McMillan v. Davenport

118 P. 756, 44 Mont. 23, 1911 Mont. LEXIS 70
CourtMontana Supreme Court
DecidedOctober 21, 1911
DocketNo. 3,011
StatusPublished
Cited by15 cases

This text of 118 P. 756 (McMillan v. Davenport) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMillan v. Davenport, 118 P. 756, 44 Mont. 23, 1911 Mont. LEXIS 70 (Mo. 1911).

Opinion

MB. CHIEF JUSTICE BBANTLY

delivered the opinion of the court.

The chief contention made by counsel for plaintiffs is that the findings do not support the judgment. The evidence is voluminous. Most of it is not relevant to the issues presented by the pleadings. Indeed, the facts necessary to a decision of the fundamental question involved are not controverted. We shall therefore state briefly what these facts are, and proceed to a solution of the legal question which arises upon them.

The patent to the land in controversy was issued to Bobert Lacey on March 9, 1896. He and his wife had theretofore conveyed to John B. King by quitclaim deed dated December 17, 1894. Such title as John B. King had vested under this deed. Bordeaux was vested with title by a quitclaim deed from John B. King and his wife, and a deed of bargain and sale from Lacey and wife, through John B. King, their attorney in faet, both dated April 8, 1896. All these instruments were recorded on April 18, 1896. The evidence is not clear as to what the fact was, but it lends support to the conclusion that the entry upon which the patent issued was made by Edward King, in the name of Lacey, through the use of “Additional Soldiers’ Homestead” scrip; John B. King, though apparently acting for Lacey, being in fact the agent of Edward King. This course was probably pursued in order to protect the property from the claim of Edward King’s creditors; but whether this was so it is not now necessary to inquire. The conveyances to Bordeaux, though absolute in [30]*30form, were intended to operate as a mortgage to secure the loan made by him to Edward King. The good faith of this transaction, so far as Bordeaux is concerned, is not impugned, nor is that of defendant Davenport in accepting his conveyance from Bordeaux, for no issue of fraud is presented by the pleadings. Plaintiffs’ judgment was properly docketed at the time the Bordeaux conveyances were made, and, when he conveyed to Davenport, the sheriff’s deed was on record.

The rights of the parties are therefore to be determined by the answer to the inquiry: Was the plaintiffs’ judgment a lien upon the secret interest of Edward King? If so, the plaintiffs’ title secured through the sheriff’s deed was superior to the Bordeaux right, and hence is superior to the defendant’s right, without regard to the character of the title vested under the conveyances to Bordeaux or to the defendant. Otherwise the defendant’s right is superior, whether he took with notice that Bordeaux was only a mortgagee or not. Even though he did, his claim may not be set aside because he cannot be devested of title until the mortgage debt has-been discharged; and it is not suggested, either in the pleadings or in the evidence, that it has been. Nor has the case any of the aspects of an action to redeem.

The Lacey title was vested in John R. King as trustee for the use and benefit of Edward King. Under section 6821 of the Revised Codes, Edward King’s interest was subject to be taken on execution by his creditors. Section 6807 requires the clerk to docket a judgment as soon as he makes up the judgment-roll. It then declares: “And from the time the judgment is docketed it becomes a lien upon all real property of the judgment debtor not exempt from execution in the county, owned by him at the time, or which he may afterward acquire, until the lien ceases. ’ ’

At common law a judgment was not a lien upon the real estate of the debtor, except for debts due the king. From considerations of public policy, growing out of the feudal system, the law did not permit the feudatory to be deprived of his land lest he should thereby be disabled from performing the military [31]*31service due his lord by virtue of his holding. Land could only be taken under the process of elegit, which was authorized by the statute of Westminster II (3 Edw. I, c. 18). The lien was a mere incident to the right in the judgment creditor to have the writ. Even só, it only gave the right to seize and hold a moiety of the debtor’s lands until the debt should be levied by a reasonable price and extent. (Hutcheson v. Grubbs, 80 Va. 251; Morsell v. First Nat. Bank, 91 U. S. 357, 23 L. Ed. 436; 1 Black on Judgments, sec. 433.) It is thus seen that even at common law, as the author last cited points out, the lien was of statutory origin, and was dependent entirely upon the right in the creditor to have his elegit. (Massingill v. Downs, 7 How. 760, 12 L. Ed. 903; United States v. Morrison, 4 Pet. 124, 7 L. Ed. 804; Freeman on Judgments, sec. 339; 3 Bacon’s Abridgment, title “Execution,” p. 663.) It was therefore a qualified and restricted lien, and did not authorize a sale of the land, but could be enforced only by taking possession and holding until the debt was discharged by the rents and profits. Therefore, it must be true that in those states which did not adopt the English statute, supra, in the absence of express legislative enactment, judgments do not attach as liens to real property in the modem sense of that term. “Since liens, arising from judgments are exclusively the creatures of statute, we should naturally expect to find them largely under the control of the legislature, except in so far as the necessity of preserving vested rights and contractual obligations should forbid such interference.” (1 Black on Judgments, see. 399.) How the lien is made to attach, to what extent and to what interest it attaches, are, within the restriction stated, matters to be determined by the terms of the statute granting it.

Under the section of the statute cited, supra (Eev. Codes, sec. 6821), any interest in real property is subject to levy and sale under execution. Does this render an interest undisclosed by the record subject to the lien of the docketed judgment? Under section 6807 the requirement is that the judgment be docketed. The evident purpose of this requirement is to protect a pur[32]*32chaser of real estate from the judgment debtor, by giving notice that it is encumbered by a lien so that the purchaser may guard against taking a defective title; in other words, though the [1]: judgment exists, it does not bind the property in the absence of that record of it which the statute requires. (Sklower v. Abbott, 19 Mont. 228, 47 Pac. 901; Wyman v. Jensen, 26 Mont. 227, 67 Pac. 114.) By the same rule it cannot, in the [2] nature of things, be notice to a grantee of an interest undisclosed by the record who has innocently acquired it. Otherwise one who acquires real estate must at his peril ascertain whether there is not at the time, or was not during the time his proposed grantor held title, or when he acquired it, some judgment debtor owning a secret interest. We cannot think that the legislature- in seeking to protect the people in their dealings with each other, set a trap which one desiring innocently to become a purchaser or an encumbrancer of land cannot avoid unless he is able to ascertain the secret or undisclosed interests of all persons whomsoever owned at any time subsequent to the docketing of the judgment. The supreme court of Oregon well said of a similar statute: ‘ ‘ The statute intended to make a judgment a lien on the legal title of "real property, and not on some hidden equitable title, which could only be brought to light and made available by the extraordinary powers and proceedings of a court of equity.” (Smith v. Ingles, 2 Or.

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Bluebook (online)
118 P. 756, 44 Mont. 23, 1911 Mont. LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmillan-v-davenport-mont-1911.