Grumbles v. Sneed

22 Tex. 565
CourtTexas Supreme Court
DecidedJuly 1, 1858
StatusPublished
Cited by8 cases

This text of 22 Tex. 565 (Grumbles v. Sneed) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grumbles v. Sneed, 22 Tex. 565 (Tex. 1858).

Opinion

Bell, J.

These two causes are brought to this court, by appeals from the District Court for Travis county. There is a single question in each of the cases. Both cases are precisely alike, in their facts, and we shall therefore treat them, for the purposes of this opinion, as one cause.

The question presented to our consideration, and argued with great ability by counsel, arises upon the proper construction of the clause of our statute, concerning frauds and fraudulent conveyances, passed on the 18th of January, 1840, which relates to loans.

The appellees purchased the slaves involved in these suits, from Benjamin Grumbles, Sr., the, father of the appellant. The appellant argues that Benjamin Grumbles, Sr., held the slaves as a loan from him; that the appellees had full notice of his claim to be the true owner of the property, before they purchased; that such notice affects the appellees, as purchasers ; and that he can enforce his claim upon the property in their hands, in the same manner that he could have done, if the property remained in the hands of Benjamin Grumbles, Sr., the loanee.

[574]*574The appellees admit that they had notice, before they purchased, that the appellant claimed to be the true owner of the slaves in question, and to have loaned them to their vendor; but they assert, that their vendor denied the fact of the loan; and they say that the appellant cannot enforce his claim upon the property, because Benjamin Grumbles, Sr. had been in possession of the slaves in controversy, for more than three years previous to the sale by him to appellees, without any demand made and pursued by due process of law, by the pretended lendor, the appellant; and because the pretended loan was not declared by will, or by deed in writing, proved and recorded, as is required by the latter clause of the second section of the Act to prevent frauds and fraudulent conveyances, of the 18th of January, 1840.

That clause of the statute.of the 18th of January, 1840, relating to loans of goods and chattels, or slaves, has never received a construction by this court. The 40th section of the “Act organizing inferior courts, and defining the power and “jurisdiction of the same,” approved 20th December, 1836, was considered by this court, in the case of Crosby v. Huston, 1 Tex. Rep. 203. And in the case of Fowler v. Stoneum, 11 Id. 478, the first clause of the 2d section of the Act of the 18th January, 1840, was construed by this court. It is contended, on the part of the appellant, that the principle enunciated by this court, in the cases of Crosby v. Huston and Fowler v. Stoneum, applies equally to the clause of the statute of the 18th January, 1840, which relates to loans; and that notice of a loan, will affect the title of the purchaser from the loanee, in the same manner that notice of an unregistered deed will affect the title of the second purchaser, who takes another deed from the same party that made the first conveyance, as was decided in Crosby v. Huston,—or in the same manner, that notice of a former fraudulent conveyance, will affect the title of a subsequent purchaser from the fraudulent vendor, as was decided in the case of Fowler v. Stoneum.

It is contended by the appellant, that the affirmance of the [575]*575judgments of the District Court, in the cases now before us, will virtually overthrow the cases of Crosby v. Huston and Fowler v. Stoneum, and that those cases will no longer be authoritative precedents. Upon the maturest reflection that we have been able to give to this subject, we have come to a different conclusion.

The 40th section of the Act of December 20th, 1836, which received a construction in the case of Crosby v. Huston, is in the following terms: “No deed, conveyance, lien, or other instru“ment of writing, shall take effect as regards the rights of third “parties, until the same shall have been duly proven and presented to the court, as required by the Act for the recording “of land titles,” &c.

The decision in the ease of Crosby v. Huston, was upon the well established principle of courts of equity, that fraud shall not be permitted to prevail. It is upon this principle, that courts of equity will not permit a subsequent purchaser, who has notice, at the time of his purchase, of a prior unregistered conveyance, to avail himself of his title against the prior Conveyance. The authorities cited by Chief Justice Hemphill, in the case of Crosby v. Huston, are the leading cases in which this rule of the equity courts is declared. He also cites Judge Story’s Commentaries on Equity Jurisprudence, where the authorities are reviewed. And the rule is laid down in Crosby v. Huston, with its proper and well established limitation, and that is, “that the letter of the statutes (on the subject of registry) will “be departed from, only where the notice (on the part of the “subsequent purchaser,) is so clearly proved, as to make it “ fraudulent in him to take a conveyance in prejudice to the “known title of the other party.” We are accustomed to say a great deal about the policy of the registry laws. What is the policy of the registry laws ? Certainly it is mainly to prevent and suppress frauds. The registry laws are but an extension of the principle of the statute of frauds, which requires contracts for the sale of land to be in writing.. One statute requires the contract to be in writing; the other declares that it shall not take effect, as against the lights of third parties, unless it [576]*576be also registered. The object of both laws is to prevent and suppress fraud. But statutory enactments, which seek to control the actions of men, can never perfectly attain their object; and so frauds will be perpetrated, notwithstanding the efforts of the law makers to suppress fraud. And for this reason, the courts have engrafted an exception upon the statute—an exception in the very spirit of the statute itself, and having directly in view the object which the statute seeks to accomplish. The registry Acts require certain instruments to be recorded. Why ? To prevent frauds. But how will registration prevent frauds ? By giving notice to all the world of what has been done. Shall one, then, who has notice of what has been done, where there is no registration, be permitted to practice a fraud, because another has not used a means, pointed out by the law, to prevent the perpetration of fraud ? The courts say that he shall not. And this is what the case of Crosby v. Huston says. We think the authority of the case can never be overthrown, while it is the policy of the law to prevent frauds, and while the courts of the country have a proper sense of their high vocation.

In the case of Fowler v. Stoneum, 11 Tex. Rep. 478, the first clause of the second section of the Act of 18th of January, 1840, was under consideration. This clause, as was stated in the opinion of the court, in the case referred to, embraces the substance of the second section of the statute of 13 Elizabeth, ch. 5, and of the 27 Elizabeth, ch. 4. The English and American decisions on the question involved, were very carefully examined by the court.

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Bluebook (online)
22 Tex. 565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grumbles-v-sneed-tex-1858.