Kelly v. Mills

41 Miss. 267
CourtMississippi Supreme Court
DecidedOctober 15, 1866
StatusPublished
Cited by8 cases

This text of 41 Miss. 267 (Kelly v. Mills) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. Mills, 41 Miss. 267 (Mich. 1866).

Opinion

Harris, J.,

delivered the opinion of the' court.

The complainant, A. D. Kelly, filed his bill in the Chancery Court of Panola county, stating in substance the following facts: Thompson & Ford, in the year 1856, entered into partnership for the location and purchase of a large body of lands in this State; among other lands, they purchased with their own money the lands in dispute, and caused patents to be issued therefor to their agent and trustee, Ji G. Griffing,. to be held by him for their sole use and convenience, though it is not so expressed in the patents. The said patents were not recorded in Panola county.

The bill charges that in the month of July, 1857, complainant purchased of Thompson & Ford, for a valuable consideration, certain large bodies of land in the State of Mississippi, and among them the land in dispute, and that the said Griffing executed a deed for said lands to complainant, in the year 1857, which was recorded on the 10th of August, 1860, and complainant has held possession of them as far as he could hold possession of wild lands, and has paid taxes on them ever since his purchase. That said Griffing, since the execution of said deed to complainant, has never claimed any right, title, or interest in said land, either by paying taxes or otherwise.

That on the second day of February, 1860, the said defendant Mills sued out an attachment against the said Griffing, returnable to the Circuit Court of Panola county, for an indebtedness alleged to be due from said Griffing to said Mills, which attachment was levied upon the lands in controversy. That Griffing failing to appear to defend said attachment, a judgment was entered by default, on the 17th May, 1860, for $2,579.15, and a venditioni exponas was issued thereon, and that defendant Jones, as sheriff of Panola county, has advertised said land for sale, under said writ, as the property of said Griffing, and unless re[274]*274strained, will proceed to sell the said land, under said venditioni exponas. The bill prays for an injunction and for subpoenas, and on final hearing for a perpetual injunction, etc.

To this bill there was a demurrer for two causes: 1st. Because the legal title to the lands, as the bill mentioned, was, at the time of the levy of this attachment, and at the time of the rendition of judgment thereon, in the name of defendant in attachment; and the deed from him to complainant was not recorded until afterwards.

2d. Because respondent Mills was a judgment creditor, by attachment, with its lien, before he had notice of complainant’s alleged title.

The chancellor sustained this demurrer, dissolved the injunction which had been granted, and dismissed complainant’s bill, and the cause is brought to this court upon an agreed case by writ of error.

The only ground upon which the claim of the defendant in error to subject the land in controversy to the payment of his judgment is rested, is, that he occupies the position of a bona fide purchaser without notice, and that as to him the deed from Grilling to complainant is void for want of registration, and for this the case of Kilpatrick v. Kilpatrick et al., 23 Miss., p. 124, and the case of Bayley v. Greenleaf, 7 Wheat. R., p. 46, are cited.

The case of Kilpatrick v. Kilpatrick et al., decided by this court, Chief-Justice Sharkey delivering the opinion, at the January term, 1851, cannot be regarded as decisive of this question: first, because it expressly waives the point now under consideration, and rests the opinion of the court upon the ground that the equitable lien of the vendor in that case must be confined to the amount of the purchase-money expressed in his deed, which was but fifty dollars— instead of five thousand dollars, as claimed by the bill — and that parol proof was inadmissible to vary the consideration expressed in the deed; and second, because the loose dicta, favoring the position that judgment creditors and purchasers at sheriffs’ sales stand upon the same footing as bond fide purchasers for value, 'without notice, are not supported even by the author[275]*275ities referred to, and are evidently founded on a misapprehension of that doctrine as stated in the authorities cited.

Chief-Justice Sharkey, in delivering the opinion of the court, after admitting that “the purchaser at sheriff’s sale takes the estate subject to all equities which existed as against the owner,” says, while this general proposition is true, at the same time it is also true that a purchaser at sheriff’s sale, in many respects, stands upon the same footing with other purchasers; and all the authorities agree that the vendor’s lien cannot be enforced against a bona fide purchaser without notice,” citing 2 Story’s Eq. Jut., § 1217, 1230; 4 Kent, 151, 5th ed. He says : “ The case of a purchaser at sheriff’s sale is not mentioned by these distinguished authors, though they hold that the lien would prevail against a judgment creditor who recovered judgment after the conveyance, as well after as before he received a conveyance of the land under his judgment. Now, if we assume that a third person, who has purchased at sheriff’s sale, occupies precisely the place of the judgment creditor, this rule might apply to him; but this is not always true. But this doctrine was controverted by Chief-Justice Marshall in the case of Bayley v. Greenleaf, 7 Wheaton, p. 46. And after a very thorough investigation, it was then decided that the lien could not prevail against judgment creditors, and this opinion was approved by Chancellor Kent in a note to the Jth vol. of his Commentaries, p. 151 (note a), in opposition to a distinction taken in some adjudged cases, that a lien would prevail against an assignee or creditor for a past consideration, though not against such assignee on a new consideration.”

It is a great mistake to suppose that C. J. Marshall, Bayley v. Greenleaf, “ decided that the (vendor’s) lien (in equity) could not prevail against judgment creditors,” — and it was a still greater error to say that this opinion was approved by Chancellor Kent. On the contrary, O. J. Marshall held only that such lien could not be asserted against creditors (by mortgage) holding wider a bona fide conveyance, without notice from the vendee. That when the vendee by actual conveyance passed the legal estate to the creditor, he thereby became a pur[276]*276chaser • and this was the case of a creditor who held the legal estate by a mortgage executed by the vendee. Judge Marshall expressly places his decision on that ground. Counsel for the appellees. — The creditors placed their case on that ground. Mr. Jones,for the creditors, contended that “underthe circumstances of the present case, the lien could not be asserted against creditors taking a bond fide conveyance from the vendee. This is not a case where a party comes in by operation of lam. A creditor who takes a conveyance for the security of his debt, stands in equal equity with one who pays his money, and is equally a purchaser.”

And so this opinion was understood by Mr. Wheaton, the,reporter. — “ Quaere, whether the lien can be asserted against the assignees of a bankrupt, or other creditors, coming in under the purchaser, by aet of lam.”

And so Chancellor Kent understood the decision of Judge Marshall in Bayley v. Greenleaf. In the 4th vol.

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41 Miss. 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-mills-miss-1866.