Doyle v. Teas

5 Scam. 202
Illinois Supreme Court·Decided December 15, 1843·Published

Opinion

Catón, Justice,

delivered the opinion of the court: (1) This bill was filed in the Hancock circuit court for the purpose of compelling a specific performance of an agreement for the sale of two lots of land in that county. The agreement, which is set out in the bill verbatim, appears to have been entered into ["*' 243] on the 23d of May, 1835, and provides for the sale of the premises in question for the sum of $1100, of which “a certain sum” was to be paid in hand on the second of June then nest; one stable horse from the first to the tenth of July then nest, the value of which was to be assessed by three disinterested persons, in ease of disagreement between the parties, and Doyle was to give his note for the balance of the $1100, payable in fifteen months from the date of the agreement. The circuit court entered a decree dismissing the bill at the complainant’s costs, which, by this appeal, we are now called upon to revise.

The first enquiry which most properly presents itself in the examination of this case is whether Munson, one of the defendants in the bill, is a subsequent bona fide purchaser without notice, or whether he is chargeable with notice. It appears that the contract with the complainant was entered into on the 23d of May, 1835, and was recorded on the 19th óf June following, and the deed of the same premises from Teas to Munson was executed on the 26th of May and recorded on the 26th of June. If Munson is chargeable with notice, then he but fills the shoes of Teas, and either as his trustee for that purpose, or as his assignee, he shall make good the obligations which, by the contract, are imposed upon Teas. If he was not chargeable with such notice when the deed was executed or took effect, then he shall hold under it, notwithstanding whatever rights, either •legal or equitable, may be shown to exist between Doyle and Teas.

What is sufficient to constitute this notice is frequently a question of no small difficulty and a subject on which much has been written, and, after all, not a great deal very definitely settled. This notice is sometimes a question of law arising upon facts about which there is no dispute, and it is sometimes a question of fact. The former is called constructive notice, the latter actual notice. Constructive notice is made out frequently by a lis pendens, by the record of the prior title or claim under the recording act; by the possession of the person having notice, or by the purchaser receiving his title through a channel which, with proper attention, -would have led him to a knowledge of the interests with a notice of which he is charged.

In this case it is attempted to make out notice in both of these ways, or rather, in the first place, an attempt is made to bring home actual notice to the agent of Munson who made the purchase for him — which, if established, is but another mode of proving constructive notice on that defendant himself, whereby his conscience shall be as much affected as if the actual notice were proved on him personally; — and in the second place it is contended that constructive notice is made out under our recording act.

The greatest difficulty has been experienced in laying down any general rule by which the court can be governed as [*244] to the amount of evidence which is necessary to make out actual notice; for between the slightest and most indefinite (which, if shown to have reached the ears of the defendant, could raise no suspicion of good.faith on his part), and the most positive proof of actual knowledge, brought directly home to the person'of the party, there is an infinite number of gradations, and where the true line of demarcation is between these two extremes has never yet been so distinctly settled as to leave no difficulty in the application to individual cases as they arise.

There seems, indeed, to be two classes of cases, one of which appears to require the most clear and certain evidence of actual knowledge, such as will establish fraud on the part of the subsequent purchaser, while, in the other, only such notice is required to be proved as would be sufficient to put a prudent man on enquiry ; and I confess I have searched in vain to find the distinction anywhere laid down by which we may be enabled to distinguish them in their features and circumstances. In this case the complainant insists that it was only necessary for him to adduce sufficient proof to bring the case within the latter rule ; while, by the defendant Munson, it is contended that he is only to be prejudiced by such clear and positive proof of notice as would establish fraud in him; and for the purpose of enabling us the better to judge by which of these rules we shall be governed in determining what shall be the amount of evidence required to make out this notice it is necessary to advert to some of the leading cases relied upon in support of each position.

In the case of Hines v. Dodd, 2 Atk. 275, where a subsequent mortgagee was attempted to be charged with notice of a prior judgment, which was not registered till after the mortgage, although the denial of the notice by the defendant was feeble, and, to say the least, evasive, and the proof of the notice strong, still the court held the proof insufficient, and say: “ Tobe sure apparent fraud, as clear and undoubted notice, would be a proper ground of relief, but suspicion of notice, though a strong suspicion of notice, is not sufficient to justify the court in breaking in upon an act of Parliament.” Andón the same side is cited the case of Joland v. Stambridge, 3 Vesey 478, where a subsequent registered conveyance took precedence of a prior unregistered deed, notwithstanding strong evidence of notice; and this case seems to carry the principle quite as far as the case above, and clearly holds that nothing short of actual fraud shall supersede a conveyance actually recorded.

So in the ease of Wyatt v. Barnell, 19 Vesey 435, where the question was whether there was sufficient proof of notice to give the prior unregistered deed a preference (and there was very strong proof of constructive notice), yet the master of the rolls held it insufficient, and after alluding to the decisions says: “However, it is sufficient for,the present purpose [*245] to say, that it is only by actual notice clearly proved, that a registered conveyance can be postponed. Even a Us pendens is not deemed notice for that purpose.” This case then holds distinctly that no constructive notice will suffice to defeat a deed regularly registered; but this cannot be pretended to be the law now.

In Dey v. Dunham,, 2 Johns. Ch. R. 182, most of the above cases were cited with approbation by chancellor Kent. The question there was whether a junior registered assignment should be set aside in favor of a prior mortgage deed, which was not registered in the proper book of mortgages. The chancellor says: “If notice that is to'put a party on enquiry be sufficient to break in upon, the policy of the express provisions of the act, then indeed the conclusion would be different; but I do not apprehend that the decisions go that length. This would be too slight a foundation to act upon in opposition to the statute.”

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Doyle v. Teas, 5 Scam. 202 (Ill. 1843).

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