Marshall v. McDermitt

90 S.E. 830, 79 W. Va. 245, 1916 W. Va. LEXIS 37
CourtWest Virginia Supreme Court
DecidedNovember 14, 1916
StatusPublished
Cited by9 cases

This text of 90 S.E. 830 (Marshall v. McDermitt) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. McDermitt, 90 S.E. 830, 79 W. Va. 245, 1916 W. Va. LEXIS 37 (W. Va. 1916).

Opinion

Lynch, Judge:

To enforce specific performance of an unrecorded written contract for sale of real estate, entered into between him and J. 0. McDermitt, R. E. Marshall brought this suit July 8, 1914. Two years later he obtained a decree granting the relief prayed; and defendants have appealed.

The language of the contract, so far as it discloses the consideration, terms of payment and the lands sold, is: “This is to certify that I have'this 20th day of January, 1909, sold to R. E. Marshall a certain tract of land, known as the Dillard land, on hill above railroad, and also six acres of river [247]*247bottom on other side of railroad, and to come off the lower end of my farm. Deed to be made later when convenient to J. 0.- MeDermitt. Purchase price $1700. Received payment of $1316.70, to deduct from purchase price”. Upon this agreement, coupled with alleged actual, continued and uninterrupted possession of the lands since February, 1909, is predicated the compulsory requirement of a conveyance to the plaintiff.

To add other defendants and enlarge the averments of the original bill, and in lieu of one of the three tracts therein described to substitute another and different tract, plaintiff filed two amended and supplemental bills, to which and to the original bill defendants demurred, and for grounds thereof alleged ambiguity in the contract terms, insufficiency of the description of the lands therein purported to be sold, laches and estoppel. In their answers they also rely on the same defensive grounds.

Defendants aver, and the testimony tends strongly to establish, the insolvency of McDermott at the time he entered into the contract of sale, and deny the right of Marshall to the relief he asks, because, if granted, he would obtain for his claim of indebtedness a preference to the prejudice of other creditors, in contravention of the provisions of chapter 74 of the Code. To their answers plaintiff did not reply either generally or specially. However, to avail as a defense, the invocation of that statute must be made within the time prescribed by it. A delay of sis years renders unimpeachable a preference void at its inception. If by a transfer of his property or any part of it while insolvent MeDermitt, with the knowledge and participation of Marshall, intended to prefer a debt due the latter, of did what in legal effect operated as a preference, his act in that regard would, after the lapse of one year, become valid by reason of the failure of any other creditor of the insolvent debtor to institute suit within the time required to avoid the same, notwithstanding its initial invalidity. This apparently contradictory transmutation from a void to a valid act results from the very terms of §2, ch. 74, Code.

MeDermitt virtually admits his insolvency in January, [248]*2481909, and. claims to have then advised Marshall he could not in justice to other creditors attempt to perform the contract of sale, as that act would involve him in litigation, the embar-assment and expense of which he desired to avoid. This admission of insolvency is not controverted. Moreover, the lands claimed by Marshall were encumbered with a vendor’s lien reserved by the Dillards, and also soon thereafter with other lands of McDermitt by a deed of trust to secure the payment of loans negotiated by him, one of $6,000 payable to the Bank of G-rantsville and one of $3,000 to the Poca Valley Bank, and, besides others, a judgment lien approximately aggregating $20,000 recovered at the suit of the state for the use of the county court of Mason county against Marshall and others, sureties on the official bond of McDermitt as sheriff of that county for the term expiring December 31, 1908. To this action Marshall and McDermitt were defendants, one as sheriff, the other as surety on his official bond. These liens tend to demonstrate the financial delinquencies of McDermitt at the date of the sale to Marshall. It is also equally manifest they arose out of McDermitt’s administration of the office, and accrued prior to the expiration of his official term.

Whether the sureties paid the judgment recovered by the county court in full or in part only is not disclosed except inferentially. Presumably, they paid it all; for later they instituted a suit in the circuit court of Mason county praying to be subrogated to the rights and equities of the lien creditor, for whose debt they were bound, in which proceeding they made parties defendant all other lien creditors, and obtained a decree ascertaining all the lands owned by McDer-mitt, including those claimed by Marshall, as shown by the report of the commissioner to whom the cause was referred, and directing a sale thereof to satisfy the liens so ascertained and fixed. Tt is not clear whether the proceeds of the lands decreed to be sold were sufficient to extinguish all the encumbrances thereon, although it is reasonably certain that out of the sale at least $3,000, and probably a greater amount, was applied to the reimbursement of the sureties who paid the county court judgment. Whatever may be the fact as to the sufficiency of the proceeds, the plaintiffs therein did obtain a [249]*249•decree directing a release of the liens, thereby exempting from further liability by reason thereof the lands decreed to be sold.

For reasons later stated, it is not necessary now to determine whether, because of indefiniteness in the description of the real estate Marshall claims to have purchased, the contract is enforcible. It may, however, be said that in part at least the attempted identification of the lands evidently is obscure, and hence as to that part the contract may be too indefinite for enforcement, according to many decisions of this and ■other courts. But, if it be true, as alleged in the bill, that Marshall entered upon the property, and. without interruption has since held possession of it, expended money in improvements thereon, and otherwise exercised the dominion and control that exemplifies complete ownership,_ the acts and conduct of the parties may have minimized or removed the deficiency in the description to an extent requiring a conveyance if other circumstances do not render inequitable specific performance of the contract at this time.

What may have been the equities of Marshall had he recorded his contract, or had it been verbal only, need not be considered, further than to say a valid verbal contract of sale, coupled with possession and improvements indicative of an unqualified dominion, confers equities superior to those appertaining to an unrecorded written contract under the same or similar circumstances. The claimant under a written contract may conserve his equities by recordation. The difference stated arises out of the interpretation of our statute of frauds and recording acts, as pointed out with accuracy and distinctness in Delaplain v. Wilkinson, 17 W. Va. 242; Snyder v. Martin, 17 W. Va. 276; Pack v. Hansbarger, 17 W. Va. 313; and Anderson v. Nagle, 12 W. Va. 98. The numerous other decisions cited in 8 Enc. Dig. 383 note further the same distinction. As especially pertinent to the facts before us, Judge Green in the Delaplain ease, after stating the general rule as to the superiority of the equities of a purchaser of lands under an unrecorded written contract to the rights of subsequent encumbrancers with knowledge or notice thereof, observed: “But this equitable ground of prioritj [250]

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Bluebook (online)
90 S.E. 830, 79 W. Va. 245, 1916 W. Va. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-mcdermitt-wva-1916.