Hall v. . Harris

38 N.C. 289
CourtSupreme Court of North Carolina
DecidedJune 5, 1844
StatusPublished
Cited by1 cases

This text of 38 N.C. 289 (Hall v. . Harris) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. . Harris, 38 N.C. 289 (N.C. 1844).

Opinion

Ruffin, C. J.

On the points distinctly made in the bill, and upon which the case seems to have been considered on . the circuit, and, indeed, was argued before us, the opinion of this Court would be the same his Honor gave. It seems to have been taken for granted by all parties, that the judgment of Delamothe attached on this land, either as the legal estate of the debtor, E. L. Morgan, or as being held in trust for him, and therefore, that the purchaser under that judgment would have the preferable title in a Court of Law, as against one purchasing from E. L. Morgan himself, subsequently to the rendering the judgment, and the teste of the fieri facias issued on it. Upon this idea, the plaintiff, after failing at law, filed this bill for the purpose of being relieved against Harris’ title, upon several equitable grounds. As far as the grounds of that kind extend, as mentioned in the bill, we think the plaintiff must fail. For, if Delamothe’s judgment constituted a lien on the land, or rather, if the execution issued on it, created a lien, by relation, from its teste, we do aot see any thing in the conduct of Harris, which would prevent him from claiming all the advantages and rights that any other purchasers could. The right to a preference belonged to the judgment creditor, and every person becoming the purchaser under the execution, would entitle himself to the creditor’s priority. That Harris had been paid debts by Morgan, out of the purchase money, makes no difference, for if he had not bid for the land, some one else would, and the plaintiff would have lost it at all events. He would, however, iq each case, lose it by his own fault, in buying *294 land subject to a prior incumbrance of a judgment and execution, and being so negligent as not to pay it oH, but allow the land to be sold under it. If Harris had drawn the plain- ^ the contract, with the view of being paid his debts, while he deceived the plaintiff as to the title he was getting, it might be different, and Harris might, perhaps, be held to be a trustee of the legal title subsequently got by him at the Sheriff’s sale. But Harris seems to have had nothing whatever todo with the treaty between Hall and Morgan, at any time: all he did in the business, being to act as accountant in stating the debts of Morgan payable out of the price, and striking the balance. He received some of the money, bat not as a person interested in the sale, and only as being paid to him by Morgan after he received it, or became entitled to it, as the price of the land sold by him. Moreover, as against a judgment creditor, a purchaser of a legal estate must take notice, that the debt has been reduced to judgment at the time of his purchase, and that the execution will overreach his purchase, or else, the rule of law upon that subject would in effect be abrogated. But in this case, the answer removes every pretence of hardship on the plaintiff in that respect, by the positive statement, responsive to the bill, that this defendant gave the plaintiff express notice of the judgment, and of the opinion of counsel, that the land would be bound, if the plaintiff should buy. Upon each of these grounds, we think the plaintiff would have no equity on that part of the case.

We are likewise of opinion, that the plaintiff has not an equity to be subrogated to the rights of the creditors secured by the deed of trust, as upon the supposition that the plaintiff paid those creditors, and, therefore, ought tosfandin their places. It appears both by the bill and the answer, that it was not' the intention to keep those debts on foot, nor, of course, the deed of trust, as far as it was a security for them. The intent was to pay them, and the belief was, that by so doing, the deed itself became inoperative; which, to be sure, was a mistake, as far as the legal title of the trustee goes) *295 and as far as a trust resulted thereon, in favor of E. L. Morga or his assignee. But the debts to the sureties were both in law and fact paid; but, like those to Harris, were paid by Morgan out of his money, which he received for the sale of his resulting trust to the plaintiff, and not by the plaintiff out of his own money. That deed cannot, therefore, be set up now as a surety for debts, which the parties intended should be paid, and were paid and extinguished.

. But the Court is of opinion, that upon another ground, as far as the case now appears, the plaintiff may be entitled to relief, and, therefore that the injunction ought to have been ordered to stand until the hearing. That ground is, that the answer does not state a case, in which the land was certainly liable to be sold under the judgment and execution, so as to defeat the admitted and honest purchase of the plaintiff. Morgan had not the legal title when the judgment was taken, nor at any time after; and therefore, at common law, the “ land was not subject to be sold on execution, but became so, if at all, by the act of 1S12. It is obvious,. from the statements of the answer, that on the trial at law, the question was treated, either as if Morgan had the legal title, or as if his resulting trust would be bound by the judgment and execution, in the same manner as his legal title would have been. The relation of a fieri facias at common law is to the teste ; and it is settled, that if the teste of the execution and the alienation by the debtor be of the same day, the former is preferred, and a purchaser under the execution gets the title. That is the case, when the interest of the debtor is a legal one, either in personal or real property. But as relates to equitable interests made subject to execution at law, the statute establishes a different rule. The first section of the act of 1812, is taken from the statute, 29 Car. II. c. 3, s. 10. They both require every Sheriff, to whom a writ shall be directed, &c. to do execution unto the party in that behalf, suing execution of all such lands, &c. as any other •person shall be seised of, &c. in trust for Mm, against whom execution is sued, as he might, if the said party, a *296 gainst whom execution shall bé sued &c. had been seised &c. of such land, &c. of such estate as they beseised of in trust for him “at thetime of the said execution sued.” The liability of trusts tQ e¿ecU(¿on jg not. therefore, as at common law, or under the statute of Westminster, from the judgment or teste of the execution, according to the nature oí the property, hut from execution sued. This was so held in the first year of George the first, in the case of Hunt v Coles, reported by Chief Baron Comyns. 1 Com. Hep.- 226. The case was, thatH. Saursby was seised in fee of lands in trust, and to the intent that P. Chamberlain and his wife Anne should have £40 it year out of the profits for life, and the rest of the profits should be paid to Hope Chamberlain and the heirs of his body. Then in Trinity term, 1695, one Boardman recovered judgment against Hope C. for a debt of £160. On the 26th of July, 1699, Anne C. and Hope C. borrowed £600 from the defendant Coles, and for surety therefor, H. Saursby, by their direction, mortgaged the premises to Coles for 500 years. In 1714, Boardman sued out an elegit on his judgment againt Hope Chamberlain, and upon an inquisition it was found, that Hope C.

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27 N.C. 233 (Supreme Court of North Carolina, 1844)

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Bluebook (online)
38 N.C. 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-harris-nc-1844.