Howell's Heirs v. McCreery's Heirs

37 Ky. 388, 7 Dana 388, 1838 Ky. LEXIS 158
Court of Appeals of Kentucky·Decided December 11, 1838·Published·Cited by 8 cases

Opinion

Chief Justice Robertson

delivered the Opinion of the Court.

In September, 1819, a fieri facias against the estate of John Howell was levied on a tract of land containing between seven and eight thousand acres, to which he had acquired a legal title, and ,c his interest” in which was sold by the sheriff, in the woods, a mile at least from any improvement on the land, and was bought by the attorney of the plaintiff in the execution, at the price of thirty five dollars.

In 1820, Howell gave notice that he would move for a quashal of the sale, but was nonsuited in his motion.

Afterwards, the purchaser, to whom the sheriff had made a conveyance, conveyed an undivided moiety of the land to one McCreery, who was a dormant partner in the purchase at the official sale; and in 1829, he re-conveyed the remaining moiety to Howell, in execution of a compromise to which McCreery, who had, in the mean time, died, had not been a party, and which, by an express stipulation between the parties to it, was not to affect any interest which Howell might assert to the moiety which had been conveyed to McCreery.

Howell having also died, in 1831, his heirs filed a bill in chancery, in 1833, against McCreery’s heirs and others, for the purpose of setting aside the sheriff’s sale, as fraudulent, and for such other relief as should be just.

The bill alleged, among other things, that the land sold under the execution, was worth ten thousand dollars; that it was sold without advertisement, and at a place in the woods not embraced by Howell’s boundary, and that the attorney, who bought it, was privy to those facts.

a purchase at a sheriff’s sale, by has ^he^controi of *e. j3 scrutinized m ch. with peculiar jeal ^aré theVico was grossly inad Manee’of unfeir-sustained. Any a^exe’onTaliT by an attorney “ecurionf will! upon very slight additional facts, be deemed fraudulent, or in trust for the debtor. — Inadequacy of price inferred from the mere fact that a very large tract of land was sold for a very small sum.

The attorney’s answer suggests that, he was poor, and comparatively unknown and friendless at the time of the sale; that McCreery, who was rich, urged him to buy the land for themselves jointly, and agreed to ad-vanee the price, which he accordingly did; that he, himself, for a consideration nearly, if not quite, nominal, re-conveyed his own moiety to Howell, after having conveyed a moiety to McCi’eery, in fulfilment of the secret agreement under which the purchase was made; but that, in making the purchase, he (the attorney) had committed no fraud on Howell. The answer contains no response, however, to the allegations respecting either the manner and place of sale, or the attorney’s knowledge of the facts, as charged.

McCreery’s heirs, in their answer, required proof of most of the material allegations; insisted that the interest bought under the execution was not worth a great deal more than thirty five dollars, at the time of the sale, because, as they alleged, Howell had himself previously sold portions of his tract, and other portions of it were covered by interfering claims; and, making their answer a cross bill, for the purpose of obtaining a partition, they prayed for a decree dividing the land equally between themselves and Howell’s heirs.

The Circuit Judge dismissed the bill; and appointed a commissioner to make partition in a prescribed mode.

We do not concur with the Circuit Court. It seems to us that, the purchase by the' attorney, under his client’s execution should be deemed to have been invalid and voidable, for the following principal reasons: ° 1

First. A purchase by an attorney under his client’s execution, over which he had control, predisposes a Chancellor to look on the transaction with a peculiar jealousy and scrutiny, and should never be sustained when it was for a grossly inadequate price, and exhibits a semblance of unfairness. Howell vs. Baker, 4 Johnson’s Ch'y. Rep. 120; Blight’s heirs et al. vs. Tobin et al., 7 Mon. Rep., 616. In Hall vs. Hallet (1 Cox, 134,) Lord Thurloui said — “no attorney can be permitted to buy in [390] “ things in a course of litigation, of which litigation he “ has the management. This, the policy of justice will “ not endure.” And, although we would not go so far as to interdict all such purchases, we do not doubt that public policy and the analagies of the law require that they should be considered, per se, as in the twilight between legal fraud and fairness, and should be deemed fraudulent or in trust for the debtor, upon slight additional facts.

Sale of a large tract of land under ex’on — parts of which had been sold off; to other portions there were conflicting claims ; but the nature and extent of these reductions were not specified, explained or known; nor does it appear that a sale of a part of the tract would not have satisfied the ex’on: these are sufficient reasons for setting the sale aside. A sale in the woods , remote from any house or improvement, not within the boundary of the tract sold — 7 or 8000 acres ; not more than 5 persons in all present: — a purchase-under such circumstances) by the pltf’s atto., must be deemed-fraudulent and: void.

[390] Second. Although there is no positive and specific proof of the vendible value of the interest sold under the execution, at the time of the sale,-yet the record exhibits intrinsic evidence that it greatly exceeded thirty five dollars. There is no proof as to the quantity or value of what had been previously sold by Howell himself, or of the extent or character of conflicting claims. It is admitted, however, that those claims, whatever they may have been, have been lost by lapse of time.

Hence we must infer that Howell’s interest in a tract of nearly eight thousand acres of land, was, when spld by the sheriff, worth much more than thirty five dollars.

- Third. An undefined interest in the entire tract said to have been encumbered by conflicting claims unexplained, and curtailed by sales unspecified and unknown, was sold by the sheriff, and thus it was impossible to make a fair sale for a full price. And it neither appears, nor should be presumed, that some specified fraction of the entire tract might not, if properly sold, have commanded not only thirty five dollars, but a price sufficient to have satisfied the execution. Under such circumstances, the sale, as made, should be deemed unreasonable and unfair. In a case very similar to this, Chancellor Kent said — “such a sale carries an abuse on the very face of it.”

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

Howell's Heirs v. McCreery's Heirs, 37 Ky. 388, 7 Dana 388, 1838 Ky. LEXIS 158 (Ky. Ct. App. 1838).

37 Ky. 388 (Howell's Heirs v. McCreery's Heirs) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Guinan v. Donnell
98 S.W. 478 (Supreme Court of Missouri, 1907)
Barstow v. Beckett
122 F. 140 (U.S. Circuit Court for the Southern District of Georgia, 1903)
Schroeder v. Young
161 U.S. 334 (Supreme Court, 1896)
McLaury v. Miller
64 Tex. 381 (Texas Supreme Court, 1885)
Wright v. Walker
30 Ark. 44 (Supreme Court of Arkansas, 1875)
Jones v. Martin
26 Tex. 57 (Texas Supreme Court, 1861)
Lee v. Davis
16 Ala. 516 (Supreme Court of Alabama, 1849)
Smith v. Thompson's Heirs
46 Ky. 305 (Court of Appeals of Kentucky, 1847)