Hurt v. Jones

75 Va. 341, 1881 Va. LEXIS 18
Supreme Court of Virginia·Decided March 10, 1881·Published·Cited by 34 cases

Opinion

Burks, J.,

delivered the opinion of the court.

[346] It is conceded that the late wife of the appellant (Hurt) was entitled in fee simple to an equal undivided sixth part of the four hundred and twenty-one acres of land in the bill and proceedings mentioned, and as confessedly she was never divested of the legal title in her lifetime, it is clear that at her death intestate, and without issue, it descended to the appellee Mrs. Jones, her sister and only heir at law. Upon this title it is that Jones and wife claim the one-sixth part of the land and bring their bill for partition.

The appellant, while admitting that the title at law may have passed by descent to the female complainant, yet contends that it is held by her subject to his right in equity to call for it—that while she may have the legal title, he is the complete beneficial owner by purchase under proceedings of a court of competent jurisdiction had in his wife’s lifetime. If this defence is made out, the complainants cannot have partition upon the strength of a bare legal title. They are in a court of equity asking relief, and their legal rights must be controlled by the principles applicable to the administration of justice in that forum; and in such a case, instead of being aided in the enforcement of a barren title, it should rather be the pleasure of the court, if in its power, to compel them to surrender the title they may have to the real owner.

When and as soon as a valid contract is made for the sale of land, equity, which looks upon things agreed to be done as actually performed, considers and treats the vendor as a trustee for the purchaser of the estate sold, and the purchaser as a trustee of the purchase money for the vendor. 1 Sugden on Vendors, 191 (bottom). The purchaser is deemed and treated as the equitable owner of the land; and subject to the lien for the unpaid purchase money, the title being retained, the equitable estate of the purchaser is alienable, devisable, and descendible in like manner as real estate held by legal title. 1 Story’s Eq. Ju. §§ 789, 790; 2 [347] Id. §§ 1212, 1217; Lewis v. Hawkins, 23 Wall. U. S. R. 119, 125, and authorities there cited.

A contract for sale under a decree in chancery is governed hy the same principles. As soon as the sale is confirmed hy the court, there is a completed contract, the bidder becomes a purchaser, and is thenceforth regarded and treated as the equitable owner of the land, with the right reserved to compel him to comply with his contract by payment of the purchase money. One of the modes of compelling payment, on default made, is to order a resale of the land. In such case, the former sale is not set aside, but the land is resold as the land of the purchaser and at his risk. If on such resale, it does not bring enough to discharge the unpaid purchase money of the former sale, and the costs and expenses of the resale, the purchaser is held for the deficiency. If, on the other hand, it brings more than enough for those purposes, he is entitled to the surplus; for, as long as the sale stands, it is his land (bound for the purchase money), and the proceeding to enforce payment, whether by bill, or, in the more summary way, by rule, is substantially a proceeding for the specific performance of a contract. 2 Dan. Ch. Prac. (4 Amer. Ed. Perkins), 1275, 1282; Clarkson v. Read and others, 15 Gratt. 288; Yancey v. Mauck and others, Id. 300, 306, 307; Long and others v. Weller’s Exe’or and others, 29 Gratt. 347, 355, 356.

According to these principles, as soon as the sale to Motley was confirmed by the court, he became in equity the owner of the land with a lien resting upon it for the purchase money. He had an equitable estate, and if he had proceeded to comply with his engagement by paying the purchase money into court, or into the hands of a receiver authorized to collect, he would have acquired a complete equitable title to the entire tract of land; that is, the right to call for the legal title, without condition, of the parties to the suit, including Mrs. Hurt; and a deed to him by a spe[348] cial commissioner appointed and empowered by the court-to convey under the statute (Code of 1873, ch. 174, § 7),, would have passed the title of all the parties.

So, when Motley was adjudged a bankrupt, his equitable estate, which was alienable, was vested by operation of law in his assignee, who might have gone on under Motley’s contract, if he had deemed it judicious, to discharge the lien by paying the purchase money, and have acquired the complete legal ownership.

Under the arrangements made, as we construe them, the purchase by the appellant from Motley and his assignee and the conveyance from them, with the sanction of the court of bankruptcy, substituted him to all the rights and liabilities of Motley as a purchaser under the decree of the court. He acquired Motley’s equitable estate, and came under obligation to discharge his liabilities as purchaser. He very promptly paid to all the parties (except his wife)' their respective shares of the purchase money, and took deeds from them acknowledging payment and conveying their interests in the land. There was a balance due the-female appellee (then a widow) in her own right, which was afterwards satisfied. He thus acquired the legal title of all the parties, except his wife. The decree which confirmed the sale to Motley also appointed the appellant a receiver to collect the purchase money, and directed him to retain one-sixth part in right of his wife. That decree was never set aside, and the resale, which was ordered to' enforce it, was never made, because the appellant evidently acquired Motley’s interest and completed his contract of purchase.

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Hurt v. Jones, 75 Va. 341, 1881 Va. LEXIS 18 (Va. 1881).

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