Molyneux v. Huey

81 N.C. 106
Supreme Court of North Carolina·Decided June 15, 1879·Published·Cited by 23 cases

Opinion

Ashe, J.

The facts of the case necessary to the consideration of the exceptions taken by the plaintiffs, are, that the defendant Mary Huey on the 29th of July, 1875, purchased from the plaintiffs a tract of land lying in the county of Henderson, together with a considerable amount of personal proj)erty, for which she agreed to pay eleven thousand dollars, and after paying four thousand dollars executed a deed of trust to J. G. Martin as trustee for the benefit of the plaintiffs to secure the balance of the purchase money due by in-stalments and secured by notes endorsed by her husband, the other defendant, the last of them falling due on the 1st day of January, 1882; and stipulated in said deed that if the whole of the purchase money was not paid by that time, that then the trustee might advertise and sell the land. That the plaintiffs brought an action on two of these notes against the defendants to the August term, 1877, of Hender-* son superior court, and said J. G. Martin, who was the attorney for both parties in the case, advised the defendants not to defend the said action, but to confess a judgment on the same at the appearance term, promising that they should not be prejudiced thereby, nor be placed in a worse condi[109]*109tion than in the deed of trust, and that it should not be enforced against them until 1882, nor be docketed in any other county in the state. That the agreement was reduced to writing and delivered to Martin for safe keeping and the protection of the defendants, but since his death it has not been found. That in pursuance of the advice of Martin in this agreement, they confessed judgment at the appearance term of said court and paid the costs. Martin died on the ... day of., 187..., and soon after his death the plaintiffs sued out execution and placed it in the hands of the sheriff of Henderson county, who has levied upon and advertised for sale the land conveyed in the deed of trust: and have had a transcript of the said judgment docketed in the county of Polk where the defendants own some property. That defendants had a “ draw-back ” on the purchase money for a considerable amount of the personal property purchased at the same time with the land, but not delivered, which Martin promised should be credited on the notes upon which judgment was confessed, but he failed to give the credit,and judgment for the whole amount, to-wit, twenty-three hundred dollars, was confessed by defendants with the understanding it was to be reduced by that credit. That in confessing the judgment the defendants were influenced by tlicir attorney, Martin, and that he at the same time and in the same case was acting as attorney for the plaintiffs.

Upon this state of facts found by His Honor from the un-controverted affidavit of the defendant, G. W. Huey, the court ordered and adjudged that the judgment taken by confession in this cause on the 27th day of August, 1877, be vacated and set aside.

The motion of the defendants to vacate the judgment in this case was resisted upon two grounds:

1. Because the affidavit of G. W. Huey made to set aside the judgment was incompetent, purporting as it did. to give the declarations of a deceased attorney who was the counsel [110]*110of the plaintiffs, and also a trustee of both parties in the trust deed.

2. Bécause the motion was not made within a year and a day as required by the code.

The first objection was properly overruled by the court. The evidence of the transaction and communication with Martin, as stated in the affidavit, was clearly admissible. It does not come within the purview of the proviso of section 343 of the code. It provides that no party to the action shall be examined in regard to any transaction or communication between such witness and a person at the time of such examination deceased, then prosecuting or defending the action as executor, administrator, heir at law, next of kin, assignee, legatee, devisee, or survivor of such deceased person. The plaintiffs are not prosecuting this action as the executors or administrators of deceased, Martin, or as any of the other characters enumerated. The object of the proviso in the section was to protect the estates of deceased persons and the interests of those claiming under or from them. Martin’s estate, nor the interest of any one claiming from him can be in-any way affected by the event of this action. Howerton v. Lattimer, 68 N. C., 370; Thomas v. Kelly, 74 N. C., 416; Isler v. Dewey, 67 N. C., 93.

2. The second objection made by the plaintiffs that the motion of the defendants comes too late, and should have been made under section 133 of the code, within a year after the judgment, is equally untenable. The motion of the defendants is not made under the provisions of that section. The defendants invoked the aid of the equitable jurisdiction of the court, which, under the old practice, would always be exercised to vacate a judgment at law where the defendant had been prevented from setting up his defence against the judgment, by fraud or accident or the act of the party, when he was himself in no default. 1 Story Eq., 252; Story’s Eq. Juris. § § 1573,1574.

[111]*111Or, where the plaintiff has possessed himself improperly of something by means of which he has a unconscieutious advantage at law. Ibid, § 896.

Or, where one of the parties has failed to present his claim or defence because he has relied upon some agreement or understanding between himself and his adversary, which, if observed, rendered such presentation unnecessary.

And more especially where such agreement has been designed to lull a party into security, that some unconscien-tious advantage might be taken of him; as for instance where one was sued upon a note and mortgage, and the plaintiff for a valuable consideration released him from personal liability, but took judgment in violation of his agreement, and issued execution thereon; such execution was restrained on the ground that it was against conscience for the mortgagee to retain his advantage. Freeman on Judgments, 492; Deaver v. Erwin, 7 Ire. Eq., 250; Stockton v. Briggs, 5 Jones’ Eq., 309; Dobson v. Pearce, 2 N. Y. Court of Appeals, 156; Huggins v. King, 3 Barb., 616.

The equity of the defendants is that by the promises and assurances of the plantiffs’ attorney they have been prevented from making a defence which they might otherwise have set up; and the plaintiffs, by the agreement between their attorney and the defendants have obtained a judgment, and secured a lien on the defendants’ property in the county of Polk, in violation of the agreement, by which they have obtained an unconscientious advantage at law, an advantage which the court of equity, under the old system, would have put out of the way by a decree in a suit properly instituted for that purpose.

Under that system a court of law could, as it now may, set aside an irregular judgment at any time; but could not set aside at a subsequent term a judgment regularly rendered according to the course and practice of the court. In such a case the party injured was driven for relief to a writ [112]*112of error or a suit in equity, as the case might be.

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Molyneux v. Huey, 81 N.C. 106 (N.C. 1879).

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