Hays v. Wilstach

82 Ind. 13
CourtIndiana Supreme Court
DecidedNovember 15, 1881
DocketNo. 7977
StatusPublished
Cited by3 cases

This text of 82 Ind. 13 (Hays v. Wilstach) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hays v. Wilstach, 82 Ind. 13 (Ind. 1881).

Opinion

Elliott, C. J.

On the 10th day of May, 1870, appellant executed to John Richey a mortgage upon the real estate in controversy. Richey died in 1872, and the mortgage was foreclosed on the 9th day of May, 1876, at the suit of the heirs of Richey. The land was sold upon this decree on the 1st day of March, 1877, and was purchased by Alice L. Elliott and Keltie McCoy, the plaintiffs in the foreclosure proceedings. On the 13th day of September, 1876, one B. D. Pettit executed to the appellant an agreement reading as follows :

“Brookston, September 13th, 1876.
I hereby assume and agree to pay the sum of twenty-one thousand and eighty dollars as follows, to wit: The sum of fourteen thousand dollars to the heirs of John Richey; thirty-seven hundred and seventy-five dollars to the Second National Bank of Lafayette; fifteen hundred and six dollars to the Lafayette Savings Bank, and eighteen hundred dollars to George Chamberlain. Should Cormacan Hays pay me the above amounts, with the interest thereon at the rate of ten per cent, per annum, within three years from this date, or cause to be' paid, I hereby bind myself, heirs and administrators to make the said Cormacan Hays a good and sufficient deed to a certain tract of real estate contained in a deed of said Hays and wife to Benjamin D. Pettit, dated August 1st, 1876.”

The deed referred to in this instrument was signed and acknowledged on the day named, but was not delivered until the 25th of the following month.

The purchasers at the sheriff’s sale, Mrs. Elliott and Mrs. [15]*15McCoy, entered into an agreement with Pettit on the 7th day of April, 1877, wherein it was stipulated that the sheriff’s certificate should be assigned in blank and placed in the hands of Chase and Wilstach as an escrow; that if the said real estate should be redeemed the redemption money should be paid in certain proportions to the parties to the contract; that if there was no redemption Pettit should, within a specified time, pay the amount duo the owners of the certificate. On the 2d of March, 1878, a second agreement was entered into between the same parties, wherein it was provided that the time of payment should be extended and that the blank in the assignment of the certificate should be filled with the name of John A. Wilstach. The provisions of these instruments need not now be further noticed as it will be necessary to speak of them further on.

There is no evidence showing that either Wilstach or his assignors had any actual or express notice of the agreement between the appellant and Pettit.

We shall follow the order of discussion adopted by counsel, and consider and decide the questions in the order in which they are presented in argument.

In the course of his testimony the appellant said: “ It was understood between us (Pettit and the witness), at the time, that I was to remain in possession, and that the ten per cent, interest which it was stipulated in the agreement I was to pay, should stand in the place of rent.” On the appellee’s motion the court ruled that the statement quoted should “ be struck out for all purposes, except upon the single question whether the transaction between said Hays and said Pettit amounted to a mortgage or not.” Appellant has no reason to complain of this ruling. If there was error it was in his favor. The admission of oral testimony to prove that a deed absolute on its face is a mortgage constitutes a marked exception to the general rule forbidding the contradiction of written instrumenta by parol evidence. The testimony in this instance could not have been competent for any other [16]*16purpose than that of proving the deed to be a mortgage. We ■do not mean to say that it was admissible for that purpose in a case such as this, where the deed and the defeasance have been reduced to writing. We are strongly inclined to the ■opinion that where both the conveyance and the stipulations .are embodied in written instruments, oral testimony is not competent, except in cases of fraud or mistake.

The proposition which counsel next discuss is, that the court erred in allowing mesne profits up to the time of the trial. There was no error in this. Our own cases declare the rule to be .that, in actions for the recovery of the possession of real estate, the mense profits up to the day of the trial may be allowed as damages. Pendergast v. McCaslin, 2 Ind. 87. The old, common-law doctrine was, that only nominal damages could be recovered in an action of ejectment, but this rule has been changed by statute. Woodruff v. Garner, 27 Ind. 4 (vide opinion p. 8), The common-law authorities upon this subject do not apply to actions for the recovery of 'real property brought under our statute.

A judgment plaintiff is not bound to take notice of rights acquired by a judgment debtor, subsequent to the judgment. The fact that the judgment debtor is in possession is not notice that he has acquired any new or additional right or interest in the land since the sheriff’s sale. There are some ■cases where possession is notice, but the continued possession by a judgment defendant of lands sold upon execution against him, is not notice to the judgment plaintiff, or his assignees, that the right to possession is claimed or held in any other ■character than that existing at the time of the sale.

Neither Wilstach nor the assignors of the sheriff’s certificate were bound to take notice of the agreement between Hays ■and Pettit. If they were bound to look to the record at all, they would have found that Pettit held the land by an absolute deed. This would have been the extent of the knowledge which they could have acquired, and they were not bound to [17]*17look further or make inquiry elsewhere. An unrecorded defeasance is not notice. Tuttle v. Churchman, 74 Ind. 311.

We can not perceive, therefore, how the appellee could have been affected by the agreement between Pettit and Hays.

If it were conceded that the. appellee or his assignors had knowledge of this agreement, it would not have affected their rights. The execution debtor could not make any agreement with third persons which would impair the rights of the judgment plaintiffs. No matter what agreement was made between Hays and Pettit, the judgment plaintiffs had a right to enforce their judgment. They had done nothing impairing their rights. Their judgment was not weakened by Pettit’s agreement to pay it. Until they assented to the agreement, they were in no wise parties to it. But they never did assent to it, for they never had any knowledge of its existence.

We are not required to enquire into the relationship between Hays and Pettit, for what they did, or agreed to do, could not impair the rights of the appellee, unless he or his assignors had notice of their relationship or agreement. Whether the contract between appellant and Pettit made the latter a trustee or a mortgagee, is not here the question. The question here is, what are the legal rights of the judgment creditors of the appellant ?

The appellant is not in a situation to contest the right of appellee to maintain this action. The legal title is in the latter. It is not important to the appellant whether the appellee has or has not anything more than the mere legal title. It is the duty of a judgment debtor to surrender possession to the judgment plaintiff or his assignee.

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Related

McAdams v. Lotton
20 N.E. 523 (Indiana Supreme Court, 1889)
Hays v. Wilstach
101 Ind. 100 (Indiana Supreme Court, 1885)
Hays v. Carr
83 Ind. 275 (Indiana Supreme Court, 1882)

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Bluebook (online)
82 Ind. 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hays-v-wilstach-ind-1881.