Cowart v. Singletary

79 S.E. 196, 140 Ga. 435, 1913 Ga. LEXIS 153
CourtSupreme Court of Georgia
DecidedJuly 21, 1913
StatusPublished
Cited by30 cases

This text of 79 S.E. 196 (Cowart v. Singletary) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cowart v. Singletary, 79 S.E. 196, 140 Ga. 435, 1913 Ga. LEXIS 153 (Ga. 1913).

Opinions

Lumpkin, J.

(After stating the foregoing facts.)

1-3. The members of this court are agreed as to all matters involved in this case, except one. The issues of fact were found in favor of Singletary by a jury on a former trial, and by the auditor when the case was referred to him. The presiding judge has approved that finding, and the evidence was sufficient to authorize him to do so. There was no error in overruling the motion for a rereference. The report of the auditor, while somewhat meagre, was sufficiently, full to withstand the attack made upon it in the motion for a rereference, and a reversal is not required. This disposes of the contentions that the deed made by Caroline Cowart to Singletary was procured by fraud; that the transaction was not in fact a sale with an option to repurchase, but was the securing of an indebtedness; that this debt was infected with usury and included a debt of her husband; that there was such mental disparity between the parties and such inadequacy of consideration as to amount to fraud; and all others depending on questions of fact. Under the evidence the decision in Baggett v. Trulock, 77 Ga. 369 (3 S. E. 162), is not controlling. See, in this connection, Felton v. Grier, 109 Ga. 320 (35 S. E. 175); McElmurray v. Blodgett, 120 Ga. 9 (47 S. E. 531); Brown v. Bonds, 125 Ga. 833, 838 (54 S. E. 933). We were requested to review and overrule the decision in Felton v. Grier, supra. Its special application to this case is the ruling, that, it being legally possible for the owner of real estate to sell it to another at an agreed price, and at the same time secure the right to repurchase, the law will enforce such a transaction when actually made. Whether any criticism can be made upon anything that was said in the opinion is immaterial. The principle announced is correct, and we decline to reverse it.

4. It was urged, that Singletary did not bind himself in writing to Caroline Cowart to pay the purchase-money notes which were given by her to Mrs. Holmes; that if there was any promise to that effect, it was in parol; and that such a promise was obnoxious to the statute of frauds. In the deed to Singletary it -was recited that Caroline Cowart had given her notes for the purchase-money of the land to Mrs. Holmes, and that “Singletary bonds [binds] himself to see that said bond is complied with.” The acceptance of this conveyance by Singletary bound him to carry out such covenant. Kytle v. Kytle, 128 Ga. 387 (57 S. E. 748). As between him and [440]*440his grantor such an agreement to pay purchase-money was not within the statute of frauds. Ford v. Finney, 35 Ga. 258; Gorman v. Wood, 73 Ga. 370, 374; Coldwell v. Cowart, 138 Ga. 233, 243 (75 S. E. 425).

5. We now come to the only point of difference between the members of this court. The bond for title which was given by Mrs. Holmes to Caroline Cowart, after describing the terms of the sale and the notes given for the purchase-money, and binding Mrs. Holmes "to make or cause to be made” good and sufficient title in fee simple to the land upon payment of the notes, contained the following: "It is hereby understood and agreed that time is of the essence of this contract; and should the party of the second part fail to pay said notes as'they'become due, then this bond to become null and void, and whatever money paid shall be treated as rent at the rate of $150 per annum. And it is further stipulated that this bond is not transferable to any one.” Under the facts of the case, the majority of the court are of the opinion that neither of the two clauses above quoted prevented Singletary from having equitable relief. The first clause declares time to be of the essence of the contract, and provides for a forfeiture in case of non-payment of the purchase-money. This clause does not undertake to put any restriction upon the transfer of the bond or the alienation of the property by the purchaser. There was no evidence to show that Mrs. Holmes ever claimed any forfeiture or breach of the bond 'arising from non-payment. On the contrary she received payment from Singletary of fifteen of the notes substantially, if not exactly, as they fell due, and received a large part of the purchase-money from Grimsley in discharge of the remaining notes before they were due. She could not, of course, claim a forfeiture and at the same time receive the purchase-money. So that any contention that there was a forfeiture and a resale without regard to the original contract finds no support whatever in the evidence. Indeed such is not the contention, but this clause is used in support of the position that there was a limited restriction on alienation, as will appear below.

The clause of the bond for title upon which this branch of the case depends is the second clause above quoted, which reads as follows: "And it is further stipulated that this bond is not transferable to any one.” If the insertion of such a stipulation in the [441]*441bond for title rendered the conveyance by the obligee to Singletary absolutely void, so that he acquired no. right thereunder and no equity arose in his favor by reason of the payment of a large part of the purchase-money to Mrs. Holmes, and so that Mrs. Holmes could make a conveyance to Grimsley, receiving from him the balance of the purchase-money, less what Singletary had paid, and so that Grimsley could convey a life-interest in half of the land to Caroline Cowart, and Singletary could thus be entirely left out and would have no equitable right whatever, then the finding of the auditor and the decree of the court were wrong. Otherwise they were right. There was evidence tending to show that Mrs. Holmes knew that Singletary was sending to her money to pay the notes of Caroline Cowart as they fell due, and that she accepted the money from him and delivered up the notes so paid. There was also abundant evidence to show that Grimsley knew that Caroline Cowart had made a deed to Singletary, and that Singletary had leased the place to her as his tenant; and that Grimsley was thus affected with notice that Singletary had or claimed some character of interest in the land before Grimsley took a deed from' Mrs. Holmes. It is also undisputed that, in 'acquiring title from Mrs. Holmes by paying the balance of the purchase-money before it was due, Grimsley knew that a large part of the purchase-money had been paid, and that he was receiving the benefit of such payments, and was getting the land for such balance, and not for the entire amount stipulated in the bond. He testified in general terms that he did not know that Singletary had made these payments but thought they had been made by Caroline Cowart, but he admitted having testified on a former trial that Caroline had told him that she. had made a deed to, Singletary; and, as stated above, there was evidence showing that he was put on notice or inquiry as to Singletary’s interest; and the auditor found against him. Hence, in considering whether the report of the auditor and the decree can be declared to be erroneous as matter of law, we must accept it as a fact that Grimsley acted with notice of Singletary’s interest. Hnder such facts, can it be held that Singletary had no equitable rights, and that he was cut off from all relief by reason of the provision in the bond for title that it was not transferable ? The argument in favor of such a position must rest substantially upon one or all of three contentions: First, that the bond obligat[442]

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Bluebook (online)
79 S.E. 196, 140 Ga. 435, 1913 Ga. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cowart-v-singletary-ga-1913.