Graves v. Long

9 S.W. 297, 87 Ky. 441, 1888 Ky. LEXIS 92
CourtCourt of Appeals of Kentucky
DecidedOctober 2, 1888
StatusPublished
Cited by11 cases

This text of 9 S.W. 297 (Graves v. Long) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graves v. Long, 9 S.W. 297, 87 Ky. 441, 1888 Ky. LEXIS 92 (Ky. Ct. App. 1888).

Opinion

JUDGE HOLT

delivered tee opinion of the court.

August 15, 1885, Thomas B. Graves and J. B. Wells [443]*443made an assignment of their property to a trustee for the payment of their debts. Among the assets was a valuable farm. Graves had previously conveyed his undivided half of it to his wife; but in October, 1885, she conveyed all her interest in it to the assignee of Graves and Wells for the purposes named in their deed of trust. In February, 1886, this action was instituted by the assignee for the purpose of obtaining a sale of the land to pay the indebtedness. Graves and Wells were, together with their creditors, made defendants in the petition.

March 23, 1886, a judgment of sale was rendered. It provided that the commissioner making it should immediately thereafter put the purchaser in possession of the land, save the house, garden, yard and outbuildings, thereby in effect denying any right of redemption, regardless of what the property might bring.

Orders were also made enjoining the creditors from bringing separate actions, and referring the cause to a commissioner for proof of claims.

Up to this time the defendant Wells, and a lien creditor, one Bergen, had” not been brought before the court by service of summons. Section 438 of the Civil Code provides, however, that in an action to sell property held in trust for the payment of debts, it shall not be necessary, as it is in a suit to settle a decedent’s estate, to make all the lien creditors parties.

The title to the land was not in Wells. He was not only a proper but a necessary party to the suit, because of his interest in it, but not for the purpose of passing the title to a purchaser. He had already parted with it for a specific purpose. It had vested in his assignee. [444]*444Moreover, it appears from the testimony, but not by any entry of record, that his two attorneys, in open court, consented for him to the rendition of a decree of sale at the time it was entered. Their right to do so is now denied. It is urged that they were also the attorneys of the assignee in this suit. It is undoubtedly a safe rule, supported by both reason and sound morality, that whenever an agent or attorney accepts another employment in conflict with the interests of his first principal or client, it ends his first engagement. He cannot act for him and at the same time be against him. When such antagonism arises, the law steps in and says to him that his further action is likely to tempt him to mischief and dishonesty, and lead to the injury of his principal.

Such a case is not here presented, however. There is not necessarily any antagonism of interest between the debtors and their assignee. It is his duty to apply the property in payment of their debts. They convey it to him for this purpose; and it is their moral and legal duty to throw no obstacle in his way. It is true a case might arise where it would be improper for the same attorney to represent both; but this record does not present it.

The land having been sold, the appellants, Graves and Wells, gave notice and moved to set aside the judgment. They also filed exceptions to the report of sale, but their objections, as well as their motion to set aside the judgment, were overruled, and they have appealed. But one of the exceptions was well grounded.

Prior to the act of April 9, 1878 (General Statutes, p. 972), the debtor’s right for twelve months after a [445]*445sale to redeem Ms property, if sold for less than two-thirds of its appraised value, was confined to sales under execution. If sold under decree, there was no such right. His property was, therefore, often sacrificed. In view of this fact the Legislature passed the act named, which has the general title: “An act providing for the redemption of real estate sold under an order or judgment of a court,” and provides: “ Before any real estate shall be hereafter sold, in pursuance of any order or judgment of a court, the commissioner or officer, whose duty it may be to sell the same, shall cause it to be valued. * * * The valuation so made shall be in writing, signed by the persons making it, and returned by such commissioner or officer to the court which made the order or rendered the judgment for the sale of the property.” * * * *

“If the real estate which may be sold in pursuance of such judgment or order does not bring two-thirds of such valuation, the defendant and his representatives shall have the right to redeem the same within a year from the day of sale, by paying the purchaser or his representatives the original purchase money, and ten per centum per annum interest thereon. * * *

“If the judgment in pursuance of which such sale is made be not satisfied by such sale, the right of redemption herein provided for may be sold in satisfaction of the residue of such judgment; and the said right of redemption shall also be liable to sale under execution. The land shall, in such case, be still liable to redemption from both purchasers until the end of a year from the first sale.”

If the wisdom or expediency of tMs act were open [446]*446to question, it is not our province to determine it. That is a matter which, subject alone to constitutional restraint, must be left to legislative judgment.

Viewed by past and then existing circumstances and the object within the legislative eye, it is evident that the law-maker intended to give to the debtor an opportunity to redeem his property in all cases where it might be coercively sold for debt, and fail to bring two-thirds of its appraised value. It was the purpose to put all coercive sales of real property for debt upon the same footing.

It is urged that, in this instance, the judgment was not directly against the debtor; that the assignee, who asks the sale, represents him as well as the creditor, and that, therefore, the act does not apply. Undoubtedly it does not, as was held in the case of Wooldridge v. Jacob’s Guardian, 79 Ky., 250, where the sale is for the benefit of the owner alone, as where the property of an infant is sold upon the petition of his guardian under article 8, chapter 63, of the General Statutes. It relates to sales for debt only. It substantially says so. The case now in hand, however, was a coercive sale for the debts of the appellants. The property was as much liable to sacrifice as if it had been sold under execution, or a judgment rendered in an action by the creditor directly against his debtor. If so, and the legislative purpose was to prevent such loss, then the act should be construed to that end, if its terms fairly admit of it. We are not disposed to cramp its operation by a strict construction. It is for the benefit of both the debtor and his creditor. It will often serve to prevent one creditor from obtaining all [447]*447the property of the debtor, or the benefit of it, at a ruinous price, to the exclusion and injury of his other .creditors. The spirit of it, as well as the plain import of its language, show that it was intended to embrace all coercive sales for debt; and it therefore provides that before any real estate shall be sold for this purpose it shall be valued. Where an administrator sues to subject the real estate of the decedent to the payment of the debts, he acts both for the creditor and the estate. He asks that the sale be made; and yet this court, in the case of Cantrill v. Perry’s Adm’r, 7 Ky.

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Bluebook (online)
9 S.W. 297, 87 Ky. 441, 1888 Ky. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graves-v-long-kyctapp-1888.