Henderson v. . Hoke

21 N.C. 119
CourtSupreme Court of North Carolina
DecidedJune 5, 1835
StatusPublished
Cited by13 cases

This text of 21 N.C. 119 (Henderson v. . Hoke) 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
Henderson v. . Hoke, 21 N.C. 119 (N.C. 1835).

Opinion

Ruffin, Chief Justice,

after stating the pleadings and proofs as above set forth, proceeded as follows: — The object of the original bill is to set up the.contract between the defendant and Joseph Wier; and, on the footing of it, to have a decree for a conveyance from the defendant of the title derived by the defendant under the deed made by Coulter. The equity is founded on'the existence and validity of the alleged contract, and the destruction or suppression of it by the defendant, with or without the privity of Joseph Wier, with the intent to defeat the claim of the state on the forfeited recognizance, and to the prejudice of the plaintiff’s rights as a purchaser under the state’s execution.

In the case supposed by the bill, there can be little hesitation in pronouncing the equity asserted by it, to be sound.

The answer admits the facts, upon'which the plaintiff’s title rests, respecting the recognizance and the proceedings upon it, to be true, as stated in the bill; although the answer does not raise the question, nor was it brought forward in the argument, yet the Court does not think it proper to overlook the doubt that might be stated, whether Joseph Wier had such an interest as could be affected by the lien and be sold under the execution. The Court is of opinion that he had.

We think it clear, that the interest of a purchaser at sheriff’s sale, who has paid his money, but not taken a deed, is a trust estate, within the act of 1812. The whole *138 equitable interest is in him, and he has a right to call for a conveyance to himself at any moment. Such an estate it is the policy of that statute to make available to the owner’s creditors. The purview of the act is to treat the keeping of the legal estate, by a debtor, out of himself, and in a trustee for him, and for him alone, as a fraud upon his creditors. It is therefore to receive a construction, liberal and beneficial to creditors, by extending it to every case in which the legal estate is a naked one, and the whole beneficial interest is in the party or parties against whom execution is sued. As there is no third party in interest, there is no possibility of injury to' any one. Although a purchaser at sheriff’s sale of the estate of a former purchaser at a like sale, gets, by force of the act, a legal title, by the deed, simply, of his immediate vendor, without any deed from the sheriff who first sold, yet that is the effect of the express words of the statute, and is a consequence which furnishes no just argument for a construction, which would take a case out of it, that falls both within its words and policy. Probably the cases immediately in the contemplation of the legislature were trusts, honest in their creation, and plainly expressed in the deed by which the trustee gained his estate. In that case the rights of the cestui que trust and trustee both appearing on the same instrument, the latter could not assert his title, without showing that of the former. As that would be the whole beneficial interest, and be at all times obviously seen, the sale of it might well be treated as the sale of the land itself as against the trustee. But the act is not confined to such express trusts, in its words. The phraseology extends it to all cases in which any other person is in any manner or wise seised in trust for him or them against whom execution is sued; and thus includes the cases of a declaration of trust by a separate and subsequent instrument; of a sale by articles where the vendee has paid the purchase-money and done all the acts on his part to be performed; and of resulting trusts, where the purchase-money is paid by one person and the deed executed to another, and the like. These cases are within the mischief against which the act provides, as well as *139 within the letter of the law; and an execution runs against the estate of the owner of the entire, valuable interest, without injury to others, and with as little prejudice to his own, as in the case of express trusts. They may, indeed, present difficulties to the purchaser in respect of getting evidence at law to establish the trust, and also in showing it to be of that clear and explicit kind, on which alone, perhaps, a Court of law would be inclined to act, without resorting to the implication of it, from refined equities. But those difficulties do not prevent the estate of such a cestui que trust from being seized and sold on execution, though they may render it necessary that the purchaser-should come into a Court of Equity for the discovery, declaration, and establishment of the trust, and of a permanent evidence of it, on which his legal title depends. To that end there would seem to be a jurisdiction here to decree a conveyance from the trustee, where the trust is not express, as the most simple, durable, and permanent muniment of title — one which the trustee, after the establishment of the trust, and the purchaser’s ownership of it, could not, in good conscience, refuse to give, We need not embarrass this inquiry with the difficulty a technical kind, whether the sheriff who sold under the first execution, or the defendant in that execution, be the trustee. The legal estate is in neither, after a sale of the land for the debt of the cestui que trust. The object is not to get the legal estate, but to get legal and accessible evidence of it. If the deed of Coulter, therefore, be not indispensable to the legal estate, it is convenient, necessary and proper, and, indeed, the only means known to the law to establish conclusively at law in respect of land, that the first- sale was in fact made and the purchase 1 money paid. Had not Coulter made a deed to the defendant, and would not make one to a second purchaser, qualified to demand it, by having a deed from the sheriff, who was his immediate vendor, it seems to us, that the purchaser would be entitled to a decree- for such a convey-anee, as a link in a clear paper title. Here he has made a deed to the defendant, which was executed before the plaintiff purchased, and therefore, apparently, at least, *140 vests the legal title in the defendant. Whether there is a jurisdiction in the Court of Equity to decree a conveyance by a purchaser at sheriff’s sale, who gets his deed from the sheriff after the land so purchased by him had been sold under an execution against himself, it is unnecessary to say. It is not easy, in ordinary cases, to see the utility of a deed from the first to the second purchaser under such circumstances.

*138 Thai act extends to ail cases where the whole beneficial interest is in the defendant in the execution, as well when it is created by deed,as where it results from construction of law. *139 And when construe *S tive, a Equity will “d the pur-directing trustee to him. And if the ^ectfto6" make a purchaser^ °"e w^° latter’s in-tfrestun-der another execution ty call upon the sheriff thePevi-Ct b?n°.®j0fb executing7 jjeed to^the dee.

*140 But in the present case, the jurisdiction rests on other grounds. The defendant has the apparent legal title, and the plaintiff is in possession.

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Bluebook (online)
21 N.C. 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-hoke-nc-1835.