Bank of Glade Spring v. McEwen

160 N.C. 414
CourtSupreme Court of North Carolina
DecidedNovember 13, 1912
StatusPublished
Cited by9 cases

This text of 160 N.C. 414 (Bank of Glade Spring v. McEwen) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Glade Spring v. McEwen, 160 N.C. 414 (N.C. 1912).

Opinion

Walker, J.

This case was brought bere by tbe appeal of tbe plaintiff from an order upon a motion of tbe defendants to set aside a consent judgment, and presents tbe following facts:

Plaintiff, as a judgment creditor of S. M. McEwen, brought an action by tbe above title to impeaeb and set aside two deeds of trust, one executed on 16 October, 1909, by S. M. McEwen and bis wife, Nannie B. McEwen, to Gr. L. Park, as trustee, to secure a debt due to W. T. McEwen for $2,500, wbicb amount bad been advanced to tbe plaintiff by said W. J. McEwen at tbe request and for tbe benefit of tbe defendant, S. M. McEwen, and tbe other executed on 18 October, 1909, by tbe said S. M. McEwen to T. E. Parker as trustee for tbe benefit of Nannie B. [417]*417McEwen, to secure tbe payment to ber of $2,500, wbicb sbe bad loaned to ber busband, S. M. McEwen. Issues were submitted to tbe jury and answered as' follows:

1. Was tbe deed of trust from S. M. McEwen and wife to G-. L. Park, trustee, on 16 October, 1909, made witb tbe intent to binder, delay, defeat, and defraud tbe plaintiff? Answer: Yes.

2. If so, did W. J. 24jcEwen baye knowledge of said fraudulent intent and participate therein? Answer: Yes.

3. Was tbe deed of trust from S. M. McEwen and wife to Eugene Parker, trustee, on 18 October, 1909, made witb intent to binder, defeat, delay, and defraud tbe plaintiff? Answer: Yes.

4. If so, did Nannie B. McEwen baye knowledge of tbe fraudulent intent of ber busband, S. M. McEwen, and participate therein? Answer: Yes.

Judgment was entered upon tbe yerdict, to tbe effect that tbe deeds of trust should be canceled, and defendant W. J. McEwen baying moved in apt time to set aside tbe yerdict to tbe extent that it affected bis interests adversely, and tbe judge having intimated that be would grant tbe motion, tbe plaintiff’s and defendants’ attorneys agreed, at tbe suggestion of tbe court, that tbe equities of tbe parties should be adjusted and settled upon tbe following basis: Tbe issue of fraud as to W. J. McEwen to be set aside and tbe land described in tbe deed of trust to Gr. L. Park to be sold and tbe proceeds of sale to be applied, first, to- tbe costs of tbe action, and tbe balance to tbe payment of tbe debt for $2,500 due to W. J. McEwen, and then to tbe payment of tbe judgment creditors, and any surplus to be paid to Nannie B. McEwen. This agreement was inserted in tbe consent judgment, which was signed by Judge Lyon and tbe attorneys of tbe respective parties at Fall Term, 1911. This judgment was entered without tbe knowledge or consent of Mrs. Nannie B. McEwen or ber busband, and without any authority given by them, or either of them, to their attorneys to consent to tbe judgment, and really against their consent. These defendants, after having successfully applied for an injunction [418]*418to Judge W. J. Adams, moved before Judge F. A. Dcmiels, at Spring Term, 1912, to set aside tbe consent decree because they bad not, in fact, agreed thereto, and bad given no authority to their attorneys to do so. Judge Darnels found and stated the facts in his judgment upon the motion, and among others, that the attorneys acted without authority; but instead of setting-aside the judgment in tolo, he modified it by striking out so much of it as directed that a part of the proceeds of the sale of the second tract of land be applied to the payment of the judgment creditors of S. M. McEwen, and then proceeded to order a sale of the land first described in the deeds of trust, for the purpose of paying the costs and the debt of $2,500 due to "W". J. McEwen, and if the proceeds of that sale should prove insufficient for the designated purpose, then that the tract last described should be sold to pay any balance due, with a direction that the surplus, if any, should be paid to S. M. McEwen and wife, Nannie B. McEwen. Plaintiff excepted to this judgment, and appealed.

The learned judge was manifestly right in holding that so much of the alleged consent judgment, signed by Judge Lyon, as did not receive -the consent of the defendants S. M. McEwen and wife, Nannie B. McEwen, and which prejudiced their rights, was not binding upon them; but instead of amending or reforming the judgment, he should have set it aside altogether. It appears that the defendants McEwen and wife held the land by entireties, and it is insisted by their counsel that it could not be sold to pay the judgment creditors of the husband, unless with the consent of both, and only to the extent that they had encumbered it, and the court could not sell it without their consent, which was not given. They rely on Bruce v. Nicholson, 109 N. C., 202, where it was held by this Court: “Under a conveyance of land in fee to husband and wife, they take, not as tenants in common or joint tenants, but by entireties with the right of survivorship, each being seized per tout et non per my; neither can convey or encumber the estate without the assent of the other, nor can the interest of either become subject to the lien, or any proceeding to sell for the satisfaction of any judgment during their joint lives. . . . The nature of this estate [419]*419forbids and prevents tbe sale or disposal of it, or any part of it, by tbe busband or wife witboiit tbe assent of botb; tbe whole must remain to tbe survivor. Tbe busband cannot convey, encumber, or at all prejudice sucb -estate to any greater extent than if it rested in tbe wife exclusively in ber own right; be has no sucb estate as be can dispose of 'to tbe prejudice of tbe wife’s estate. Tbe unity of tbe busband and wife as one person, and tbe ownership of tbe estate by tbat person, prevents tbe disposition of it otherwise than jointly. As a consequence, neither tbe interest of tbe busband nor tbat of tbe wife can be sold under execution so as to pass away title during their joint lives, or as against tbe survivor after tbe death of one of them. It is said in Borer on Judicial Sales, tbat ‘No proceeding against one of them during their joint lives will, by sale, affect tbe title to tbe property as against tbe other one as survivor, or as against tbe two during their joint lives. Neither party to sucb tenancy can sell or convey bis or ber interest, for it is incapable of being separated.’ He cites many authorities to support what be thus says. Indeed, it seems tbat tbe estate is not tbat of tbe busband or tbe wife; it belongs to tbat third, person recognized by tbe law, tbe busband and tbe wife. It requires tbe cooperation of botb to dispose of its effectually. Rorer .Judicial Sales, sec. 549; Freeman Cotenancy, secs. 13, 74; 4 Kent, 362; Simonton v. Cornelius, 98 N. C., 433.” Tbe law, as thus stated, may be subject to some qualification not applicable to tbe facts of this case, and, therefore, not considered. Tbe principle of law as to an estate by entireties is merely noticed to show tbat, in this case, tbe Court could not sell tbe land held in entireties, except under tbe deeds of trust, without tbe consent of defendants, as tbat matter was not involved in tbe suit. It amounted to illegal sequestration.

It is found by Judge Daniels tbat defendants McEwen and wife never consented to tbe judgment, and tbat counsel bad no authority to consent for them. This was known to plaintiffs at tbe time tbe consent judgment was entered, for it was stated in open court by defendants’ counsel tbat they bad not consulted with their clients in regard to tbe proposed consent judgment, as they lived at a great distance, in Tennessee, and there [420]

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Bluebook (online)
160 N.C. 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-glade-spring-v-mcewen-nc-1912.