Chaffe Bro. v. Oliver

39 Ark. 531
CourtSupreme Court of Arkansas
DecidedNovember 15, 1882
StatusPublished
Cited by18 cases

This text of 39 Ark. 531 (Chaffe Bro. v. Oliver) 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
Chaffe Bro. v. Oliver, 39 Ark. 531 (Ark. 1882).

Opinions

Eakin, J.

Henrietta V., the wife of Lindsay ~W. Oliver, was the owner, in her separate right, of a plantation, which she had allowed her husband to cultivate and use for his own benefit, and upon which both resided.

In March, 1867, they joined in a mortgage of the plantation, save 160 acres, to Jesse J. Busby, of Memphis, reciting that he had advanced to them, and agreed to continue advancements of supplies of cash and provisions to enable them to cultivate a crop for the current year, not to exceed $6,000; and further, that said Lindsay W., was indebted to him upon two notes executed in 1866 for $800 each. To secure this indebtedness the mortgage was executed.

It seems that afterwards, in working the plantation, Oliver had become indebted to appellants, who were merchants in New Orleans, in a sum amounting on the third day of April, 1869, to about $2,750. The Busby debt had been reduced to about $3,000, or perhaps, had never exceeded it.

At this date they joined in signing a deed of trust, of all the plantation, and some personal property, for the benefit of complainants, John Chaffe &Bro. It recited that Oliver was indebted to them in the sum of $2,750, for which he had at that date executed his note for that amount, at nine months, bearing eight per cent, interest; and that they had agreed to accept his draft in favor of Busby, at nine months, for $3,000 more. It was provided that if said Lindsay W., should pay off all said indebtedness, at maturity, with interest and commissions, and should ship to complainants all his crop of cotton raised upon the place, the deed should be void. Otherwise the trustee was authorized to take possession and sell This deed of trust, although signed by Mrs. Oliver, was not -acknowledged as then required by law, to make it valid against her. The certificate of acknowledgment, made by a proper officer, shows her appearance and acknowledgment in the absence of her husband, but fails to show that she denied any compulsion or undue influence on his part.

It is very certain, however, that neither Oliver, nor his wife, nor complainants, were then, or for several years afterwards, aware of the defect in the acknowledgment, although Mrs. Oliver, as will be hereafter shown, denies that she knew of the legal effect of the instrument upon her separate property, or that she had intended to bind it. Complainants, resting upon the supposed security of the trust deed, proceeded in good faith to pay the Busby draft when due. The debt remained unpaid, and meanwhile the property was sold for the taxes of 1873, and was purchased by a brother of Mrs. Oliver. In January, 1875, the property was sold by the trustee under the deed, and purchased by complainants at the sum of $5,000. They took possession, redeemed the certificate of purchase at the tax sale, and have continued to pay taxes since. Oliver continued for several years to hold under them as a tenant, paying rent and shipping them cotton, until the year 1879, when complainants refusing through their agent to rent to him longer on account of his failure to pay rent, he refused to redeliver, and claimed the property as his wife’s. Complainants brought forcible detainer in the Federal court, and failed in the suit. They then filed this bill on the eleventh day of October, 1879, setting up substantially the foregoing facts,«and praying general and special relief.

The defense made by the joint answer of Mr. and Mrs. Oliver, is rested upon"the grounds that all the negotiations were conducted by the husband, who whs cultivating the place for himself, on his own responsibility; that he was not her agent; that none of the debts were contracted for the special benefit of Mrs. Oliver or her estate; that she did not intelligently execute the deed of trust, but that it was procured from her upon assurance made (not however by complainants or their agent) that it was mere matter of form, and would not bind her estate, and that it was never valid.

There were other minor issues with regard to taxes, rents, etc., not affecting the main question of complainants’ right to some kind of relief. The cause was heard upon the pleadings, exhibits, and other proof, and the Chancellor denied all relief. Complainants appeal.

As touching Mrs. Oliver, the .evidence shows that her. actual signature to the deed was voluntary, and that there was no compulsion, either in that or her acknowledgment; and there is no reason to doubt that she intended to acknowledge it in due form of law. The mistake in the certificate was wholly that of the officer. Her defense is that it was not read to her; that she at first refused to sign it, and that she finally did so, on being advised that its effect would not be to bind her separate property. In her answer she does not specifically deny that she understood the purport of its language, or that its contents were made known, with its general tenor and objects, although in her deposition she goes further, and says she did not know what was in it.

She asserts that she refused to bind her property, and never meant to do so in signing the instrument, but was advised, in the presence of her husband, that it would not have that legal effect. It is further quite clear Chafte & Bro. had no agency in, or knowledge of, such representations, and no suspicion of any reluctance or objection on her part.

Nevertheless, it goes without saying, that, as to her, the deed of trust was void, and complainants’ title under it. There is no question made here about the personal property. It is not shown what became of it. The certificate of acknowledgment can not be reformed in invitum, upon the proof before us.

Nor, for several reasons, can the instrument, considered within itself, have any efficacy against her, without acknowledgment, as a contract for the benefit of her separate property, to pay any moneys advanced by complainants to Oliver. There is no proof that she had any special benefit from the money or supplies, for which Oliver’s debt of $2,750 was incurred, and, in terms, she does not bind herself to pay any.

Considered, however, with reference to the Busby mortgage, existing at the time, a very grave question arises, as to whether Chafte & Bro. may not be entitled, under the general prayer, to subrogation; and with reference to the moneys paid to redeem the land, and to keep up the taxes, whether the deed of trust may not, although void as such, be sufficient, under the circumstances, by virtue of her signature, to raise the complainants from the position of volunteers to that of persons having an interest or a duty to pay them, for their own protection, or the protection of others, to whom they stand in a fiduciary relation.

In this case the complainants, in good faith, supposing the trust deed to be good, had held it as a security for nearly five years. They had meanwhile given to Oliver, the husband, all the advantages he anticipated under it, a great part of which, had inured to the wife, in that her separate property had been saved from sale under the Bushy mortgage. It is patent she could not have paid that debt, without transferring the same lien to another. Their rights under the deed had never been questioned. If Mrs. Oliver was herself deceived, and rested under the belief that it gave them none, it is not an accident for which they are responsible.

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Bluebook (online)
39 Ark. 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chaffe-bro-v-oliver-ark-1882.