McLennan v. Prentice

55 N.W. 764, 85 Wis. 427, 1893 Wisc. LEXIS 295
CourtWisconsin Supreme Court
DecidedJune 21, 1893
StatusPublished
Cited by44 cases

This text of 55 N.W. 764 (McLennan v. Prentice) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McLennan v. Prentice, 55 N.W. 764, 85 Wis. 427, 1893 Wisc. LEXIS 295 (Wis. 1893).

Opinion

PiNNEY, J.

1. It was found that when the defendant executed the conveyance to the plaintiff in question he owned water lots 4 and 5 in block 23; and it was proved that he afterwards, on December 13, 1887, acquired title to lot 1, part of which was on the bank and hard land, and the rest under shoal water of the bay, and also apparent title to lot 6, lying out beyond lots 4 and 5 and extending to or towards [432]*432navigable water. This was many months before the plaintiff attempted to rescind the sale. The evidence shows that he was satisfied with block 23 at the time the arrangement of July, 1887, was made, whereby the mortgage on block 23 to the defendant was canceled, and another mortgage executed thereon for $2,500, after applying the proceeds of lots 20 and 21, above mentioned. He then had full knowledge, or the means of knowledge, as to the true state of the title to each lot in the block, and he knew that he had obtained no title to lots 2 and 3, but supposed he had good title to lots 4 and 5; and it was understood that he was to obtain good title to lots 1 and 6, and also to lots 2 and 3. He was then content to await the efforts of the defendant to complete the title. When the plaintiff tendered to the defendant, on the 11th day of May, 1888, a reconveyance of block 23, and commenced this action, he had acquired record title to all the block, except lots 2 and 3. The covenant of seisin in the deed from the defendant to the plaintiff was partially or wholly broken, if at all, when made; and if the deed did not pass any title to the plaintiff, or to the extent that it failed to pass title to the premises described in it, and if the grantee did not obtain possession, the covenant of seisin would thereby be turned, wholly or partially as the case might be, into a right of action, and he might at once sue on the covenant of seisin and recover the entire purchase-money with interest, or a proper portion thereof if the failure to convey title was only partial. If the grantee had entered or been put in possession of the premises included in the deed, the breach of this covenant would be technical and would entitle the grantee, in case he sued on it, to nominal damages merely; but he could not in such case recover substantial damages until he had been evicted or in some way deprived of the whole or a part of the premises, or suffered substantial loss. Proof of eviction is not necessary to entitle the grantee to recover on this [433]*433Covenant, and has no bearing in an action on it, except on the question of damages. But where the deed contains a, covenant of warranty, by which the grantee has obtained seisin of a title subsequently acquired by his grantor, it would be inequitable that he should have the seisin and be allowed to recover back the consideration paid for it. Accordingly, when the defendant acquired the title to lots 1 and 6, December 13, 1887, his seisin at once inured and passed to the plaintiff, in virtue of the covenant of warranty in his deed. Baxter v. Bradbury, 20 Me. 260; Somes v. Skinner, 3 Pick. 52; Knowles v. Kennedy, 82 Pa. St. 445; Knight v. Thayer, 125 Mass. 25; King v. Gilson, 32 Ill. 348. If the plaintiff acquired, before the commencement of the action, by virtue of his deed, the seisin which it was the object of both the covenants of seisin and of warranty to secure to him, he would be entitled only to nominal damages. In King v. Gilson, supra, it was held sufficient to restrict the grantee to nominal damages if he acquired by inurement the legal title at any time before the assessment of damages in the action on the covenant of seisin. Baxter v. Bradbury, 20 Me. 264,

2. "When the plaintiff commenced his action he had not been evicted by. paramount title, either actually or constructively, from any part of the premises. The lots were vacant, and there was no obstacle to prevent the plaintiff from taking actual possession of them, except in respect to the alleged occupancy by the railroad company of part of lot 1 by putting an embankment on it. The evidence shows that no part of this lot is within the limits of its track, which is within the adjoining street, and that it is its track that has been so long used and occupied by the railroad company, and that this part of lot 1 is generally used by others as a place to roll saw-logs off the cars into the bay. But this use does not appear to have been advérse or hostile to the title thus conveyed, and in the absence of [434]*434such proof it is presumptively permissive and in subordination to it. The railroad company had no title to this lot, nor had it attempted to acquire any. Neither unlawful intrusion on lands, nor the taking thereof by the right of eminent domain, will constitute a breach of any of the ordinary covenants in the deed. Rawle, Cov. 129,153; Kutz v. McCune, 22 Wis. 628; Smith v. Hughes, 50 Wis. 621; Bailey v. Miltenberger, 31 Pa. St. 31. A further question remains concerning title in respect to lol^ 2 and 3; and as to them the plaintiff acquired, by reason of his deed of lot 1 and the general covenant of warranty contained in it, the title and control thereof incident to his riparian ownership of that lot. But of this more remains to be said.

3. As already stated, the cases in which nominal damages only may be recovered in actions on the covenant of seisin, or less than the entire purchase money and interest, are those where the grantee has obtained and still holds possession, or where some other benefit or advantage, such as a title to a part only, has passed by the deed; but where no semblance of title or benefit whatever has passed, where the grantee has derived no advantage whatever from it, and can derive none without a wrongful entry upon the estate of another, he is entitled to recove^ at once substantial damages and to the full amount of the consideration and interest. Substantial damages, or damages to be measured by the consideration paid and interest, cannot in the former case, we think, be allowed until there has been an eviction by title paramount, either actual or constructive. This is, we think, in accordance with well-settled principles. But the subject has been somewhat complicated in consequence of the effect given in later cases to a remark in Mecklem v. Blake, 22 Wis. 495, not material to the case, to the effect that where there has been a breach of the covenant of seisin, if the plaintiff “desired to rescind for want of title and to recover back the purchase money paid [435]*435and interest, he should have tendered the defendant a re-conveyance and the possession, and then he could have maintained his action;” citing Taft v. Kessel, 16 Wis. 273, in which the distinction between rescinding executory contracts for the conveyance of land, and deeds executed in performance thereof, seems to have been overlooked, and the law in respect to the former class of cases was applied to a case where the contract had been executed by the delivery of a deed of conveyance. In the former class a want of title -is ground for rescission, but where the contract has been executed by the delivery of a deed of conveyance no rescission can be had on the ground of want of title, without showing fraud. And this dictum in Mecklem v. Blake has been the foundation for subsequent statements to the effect that rescission may be had after deed executed, on the ground only of want of title in the grantor. In Booth v. Ryan, 31 Wis. 58, speaking to this point, Dixon, C.

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Bluebook (online)
55 N.W. 764, 85 Wis. 427, 1893 Wisc. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mclennan-v-prentice-wis-1893.