McElwee v. McElwee

37 S.W. 560, 97 Tenn. 649
CourtTennessee Supreme Court
DecidedNovember 13, 1896
StatusPublished
Cited by13 cases

This text of 37 S.W. 560 (McElwee v. McElwee) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McElwee v. McElwee, 37 S.W. 560, 97 Tenn. 649 (Tenn. 1896).

Opinion

Wilkes, J.

This is a vendor’s bill to sell a half interest in a tract of land for the purchase money. The Chancellor refused the relief prayed, and, on appeal, the Court of Chancery Appeals has affirmed the Chancellor, and complainants have appealed to this Court. The facts, so far as need be stated, are that complainant sold to defendant, F. B. McElwee, his brother, an undivided half interest in seven hundred acres of land in McMinn County for $4,000, in four notes — at one, two, three, and four years — for $1,000 each. The sale was made December 17, 1879. Deed was executed retaining an express lien for the purchase money. On the twenty-second of April the purchaser, E. B. McElwee, sold the land, or a part of it, he owning the other half [651]*651interest in bis own right, to the Mount Verd Mills Company for $16,000, to be paid in stock of the company, and the company was put in possession of the premises, and have been in possession ever since. Defendant was its secretary and treasurer. Upon the premises the company erected improvements, and spent much money, but subsequently became insolvent, and made an assignment for the benefit of its creditors.

When complainant’s notes became due he renewed them from time to time, some payments being made and credited. He filed the bill in this cause February 11, 1896, to collect what he calls the balance of purchase money, evidenced by four notes — two for $900 each, one for $973, and the other • for $556.37. The notes for $900 and $556.37 are dated December 15, 1894, and the one for $973 is dated November 23, 1894. The $900 notes are due in one and two years from date, and the other two are due at one day after date.

The company set up the defense that it was an innocent purchaser; that complainant’s claim was stale; the statute of adverse possession of seven years; and the statute of limitation of ten years under the Act of 1885, Chapter 9; that complainant could not retain his lien upon the land for the renewal of the original notes; and that, as to the $973 note, the complainant had waived his lien by accepting collat-erals as security; that the notes are really not owing, but are fraudulent.

[652]*652Various errors are assigned in this Court. The first raises the question of the constitutionality of the Act of 1885, Chapter 9. It is said it is not valid because of a variance between the caption and body of the Act. The caption is, <£An Act to extend the statute of limitations to liens and on realty, and to quiet titles.” It may be remarked in the outset that the use of the conj unction ‘ ‘ and ’ ’ in the Act- is a mere clerical or typographical error. It is insisted that the caption relates to liens on realty, and to the quieting of titles, but that the body of the Act embraces liens retained in deeds, mortgages, deeds of trust, and assignments of realty to secure debts; that the caption of the Act simply proposes to bar liens in ten years, and cannot be made to include mortgages, deeds of trust, and assignments to secure debts. It is evident that the general scope of this Act, both in its caption and body, is to provide and fix a limitation on the life of liens on real estate, no matter how created, in order to quiet titles, and is not subject to the criticism made. This constitutional provision, Art. II., Sec. 17, has, by the Court, been given liberal construction, so as not to embarrass legislation, and prevent the beneficial purposes for which .it was adopted. Hyman v. The State, 3 Pick., 109-112.

It is next insisted that it is not the intent and spirit of the Act to prevent the renewal of purchase money notes, and the continuation of the original lien thereby; that the lien extends from the maturity [653]*653of the debt, and this maturity may be postponed by renewals from time to time, and the lien thus continued and its extinction deferred. We are of opinion that the Legislature had in view, in the passage of this Act, the general registration laws, and the whole doctrine of the difference between express and implied liens rests upon this idea: that express liens, . which are shown by instruments registered, are hot affected by the ordinary and usual statutes of limitation, because the liens appear upon the Register’s books, and are notice to the world of their existence. If, however, the original notes may be taken up and new notes given instead, the registered instrument will convey no information of this fact. It was the evident purpose of the Act to quiet land titles and to provide that parties having or acquiring title to lands should not be disturbed by the assertion of liens more than ten years old, to enforce which no steps had been taken, and the existence of which the party holding title has no notice, and no means of acquiring any notice. To hold otherwise would be to open the door to continual and sirc-cessive renewals, and thus the lien may be extended for a series of years, and third persons could never have any assurance, from the records or otherwise, that their title would not be disturbed by secret liens.

It is assigned as error that the Court of Chancery Appeals held the mill company protected by its adverse possession of seven years. As we un[654]*654derstand the opinion, it is to the effect that, because of the adverse possession for seven years by the mill company, claiming the property absolutely, and the la'ches of the complainant in setting up his claim to a lien, he cannot now recover.

In the case of Whitby v. Armour, 4 Lea, 683, decided before the passage of the Act of 1885, it was held that the rule that the statute of limitations will not bar the vendor’s express lien for purchase money, is confined, in its application, to vendor and vendee, and will not affect the intervening rights of third persons. At the time this decision was made there was no limitation applicable to such express liens, and the case presented was a sale in chancery in 1859. The decree confirming the sale retained a lien for the purchase money. Armour, the purchaser, sold off the land in 1866, 1868, and 1869, in parcels. Armour’s notes matured in 1860 and 1861. A bill was filed in November, 1875, to enforce the lien for the Armour notes, alleging that they had been lost. It was held that, other questions aside, the subpurchasers, having held possession for seven years or more, had acquired good titles. It was further held that the complainants, by their laches, had lost any lien they originally had on the property. They allowed the original suit to be dismissed and acquiesced for eight years before bringing suit on the notes, and the bill was dismissed and relief denied.

In this case it appears that the mill company [655]*655had held the property under an absolute conveyance for seventeen years before this bill was filed, all the time claiming it as their own, improving and building upon it, all known to and acquiesced in by complainant. It further appears that complainant in this case filed a bill against his brother, in 1888, to enforce a sale of this land to collect two notes of $1,000 each, executed December 15, 1879, and due in 1883 and 1884, and the bill avers that these notes were executed for this land and were the balance of purchase money on this land, and the bill was soon after dismissed at the complainant’s cost. The mill company has now become insolvent and has made an assignment.

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Bluebook (online)
37 S.W. 560, 97 Tenn. 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcelwee-v-mcelwee-tenn-1896.