Fleming v. . Burgin

37 N.C. 584
CourtSupreme Court of North Carolina
DecidedJune 5, 1843
StatusPublished
Cited by12 cases

This text of 37 N.C. 584 (Fleming v. . Burgin) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleming v. . Burgin, 37 N.C. 584 (N.C. 1843).

Opinion

*590 RuNfin, C. J.

The execution of the deed from the one Burgin to the other, at the period of its date and the justice of the debts thereby secured, are fully proved, and indeed were admitted on the hearing. The case therefore turns on the effect, which, notwithstanding the prior registration of that deed, notice, at the time it was taken, to the creditor of the previous deed, under which the plaintiffs claim, will have in postponing the last mortgage ; and whether, if any notice will have that effect, the notice in this case was sufficient. The act of 1829, Rev. Stat. c. 37, s. 24, enacts, that no deed of trust or mortgage shall be valid at law to pass any property, as against creditors, or purchasers for a valuable consideration, but from the registration of such deed. — . The act, therefore, takes away the relation of the deed to the period ot its execution, which arose under the former statutes upon its registration in due time, by declaring that it shall be valid, 11 but from the registration.” We have a strong impression, also, that the Legislature intended to make the registration indispensable to the operation of the deed in all instances, not merely as a ceremony requisite in point of formality to make it evidence, but as entering into the constitution of the deed, as an instrument set up against a creditor or purchaser from the mortgagor. The policy of the register acts is, first to give notice of conveyances and in-cumbrances,.and, secondly, to exclude the necessity of parol proof upon the question, whether another person had or had not notice. It was well known to the Legislature, that, notwithstanding the former legal provisions on this subject, it had become a rule of the Court of Equity, that notice of a prior unregistered incumbrance, which notice might be proved by parol, would give relief against a subsequent deed, first registered ; and, consequently, that many persons kept their incumbrances in their pockets, and registered them only when they wished to use them, as they might do from the length of time allowed in the register acts, and in those giving further time for that purpose. From this practice many evils arose, as there might be vague rumours of in-cumbrances, of which there was no means of knowing the *591 particulars. To remedy them, the Legislature first passed the act of 1820, requiring mortgages and deeds of trust to be registered within six months, and enacting, that if not so registered, they should be held, as against creditors and purchasers, utterly null and void. Then followed the act of 1829, whereby the Legislature, not content that there should be any delay in registering, destroys all relation of the deed, and says it shall not operate until, or “ but from” its registration. It would seem that the Legislatifre could not more emphatically declare, that the fact of registration was requisite to perfecting the deed as against the protected persons, aud that nothing should supply the place of it as against those persons. There is a constant suspicion of those • instruments discovered, as pervading all our legislation concerning them, and in the acts, subsequently passed, to give further time for registering conveyances, deeds of trust and mortgages are uniformly excepted. We doubt not, that fraud would take a case out of this act, as out of any other intended for the protection of particular persons. We mean a fraud committed by one in being the cause, why the deed of another was not registered; for he, who prevents an act from being done, ought not to insist upon an advantage from its not having been done. But it is so easy to register a deed of trust or mortgage under the act of 1829, which allows it to be proved in the Clerk’s office and makes the delivery to the register registration, McKennon v McLean, 2 Dev. & Bat. 79, that it must be deemed the most gross negligence to omit it, and so strongly argues a purpose not to let the world have that exact knowledge of its contents, which the law intended, as justly to raise a presumption that the deed never was relied on as a security, or that it had been abandoned. No stress can be laid on the expression in the act “ valid at law,” as recognizing a validity in equity or as intentionally leaving it to a Court of Equity to support the deed without registration, inasmuch-as the Legislature could not suppose a Court of Equity would defeat the policy of a statute by construction, more than a Court of Law would, and, moreover “ at law” is not an expression, *592 which, in a statute, signifies merely a legal tribunal, as dis-Anguished from an equitable jurisdiction, but generally, our system of jurisprudence, whether legal or equitable. From the policy which, certainly, dictated the act, and the peculiar provisions of it, the Court is forcibly led to conclude that registration is an essential ingredient in a mortgage or .deed of trust to make it that instrument or constitute it a deed or security, as against a creditor or purchaser.

But if it were otherwise, and we do not find it necessary in this case to say, positively, that it is not, we hold, that though notice may deprive a subsequent purchaser of the protection of the act, yet the notice here is not sufficient for that purpose. Loud Hardwick, in Leneve v Leneve, 3 Atk. 646, laid down the rule, which has been since followed, that notice of an existing unregistered deed'bound'one, who took a subsequent one and first registered it. That, certainly, tended to subvert the register acts, as allowing parol evidence to shew that knowledge of the deed in jiais, which could be derived from the registration, and it would effectually subvert them, if, as in ordinary cases of notice of a prior equity, a notice of any thing, that would lead to en-quiry, were held to be sufficient notice. Fortunately a case came before the same great Judge,which called for his opinion on that point.. Hine v Dodd, 2 Atk. 275. In it he informs us, that as the act of parliament was positive and made to prevent perjury from contrariety of evidence, he coqld not overturn the act upon suspicion oí notice, though a strong suspicion, but only for apparent fraud. He says, the only cases that had been decided, were cases of fraud, though he adds, that possibly, there may have been others upon notice, divested of fraud, but then, the proof must be extremely clear. He, therefore, qualifies the rule, that fraud is necessary, by the expression, “or clear and undoubted notice:” which can mean no less than a full knowledge of the contents of the deed, and that the person omitted to register it merely from inattention or inability, and not because he has abandoned it and does not mean to register it at all. For in that case, though his Lordship declared, “the answer loose,” *593 and that there were strong circumstances of notice, he yet dismissed the bill upon that part of the case. That the doctrine of that case is correctly understood-, as here represented, is, we think, clearly to be collected from what has been-said in subsequent cases, after the subject had been long and thoroughly considered. In Wyatt v Barwell, 19 Ves.

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Bluebook (online)
37 N.C. 584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleming-v-burgin-nc-1843.