Clay v. Hammond

65 N.E. 352, 199 Ill. 370
CourtIllinois Supreme Court
DecidedOctober 25, 1902
StatusPublished
Cited by10 cases

This text of 65 N.E. 352 (Clay v. Hammond) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clay v. Hammond, 65 N.E. 352, 199 Ill. 370 (Ill. 1902).

Opinion

Mr. Chief Justice Magruder

delivered the opinion of the court:

First—It is claimed, on the part of the appellants, that the bill, filed in this case, is a bill to remove a cloud upon title, and that, inasmuch as appellee, the complainant below, was not in possession of the premises when the bill was filed, and the same were not vacant or unoccupied at that time, a court of chancery had no jurisdiction to entertain the bill, and grant relief in accordance with the prayer of the same.

The facts show, that the appellant, Clay, and his tenants, were in possession of the premises when the bill was filed. This court has held in many cases that a party can only file a bill to quiet title, or remove a cloud from the title to real property, where he is in possession of the land, or where he claims to be the owner and the lands in controversy are unimproved and unoccupied. (Gage v. Abbott, 99 Ill. 366; Johnson v. Huling, 127 id. 14; Glos v. Randolph, 133 id. 197; Glos v. O'Toole, 173 id. 366; Glos v. Goodrich, 175 id. 20; Glos v. Kemp, 192 id. 72; Glos v. Beckman, 183 id. 158).

The rule, however, that, in such case, the complainant must be in possession of the premises, or the premises must be vacant or unoccupied, has no application where the deed, or other instrument, alleged to be a cloud upon the title, is sought to be set aside upon the ground of fraud. Courts of law and courts of equity have concurrent jurisdiction in cases of fraud. In Kennedy v. Northup, 15 Ill. 148, where the bill was filed for the purpose of setting aside certain deeds held by the defendants, which, as it was alleged, were fraudulently obtained, and which remained as a cloud upon the title of the complainant, the objection was made that the defendants were in possession, and that thereby the plaintiffs were enabled to bring ejectment, and thus contest the fraudulent deeds in a court of law, and that for that reason a court of equity would not assume jurisdiction to try the validity of those deeds and set them aside; but it was there held that, where the complaint is that the title, under which the defendants claim, was obtained by fraud, a court of equity will take jurisdiction. Where the question is simply as to which of the two titles is the better legal title, the party should bring his action in a court of law, but courts of equity will assume jurisdiction to set aside conveyances fraudulently obtained. In the case of Kennedy v. Northup, supra, it was said (p. 153): “While a court of equity will not take jurisdiction of everjr case of fraud which may be presented, yet there are few questions over which its jurisdiction is more universal, and especially so when it relates to the transfer of real estate. * * * Although it may be true that the fraud, if proved, might defeat that title in a court of law, yet the courts of equity have ever claimed to possess superior facilities for investigating such questions, to the courts of law, and certainly the relief which they can give is, in many cases, more satisfactory. When the fraud is once established, they can cut up the fraudulent conveyance or contract by the very roots, and leave the party in as secure a position as if it had never existed.”

In Booth v. Wiley, 102 Ill. 84, the same objection was made as is here insisted upon, and the case of Kennedy v. Northup, supra, was approved and quoted from; and, in reference to the contention that there are only two cases under our law, in which a party may file a bill to quiet title, or to remove a cloud from the title to real property, first, where he is in possession of the lands, and second, where he claims to be the owner and the lands in controversy are unimprovéd and unoccupied, it was said (p. 114): “But this is the law where the object is purely to remove a cloud from a title, and does not affect cases where the primary relief is sought upon other and well established equitable grounds, and the removal of the cloud is prayed only as an incident to that relief.” It was there held, that the rule in question has no application, where a deed is sought to be set aside upon the ground of fraud.

In the case at bar, the proof is clear, and uncontradicted by the appellants, that William H. Forrest was insane from August, 1897, to the summer of 1898. A physician, who attended him, testifies to his insanity during the period in question. The appellant, John Clay, Jr., was the brother-in-law of William H. Forrest, and the physician testifies that he consulted with the appellant, Clay, in reference to Forrest’s insanity, and that appellant concurred with him that'Forrest was insane. The physician, thus testifying, took Forrest to Boston in the summer of 1897, and left him in an asylum or hospital for the insane in Massachusetts. Subsequently to his being taken there, a trial was had finding him to be insane. The physician, so testifying, and the appellant, Clay, visited him in Massachusetts at this hospital in March, 1898. He testifies also that, just before starting to Massachusetts with Forrest, Forrest signed a paper in his presence at the request of Mr. Clay, which paper was stated by Clay to be a power of attorney. This evidence in regard to the insanity of Forrest, when he executed the power of attorney, stands uncontradicted by any testimony whatever in the record.

Whether a deed thus executed by an insane person is void, or voidable only, it may be set aside by the insane person after his restoration to sanity, or it may be set aside by a vendee, to whom such insane person conveys the premises, after his restoration to sanity. (Hanna v. Read, 102 Ill. 596; Breckenridge’s Heirs v. Ormsby, 1 J. J. Marshall, 236).

In Breckenridge’s Heirs v. Ormsby, supra, the authorities upon this subject were reviewed, and, after such review, the court there say: “And these authorities also show, that a purchaser or devisee, holding his right from the infant or non compos, derived after the attainment of legal discretion, or restoration to sanity, may avoid a deed made for the same estate during disability.” In the latter case, it was said that the deed, so made by an insane person after his restoration to sanity, conveys to the grantee all the right which the vendor has, and, as the vendor had the right to avoid the deed made during his insanity, the vendee, by virtue of the deed to him, acquires the same right.

Every person is deemed guilty of meditated fraud when he deals with an insane person with knowledge of such insanity. (Kilbee v. Myrick, 12 Fla. 431). In the case at bar, the appellant, Clay, being the brother-in-law of Forrest, induced him to execute a power of attorney, knowing at the time that Forrest was insane. Under the power of attorney thus obtained, and while Forrest was in an insane asylum in Massachusetts, Clay, in the name of Forrest, executed a deed of the premises in question to Connor, a clerk in his employ, and then, a few days after, Connor and his wife re-conveyed the premises to Clay. Ho evidence is produced by the appellant to contradict any of the facts thus established, and they constitute such fraud, as, in our opinion, justifies a court of equity to take jurisdiction for the purpose of setting aside the instruments thus obtained.

Second—It is contended, however, on the part of the appellants that, while the proof may show that Forrest was insane when he executed the power of attorney in question, his insanity will be presumed to have continued until his restoration is established by proof.

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Bluebook (online)
65 N.E. 352, 199 Ill. 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clay-v-hammond-ill-1902.