Land Co. v. Hill

5 L.R.A. 45, 87 Tenn. 589
Tennessee Supreme Court·Decided May 7, 1889·Published·Cited by 15 cases

Opinion

*John A. Pitts, Sp. J.

On the 25th of June, 1887, Napoleon Hill sold and conveyed by deed with covenants of seizin, general warranty, and against incumbrances, to the Kansas City Land Company, a tract of land in Shelby County of sixty-six and thirty-seven one-hundreths acres, for the consideration of $149,332.50, of which the sum of $56,000 was paid in cash, and the balance secured by two notes for $46,666.25 each, bearing interest, and due at one and two years. A lien was retained in the deed, and the Land Company was placed in possession. .

On the 22d of June, 1888, a few days before the maturity of the first note, the Land Company filed the original bill in this cause against Hill, its vendor, Mrs. Elizabeth M. Hays (named in the bill as Lizzie "W". Hays), and her three sons, Samuel J., James W., and John M. Hays, suggesting that the title to forty-four of the sixty-six and thirty-seven one-hundreths acres conveyed to it by Hill was doubtful, and probably defective; that, if so, Hill had fraudulently represented that his title was good to the whole of the property conveyed, and that without the forty-four acres, which were claimed by the other defendants, the purchase was not desirable; and praying in the alternative, first, that its title under Hills conveyance be declared perfect and indefeasible, and the claims of the other defendants adjudged to be clouds thereon [592] and removed; and, secondly, if this could not be done, that its purchase from Hill be rescinded, its notes delivered up and canceled, and that it have a decree against Hill for the purchase money paid, with interest.

The primary relief sought by this bill is the quieting and confirmation of the complainant’s title, and its effort throughout is, manifestly, to show that its title is good, notwithstanding the facts suggested as casting a doubt upon it.

The bill was dismissed as to James W. and John M. Hays, upon their demurrer, on grounds which need not be now considered. Samuel J. Hays filed a separate answer, which he prayed might be taken' also as a cross-bill, claiming an interest in the forty-four acres' under the will of his grandmother, Mai’y A. Walker. Ho defense seems to have been made by Mrs. Elizabeth M. Hays. ‘

Hill also answered and .denied all fraud, and that the title was doubtful or defective, and subsequently filed a cross-bill to enforce his lien for purchase money. The complainant Land Company, in its answer to this cross-bill, reversing the' theory maintained by it in its original bill, vigorously assaults the title of Hill, and sets out with great minuteness and detail the facts on which it strenuously insists the title is bad, and asks unconditionally to be relieved of its purchase. It traverses some of the ■ statements of its original bill, and, feeling doubtless the force of this incon[593] •sistency in its pleadings, states, by way of explanation in the answer, that such inconsistency arose from the insufficiency and falsity of the information upon which the contrary allegations in the bill were predicated, and that it has since ascertained the truth as set forth in the answer.

This feature of the case has been adverted to by counsel for defendants, and may be disposed •of at once.

Upon inspection of the two pleadings it is apparent that the repugnancy between them is more of theory than of ■ fact, and arises either upon statements made on information or upon statements of complainant’s conclusions, and hence does not work any estoppel against the truth.

The Chancellor, upon a hearing on the merits, held the title good, denied relief to the complainant Land Company and defendant Samuel J. Hays, and gave defendant Hill a decree on his cross-bill enforcing his lien for purchase money. Erom this decree, as well as the previous decree sustaining the demurrer of James W. and John M. Hays, the Land Company appeals, and alone assigns error.

The land in controversy originally belonged to Mrs. Mary A. Walker, and it is conceded that the title must be derived from her. This defendant Hill undertakes to do in two ways, and through two distinct and separate chains — the one beginning with a deed of trust made by Mrs. Walker in her life-time, and the other with her will. It was [594] upon the first of these two chains of title — that-beginning with the deed of trust — that the Chancellor based his decree, and if his view of the case is correct, it is conclusive, however defective the other chain may be. This aspect of the case-will therefore be considered first.

The deed of trust was executed on the 11th day of July, 1872, by Mary A. Walker, defendant. Elizabeth M. Hays (therein named as Lizzie W.. ITays) and her husband, A. J. Hays, to C. B.. Wellford, as trustee, to secure eleven promissory notes of the same date, made by the makers of the deed, and payable to the Life Association of America, one for $5,000, due five years after date,, and ten for $250 each for interest, due respectively at the end of each semi-annual period from date, all of the notes being given to secure a loan of' $5,000 with ten per cent, interest, payable semiannually. It provided that upon default in the-payment of any of the notes at maturity, the-right of immediate foreclosure should accrue, and the whole debt, for the purpose of foreclosure, become due at once. A similar result was to-follow, by the terms of the deed, upon a failure to pay taxes promptly as they accrued. It was-properly acknowledged and registered, and no question is made against its validity. It is shown that the ' debt secured by it was the debt of Mrs.. Walker, incurred for improvements on the property now in controversy which then belonged to her.. No reason is shown for the joining of Mrs. Hays [595] and lier husband in this deed, unless it be the fact that Mrs. Walker bad previously made her will devising the property to Mrs. ITays for life, though this does not appear from the face of the deed.

On the 28th of July, 1871, after the death of Mrs. Walker, Wellford, the trustee, sold the property, in pursuance of the terms of the deed,, to Napoleon Hill and W. E. Taylor for $6,005, which they paid in cash, being about $100 in excess of the debt then due and ' expenses of sale; and on the 30th of the same month the trustee conveyed to them by deed with proper recitals. Taylor subsequently sold and conveyed his interest to Hill. These conveyances are all regular, and exhibit a good and indefeasible title on their face. This is not controverted.

Hut it is insisted, on behalf of the opponents of Hill, that the sale and conveyance by Wellford, the trustee, were procured by the fraud and collusion of Hill and Taylor, and one Chas. Hewett, with a view to cutting off the devisees of Mrs. Mary A. Walker, and that such conveyance is therefore ineffectual as against such devisees, and is liable to be impeached by them and declared void at any time.

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Land Co. v. Hill, 5 L.R.A. 45, 87 Tenn. 589 (Tenn. 1889).

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