French v. Successors of The Loyal Co.

5 Va. 627
CourtSupreme Court of Virginia
DecidedJuly 15, 1834
StatusPublished

This text of 5 Va. 627 (French v. Successors of The Loyal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
French v. Successors of The Loyal Co., 5 Va. 627 (Va. 1834).

Opinion

Cakjr, J.

Several points were relied on by the counsel for the appellant, for the reversal of the decree.

It was first insisted, that the statute of February 1818, incorporating The Successors of The Loyal Company, and enabling them to sue, was unconstitutional. I have examined this point with the care especially due to objections striking at the powers of legislation, but can find no ground for its support. The statute invades no contract, touches no right, affects no privilege of the defendant. It merely enables the plaintiff's to sue. We decide the controversy by the same facts, the same legal and equitable principles, as if the act had never been made.

It was next objected, that after the lapse of so many years, we are bound to presume, that the dues claimed by the plaintiffs have been paid. But is this, in truth, a case for presumption ? By the original contract, the settler was to be put in possession of the land survej^ed for him ; and the company to hold the legal title as a security for the dues: no time of payment was specified. The settler, of course, would not think of paying, until the company could perfect his title; and this they never could do, until after the decision of the court of appeals in 1783. So soon as that decision was made, we see that the company, by depositing the surveys with the register, and paying up the composition money and patent fees, clothed itself with the power to give perfect titles to all settlers, who should pay up their dues; and the case agreed states, that on such payment, the patents uniformly issued. If this defendant had made such payment, would he not rather have taken his patent from the company, without any further expense, than have bought a treasury warrant, entered the land, had a survey made, returned the works, and taken out a patent, at a good deal of additional trouble and expense? But why argue this point ? It is set down in so many words, among the facts agreed, that on this survey, no patent has issued, nor have [638]*638the fees and dues been paid; and though there was an understanding, that “ the agreement of the defendant, that the fees and dues had not been paid, was not intended to deprive him of the benefit of any presumption that might arise in jaw or equity, from the length of time,” this cannot weaken or destroy the effect of the admission. The fact of nonpayment still stands admitted: its weight was matter for the court, and must of necessity destroy all presumption of payment arising from time.

A third objection was, that the adverse possession of the defendant and those under whom he holds, for twenty years, presents a complete bar. But this is not a claim to the land: it is a claim to the purchase money, secured on the land; secured too, not by that lien merely, which is raised by equity, in the absence of all compact, but a lien raised by the express agreement, that the settler should hold the land, and the company the title, as a security for all dues. This assimilates the case to that of mortgagor and mortgagee, to which, we know, no act of limitation applies. And as to the adverse possession spoken of, I can hardly conceive, how a mortgagor can so chauge his position, as to render his possession adverse to his mortgagee, and thereby affect the lien he has given. There would be a violation of contract and of good faith in such an attempt, which equity would never tolerate.

It was objected, fourthly, that The Loyal Company having failed to file a caveat against, the issuing of a grant to John French, have lost their lien. The caveat is a summary remedy by statute, to arrest a party in his progress to a grant, and applies to cases of two kinds ; 1. where there is some defect in the works of the adversary, or failure to return them in time; 2. where the caveator “ hath by law, a better right.” It was not suggested, that there was any ground for a caveat, on the first point; but it was insisted, that the company ought to have caveated, on the ground of better right. But what better right had they to the land ? None whatever. By their agreement with settlers, each survey was made in the name of the individual, and to him or [639]*639his assignee the patent must of course issue. They had only a lien on the legal title for their dues. Thus, they could neither present a better right in themselves as a foundation for a caveat, nor make the oath required by law, “that the caveat was really and honá fide made, with an intention of procuring the land for themselves, and not in trust for the benefit of the person against whom the caveat was entered.” Look at the facts: the survey was made by the company for Johnston in 1775; he sold, assigned and transferred his right and interest in the survey and land to James Payne; by descent it came to another Payne, who sold his interest in the land, and assigned the survey to John French. By this purchase, French became a holder of the land under the company, precisely as Johnston had held it; the survey which constituted his only title, expressing that it was a part of the grant to The Loyal Company. While holding thus, John French laid a treasury warrant on this land, and had it surveyed. How could the company have caveated him? in whoso name? In their own, it seems admitted, they could not. Could they use the name of Johnston, their original settler ? clearly not; for he had long before parted with his whole interest in the land, and if had come by regular transfer to the same John French- Could they make French the caveator ? Try it: Let no grant issue to John French for 99 acres of land, lying &c. because the same John French claims the same land by a survey made for James Johnston in 1775, under The Loyal Company, which survey has been regularly assigned to the said French.” Does not the absurdity strike every one at once? The same person caveator and cavealee, plaintiff and defendant! .And does not this view of the case shew, that the grounds on which The Loyal Company now claim relief, are such as could not be used by them on the trial of a caveat ? thus presenting the very case, in which, by the express declaration of the court, in Noland v. Cromwell, 4 Munf. 155. the issuing of a patent will not preclude a party from relief in equity. But, there is another ground on which the failure to caveat has been [640]*640held to be excused; the ground of actual fraud. The case of Noland v. Cromwell, according to my understanding of it, does indeed decide, that actual fraud, will not excuse from caveating, unless the party can shew, that he was prevented by fraud or accident from prosecuting his caveat: and this I laboured, with all my might, to establish as the doctrine of that case, in the case of M’Clung v. Hughes, 5 Rand. 453. Yet, as (in this last case) the court after a most elaborate examination of this very point, and a review of every case, which had been decided on the subject, either by-the federal court or this court, came to the decision (three to one), that where there was actual fraud in obtaining the patent, the party against whom it was practised, might have relief in equity, though he shewed no excuse for failing to caveat, and that this was the true meaning of Noland v. Cromwell.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Taylor & Quarles v. Brown
9 U.S. 234 (Supreme Court, 1809)
Miller v. Kerr
20 U.S. 1 (Supreme Court, 1821)
State v. City of Spokane Falls
25 P. 903 (Washington Supreme Court, 1891)
Lyne v. Jackson
1 Va. 114 (Supreme Court of Virginia, 1822)
Norvell v. Camm
8 Am. Dec. 742 (Supreme Court of Virginia, 1818)
Noland v. Cromwell
4 Munf. 155 (Supreme Court of Virginia, 1814)

Cite This Page — Counsel Stack

Bluebook (online)
5 Va. 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/french-v-successors-of-the-loyal-co-va-1834.