Harris v. Hanks

25 Ark. 510
CourtSupreme Court of Arkansas
DecidedJune 15, 1869
StatusPublished

This text of 25 Ark. 510 (Harris v. Hanks) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Hanks, 25 Ark. 510 (Ark. 1869).

Opinion

Gregg, J.

On the 11th of April, 1868, Martha J. Harris filed her complaint in the chancery court of Phillips county.

On the 23d of November, 1868, the defendant, Hanks, appeared in that court and filed his demurrer to her bill of complaint. The court sustained the demurrer, dismissed the bill, and decreed costs against complainant; from which decree she appealed to this court.

The bill alleges that, on thé 14th of November, 1861, she owned and possessed lots 464, 465, 466, 467 and 468, in the city of Helena, and certain household and kitchen furniture, which she then sold, and, by deed, duly conveyed to defendant, Hanks, for $8,900; that she ivas then informed by Hanks that he owned a one-third part of an unsatisfied decree, rendered in fa-vor of himself and Adams, against John and Joshua Craig, in the chancery court of Chicot county, for $12,761 ; and, to secure the payment of said $3,900, the said Hanks then assigned that amount of said decree to her, and by his deed of covenant, agreed that' the assignment should have the same force and effect as if made on the day said decree was rendered, to wit, the 16th of October, 1861, and he warranted the payment.

Upon such agreements Hanks took possession of the lots, and that he still holds them, and that the other defendants are mere tenants under him ; that, after the making of such contract, and at the October term, 1866, of the Chicot county-chancery court, the decree against said Craig, in favor of Hanks and Adams, was wholly canceled and held for naught, and that the decree annulling and setting aside said former decree was and is in full force; and that said first decree and the assignment aforesaid to her, became and is valueless; that no part of said $3,900, and the interest thereon, has been paid, (except $250, which she received from said Adams with the information that he had collected that sum on said decree before the same was canceled,) and the balance remaining due-the complainant, on the 1st of April, 1868, was $5,157; that,, at the date of said agreements, a suit was pending by said Craigs, against Hanks and Adams, to set aside said decree,, which had been rendered in their favor for $12,761^/^, and that she had no knowledge of such proceedings; being a woman not versed in such matters, she made no inquiry, but relied on the representations of said Hanks, etc.; but she charges no willful fraud or misrepresentations.

She makes exhibits of the deed and covenant, and offers to exhibit a certified transcript of the record of the Chicot chancery court, in the matters therein referred to, if demanded; but, to save costs, she asked the defendant to waive any right to have such exhibit. She prays for a decree for the balance of the purchase money, and interest thereon, and that a vendor’s lien be declared in her favor upon the lots, &c.

The defendant assigns for causes of demurrer :

. 1. That it appears from the bill that the complainant asks for the enforcement of a vendor’s lien on real estate, sold for a special consideration — that is, for an interest in a decree in the Chicot chancery court, and assigned by the defendant, ITanks, to her, with his covenants of warranty, &c.; that, having accepted the decree under the covenants of the defendant, as recited in the bill, she waived' her right to a vendor’s lien, and must rely upon 'such assignment and warranty.

2. Because there is no equity in the bill, &c.

3. There is no exhibit of the proceedings in the Chicot chancery court.

4. Because the bill is otherwise informal and insufficient.

Upon the hearing the defendant waived the third cause assigned in his demurrer.

The court held the demurrer well taken, and the question here presented is, whether the bill upon its face discloses sufficient equity to entitle the complainant to a decree against the defendant ?

The equities of parties, on applications' to enforce vendor’s liens, have been much discussed, and the rule established is, that, prima facie, real estate sold is liable to a lien for the unpaid purchase money. Walker v. Preswick, 2 Vea., 622; Maddock’s Chy., 130, and cases cited; Halleck v. Smith, 2 Barb., (N. Y.,) 267; Shall, et al., v. Biscoe, et al., 18 Ark., 149, and authorities there referred to.

This privilege or .right of the grantor, like other rights arising upon contract, may be waived, and when the terms of the Contract show an intention on the part of such grantor to waive his lien, and rely upon other resources for the purchase money, he can not afterwards maintain a vendor’s lien, if other securities of his own selection should fail. Naim v. Prowse, 6 Vea., 752; 1 Mason Ct. Ct. R., 216; 4 Kent, 153.

Nor is the taking of other securities always a waiver of a vendor’s lien. If the terms of the contract show that the parties intended to preserve the lien, it may he enforced.

The making of a transfer, absolute upon its face, and the acknowledging of the receipt of the purchase price, will not prevent the vendor from enforcing a lien against the vendee, ■or others holding under him, with notice that the purchase money is not paid. Sugden on Vendors, vol. 2, page 33, and note 1.

"We may lay it down, as a rule, that the transfer of lands and the accepting of security, other than the obligation of the vendee, is, prima fade, a waiver of the lien; and, to enforce a lien in such case, evidence Avould be .required manifesting a different understanding between the parties to the contract. Justice Story says, on this subject, “ if, under all the circumstances, it remains in doubt, then the lien attaches.” 2 Story’s Eq. Jur., sec. 1224 and 1226.

A grantor might lose his lien by an absolute conveyance, Avhere the property passes into the hands of an innocent purchaser ; but no such question is raised here.

The deed of conveyance, in this ease, sets out that the consideration for the lots Avas $3,900, but the bill alleges that certain household and kitchen furniture Avas therewith sold for that sum. Counsel hero place stress upon the fact that a lien is asked for that personal property also. It may be feplied, no such special cause was assigned for demurrer; and if it is equitable to enforce a lien for the lots, the including household furniture, in the aggregate sum for which a lien is demanded, could not destroy all the equity in the bill, and Avas not reached by a general demurrer.

The court having jurisdiction to determine the alleged lien upon the lots, would investigate the Avhole controversy, and decree according to the-merits.

If the defendant wanted a specific statement of the value of the household goods, he should have pointed that out in his demurrer, or he should have ansAvered, averred and proved the value of such furniture, and to that extent reduced the claim of lien.

We assume, as settled, that the execution of an absolute conveyance and acknowledging the .receipt of the purchase money is not a waiver, nor is the taking of a promissory note, or any bond or covenant, from the vendee, such security to the vendor as will defeat his lien.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
25 Ark. 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-hanks-ark-1869.