Godkin v. Cohn

80 F. 458, 25 C.C.A. 557, 1897 U.S. App. LEXIS 1833
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 3, 1897
DocketNo. 307
StatusPublished
Cited by5 cases

This text of 80 F. 458 (Godkin v. Cohn) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Godkin v. Cohn, 80 F. 458, 25 C.C.A. 557, 1897 U.S. App. LEXIS 1833 (7th Cir. 1897).

Opinion

JENKINS, Circuit Judge

(after stating the facts as above). Assuming, as we must, the truth of the allegations of fact stated in the bill, it is established that Davidson located under his warrant the 172 acres of land in the H. § of section 12 embraced within the red lines of the plat. This is rendered certain by the entry of the register of the land office upon the plat. It is also clear that Dunfield in fact purchased the lot in the H. W. \ of the S. W. \ of the section, wrongly numbered 2, and not the lot located by Davidson, wrongly numbered 4. He paid upon the basis of the acreage contained in that lot, which was less in amount than the acreage contained in lot 2; and upon the plat his entry was noted by the government officials upon the lot in the H. W. ¿ of the S. W \ of the section. Both mistakes in the entries and in the patents arose from the erroneous numbering of the respective lots upon the plat in the local land office. Dunfield conveyed, describing his lot as lying in the H. W. of the S. W. -£ of the section, thus emphasizing the fact that he claimed lot 4, and not lot 2. It results that when lot 2 was so located by Davidson, the United States held the legal title thereto, as trustee for the benefit of Davidson, and upon conveyance of that title to another “the grantee with notice took it subject to the equitable claim of the first purchaser, who could compel its transfer to him. In all such cases a court of equity will convert the second purchaser into a trustee of the true owner and compel him to convey the legal title.” Cornelius v. Kessel, 128 U. S. 456, 460, 9 Sup. Ct. 122. The government had received from Davidson the consideration for lot 2. It intended to sell, and the officers supposed they had sold, that lot to Davidson; and the latter intended to purchase, and supposed he had purchased, it. The [464]*464government was, therefore, bound in good morals and in law to grant the legal title to the property purchased (U. S.v. Hughes, 11 How. 552), and was clearly bound to correct the mistake occurring through the error of its officials. This correction could have been made under sections 2369-2372, Rev. St., upon proper application prior to the issuance of the patent to Dunfield; and doubtless, if such application had been made, the error would have been corrected.

Upon conveyance by the government of the lot so sold to Davidson, the purchaser with notice of Davidson’s rights is charged as trustee of the true owner. So Dunfield, not intending to purchase lot 2, but receiving legal title thereto through the mistake of the officers of the government, is also chargeable as trustee for the true owner, as was Davidson chargeable by virtue of the patent to him of lot 4, as trustee for Dunfield. So likewise are Dunfield’s grantees, who took title under similar mistake, supposing they were purchasing, and intending to purchase, lot 4, and not lot 2. Cohn knew of the mutual mistakes and designed to obtain an unjust advantage. He in fact purchased lot 4, but induced his grantor to convey a lot which he did not purchase. This was an imposition upon his grantor, who was innocent of any designed wrong, being only the victim of the mistake of the officers of the government; but Cohn cannot be regarded as an innocent purchaser, since he had notice of the errors of description.

Possibly a more difficult question touches the right of the grantees of Davidson to avail themselves of the mistake. Each of them supposed he was purchasing, and intended to purchase, and each grantor supposed he was selling, and intended to sell, lot 2. The several mistakes in description arose from the original error of the government officials in marking the plat. Davidson, then having the equitable title to lot 2, and supposing that he had the legal title thereto under its description as lot 4, undertook to convey his interest in all the property in section 12 which he had located under his land warrant; and by his deed, although by wrong description, conveyed his equitable interest therein, which, through like successive conveyances, passed to the appellant. We see no valid objection to sustaining the right of the appellant to have correction of an error that is common to both claims of title. A direct proceeding like the present would certainly avoid a multiplicity of actions. It would be, if the facts alleged are established, an unnecessary requirement that each grantee should proceed by separate bills against his immediate grantor, when the whole beneficial estate is vested in the appellant. It is not like the case of Crocker v. Bellangee, 6 Wis. 645, relied upon by the appellees. There the plaintiff’s grantor had conveyed to the defendant, and, as was alleged, had been imposed upon and defrauded in the sale. Thereafter, without attempt at rescission, the grantor conveyed the same property to the plaintiff, who filed his bill to set aside his grantor’s conveyance to Bellangee, seeking to avail himself of the fraud- practiced on his grantor. It was held, and we think rightly so, that the fraudulent sale was voidable, not void, and then only at the election of the party defrauded; that the title, both legal and equitable, had passed by the conveyance to Bellangee, subject [465]*465to be defeated, if obtained by fraud, only by direct action of tbe party defrauded; and that tbe subsequent conveyance to Crocker by tbe grantor of Bellangee did not devest tbe title. To tbe like effect is Graham v. Railroad Co., 102 U. S. 148. But here Davidson bad tbe equitable title. Tbe United States held tbe legal title in trust for bim. It later conveyed tbe legal title through error, and Dunfield, tbe grantee, and those bolding under bim, took it with notice of tbe error, or under such circumstances that in equity they must be charged as trustees. Davidson conveyed bis equitable title supposing be bad tbe legal title. Although tbe original error of description runs through tbe entire chain of title, we .must bold that tbe effect of tbe conveyances is in equity to vest tbe equitable title to lot 2 in tbe appellant. This conclusion is sustained by authority which we are not at liberty to disregard. Thus, in May v. Adams, 58 Vt. 74, 3 Atl. 187, two tenants in common divided their lands by deed of partition. There was a mutual mistake in tbe deed in that tbe language did not correctly describe tbe line agreed upon. Tbe agreed line was recognized and understood by them to be tbe one described in tbe deed so long as they were tbe owners, and tbe parties to tbe suit purchased with like understanding, and recognized it for several years. It was held that tbe mistake was remediable in equity both between tbe original owners and their grantees. So, also, in Widdicombe v. Childers, 124 U. S. 404, 8 Sup. Ct. 517, Smith, tbe grantor of tbe defendant, purchased at tbe proper land office tbe southeast quarter of a section; but tbe register by mistake described it in tbe application as tbe southwest quarter, and tbe entry in tbe plat book showed tbe purchase and sale of the southeast quarter. Tbe plaintiff, with full knowledge of these facts, afterwards located and obtained a patent for tbe southeast quarter. It was held that be was a purchaser in bad faith, and that bis legal title, though good as against tbe United States, was subiect to the superior equities of Smith and of those claiming under him. We are unable to distinguish between that case and tbe one in band. Tbe facts bear remarkable similarity. To like effect is Hoyt v. Gooding, 99 Mich. 71, 58 N. W. 41.

It is alleged that this bill should not be sustained, because of laches.

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Bluebook (online)
80 F. 458, 25 C.C.A. 557, 1897 U.S. App. LEXIS 1833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/godkin-v-cohn-ca7-1897.