Manogue v. Bryant

15 App. D.C. 245, 1899 U.S. App. LEXIS 3511
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 19, 1899
DocketNo. 883
StatusPublished
Cited by4 cases

This text of 15 App. D.C. 245 (Manogue v. Bryant) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manogue v. Bryant, 15 App. D.C. 245, 1899 U.S. App. LEXIS 3511 (D.C. Cir. 1899).

Opinion

Mr. Justice Shepard

delivered the opinion of the Court:

1. As between Bryant and the Lang brothers, the allegations of the bill and the proof in their support are sufficient [256]*256to sustain the decree correcting the description .in the deed of trust by extending the front line of the lot to the western wall of the hotel building and embracing the strip in controversy. There was nothing in the record title of the Langs to indicate the existence of this strip. The failure to include it expressly could only be discovered by actual survey or measurement, and there was nothing to suggest the need or importance of this. The hotel building covered it all without an intermediate wall to mark any division of the frontage. To cut off'the strip would not only force the construction of a new western wall for the hotel, but would seriously, if not irreparably, impair the value of the remainder of the building.

When the Brice loan was made, his representatives understood and believed that the description of the premises covered the entire building. Bryant, likewise, acted under the same belief. And it is wholly unreasonable to believe that he would knowingly have lent his money upon premises covered in part only by the building. It is plain, and has been conceded on the argument, that Manogue himself understood that the whole of the ground occupied by the hotel building was included in the mortgage.

This equitable right, so well established, is clearly superior to the equity of the judgment creditor, unless its enforcement is precluded by the operation of the statute which will be hereafter considered. Brown v. Pierce, 7 Wall. 205; Hume v. Riggs, 12 App. D. C. 355, 367, and authorities cited.

2. As against Manogue, the decree cannot be sustained on the ground that he is estopped by the allegations of the creditor’s bill, with which this litigation began, to claim the existence of a legal title in the Langs to the strip in controversy subject to execution on his judgment as a lien taking priority over Bryant’s equity.

That judgment became a lien upon all lands owned by the defendants therein, regardless of his knowledge or want of knowledge of such ownership. Believing, as he evidently [257]*257did in good faith, that the whole of the land covered by the hotel was included in the description of the premises as recited in the Bryant and Brice trust deeds, he filed the bill to subject the equitable estate of the mortgagors to the satisfaction of his judgment. Bryant was not misled to his prejudice by any allegation of the bill. And it is clearly not a case where Manogue was put to his election between inconsistent remedies in such a way as that, having elected, he must remain bound thereby.

3. The Act of Congress, approved April 29,1878, relating to the effect of unrecorded instruments as to creditors and subsequent purchasers, reads as follows:

“All deeds, deeds of trust, mortgages, conveyances, covenants, agreements, or any instrument of writing which by law is entitled to be recorded in the office of the recorder of deeds, shall take effect and be valid, as to creditors and as to subsequent purchasers for valuable consideration without notice, from the time when such deed, deed of trust, mortgage, conveyance, covenant, agreement, or instrument in writing shall, after having been acknowledged, proved or certified, as the case may be, be delivered to the recorder of deeds for record, and from that time only.”

It is contended on behalf of the appellee, in support of the decree, that this act does not apply to his claim of a prior equitable lien upon the strip of land in controversy, because founded in an equity for the correction of the trust deed, dependent upon parol evidence for its establishment, and therefore incapable of entry upon record for his protection.

In a case arising under this státute, where, apparently, the judgment creditor had not been put upon notice, by record or otherwise, of the equity of the mortgagee for correction or reformation, the same contention was denied by the former appellate court of this District. Ruppert v. Haske, 5 Mackey, 262.

We see no reason to depart from that decision. If an [258]*258unrecorded conveyance, the description in which is perfect, must be declared invalid under the statute, as against the subsequently acquired rights of purchasers in good faith, and of creditors, then, for as strong a reason, a mere equity arising out of a mistake of description in a recorded instrument ought to be subordinated to the regularly acquired lien of a judgment against the grantor therein. Wilcox v. Leominster Nat. Bank, 43 Minn. 541; Nugent v. Pnebatsch, 61 Miss. 402; N. O. Canal & B. Co. v. Montgomery, 95 U. S. 16, 18. In the case last cited, the controversy, it is true, was between a prior and a subsequent mortgagee; but that would seem to be immaterial. The purpose of the statute is to protect judgment creditors as well as purchasers against claims of which they have no notice.

The case chiefly relied on to support the contention is that of Floyd v. Harding, 28 Gratt. 401. In that case Leftwich sold land to Turnbull, received the whole of the purchase money, and put Turnbull in possession, but made him no conveyance at the time. He subsequently made the conveyance, but before its execution Harding recovered a judgment against him and docketed the same in the manner required by law to secure a lien. As between Harding and the grantee of Turnbull, it was held that the statute did not apply to an equitable title of this character. The reasoning of the court is not convincing, and the conclusion would be more satisfactory had it been based upon the ground that Turnbull’s actual, notorious, and exclusive possession was sufficient notice of his title within the spirit of the statute, as was done in a like case by the Supreme Court of Texas under a statute copied substantially from that of Virginia. Barnett v. Vincent, 69 Tex. 685.

It may be remarked also that the present case is not one of an equity or trust imposed or resulting by construction of law out of a transaction in which the beneficial claimant has not, and could not have exercised any control. Some such equities have been regarded as superior to judgment [259]*259liens under statutes substantially like, and even more strict in expression, than the one under present consideration. Blankenship v. Douglas, 26 Tex. 225; Calvert v. Roche, 59 Tex. 463 ; Parker v. Coop, 60 Tex. 111, 117; Miss. Valley RR. Co. v. Chicago, etc., RR. Co., 58 Miss. 846, 854.

But the question whether any such equity is within the scope of our statute is not involved in this case and will not be passed upon.

4. If the decree in this case can be upheld at all, it must be upon the ground of knowledge by Manogue of the equity of Bryant before the recovery of his judgment and the attachment of its lien. Subsequent uotice, actual or constructive, would clearly be of no avail.

Statutes of the same general nature as that governing in this jurisdiction prevail in most if not all of the States of the Union, and very many decisions have been made in cases arising under them. “In a large number of the States,” says Mr.

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Bluebook (online)
15 App. D.C. 245, 1899 U.S. App. LEXIS 3511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manogue-v-bryant-cadc-1899.