Hester v. Hunnicutt

104 Ala. 282
Supreme Court of Alabama·Decided November 15, 1893·Published·Cited by 9 cases

Opinion

HEAD, J.

— The lien of a vendor who has conveyed the lands to the purchaser is a charge upon the lands sold, which a court of equity will raise and enforce for the security and payment of the purchase money. It rests upon the doctrine that it is inequitable for a purchaser to retain the lands of the vendor without paying the purchase price. The lien will not be raised except for the purchase money. In a case of that character, it is competent for the vendee to show by parol that a promissory note, reciting that it was given for the purchase money of the land, was in fact given, in part, for such purchase money, and, in part, for another indebtedness. — String fellow v. Ivie, 73 Ala. 209. But such is not the nature of the present case. There was no conveyance of the land by Hester to Hunnicutt. The equitable lien of the vendor did not arise. .The parties, by express contract, created the , security which it was designed Hester, the vendor, should retain, which was evidenced by the writings they executed. Hunnicutt executed to Hester his promissory note for $500, payable at a designated time. Hester, in turn, executed to- Hunni[287] cutt his bond, by which he bound himself to convey the land to Hunnicutt upon payment of the note. As we have many times decided, such a transaction is, essentially, the creation of a mortgage for the security of the specified debt. See the cases collated in Bankhead v. Owen, 60 Ala. 467. In that case, Chief Justice Brickell drew the distinction between the lien which a court of equity raises for the security of the purchase money of land which has been sold and conveyed to the vendee, and the security carved out by the parties themselves in cases like the present,.in the following language : “The equitable lien of the vendor has not, in the course of our decisions been carefully distinguished, at all times, from the security the vendor carves out for himself by retaining in himself' the legal title until the payment of the purchase money. The two are often spoken of as if they were of the same character and operation ; and yet they have no common element, except that each is a security for a debt — the one by the contract of the parties, the other by operation of law and under a decree of a court of equity. There can be no just and proper distinction drawn between a. mortgage to secure the payment of the purchase money, executed contemporaneously with the conveyance of the land', and a reservation of the legal estate as a security for the payment.” Citing the authorities. Later decisions of this court have recognized the doctrine. The contract before us, then, is, that the lands are charged by virtue of its terms, with the payment of the specified note for $500. It is the same as if Hester had conveyed the lands to Hunnicutt and the latter had executed a mortgage to the former to secure a note for $500 given at the same time. It is true, if there had been a partial or total want or failure of consideration of the note, that defense would be open to Hunnicutt, on bill to enforce the quasi mortgage; but if there was not such — if the whole amount of the note is owing, based upon a valuable consideration — it is not permissible to show, in partial defense of the bill, that a part of it was for other than purchase money of the land. As we have said, the parties expressly contracted to charge the land with the whole sum, and by their contract they must stand. We think the evidence satisfactorily shows that Hunnicutt assumed the Wilson debt, and that he, therefore, owed the full amount of the $500, mentioned in the note.

[288] We are aware that this court, in Alexander v. Hooks, 84 Ala. 605, applied the rule of Stringfellow v. Ivie, 73 Ala. 209, supra, to a case like the present, and in Sykes v. Betts, 87 Ala. 537, we gave expression to similar views; but in doing so, there was a failure to observe the clearly-established distinction-between the vendor’s lien proper, which is purely the grace and creation of a court of equity, based upon that principle of equity that it is wrong for a person to retain the lands of another without paying the purchase price, and an express contract entered into between the parties by the terms of which they charge the land with a specified debt. In the latter case, the express condition of the bond for title is, that the obligor will make title upon payment of the specified note. It is not proper to treat it as a vendor’s lien, based upon the equitable principle above stated, and it can not be done without setting aside the express contract of the parties. The cases of Alexander v. Hooks, 84 Ala. 605, and Sykes v. Betts, 87 Ala. 537, supra, in so far as they conflict with the views herein expressed, are overruled.

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Hester v. Hunnicutt, 104 Ala. 282 (Ala. 1893).

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