Dendy v. Commercial Bank & Trust Co.

108 So. 274, 143 Miss. 56, 1926 Miss. LEXIS 243
CourtMississippi Supreme Court
DecidedFebruary 22, 1926
DocketNo. 25349.
StatusPublished
Cited by5 cases

This text of 108 So. 274 (Dendy v. Commercial Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dendy v. Commercial Bank & Trust Co., 108 So. 274, 143 Miss. 56, 1926 Miss. LEXIS 243 (Mich. 1926).

Opinion

Ethridge, J.,

delivered the opinion of the' court.

The appellants, S. T. Dendy, an adult, and Leona K. Dendy and Mary F. Dendy, minors, by T. J. Chambers, their stepfather and next friend, filed a suit for partition of certain property against the Commercial Bank & Trust Company and Mrs. Vannie L. Chambers (née Dendy), charging,that the complainants and Mrs. Chambers, one of the defendants, were the owners as tenants in common of the land in question, which was inherited from the father of the complainants and former husband of the defendant Mrs. Chambers. They alleged that, in 1910, Mrs. Dendy filed a suit for the partition of the land in question with certain other lands, and a decree was rendered thereon in which E. J. Windham, grandfather of the complainants and father of the defendant, Mrs. Chambers, was appointed a special commissioner *67 to make a sale of the said lands; and that in making the said sale it was agreed by and between said Mrs. Vannie L. Chambers (née Dendy) and one W. B. Wells that the said Wells should bid on certain lands for her and the children up to a certain amount, to the end that the same should be made to bring its true value, and that should said lands be struck off to the said Wells at said sale, said purchase should inure to the benefit of said Mrs. Chambers and her minor children; that the deed should be made to him without the payment of any money, and that he should in turn redeed the said lands to her and the complainants without cost to them save the expenses of the sale. The bill further alleged that in the sale of the said land, some was struck off to Wells for one thousand five hundred fifteen dollars and ninety-five cents, and the deed made to him followed by a decree confirming the sale; that thereafter Wells intending to deed the said land back to Mrs. Chambers and the complainants, the minor children, jointly, by mistake, deeded the same to Mrs. Vannie L. Dendy, now Mrs. Chambers, without any money being paid; that this mistake in writing the deed was not discovered until after the deed made by Wells to Mrs. Dendy, now Mrs. Chambers, was recorded, but that all parties understanding fully that the minor children had never received anything from the sale of said lands and that they were then minors, she did not correct the mistake in the deed to her by making the deed back to the children.

It is further alleged that the bank, the defendant, was fully advised as to these facts, and in conjunction with Mrs. Chambers procured the suit to be filed in 1920, setting up the fact that there was a mistake in the deed and that the land should be disposed of; and that the title thereto should be acquired by the said Mrs. Chambers, formerly Mrs. Dendy, alone, so that a deed of trust thereon given by her to the defendant bank would be valid as against complainants; but later, for reasons unknown' to the complainants, said bill was dismissed with *68 out any relief being granted. It is further alleged that the bank, with intent to clear and defraud complainants out of their rights in said land, procured the said land to be advertised and sold under a deed of trust given by-Mrs. Chambers to the said bank; that said deed of trust from Mrs. Chambers to the bank was void and without any effect to convey the complainants’ interest; that all of these transactions were by collusion between the bank and Mrs. Chambers, and Mrs. Chambers was overreached by the bank, and said transactions were a fraud in law, and the said, bank was fully aware of the mistake in the deed from Wells to Mrs. Dendy, now Mrs. Chambers, and that the bank had full knowledge of the children’s interest. There was a prayer for the cancellation of the deed of trust and the trustee’s deed to the bank as clouds on the title of complainants.

Separate answers were filed by Mrs. Chambers, formerly Mrs. Dendy, and the bank. Mrs. Chambers admitted practically all the allegations of the bill. The bank answered denying any agreement between Mrs. Dendy and Wells; that Wells would buy at the commissioner’s sale for the benefit of the complainants and their mother jointly; denied that the consideration in the commissioner’s sale was for one thousand five -hundred fifteen dollars and ninety-five cents;. denied that there was a mistake in the deed, or that it knew anything about said alleged facts; denied -that it was fully advised of the facts and references to the sale of 1910, or that it was a party to the proceedings in 1920, or that the sale was filed in conjunction with Mrs. Dendy, now Mrs. Chambers; denied any knowledge on its part that the children had any interest in the land; denied that there was any intent to cheat and defraud the children; denied the invalidity of the deed of trust from Mrs. Chambers to the bank and the trustee’s deed foreclosing such deed of trust; and denied any collusion with Mrs. Chambers, or that Mrs. Chambers was overreached in these transactions, or that said transactions were for the purpose *69 of cheating and defrauding complainants, or that they constituted a fraud in law.

The defendant made his answer a crossbill in which it alleged that the loans were made by the bank to Mrs. Chambers on the representation by her that she was the absolute owner in fee simple of the land involved in the suit; that upon these representations loans were made to her and renewed from time to time leading up to the last loan secured by the deed of trust which was foreclosed and bought in by the bank at said trustee’s sale. It is further alleged that at the time the loans were made the bank never had any intimation of an outstanding claim of the children to the land described in the bill. It is further alleged that the land was foreclosed under a deed of trust from Mrs. Chambers to the bank and of a trustee’s deed to the bank, giving it a good title to. the land. It is alleged that the sale by "Windham, commissioner, in 1910, was a valid sale and conveyed a good title to Wells in so far as the property was accurately described; and that the conveyance from Wells to Mrs. Dendy, the defendant, now Mrs. Chambers,- was a valid conveyance in so far as the property was accurately described, and that all the deeds of trust were valid and binding conveyances in trust. It is further alleged that at the time of Mr. Dendy’s death, he owed debts secured by mortgage on the said land which were paid off by Mrs. Dendy to the extent of one thousand nine hundred six dollars; that the sum was paid out of her private funds, and in' the partition proceedings in 1910 a lien was" established in her favor against the said lands; that the sale by the commissioner was not a fictitious or simulated sale, but that Mrs. Dendy received good title to the property and immediately thereafter took out letters-of guardianship for the minor children and made bond for their part of the proceeds of the sale, executing a bond to account for it; and that, therefore, the children received full compensation for the land, all of which was done by the chancery court as being fully advised of *70 the facts; and that the cross-bill prayed for cancellation of the claim of the complainants as a cloud on the title of the bank and for general relief.

On the trial, Mrs. Chambers, formerly Mrs.

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Bluebook (online)
108 So. 274, 143 Miss. 56, 1926 Miss. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dendy-v-commercial-bank-trust-co-miss-1926.