Milam v. Milam

138 Tenn. 686
CourtTennessee Supreme Court
DecidedDecember 15, 1917
StatusPublished
Cited by27 cases

This text of 138 Tenn. 686 (Milam v. Milam) 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
Milam v. Milam, 138 Tenn. 686 (Tenn. 1917).

Opinion

Me. Justice Williams

delivered the opinion of the Court.

. The hill of complaint was filed to enforce a lien upon realty for the repayment of a sum advanced by complainant toward its purchase.

Robert M. Milam, the son of complainant, Ellen C. Milam, married, and he and his young wife were de-[688]*688sirons of purchasing a home in one of the best residential sections of the city of Nashville. He had only $1,700”, and the property they preferred would cost approximately $7,000. Complainant advanced the difference, paying the sum to the owner vendor, Ogden, under an agreement with her son and daughter that she was to have a lien upon the property for the security of its repayment to her. Accordingly, a deed was executed by Ogden to Kate S. Milam, the, young wife, to her general estate; and Robert M. and Kate S. Milam executed to the complainant a series of notes to represent the advancement sum. On the back of each note was written this agreement, which described the property in question:

“This note is secured to its face value by a first lien on the property on the southwest corner of Twentieth avenue and Broad street, known as lot No. 213' ' of O. B. Hayes’ plan, Nashville, Tennessee. In acknowledgment hereof, witness our signatures attached.
“Robeet M. Milam.
“Kate S. Milam.”

There was no acknowledgment of this indorsed stipulation.

Mrs. Kate S. Milam died, leaving three small children, after having retired some of the notes of the series. The bill was filed to enforce payment of those notes that remained unpaid.

The guardian ad litem of the defendant minor children urges in their behalf that the attempt to declare a lien upon the land, by said indorsement, must fail [689]*689because Kate S. Milam was a feme covert, incapable of contracting to that end at the date of the transaction without privy, acknowledgment, and, further, that the conrt lacks power to declare and enforce any equitable remedy, if that attempt to fix a lien be invalid.

The chancellor declared a lien in favor of complainant, hut on appeal the court of civil appeals reversed this ruling. That court states that the case is one of hardship on complainant, but “that we are unable to discover wherein we can give her any relief, but, we express the hope that the higher court can do what we are unable to do: “Find a way for her out of this difficulty.”

Must a court of equity confess its inability to afford relief in' a case of such manifest hardship % If so, an age-long boast of equity must fail of vindication.

The court of civil appeals states that a decision of this court was a barrier to the rendition of what it deemed a just decree.

In that case, Durant v. Davis, 10 Heisk. (57 Tenn.), 522, it appeared that Elizabeth Davis, a married woman, borrowed of Mrs. Durant $500 with which to make the partial cash payment on a lot in Memphis, promising to give a mortgage on the lot to secure the same. A note was executed for the amount. Upon a bill being filed setting up two theories — one of a resulting trust, and the other of complainant’s sub-rogation to a vendor’s lien — the court held that Mrs. Durant was entitled to neither remedy. There was [690]*690no allegation ox prayer in the bill of complaint in respect of an equitable lien as a remedy distinct from the two that, were-sought.

It is upon that distinct doctrine, some phases of which have been developed in comparatively recent years, and since the decision in Durant v. Davis, that a number of courts have awarded relief on such facts as are presented on this record.

Chancellor Cooper, in Brown v. Bigley, 3 Tenn. Ch., 618, remarked that the inclination of the courts of this county.has been to enlarge the doctrine of the equitable lien or charge, with a view to the attainment of justice, without much 'respect for the technical restrictions of the common law. It might be added that, in part, at least, the expansion of the doctrine has been for the purpose of meeting the demands of justice in cases where other and earlier developed equitable remedies had themselves prov.ed inadequate because of the fact that they had become formalized and encrusted by limiting or restrictive rules. Equity in that attitude was forced to do for doctrines of her own formulation what she had origin- . ally set herself to do for those of the common law — afford amelioration in respect of their rigidity and lack of pliability to bring as a product a just result in a decree settling the rights of litigants. An illustration of this is found in the doctrine of sub-rogation, a creation of equity, or rather a graft on equitable jurisprudence from the civil law. The steady growth and expansion of that doctrine in im[691]*691portance and in liberality of application to various subjects and classes of persons has often been commented on by judges and law writers.

