Kirk v. Williams

24 F. 437, 1885 U.S. App. LEXIS 2098
CourtUnited States Circuit Court
DecidedApril 10, 1885
StatusPublished
Cited by2 cases

This text of 24 F. 437 (Kirk v. Williams) is published on Counsel Stack Legal Research, covering United States Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirk v. Williams, 24 F. 437, 1885 U.S. App. LEXIS 2098 (uscirct 1885).

Opinion

Hammond, J.

The defendant insists that no promise to pay for the land has been proved by any memorandum thereof in writing, signed by the party' sought to be charged, and that tho statute of frauds, therefore, is a complete protection. Codo Tenn. (T. & S.) § 1758. Counsel argues that, Williams not having signed the deed, the plaintiff’s only remedy is against the land itself, in the absence of some separate note, bond, covenant, or other like security containing a, promise, signed by him, to pay the purchase money; that, although a vendor may proceed to enforce a technical vendor’s lien, some mortgage that lias been given, or a reserved lien like that contained in this deed, as the case may be, be can thus subject the land only because there lias been attached to the grant a limitation or condition, which the grantee has accepted or created, that he shall not hold the land without paying the consideration for the grant; but that, whether he gives a mortgage, a lien is implied by the law, or is reserved by the grantor, this does not operate to bind him further than the land goes; and, to hold otherwise, is to violate the statute of frauds. There certainly seems to be some rule like this as to a mortgage, for the mortgagor, although lie signs the mortgage deed, is not bound beyond tho land, unless there is an express stipulation or covenant in the deed to that effect, or some separate bond or other promise to pay the money. And so much favored is the doctrine that no such promise shall be implied from tbe mortgage, that some states have enacted statutes forbidding the implication. 4 Kent, (12th Ed.) 145, and notes; 1 Jones, Mortg. §§ 677, 678; Scott v. Fields, 7 Watts, 360. But this rule does not arise out of the statute of frauds at all, but from the peculiar nature of a mortgage, which was the conveyance of .an estate upon condition, which not being performed, tho estate be-. [442]*442came absolute; and it may be doubtful if the rule prevails in Tennessee, as we shall presently see.

It is difficult to determine or define the precise character of a lien reserved in the face of a deed, like that we have here, but it seems in Tennessee to be settled that it is substantially a mortgage; that is to say, it stands as if the vendee had executed a mortgage to the vendor for the purchase money, and “creates an express lien by contract or agreement of the parties.” Lincoln v. Purcell, 2 Head, 142; Thompson v. Pyland, 3 Head, 537; Hines v. Perkins, 2 Heisk. 395; Chitwood v. Trimble, 2 Baxt. 78; Miskelley v. Pitts, 1 Tenn. Leg. Rep. 207; Gudger v. Barnes, 4 Heisk. 570. In this last case the court was considering the position of a purchase under a title bond, the vendor reserving the legal title as a security for the purchase money, and this too was likened to a mortgage. Because of the confusion that, has grown up on the question, the court takes the pains to review the relation of vendor and vendee, in such cases, for the very purpose of refuting the notion that the vendee holds the land on any condition upon a breach of which the vendor’s rights attach, and decides that it .is solely by the contract of the parties that the lien exists; the vendee being in possession under its stipulations, one of which is that he agrees to the lien for the purchase money as if upon his own contract. If this be so where the legal title is reserved to the vendor a fortiori, must it be so where that passes to the vendee, and only a lien is reserved on the face of the deed, as in the other cases cited ?

Of course, it must be observed that while the court assimilates all these l'iens to that of a mortgage, it does not mean the old common-law mortgage, in its technical sense, but the modern signification of that term, as one applied to any lien created by express contract of the parties as a security for a debt. These cases, therefore, seem to militate against the argument of the defendant construing this deed, particularly since, within itself, there is a recital that the $10,000 is, “by express agreement, to constitute a lien upon said property.” The circumstance of giving a note for the purchase money cannot be material, because that is a wholly independent contract, and the agreement of the vendee that the vendor shall have the lien provided for —whatever be its characteristics — rests alone on an implication from his acceptance of the deed reserving the lien, for he has never signed it. And in one of the above cases the court even held the lien efficacious to secure the notes of strangers to the original contract, which were substituted for the notes of the vendee. Hines v. Perkins, supra. This agreement for a lien is as much within the statute of frauds as a promise to pay the purchase money could be, and if one can be implied from a bare acceptance of the deed, without a violation of that statute, it is difficult to conceive why the other may not be. True, the defense was not suggested in these cases, but so important a matter could scarcely have been overlooked by counsel and the court. Our court seems to treat a transaction like this as &■ contract by the vendee [443]*443to secure the vendor; as if, in fact, he had formally executed a deed of trust or mortgage; and these adjudications will show that, in many respects quite as important as the statute of frauds in its relation to the contract, this estimate of the transaction has a formidable bearing on the rights of the parties. Moreover, in Conger v. Lancaster, 6 Yerg. 476, it was held that an action of debt would lie upon the mortgage itself, without any express stipulation to pay the money, the same as if a separate bond or note had been given. It was, in fact, a deed of trust, called by the court a mortgage, but it contained no other stipulation as to the debt than the ordinary condition of such instruments that, if the amount secured should not be paid by a given lime, the trustee might sell. This seems to be somewhat contrary to the general rule on this subject, that if there be no express covenant to pay the money contained in the mortgage, the creditor has no other remedy than a foreclosure, and is confined to t'he land, unless he has some separate note or bond on which to bring his action ; but, taken with the other cases, it shows the tendency of our state court to treat the mortgage itself as sufficient evidence of indebtedness without a separate bond or note.

Whether this applies as well to that implied mortgage arising on .a lien reserved in a deed not signed by the debtor, it is unnecessary to determine, but it is difficult to see why it should not be so applied, and it may be mentioned here that, while the cases cited speak of separate bonds or notes as necessary, this is somewhat misleading, for the reason that, outside of those cases governed by the statute of frauds, a debt may rest in parol, and a mortgage or like security may be given for it, it being none tlie less a debt for which an action would lie; as if, for example, a deed of trust or mortgage should be given to secure an open account.

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Bluebook (online)
24 F. 437, 1885 U.S. App. LEXIS 2098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirk-v-williams-uscirct-1885.