Loughridge v. Bowland

52 Miss. 546
CourtMississippi Supreme Court
DecidedApril 15, 1876
StatusPublished
Cited by26 cases

This text of 52 Miss. 546 (Loughridge v. Bowland) 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
Loughridge v. Bowland, 52 Miss. 546 (Mich. 1876).

Opinion

Simball, C. J.,

delivered the opinion of the court.

The decision of this case depends on the solution of these questions :

1. Was the sale and conveyance by J. N. Chears to Lough-ridge & Bogan anterior to the'levy of Bowland’s attachment, and did the latter, have notice of it ?

2. Was the conveyance bona fide, or fraudulent as to creditors of Chears?

3. Was Bowland a creditor of Chears at the date of the conveyance ?

The deed purports to have been dated the 7th of February, 1866. Not having been acknowledged or proved, as required by law, the filing of it for record on the 12th of March, 1866, under the imperfect and insufficient proof by the subscribing witness, did not impart to the instrument and those claiming' under it the benefits of notice to creditors and purchasers.

Bowland’s attachment was levied on the land early in March, 1866. The improvident filing of the deed on the 12tlrof April [553]*553in the probate clerk’s office, and its actual registration on the ■17th of that month, did not impart notice to creditors.

The appellee, Bowland, insists that the deed was not executed until about the 12th or middle of April; but that it was antedated, as of 7th February, so as to give it an earlier date than the levy of the attachment.

Loughridge and Bogan, in Their testimony, fix the execution of the deed at its date, and the place, their storehouse at Birmingham, Pontotoc county. We think that the weight of the •testimony clearly proves that the conveyance was made on the ■day of its date.

Did Bowlaud have actual notice of the sale before the levy •of his attachment?

If Loughridge & Bogan had. openly taken and held possession, or if there had been a change of occupants so as to have arrested notice and attention, then they might invoke the principle laid down in Doe ex dem. v. Lacoste, 1 S. & M., and The subsequent cases.

Possession bj' the vendee under an unrecorded deed is notice To creditors. Possession is a badge of ownership and evidence <of a right. If the debtor has parted with the possession, a -creditor is interested to know the nature and extent of the right, and is therefore put upon inquiry and is esteemed to '.know the truth to which investigation would lead.

But, that possession may have the effect of protecting the ■title under which it is held, it must be of that character which ••would arrest attention. The ceremony of livery of seizin was .performed openly, in the presence of the freeholders, for the ;purpose of attesting the act. Eegistration was adopted as a ¡substitute, for the purpose of conclusively imparting notice.

Shortly after the passage of the registration law in England The courts held, as within its reason and intendment, that •whatever communicated information to a creditor or purchaser _ ■of a prior conveyance bound his conscience and accomplished what the law designed.' Possession was laid hold of as a cir-■oumstauce from which notice may be inferredbut, like other [554]*554inferences, it depends for its force on tbe nature of the fact from which it is deduced. The reason which underlies the' doctrine is that it is a fraud — an act of mala fides — for a. creditor or purchaser who had knowledge of a prior sale and purchase to attempt to defeat the purchaser's right by getting-his estate.

Whenever it is sought to establish notice inferentially, the ■ facts proved ought to be emphatic and distinct. Hence the observation of’the court in Norcross v. Ridley, 2 Mass., 605 : “Where a prior conveyance is attempted to be supported by fraud in the second purchaser, the fraud must be clearly proved.” Meechen v. Griffing, 3 Pick., 154; Jackson v. Sharp, 9 Johns., 190 ; Day v. Dunham, 2 Johns. Ch., 190; Jones v. Lygins, 37 Miss., 546.

There was no change in the occupancy of the land. At the time of the sale Chears was in possession, by his tenants. After the sale the same tenants continued to hold, on an agreement to pay rents, to Loughridge & Bogan. Nothing-more occurred than a technical attornment of the tenants to them. There was a transfer of the title, but no change of possession that a stranger could observe. The actual occupancy in March and April, after the sale, was just as it had been the prior months of the year. In all this there was nothing to-arrest notice or to put a creditor or purchaser on inquiry.

Did Bowland have actual notice ? In the answer he says he had no knowledge of the deed until he had attached the land. Some witnesses speak of a rumor of the sale in the neigh- • borhood; but when started, whether before or after the-attachment was served, was not proved.

There was less than a month for the rumor to have become ■ current, between the' execution of the deed and levy of the attachment. He admits that he heard the rumor, but denies, information or knowledge until the April term, about the 12th or 15th of the month. The creditor, or subsequent purchaser,, must be so bound in conscience, by notice, as that mala fides-could be imputed to him if he should take the estate against. [555]*555tbe prior vendee. In Jackson v. Given, 8 Johns., 139, the effort was to charge the subsequent purchaser upon stronger evidence of report or rumor than in this case. Williams, the junior purchaser, had recorded his deed first, but the testimony was, “that he had understood that Humphrey had fooled away the lot and had sold it several times ; he did not consider it worth his trouble to look after it.”

KENT, C. J., said : “ This conversation, unaccompanied with other circumstances, is too loose to justify the inference of notice.” Mere suspicion is not enough to break in on the registry act. Hine v. Dodd, 2 Atk., 275 ; Jolland v. Stainbridge, 3 Ves., 478. The notice must come from some responsible person; a mere floating rumor, by irresponsible persons, may be disregarded. Waites v. Cooper, 24 Miss., 228. Whatever puts a party on inquiry amounts in judgment of law to notice, provided inquiry be a duty (as in case of a purchaser or creditor), and would lead to a knowledge of the-requisite fact by the exercise of ordinary diligence. Maul v. Rider, 7 Watts, 267. But, as ruled in Maul v. Rider, 59 Penn. St., 172, general rumor does not impose the duty of inquiry. Knowledge of such rumor is neither actual nor implied notice; investigation into its truth is not a duty. “ There must besóme declaration from an authentic source, which it would be negligence to disregard, to put a party on inquiry.” The only- notice brought home to Bow-land, earlier than April, is of the character discussed in these cases, and declared to be insufficient. We think the doctrine is sound. -

The testimony fails to establish express or implied notice to Bowland before he attached. Bowland impeached that conveyance because it does not, as he alleges, rest upon a valuable consideration; but the testimony is, that the sale was made in satisfaction of Chears’ debt to Loughridge & Bogan; and upon the further ground that it was intended to operate as a-mortgage, or that there was some benefit in secret trust to the grantor, and some statements or admissions of Chears were [556]*556put in evidence — as that lie made tbe conveyance to defeat Billingsly.

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Bluebook (online)
52 Miss. 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loughridge-v-bowland-miss-1876.