It. has been said that the doctrine of equitable lien, in certain aspects, is not essentially different from that of the doctrine of subrogation, and, similarly, it. is applied in cases where the law fails to give relief and justice would miscarry but for its declaration. The doctrine, however, does not afford a remedy without recognized bounds, nor is it “to be applied according to the measure of conscience of the particular chancellor any more than,” as an illustrious law writer said, “to the measure of his foot.” Equity called it into being, and enforces it on the principle that a person, having gotten property of another, ought not in good conscience to retain it as a thing freed of obligation to respond.

An equitable lien, strictly speaking, is not a jus in re or a jus ad rem,, but is the right to have the property subjected in a court of equity to the payment of the claim. It is a floating equity until action by the court is invoked.

“Even in the absence of an express contract, a lien, based upon the fundamental maxims of equity, may be- implied and declared by a court of chancery out of general considerations of right and justice as applied to the relations of the parties and the circumstances of their dealings.” 17 R. C. L., p. 605; 3 Pomroy, Eq. Jurisp., sections 1237, 1239; Westall v. Wood, 212 Mass., 540, 99 N. E., 325.

[692]*692There must he an intent to make the particular property, real or personal, a. security for the obligation; but, that intent being clear, equity will treat an agreement to give a mortgage or lien, as effective to create an equitable lien, where money has been parted with on faith that there would be a compliance. As Pomeroy says, one of the maxims underlying the doctrine is that equity regards as done that, which ought to be done. Hurley v. Atchinson, etc., R. Co., 213 U. S., 126, 29 Sup. Ct., 466, 53 L. Ed., 729.

In the case before us that intent is .clear; it was manifested by the indorsement on the note, which in effect was an equitable mortgage. Ice & Coal Co. v. Alley, 127 Tenn., 173, 181, 154 S. W., 536, and cases cited.

If we assume, without deciding, that it failed in respect of enforceability as to one of those signing it, Kate S.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kryder v. Estate
296 F. Supp. 3d 892 (M.D. Tennessee, 2017)
Waldschmidt v. Dennis (In Re Muller)
185 B.R. 552 (M.D. Tennessee, 1995)
Sondgeroth v. Carrington
650 S.W.2d 737 (Court of Appeals of Tennessee, 1982)
Greer v. American Security Insurance
445 S.W.2d 904 (Tennessee Supreme Court, 1969)
Shelby Mutual Insurance v. Clark-Holmes, Inc.
414 S.W.2d 650 (Court of Appeals of Tennessee, 1966)
Hipps v. McKenzie
296 S.W.2d 838 (Tennessee Supreme Court, 1956)
Podesta v. Podesta
189 S.W.2d 413 (Court of Appeals of Tennessee, 1945)
Osborne v. McCormack
176 S.W.2d 824 (Tennessee Supreme Court, 1944)
State Ex Rel. McCormack v. American Building & Loan Ass'n
150 S.W.2d 1048 (Tennessee Supreme Court, 1941)
Clements v. Holmes
120 S.W.2d 988 (Court of Appeals of Tennessee, 1938)
Old Nat. Bank v. Swearingen
72 S.W.2d 545 (Tennessee Supreme Court, 1934)
N. C. Blanchard Co. v. Doak
70 S.W.2d 21 (Tennessee Supreme Court, 1934)
Robertson v. Wade
68 S.W.2d 487 (Court of Appeals of Tennessee, 1933)
Nelson v. Nelson Neal Lumber Co.
17 P.2d 626 (Washington Supreme Court, 1932)
Federal Land Bank of Louisville v. Monroe County
54 S.W.2d 716 (Tennessee Supreme Court, 1932)
Johnson v. Bush Lumber Co.
241 N.W. 819 (Michigan Supreme Court, 1932)
Dysart v. Hamilton
11 Tenn. App. 43 (Court of Appeals of Tennessee, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
138 Tenn. 686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milam-v-milam-tenn-1917.