Bailey v. Hickey

195 P. 372, 99 Or. 251, 1921 Ore. LEXIS 54
CourtOregon Supreme Court
DecidedFebruary 8, 1921
StatusPublished
Cited by12 cases

This text of 195 P. 372 (Bailey v. Hickey) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Hickey, 195 P. 372, 99 Or. 251, 1921 Ore. LEXIS 54 (Or. 1921).

Opinion

BROWN, J.

1, 2. The defendants insist that their demurrer should have been sustained, first, on the [255]*255ground that “several causes of action have been improperly united.” This contention is without merit. The purpose of the suit is to remove a cloud from plaintiff’s title. The different reasons alleged in the complaint concerning the cloud on plaintiff’s title do not constitute separate causes of suit: Day v. Schnider, 28 Or. 457 (43 Pac. 650). As to defendants’ second ground of demurrer, we cannot agree with their contention that “the complaint fails to state facts sufficient to constitute a cause of suit.” The complaint clearly shows that plaintiff’s title has been clouded and that the cloud cast upon his title is the result of the defendants’ acts. In fact, the complaint not only states a cause of suit for the removal of a cloud on title, but contains a great deal of surplusage, which could have been stricken therefrom upon motion. "We are satisfied that the complaint is full and sufficient.

The court below found as a matter of fact that the defendant Hickey had knowledge that the real property involved herein had been sold by the Mitchells and that the Mitchells were not the owners thereof at the time of the levy of the attachment on the eighth day of July, 1918; and, as a conclusion of law, that the knowledge of Hickey was the knowledge of his codefendant, Clem; “that, the defendant having full knowledge that the said real property was sold at the time said attachment was levied against said real property,” it necessarily followed that “the plaintiff’s deed is prior to the attachment; that plaintiff’s title to said property is free and clear of any and all liens and encumbrances by reason oit said attachment.”

[256]*2563. The obligation of this court to follow the findings of fact of the court below is discussed in the briefs. Section 159, Or. L., providing that:

“The finding of the court upon the facts shall be deemed a verdict, and may be set aside in the same manner and for the same reasons, as far as applicable, and a new trial granted,”

—does not apply to a suit in equity. Section 405, Or. L., among other things, provides:

“The court, in rendering its decision, shall set out in writing its findings of fact upon all the material issues of fact presented by the pleadings, together with its conclusions of law thereon; * * and such findings of fact shall have the same force and effect and be equally conclusive as the verdict of a jury in an action at law, except on appeal to the Supreme Court the cause shall be tried anew without reference to such findings.”

In Cox v. Cox, 98 Or. 148 (193 Pac. 484), this court said:

“Although the cause must be tried and determined here de novo, * * yet when we find * * contradictions upon all material points, we are disposed to give much weight to the findings of the trial judge, for the reason that he saw the witnesses in action, and thus had the benefit of a kind of evidence which cannot be preserved and presented to an appellate court: Scott v. Hubbard, 67 Or. 498, 505 (136 Pac. 653); Hurlburt v. Morris, 68 Or. 259, 272 (135 Pac. 531); Tucker v. Kirkpatrick, 86 Or. 677, 679 (169 Pac. 117).”

4. Prom the testimony in the instant case, we believe that Oliver M. Hickey knew, at the time he filed the action for Clem against his former client, Mrs. Mitchell, and at the time he caused attachment to issue and levy upon the real property, and at the time that the real property was sold upon execution [257]*257and bid in by Clem, that Mrs. Mitchell had sold the same. Hickey knew that he had been paid for his' services as attorney ont of funds arising from the sale of that property. It has been said that the whole doctrine of. imputed notice to the client or principal rests upon the ground that the attorney or agent has knowledge of something, material to the particular transaction, which it is his duty to communicate to his principal.

From the proof in this case, there is strong reason for holding that the facts within the knowledge of the attorney acting for Clem, and acquired as late as forty days prior to instituting the action in the Circuit Court of Multnomah County, were communicated to his client. The presumption is that Hickey did his duty as an attorney and advised Clem in the premises.

It is well said in 2 C. J. 867:

“On the question whether a principal is chargeable with the knowledge acquired by his agent prior to the existence of his agency, the authorities differ widely, some holding that in order to charge the principal the knowledge must be acquired by the agent during the agency, and that, as a general rule, knowledge acquired prior thereto will not affect the principal. The more logical rule, however, and that which is supported by the great weight of recent authority, is that knowledge of an agent acquired prior to the existence of the agency will be chargeable to the principal if it is clearly shown that the agent, while acting for the principal in a transaction to which the information is material, has the information present in his mind, or where it was acquired so recently, or under such circumstances, that it will be presumed to have been in his mind at the time of the transaction in question; and provided the information was not obtained under such circumstances [258]*258as to make it the legal duty of the agent not to divulge it to the principal.”

Oregon is committed to the doctrine announced in this text. Two valuable cases enunciating the rule as stated are Saratoga Inv. Co. v. Kern, 76 Or. 243 (148 Pac. 1125), opinion by Mr. Justice Harris, and Oliver v. Grande Ronde Grain Co., 72 Or. 46 (142 Pac. 541), opinion by Mr. Justice Burnett.

5. Under the testimony in this case, Hickey’s knowledge of the sale of the land was binding upon Clem. The plaintiff was not only entitled to a decree for the reasons found by the court below, but also for the further reason that before an attaching creditor in Oregon is deemed to be a purchaser in good faith he must allege and prove the facts establishing his position as such. It is stated, in effect, by Mr. Justice Strahan, in Weber v. Rothchild, 15 Or. 385 (15 Pac. 650, 3 Am. St. Rep. 162), that a good-faith purchase for value and without notice is an affirmative defense and must be pleaded and proved.

This court has held that:

“An attaching creditor is placed in exactly the same position, with reference to his rights in the property attached, as a bona fide purchaser in good faith and for value”: Meier v. Hess, 23 Or. 601 (32 Pac. 755).

In Rhodes v. McGarry, 19 Or. 222 (23 Pac. 971), Mr. C. J. Thayer states:

“The respondents in this case should have alleged the facts showing that the attachment proceedings were duly commenced upon a valid debt; that the block in question was duly levied upon by the sheriff under the said proceedings; that he made a certificate containing the title of the cause, the names of the parties, a description of the real property, a statement that the same had been attached at the suit of [259]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Johnson v. Kentner
691 P.2d 499 (Court of Appeals of Oregon, 1984)
Nelson v. Hughes
625 P.2d 643 (Oregon Supreme Court, 1981)
Matsuda v. Noble and Decoster
200 P.2d 962 (Oregon Supreme Court, 1948)
Wheeler Lumber, Bridge & Supply Co. v. Shelton
31 P.2d 163 (Oregon Supreme Court, 1934)
Jurgens v. Sheridan
296 P. 840 (Oregon Supreme Court, 1930)
J. W. Copeland Yards v. Sheridan
297 P. 837 (Oregon Supreme Court, 1930)
Heitkemper v. Schmeer
281 P. 169 (Oregon Supreme Court, 1929)
Jones v. Beers
246 P. 711 (Oregon Supreme Court, 1926)
Teshner v. Roome
210 P. 160 (Oregon Supreme Court, 1922)
Cannon v. Farmers' Union Grain Agency
202 P. 725 (Oregon Supreme Court, 1921)
United States Nat. Bank v. Holton
195 P. 823 (Oregon Supreme Court, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
195 P. 372, 99 Or. 251, 1921 Ore. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-hickey-or-1921.