Hayes v. Livingston

34 Mich. 384, 1876 Mich. LEXIS 190
CourtMichigan Supreme Court
DecidedOctober 4, 1876
StatusPublished
Cited by40 cases

This text of 34 Mich. 384 (Hayes v. Livingston) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. Livingston, 34 Mich. 384, 1876 Mich. LEXIS 190 (Mich. 1876).

Opinion

Cooley, Ch. J:

In. the court below Livingston recovered a judgment in. ejectment on the strength of an estoppel in pais. Ilis case was, that Hayes, whose title to the land at a former time was conceded, had given two mortgages upon it, one of which had been foreclosed under the power of sale, and the land sold to a third party; that the other being held by one Corey, an arrangement was made between him and Hayes, under which Corey ivas to buy up the title under the foreclosure, and then when he should be able to find a purchaser, sell the land and from the proceeds take out the amount of his mortgage and the amount he should have paid for the foreclosure title, and pay over the remainder to Hayes; that this arrangement was carried out so far as concerned the purchase of the ' foreclosure title, and that subsequently Corey sold to Livingston, being first told to do so by Hayes, and Livingston not making the purchase until [387]*387assured by Hayes that the land was Corey’s, though the latter was to pay over to Hayes a surplus from the purchase price when the sale was made. This case was disputed by Hayes, who claimed that whatever was paid by Corey in acquiring the foreclosure title was only a loan to be repaid with Interest. The dispute as to these facts would not have been important in the ejectment suit had the foreclosure title proved to be valid, but it ivas claimed on one side, and conceded on the other, that it was defective, and left the legal title in Hayes. But Livingston insisted that Hayes, by his arrangement with Corey, and by telling Livingston, after Corey bought, that the latter was owner, had estopped himself from setting up any title in opposition to that which Livingston had acquired in reliance upon his own statement; and the circuit judge so instructed the jury. The jury having found the facts to be as claimed by Livingston, a verdict and judgment in his favor followed as of course.

If the rule of estoppel in pais is the same when the right to real property is involved as it is when only personalty is in question, the circuit judge was undoubtedly right 'in his instruction. The principle is so old that it has ceased to be brought into controversy, that when one has knowledge that his- own chattels are being sold as the property of another, and encourages the sale without asserting his right, or even by his silence allows a purchase to be made in ignorance of his title, he shall not thereafter be permitted to assert such title to the prejudice of the purchaser. The rule is as sound in morals as it is indisputable in point of law; and has often been recognized in this court. — Dann v. Cudney, 13 Mich., 239; Truesdail v. Ward, 24 Mich., 117; Meister v. Birney, 24 Mich., 435.

But a difficulty arises when it is proposed to apply the same principle to real estate. The statute of frauds is express that no interests in lands, with certain exceptions which are unimportant here, shall be created or transferred otherwise than by deed; and although it is perfectly true, as ■j;s shown by Mr. Bigelow in his treatise on the law of estop[388]*388pel (p. 606), that where one by his conduct is precluded in law from asserting his title in property, there is strictly no transmission of title, yet this is a mere technicality; the legal consequences are precisely the same, and for all practical purposes the estoppel ivorks a conveyance. It would hardly be creditable to the administration of the law if the application of a statute so important as the statute of frauds should -be turned away and defeated by a technicality so shadowy and unsubstantial.

It is not to be denied, however, that there are several cases which apply the doctrine of estoppel indiscriminately to both real and personal estate. The cases in Maine are very decided. — Hatch v. Kimball, 16 Me., 146; Durham v. Alden, 20 Me., 228; Rangeley v. Spring, 21 Me., 137; Copeland v. Copeland, 28 Me., 525; Stevens v. McNamara, 36 Me., 176; Bigelow v. Foss, 59 Me., 162. These cases appear to have overruled Hamlin v. Hamlin, 19 Me., 141. The following are usually referred to as supporting the Maine cases: McCune v. McMichael, 29 Geo., 312; Beaupland v. McKeen, 28 Penn. St., 124; Shaw v. Beebe, 35 Vt., 205; Brown v. Wheeler, 17 Conn., 345; Brown v. Bowen, 30 N. Y., 519; Barham v. Turbeville, 1 Swan, 437. Of these the Georgia case related to a parol partition of slaves acquiesced in until after the death of one of the- parties, and was decided without any discussion of or reference to the distinctions between real and personal estate. The case in Pennsylvania was a suit on a promissory note given on a purchase of lands, the payment of which was resisted on the ground of failure of title. The persons in whom the title was alleged to be had been the plaintiff’s agents in the sale, and had been paid a commission for making it; and they were held to be estopped from denying the plaintiff’s right. It is to be observed of this case that the title was only incidentally in question, and also that in Pennsylvania the distinction between legal and equitable remedies is not kept up. In the Vermont case the court is contented to dispose of the question very briefly by saying [389]*389that the rule of estoppel which is applied to personal property “upon reason and principle, to prevent fraud 'and promote justice, should be extended to real property.” It would have been more satisfactory if the court had pointed out on what grounds, when the legislature, “to prevent frauds and promote justice,” had applied wholly different rules to the transfer of personal property and of real property, the courts could justify their action in venturing to abolish the distinction. The Connecticut case was one in which the question of estoppel related to a distribution of property which, though not in pursuance of the statute, had been sanctioned by a written agreement of the parties. In the New York case the complaint was of the flooding of the plaintiff’s mill by a dam which set the water back upon it; and the question was, whether the defendants ivere estopped from asserting title to the land on which the mill stood, by the fact that their ancestor through whom they claimed had asserted no right at the time the plaintiffs bought the land and built the mill, though aware of all the facts. The case was begun and tried under the code, which does away with the distinction between legal and equitable actions. The case in Swan goes to the extreme of sustaining an estoppel against an infant, and certainly would not be followed in this state. — Ryder v. Flanders, 30 Mich., 336.

Some other cases may be mentioned which we think are distinguishable, though in some of them a doctrine is asserted as broad as that which is maintained by the cases in Maine. Blackwood v. Jones, 4 Jones Eq., 56, was a case where one by his conduct was held estopped from asserting a lien upon lands. Besides being in equity, it may be said of the case that what was in dispute was not the title, but something supposed to encumber it. Water's Appeal (35 Penn. St., 523) was where the estoppel related to a claim to surplus moneys on a sale of lands. Stevens v. Dennett, 51 N. H., 324, was one where the doctrine was applied to the use of a well on the land of another, to which the party claimed right by user. Winchell v. Edwards, 57 Ill., 41, [390]*390was a case in which it was held that one was precluded from asserting a secret equitable' title as against the legal title, and is obviously not in point. Pool v. Lewis, 41 Geo., 162,

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Bluebook (online)
34 Mich. 384, 1876 Mich. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-v-livingston-mich-1876.