Littell v. Grady

38 Ark. 584
CourtSupreme Court of Arkansas
DecidedMay 15, 1882
StatusPublished
Cited by12 cases

This text of 38 Ark. 584 (Littell v. Grady) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Littell v. Grady, 38 Ark. 584 (Ark. 1882).

Opinion

Eakin, J.

The history of this case, in its progress, is-somewhat unique. A. L. Grady sued Philander Littell, under the Statute (1874-5, p. 196), for a forcible entry upon and detainer of a quarter section of land, gave bond, and was put in possession. Littell filed an answer in two paragraphs. The first denied plaintiff’s right of possession, and claimed it for defendant. The second denied plaintiff’s title. He also filed a cross-bill against plaintiff and others, who were members of a mercantile firm, showing that the plaintiff claimed his title by purchase at a sale made by Prewitt, one of the defendants in the cross-bill, and a member of the firm, under a deed of trust executed by the defendant to Prewitt, to secure a debt due the firm. Detailing the circumstances, he charges that the sale was made fraudulently, in such manner as'to be oppressive and unfair; and that the plaintiff, Grady, ‘participated in the design, and bought the land at a grossly inadequate price. Wherefore, he prays that the sale may be set aside, and plaintiff’s deed cancelled, as a cloud upon his title, and for general relief.

The court, at first, sustained a demurrer to the second clause of the answer, and to the cross-complaint, and denied the motion to transfer, leaving the issue standing upon the right of possession alone, under the charge of forcible entry and detainer. This was correct practice. The Statute above referred to, section 19, expressly provides that in trials under its provisions, the title shall not be adjudicated upon, or given in evidence, except to show the right to the possession, and its extent.

L Fo:eci_ bt and DETAINEE. object of the reme<Jy.

The special object of the summary remedy of forcible entry and detainer, is to keep the peace ; not to determine rights of property. It is to prevent any and all persons, . with or without title, from assuming to right themselves with strong hand, after the feudal fashion, when peaceable possession cannot be obtained, and to compel them to the more pacific course of suits in court, where the weak and strong stand upon equal terms. Upon complaint that this had occurred, the law, as it then stood, without hesitation applied the remedy, in limine; ejecting the presumtuous offender, even from property to which he had the best title, unless he could also show the better right to the immediate possession. He was not allowed to plead such superior title, or show it in evidence for his justification, except incidentally, as it tended to disclose his better right to the immediate possession at the time the forcible entry was made.

It would equally contravene the policy of the law, -wholly defeating its primary object, if one, merely having grounds to invoke the aid of a court of equity to set aside a legal title, might, with impunity, enter by force, and interpose his equitable right as a shield against the consequences of a forcible entry. For in such an action the title cannot be adjudicated upon at all, save as aforesaid.

The cause with the issue thus made as to the right of possession, was continued, the other issues having been properly excluded.

At a subsequent term, the plaintiff, by leave of court, withdrew his demurrer to the cross-complaint, and consented that the cause might be transferred to the equity docket, and heard upon its legal and equitable merits. This was done, and time given to answer. There was no further litigation as to the forcible entry. The effect of the consent evidently was to change the entire nature of the suit, to admit the litigation and final determination of the-title, just as if the cross-complaint had been an original bill The .matter of the chtinge was not jurisdictional, and the consent was such as the court might permit, Its effect was -to reverse the parties and change the aspect of the cause from an action of forcible entry by Grady against Littell, to an equitable suit by Littell against Grady, to set aside a deed inequitably obtained, and restore the former status of complainant. And so it should have been considered -throughout. No new parties were actually made. The members of the firm, including Prewett, are named as defendants in the bill, but none of them answered, nor do they appear to have been served with notice.

The answer of Grady denies all unfairness or fraud in the sale under the deed of trust, at length and in detail. Its •effect is to claim that the sale was proper, and authorized by the deed of trust; that he was an innocent purchaser, and that there was nothing improper in the sale for which he should be held accountable. He appends a demurrer to the bill for want of equity, prays that it be dismissed, and for all other proper relief.

The cause was heard upon the pleadings, exhibits and •evidence. The Chancellor, ás recited in the decree, “found that the allegations of fraud were not sustained by the evidence,” “and declared that there was no other point at issue iu the cause.” The bill was dismissed, and it was ordered that Grady retain possession. Grady having after-wards died, this appeal is now presented against his heirs, and personal representatives.

Upon a careful review of the evidence, in connection with the pleadings, we cannot find such preponderating proof of actual fraud, based upon deceit, misrepresentation, or craft, as would justify us in deciding that the Chancellor eired upon this special point in his finding. But we think this too narrow a view to support the decree, and that there were other very material points at issue in the cause.

2. moktGAGES: power of partiaii™”

Deeds of trust and mortgages, with powers to be executed 0 in pais, belong to a class of instruments which are watched with much jealousy by Courts of Chancery. Those who make them, are often, indeed most generally, under a pressure for money or credit, and somewhat at the mercy of those who afford accommodations. They cannot, as we think this case well illustrates, always protect themselves against oppressive, unjust, and unfair executions of the power, which may be within the letter of the trust, and which, amongst parties dealing on equal terms, would not amount to actual fraud. Parties who execute these powers are properly held to “uberrima fides,” in view of the danger of oppression, and the Courts of Chancery have been used to interfere to prevent any unnecessary sacrifice,, or unfair disregard of the rights of the debtor. Where the trustees or beneficiaries do not wish to become the subjects of this jealousy, and are diffident of enduring the test, they may always invoke the aid of equity, and foreclose under its supervision. It is always the safe plan for all parties.

“Sales under powers,” says Mr. Perry (Trusts, sec. 602,. X), “in deeds of trust, or mortgages, are a harsh mode of foreclosing the rights of the mortgagor. They are scrutinized by courts with great care, and will not be sustained unless conducted with all fairness, regularity, and scrupulous integrity. Upon very slight proof of fraud, or unfair conduct, or of any departure from the terms of the power, they will be set aside.” (See authorities cited.)

Lord Eldon, in the case of Downes v. Grazelrook, 3 Merivale, 207, went so far as to say, that a trustee for sale is bound to bring the estate to the hammer;” under, every possible advantage to his cestui que trust,” who in that case was the grantor or debtor.

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38 Ark. 584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/littell-v-grady-ark-1882.