Miller v. Holland

5 S.E. 701, 84 Va. 652, 1888 Va. LEXIS 124
CourtSupreme Court of Virginia
DecidedMarch 29, 1888
StatusPublished
Cited by13 cases

This text of 5 S.E. 701 (Miller v. Holland) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Holland, 5 S.E. 701, 84 Va. 652, 1888 Va. LEXIS 124 (Va. 1888).

Opinion

Lewis, P.,

after stating the case, delivered the opinion of the court.

There is no doubt that inasmuch as John Rice Miller died without making provision in his will for the payment of his ■debts, the whole of his estate, by virtue of the statute, become assets at his death for that purpose. Code 1873, ch. 127, § 3. But it by no means follows from this provision of the statute that the decree subjecting the land of the appellants to the satisfaction of the plaintiff’s claim is right. On the contrary, when viewed in the light of certain well-established principles ■of equity, it is plainly erroneous.

The first of these principles is, that where a part of a tract •or parcel of land, subject to a mortgage, or other charge is conveyed, the residue is primarily liable for the whole debt; .and where there are successive conveyances, at different times, the land is liable in the inverse order of the conveyances. In ■other words, each grantee, as the phrase is, “ sits in the seat of his grantor,” and must take the land with all its equitable burdens. It is the same, in effect, as if the grantor had executed a mortgage on the unsold land for the indemnity of his [655]*655grantee, so that a subsequent purchaser with notice of the first or any prior conveyance, takes the land with this increased burden upon it. And the rule, very justly, is the same, whether the land be conveyed for valuable consideration or not; for if it were otherwise it would enable a purchaser with notice of a prior voluntary conveyance to perpetrate a fraud upon the donee, which equity abhors.

It was decided in the case of Hartley v. O’Flaherty, Lloyd & Gould, temp. Plunket, 216, that “if a mortgagor sells a portion of his equity of redemption for value, or good consideration, the .entire residue undisposed of by him is applicable in the first instance to the discharge of the mortgage, and in ease of the bona fide purchaser,” and that “ it is contrary to any principle of justice to say that a person afterward purchasing from that mortgagor shall be in a better situation than the mortgagor himself in respect to any of his rights.”

The same question came before the supreme court of Hew Hampshire, and was ably considered, in the case of Brown v. Simons, 44 N. H., 475. In that case a mortgagor sold, at different times, portions of the mortgaged premises, and the question was whether the lands retained by him and those sold subsequent to the conveyance under which the plaintiff claimed, ought first to be applied to the mortgage debt, and it was held that they were. In the course of an elaborate opinion the court said: “ In the ease of the sale by the mortgagor of all the mortgaged property to different purchasers at the same time, their equities must be regarded as equal, and each must contribute ratably to the discharge of the common burden; but if such conveyances are at different times, their equities, though equal as respects the mortgagor, are not equal as respects each other; because, as the land last conveyed, while in the hands of the mortgagor, was primarily liable for the whole debt, it is not equitable that its character should be changed and the charge upon it diminished by a subsequent-conveyance; and, besides, if the equities were to be regarded [656]*656as equal, that of the first purchaser is prior in point of time; and, neither having the legal title, the maxim, qui prior est in tempore, portior est in jure, must apply; ” citing Clowes v. Dickinson, 5 Johns., ch. 240; La Farge Ins. Co. v. Beel, 22 Barb., 54; Chase v. Woodbury, 6 Cush., 143, and other cases. See also Gill v. Lyon, 1 Johns., ch. 447; Cumming v. Cumming, 3 Ga., 460; Conrad v. Harrison, 3 Leigh, 532; M’Clung v. Beirne, 10 Id., 394; Henkle’s Ex’x v. Allstadt, 4 Gratt., 284; Buchanan v. Clark, 10 Id., 164.

If these principles be sound as respects the sales of mortgaged land, and they are not disputed, a fortiori, do they apply to a case like the present, where the land conveyed, though in a general sense assets for the payment of debts, is not affected by any specific lien or charge.

It is very clear, therefore, in the light of these principles, that when the deed to Miller, trustee, was made in 1859, by Mrs. Miller, the sole devisee of her husband, the residue of the estate became primarily liable for the Coles’ debt; for the whole estate having been devised to her in fee simple, her right to make the deed, subject to the claims of creditors, is unquestionable. The deed was made bona fide, and had it been founded upon valuable consideration, it would be unassailable, even by creditors of the estate. Code 1873, ch. 127, sec. 5. Hence,'it was the duty of the plaintiff, before completing his purchase of “Farmington,” not only to examine the will of John Bice Miller, deceased, which, as he himself alleges in the bill, was the source from whence the title of his grantors was derived, but to inquire, further, whether or not there had been a prior conveyance of any part of the estate, in order to ascertain the true condition of his own title. And had he performed this duty, he would have been conducted by an examination of the public records to a knowledge of the appellants’ deed. But he failed to perform his duty in this particular, and chose to shut his eyes to the inlet of information, and he must now bear the consequences of his folly or neglect. He is not [657]*657entitled to the protection of a bona fide purchaser without notice, for he is not such a purchaser. On the contrary, he is affected with knowledge of all which he would have discovered had he performed his duty; for “ means of knowledge, with the duty of using them, are in equity equivalent to knowledge itself.” “It is the duty of the party to examine the records,” said the court in Coles v. Withers, 33 Gratt., 186, “and whether he does so or not, he will he affected with notice of every fact, the knowledge of which might there have been obtained.” See, also, Lamar v. Hale, 79 Va., 147; Effinger v. Hall, 81 Id., 94 and eases cited.

The same doctrine is forcibly stated by Mr. Justice M’Lean, in delivering the opinion of the court in Brush v. Ware, 15 Pet., 93, who said: “The question is not whether the defendant in fact saw any of the muniments of title, but whether he was not bound to see them. It will not do for a purchaser to close his eyes to facts, which were open to investigation, by the exercise' of that diligence which the law imposes. Such purchasers are not protected. * * * Ho principle is better established than that a purchaser must look to every part of the title which is essential to its validity.” And in the same ease it was said that the law requires reasonable diligence in a purchaser to ascertain any defect of title, and that when such defect is brought to his knowledge, no inconvenience will excuse him from the utmost scrutiny. He is a voluntary purchaser, and having notice, the rights of innocent persons are not to'be prejudiced through his negligence.

Hp this point it was said by the court in Brown v. Simons, supra,

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

Related

McCoy v. East
46 Va. Cir. 458 (Caroline County Circuit Court, 1959)
Parten v. First National Bank & Trust Co.
283 N.W. 408 (Supreme Court of Minnesota, 1938)
National Bank of Newberry v. Livingston
152 S.E. 410 (Supreme Court of South Carolina, 1930)
Smith v. Owens
59 S.E. 762 (West Virginia Supreme Court, 1907)
Compton v. Thorn
19 S.E. 451 (Supreme Court of Virginia, 1894)
Rixey v. Pearre Bros. & Co.
15 S.E. 498 (Supreme Court of Virginia, 1892)
Carrington v. Didier, Norvell & Co.
8 Va. 260 (Supreme Court of Virginia, 1851)
Smith's Adm'r v. Charlton's Adm'r
7 Gratt. 425 (Supreme Court of Virginia, 1851)

Cite This Page — Counsel Stack

Bluebook (online)
5 S.E. 701, 84 Va. 652, 1888 Va. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-holland-va-1888.