Mayo v. Staton

137 N.C. 670
Supreme Court of North Carolina·Decided March 28, 1905·Published·Cited by 10 cases

Opinion

Connor, J.,

after stating tbe facts. It is conceded by' counsel in their well considered briefs that tbe case agreed presents for decision tbe question whether, at tbe time of sale by tbe sheriff and purchase by tbe plaintiff, tbe interest of tbe judgment debtor in tbe locus in quo was subject to sale under execution. His Honor in bis carefully prepared opinion and judgment makes an able and exhaustive review of tbe cases decided by this Court and answers tbe question in tbe affirmative, rendering judgment for the plaintiff. Tbe case was ably and exhaustively argued and counsel have furnished us full briefs of tbe authorities. Tbe Act of 1812 may be found in Tbe Code, section 450, subsections 3-4 and section 452. It has been frequently construed by this Court. It must be conceded that tbe decisions are not in harmony and that [674] there is much dicta to be found which it is difficult to reconcile. The question being of much practical importance, especially since deeds in trust have so largely superseded the use of mortgages for the security of debts, we have deemed it well to endeavor to “run the line” and “mark the boundaries,” removing, if possible, such confusion as may exist in our decided cases. We are not unmindful of the difficulty of the undertaking. As we shall see, several of the ablest and most learned of the judges who have sat upon this bench have given the subject careful consideration. It may be that some of them have failed to carefully examine the decisions made by those who have preceded them. However this may be, our investigation brings us to a conclusion different from that reached by the learned Judge of the Superior Court, and it is proper that we set forth the reasons by which we have been controlled in our conclusion.

In Harrison v. Battle, 16 N. C., 537, one Hunt conveyed to Mr. Battle valuable real and personal estate in trust to sell and apply the proceeds to the payment of certain debts, scheduled in the deed, with a resulting trust to the grantor. Judgment was recovered on a debt not secured in the deed and execution levied upon Hunt’s interest in the property. Before the sale of any part of the property, Hunt assigned to several persons his interest in the residue after the payment of the debts, notice of which was served on the trustee. The debts secured in the deed were paid from the proceeds of the personal property assigned to the trustee. The plaintiff being the owner of the judgment against Hunt, filed his bill in equity against the trustee and all others interested in the property and its proceeds. The Court decreed a sale by the trustee, with direction to hold the proceeds subject to the direction of the Court. Henderson, C. J., delivering the opinion after an advisarisays that prior to the Act of 1812 the levy of the execution did not create a lien on the interest of [675] Hunt, because it was not liable to sale. He said: “Nor is tbe trust in favor of Hunt one of tbat description authorized to be taken in execution under tbe first section of tbe Act of 1812. Tbe use or trust there spoken of is a pure and unmixed one; for tbe doing execution under that section, to use its own terms, divests tbe estates both of tbe trustee and cestui que trust and transfers them to tbe purchaser.” We note this case now only so far as it affects tbe construction of tbe first section of tbe act. It does not appear from the statement of facts whether tbe debts were paid by the sale of tbe personalty prior or subsequent to tbe levy or teste of tbe fieri facias. Tbe next case in order of time is Pool v. Glover, 24 N. C., 129. Josiah Jordan conveyed to a trustee real estate in trust to secure and pay certain debts, etc., and upon further trust tbat if said debts should be paid without a sale of tbe lands, to convey to said Josiah, etc. A judgment having been recovered against Jordan, a writ of fieri facias was issued and tbe sheriff sold “tbe equity or interest of Jordan of and in the premises.” Defendant purchased and refused to pay his bid for tbat Jordan bad no interest subject to sale under an execution. Ruffin, C. J., referring to Harrison v. Battle, supra, says: “Tbat case determines tbe precise point tbat a conveyance of land of this nature by a debtor to a third person in trust by a sale to pay the bargainor’s debts, with a resulting trust to tbe bargainor, leaves an interest in tbe bargainor which is not a trust within tbe first section of tbe act.” We quote tbe remaining part of this sentence later on.

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Mayo v. Staton, 137 N.C. 670 (N.C. 1905).

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