about twenty-two thousand dollars, and alleging the invalidity of said sale on the ground of irregularities and alleged defects in the notice of sale [36]*36and service thereof, illegal and inequitable conduct on the part of the trustee in selling for cash under the peculiar circumstances existing, inadequacy of price, and failure on the part of the college to give a credit of three hundred dollars on its debt. He further alleged that Porter had been put into' possession of the property and was receiving the rents and profits thereof, but whether said sale had been fully consummated by the payment of the purchase price and the execution of the deed, plaintiff was uninformed, but he alleged that, at the time of the commencement of his suit, no deed to the purchase?: had been recorded.

Later, it was ascertained by Atkinson that Porter had purchased for himself and John A. Campbell, and that instead of paying all the purchase money in cash according to the terms of sale specified in the notice, they had paid five thousand dollars in cash and given their notes for the residue. Thereupon he filed an amended bill setting up these facts and alleging considerable additional matter against the validity of the sale. Said amended bill is not in the record. The clerk certifies that it is not in the file of papers in the cause and cannot be found. The substance of it, however, may be gathered from the demurrers and answers filed, and is admitted in the hriefs of counsel on both sides, and no exception is taken on the ground of its absence from the record.

Among other things, it is shown that in 1896, Albert Haigh, Trustee, made a sale under plaintiff’s deed of trust at which plaintiff became the purchaser at the price of fifteen thousand dollars, and it seems ¡to-’ have been alleged in that connection that the college consented to said sale, and agreed that the proceeds thereof should be applied to the satisfaction of its lien, which alleged agreement and connection with the sale on the part of the college is denied. Later, a suit was brought by a creditor of the American Fire Olay Company and its other creditors to enforce a judgment lien, and it appears to have been alleged, in that connection, that the bill therein attacked the said sale made by Haigh, and that a decree was finally entered affirming the validity of the sale and thereby affected, by way of an adjudication against it, the lien of said college. But this allegation is denied and it is averred that no finding was made by the decree respecting the validity of the sale, and [37]*37that, lest the decree might, by inference, be taken to have decided any matters between the plaintiff and the college, the court added a provision that it was not intended to affect any of their rights legally or equitably. Nothing is said about these matters in the brief of counsel for appellant, and, evidently, they have been abandoned.' The argument in the briefs proceeds upon the admission of a valid lien held by the Washington and Jefferson College and merely attacks the sale as an uncompleted one, and as one which ought not to be completed because of the irregularities and defects in the proceedings on the part of the trustee, and alleged inequitable conduct on his part in proceeding as he did. No deed has been executed to the purchasers, and the reason given for this as well as for the failure to pay all the purchase money in cash, by the appellees in their answers, is the institution of this suit. The purchasers say they were read)', and have ever since been ready, to' pay the entire amount of the purchase money upon receiving a deed for the property, and are informed and believe that the deed would have been executed and delivered to them by the trustee but for the bringing by the plaintiff of this suit, and that the pendency of this suit has since interfered with the closing of the transaction.

The purchase money not having been paid according to the terms set forth in the notice to sell, and no deed having as yet been made, counsel differ widely in their views concerning the nature of the sale and transaction and the rights of the parties thereto, as determined by the nature of the sale; it being insisted on the part of counsel for the appellees that there is a complete contract of sale binding the trustee to convey the title and the purchasers to accept the same and pay the purchase money, in consequence of which the purchasers are entitled to the presumption in favor of the regularity of the proceedings, which obtains in the case of a complete and confirmed judicial sale. On the other hand, it is claimed for the appellants that the sale has been arrested and stopped before completion, in consequence of which, there is no presumption in favor of its validity, and that it stands in a position closely analogous to that of an unconfirmed judicial sale, liable to be set aside by the court for irregularity, with the burden resting upon the purchasers of proving the regularity and validity of [38]*38the sale in the assertion of their demand for a conveyance of the title.

The rule announced in Gibson’s heirs v. Jones, 5 Leigh 370, in reference to a completed sale under a deed of trust, is that where it is impeached by an heir of the deceased debtor, on the ground that the trustees did not make due advertisement of the sale in pursuance of the deed of trust, the sale is irregular, if the advertisement was not so made, and that the burden of proof of suc-h advertisement rests upon the parties claiming under the deed. That rule has probably been discarded in this state.

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Bluebook (online)
46 S.E. 253, 54 W. Va. 32, 1903 W. Va. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atkinson-v-washington-jefferson-college-wva-1903.