Meni v. Rathbone

21 Ind. 454
CourtIndiana Supreme Court
DecidedNovember 15, 1863
StatusPublished
Cited by12 cases

This text of 21 Ind. 454 (Meni v. Rathbone) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meni v. Rathbone, 21 Ind. 454 (Ind. 1863).

Opinion

Hanna, J.

Action by the appellants against Rathbone as execution plaintiff, and Gavitt as sheriff, to enjoin the sale of a lot, or any interest therein, in the city of Evansville, as the property of John M. App.

The complaint alleges that the fee simple of the lot is in John Wise, that said App had no interest therein, and that the plaintiffs by virtue of a lease, of which a copy is set out, are owners of an unexpired term in said lot, and are in possession thereof.

Rathbone and Gavitt answer, showing' an outstanding conflicting term in Mary App, under a lease which is set out and alleging in substance that Mary App held the term under the lease in trust for John M. App, her husband, who fraudulently procured the same to be made to her to prevent the collection of Rathbone’s judgment; that App went into possession of the premises and built houses thereon, and remained in possession of the same, and that the lease to the plaintiffs was not only made while the term in Mary App was subsisting, but made by the fraudulent procurement of App, and that. therefore the interest of App subsisting in the term created by the lease from Wise to Mary App was subject to sale on Bathbone’s execution.

Prayer that Wise and App and his wife be made parties and that the property be subjected to sale, &c.

Upon the filing of the answer, Wise and App and wife were made defendants.

A demurrer to the answer was overruled, whereupon the plaintiffs filed a reply in one paragraph to which a demurrer was sustained, and upon leave'they filed an additional reply, in substance the same as the first, both attempting to set up [456]*456a forfeiture of the lease to Mary. App, for non-payment of rent and taxes; but the Court also sustained a demurrer to the additional reply. At this stage of the proceedings, App and wife and Wise appeared and answered, but their answer was afterwards withdrawn, and App filed a separate answer to the answer of Rathbone and Gavitt, to which a demurrer was sustained. The death of Gavitt was suggested, and judgment rendered upon demurrer against John M. App, and by default against Wise and Mary App. The plaintiffs filed a reply in denial of the answer of Rathbone upon which a'jury trial was had, resulting in a verdict for the said defendant, upon which, over a motion for a new trial, the Court rendered judgment. The assignments of error which are insisted upon are as follows:

1. Overruling the demurrer to the answer of Rathbone and Gavitt.

2. Sustaining the demurrer to the reply.

3. Sustaining the demurrer to the additional reply..

4. Sustaining the demurrer to the answer of App.

5. Excluding the testimony of App.

6. Giving the instruction asked by Rathbone.

The answer of Rathbone and Gavitt contained some matters in the way of cross petition, to the effect that App was the owner of a certain interest in said lot; that the same was fraudulently held in the name of his wife; praying that new parties be made and the lease to plaintiffs set aside as fraudulent, &c.

It is urged that the demurrer ought to have been sustained to this answei’, because it does not sufficiently show that all the parties had such notice as would affect them with the fraud charged upon App, and because the lease from-Wise to Mary App, although executed on the 20th day of August, 1856, was not recorded until the 16th day of May, 1857.

It is averred in said answer, that the contract of leasing [457]*457was made by App and Wise, and that, to hinder and delay, &c., creditors, said App caused the lease to be executed to his wife; that the lot was vacant; that he took possession immediately, and in the years 1856, 1857, 1858, and 1859, erected and completed improvements in the way of sundry buildings and tenements, of the value of 3,000 dollars, and of the annual rental value of 600 dollars, which he has heretofore received; that said lease and improvements belong to said John M. App; that the judgment being older than the lease is prior lien thereon.

Th.e lease from Wise to Mary App was for the term of 10 years, and the yearly rent reserved was 75 dollar’s, for the vacant lot. The lease from Wise to plaintiffs was for 6 years and 3 months, at the same rate. It is charged in the answer, that this latter lease was made by the procurement of John M. App, to cheat, &c., said Rathbone, and is fraudulent.

It appears to us that, prima facie, the facts alleged are sufficient to put all parties upon inquiry, if not full notice. The judgment against App was older than the first lease; the property was possessed and improved by said judgment defendant, and the rents received by him, for 3 years and 9 months; the exact balance of the term was let by Wise to plaintiffs at the same rate the vacant lot was let, although it had been improved and would rent as shown.

Neither the complaint nor the answer avers directly who was in possession of the said property, at the time the second lease was executed; but the answer does aver that John M. App had taken possession under the first lease; made improvements and received rents. If there was any inference about the matter, perhaps, it would be that he was still in possession. If so, the plaintiffs should have taken notice thereof, and made inquiry.

The appellants insist that the lease to Mrs. App, not having been recorded in proper time, is not notice for any pur[458]*458pose to any person. Section 11, page 233, 1 Revised Statutes of 1852, enacts, “that no conveyance, &c., and no lease for more than 3 years, shall be valid and effectual against any person other than the grantor, his heirs and devisees and persons having notice thereof, unless it is made by a deed recorded within the time and in a manner provided in this act.” Section 16, of the same act, provides that every conveyance, lease for more than 3 years, &e., shall be recorded in the recorder’s office of the county where the lands conveyed shall be situated, and, if not so recorded within 90 days from the execution thereof, shall be fraudulent and void as against any subsequent purchaser or mortgagee in good faith for a valuable consideration.

It will be observed that section 11 quoted, declares that no lease, &c., shall be valid, &c., against any person other than * * * “persons having notice thereof,” unless it is made by a deed and recorded, &c. And section 16 provides that, if not so recorded, they shall be fraudulent, &c., as against subsequent purchasers, &c., in good faith, for a valuable consideration.

The substance of this, it appears to us, is that an unrecorded deed is inoperative as against a subsequent purchaser in good faith, &c., for a valuable consideration without notice. What are our registry acts for? To give notice of existing titles and incumbrances.

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Bluebook (online)
21 Ind. 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meni-v-rathbone-ind-1863.