Harman v. May

40 Ark. 146
Supreme Court of Arkansas·Decided November 15, 1882·Published·Cited by 10 cases

Opinion

Smith J.—

May filed his bill in Chancery, alleging that he was a judgment creditor of II. R. "Withers and had caused an execution to be levied on the 12th of February, 1879, upon certain lots in the town of Coal Hill, as Ms property: that on the 25th of January, 1879, while said, judgment was in full force and alien upon all of the real estate irt Johnson County, in which the said debtor had any interest, Harman had conveyed the lots to the wife of Withers for a consideration which moved from the husband ; that this conveyance was intended to defraud the ‘creditors of Withers, who was insolvent; and that while the property was so subject to the plaintiffs judgment lien and after it had, in fact, been seized for the satisfaction of the husband’s debts, Mrs. Withers had reconveyed it to Harman and he had afterwards sold and conveyed the same to Rogers.

The prayer was that all of said deeds might be set aside as fraudulent obstructions to the assertion of plaintiff’s legal right and that the lots be subjected to the payment of plaintiff’s judgment. Harman, Rogers, Withers and wife were made defendants and were served with process. The three last named failing to appear and defend, a decree pro confesso was entered against them.

• Harmon answered that he owed Withers a fee of $250 for professional services as a lawyer and not having the present ability to pay, he sought to secure the same by executing to his wife a deed for the lots. He admits that the deed was made to the wife instead of -the husband on account of the husband’s insolvency; but avers that the transaction was in effect a mortgage, there being a parol understanding, which was afterwards carried out, that Mi’s. Withers should reconvey to him when he paid the fee. He, therefore, denies that Withers had any such estate in the lots as was bound by the lien of a judgment or liable to be taken in execution. He also says that the subsequent deed to Rogers was a mere security for a debt.

The cause went to bearing upon tbe *bill with its exhibits and the answer; no depositions being taken on either side. The decree was for the plaintiff.

The estate of a mortgagee before foreclosure is not subject of execution. State vs. Lawson, 6 Ark., 269, Trapnall v. State Bank, 18 Id. 53.

And wherever at the time of sale a vendor is indebted to the purchaser and continues to be indebted after the • i . sale, with a right to call for a reconveyene upon payment of the debt, a deed absolute on its face will be construed by a Court of Equity as a mortgage. Scott v. Henry, 13 Ark., 112; Farris v. King, 27, Id. 404; Rogers v. Vaughn, 31 Id. 62; Hughes v. Edwards, 9 Wheat, 489; Robinson v. Willoughby, 65 N. C., 520; White & Tudor’s Lead, Cas. in Eq; 4th Am. Ed., vol. 2, Pt. 2, 1983. (Note to the case of Howard v. Harris.)

Evidence, written or oral, is admissible to -show the real character of the transaction Porter v. Clements, 3 Ark., 364; Johnson’s Ex’r v. Clark, 5 Ark., 321. Blake-more v. Bymesidc, 7 Id. 505. Russell v. Southard, 12 How. 139. Peugh v. Davis, 96 U.S., 332.

But in the absence of fraud and imposition the proof must be clear and decisive. William v. Cheatham, 19 Ark., 278. Trieber v. Andrews, 31 Id., 163. Jones v. Jones 23 Ark., 212.

Here are no proofs ; only an answer tendering an issue. And without countervailing evidence the answer contains sufficient admissions to support the decree; provided May has not slept too long between the date of his levy and the filing of his bill to uncover the property.

The judgment was recovered before a justice of the-peace. After the issue of an execution and a return of “ nulla bona,” a transcript of the judgment was filed, October 20th, 1877, in the office of the clerk' of the Cir-< cuit Court of the county, where it was duly docketed. The effect of this was to make it a lien upon all .of Withers real estate in Johnson County, the same.as if it had been rendered by the Circuit Court. Gantt’s Digest, Secs. 3788-90.

On the 25th of January, 1879, Harman conveyed to Mrs. Withers, by deed absolute on its face. The execution was levied February 10, 1879, during the life of the judgment lien. On .the 6th of November, 1879, Mrs. Withers reconveyed to Harman and on the 31st of December, 1880, Harman conveyed to Rogers. The present bill was filed April 6, 1881, after the expiration of the judgment lien.- May must, therefore, rely on the lien springing from the levy of his execution, since it is well settled that a levy upon land within three years from the date of a judgment will not prolong the judgment lien for a single day beyond three years. Trapnall v. Richardson, 13 Ark., 543, overruling Trustees v. Watson, 13 Id., 74. Pettit v. Johnson, 15 Ark., 55. Lawson v. Jordan, 19 Id., 297.

The bill' charges and the answer of Harman admits, that the' conveyance to Rogers was a mere security for a debt. And as Rogers did not defend the suit, we may take the allegation for true and that the debt has been paid, thus laying his deed out of consideration and leaving the contest between Harman and May.

In Trapnall v. Richardson, ubi supra. Chief Justice Watkins said : “It is obviously the policy of our system of laws, to make the title to land depend upon matter of record, and not upon act in pais or resting in parol. The registry system is almost universal. Deeds, mortgages, mechanics liens, settlements of separate estates on the wife, and all incumbrances affecting the title to land, are required to be recorded in the county where the land lies, else they will not avail as against innocent purchasers. So judgments and decrees are required to be condensed into a judgment docket, to facilitate the examination of incumbrances, and open to the inspection of all persons interested in the title to the .land. The only exceptions are, when the execution is levied on land to which the lien of the judgment does not extend, e. q., where the execution is sent to another county, or when the lien has been determined, i. e., expired without revival, and in such case the execution is the lien from the time it comes to the officer’s hands, just as it is on personal property, which is never bound by the lien of the judgment and would probably have to be governed by the same rules as apply to personal property.”

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Harman v. May, 40 Ark. 146 (Ark. 1882).

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