Gould v. Bank of Statesboro

31 S.E. 548, 105 Ga. 373, 1898 Ga. LEXIS 519
CourtSupreme Court of Georgia
DecidedJuly 19, 1898
StatusPublished
Cited by3 cases

This text of 31 S.E. 548 (Gould v. Bank of Statesboro) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gould v. Bank of Statesboro, 31 S.E. 548, 105 Ga. 373, 1898 Ga. LEXIS 519 (Ga. 1898).

Opinion

Little, J.

The only question made by the record in this, case is, whether the holder of a note given for the purchase-price of personal property, other than the payee, has a right to the process of attachment against the property. No restriction seems to be made in the code, which gives the remedy by attachment to recover the purchase-money. Civil Code, §4539. All that seems to be required is, that 'the relation of debtor -and creditor shall exist, that the debt is created by the purchase of property, that the debt shall be due, and that the debtor is in possession of the property, or some part of it; these facts concurring, the right to attach the property purchased, by the plain words of the statute, seems to exist. We know of no law which restricts this remedy to an original payee, and no good reason why it should be so. The right to collect a note given for purchase-money by attachment of the purchased property is not afforded to protect the payee alone, but to protect the collection [375]*375of the purchase-price as well; and to the maker it can make no difference who holds the note, nor who has the process issued. Such process would be just as effectual when issued in one name as in another; the property is simply liable by attachment for its purchase-price under the terms and conditions of the code on this subject. Counsel for plaintiff in error cites us to the case of Hunt v. Harbor, 80 Ga. 746, as authority for the position which he takes,, that, when a promissory note for the purchase-money of property is transferred without indorsement, the purchase-money is paid. There are a number of cases in our reports, besides the one cited, which seem to rule this principle, to which we will call attention in their order. It may be here said that all of the cases so ruling, so far as we have examined them, except one which will hereafter be noticed, refer to promissory notes given for the purchase-money of land, where the title was reserved in the vendor; and we can well see how, when the question turns upon the consideration of title, or the equity of the vendee, wdiere the title was reserved in his vendor to secure payment of the notes, no lien may be declared to exist in favor of one who becomes the owner of the notes, and who is yet a stranger to the title. The liens referred to have been created by statute, and all of the adjudicated cases to which we shall presently refer are based on the statute, and the rulings made are interpretations of the statute when applied to particular facts. Briefly summarized, the statute gives a first lien to the judgment rendered for the purchase-money of land, wdiere the vendor has reserved title and afterwards files and records a deed to the vendee for the purposes of sale. Code of 1882, §3654; Civil Code, §2788. To secure such lien, the vendor, or if dead, his representative, must put the title in the vendee for the purpose of enforcing the lien. Other than this, no lien for purchase-money exists by operation of law. We have said this much in order that, when the cases adjudicating the status of notes given for the purchase-money of land are examined, it may be understood that the rulings are made to establish when such purchase-money notes are entitled to the lien, and that they have not been made with a view of determining what are purchase-money notes.

[376]*376The first of our adjudicated cases which bears on the subject is that of Tompkins v. Williams, 19 Ga. 569. There Williams, an owner of land, sold the same to Dobson, received notes of the latter for the purchase-money, and made Dobson a bond for title. Dobson sold the land to Tompkins, who paid the purchase-money to Dobson and took a bond for title from him, and an assignment of the bond from Williams to Dobson. Williams afterwards transferred the notes of Dobson, without indorsement, to Porter, and subsequently sued Tompkins for the land. The question was, could Williams maintain his action ? This court held he could not, saying through Lumpkin, Judge: “He only held the legal title to secure the notes; and he had parted with the notes for value, and upon terms which exonerated him from all responsibility.” The court then held that Williams could not maintain the action, but intimated that Porter could compel Williams to convey title to him (Porter) in order that he might do so. The case of McGregor v. Matthis, 32 Ga. 417, rules the same principle, on the authority of Tompkins v. Williams. In the case of Neal v. Murphey & Co., 60 Ga. 388, a vendor of land received a part of the purchase-money and a negotiable note for the balance, and transferred the note for value, and without indorsement. The holder, who sued the note to judgment and levied on the land, was met by the claim of a purchaser from the vendee. This court held that the question whether the land is subject or not, without a deed having been made by the first vendor and delivered or filed under the code, depends on whether or not the defendant’s title passed to the claimant before the judgment was rendered, and that on the transfer of the note without indorsement the vendee’s equity in the land became complete as against his vendor ; citing 19 and 32 Ga., supra. The next case is that of Carhart v. Reviere, 78 Ga. 173. The same principle, under a similar state of facts, was ruled as in the case of Neal v. Murphey, supra. In delivering the opinion of the court in that case, Blandford, J., says : “When the purchase-money notes have been sold by the vendor to another without guaranty or conveyance of the land to the purchaser by the vendor, the equity of the defendant is complete ; that is, it is his land, and the purchaser of the notes [377]*377is nothing more than an ordinary creditor, and the notes lose their character of purchase-money so as to be entitled to prepayment under section 3586 of the Code” (1882). The next case is that of Hunt v. Harbor, supra. There Williams made a promissory note to Mays for the purchase-price of land. Mays executed his bond for title to Williams, stipulating to make title on payment of the purchase-money. This note was transferred by Mays to Harbor without any indorsement or guaranty. Subsequently Harbor sued out an attachment against Williams for1 balance due on the note, and in his petition prayed judgment against the land. Before this judgment was obtained, a prior judgment had been rendered against Williams in favor of Hunt. When the land was sold under the judgment for purchase-money, Hunt claimed the proceeds; and the question decided in that case was, whether, under these facts, Harbor was entitled to be paid in preference to Hunt, because Harbor’s judgment was for the purchase-money. In delivering the opinion in that case, Simmons, Justice, said: “When Mays transferred this note without indorsement, or without guaranteeing the payment of it, the purchase-money due Mays for the land was paid. He no longer, as vendor of the land, had any claim of priority upon the land for the purchase-money. Transferring the note to Harbor without indorsement or guaranty did not transfer the priority given him as vendor by the code, § 3586, for the purchase-money.

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Bluebook (online)
31 S.E. 548, 105 Ga. 373, 1898 Ga. LEXIS 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gould-v-bank-of-statesboro-ga-1898.