National City Bank v. Moss

119 S.E. 704, 156 Ga. 669, 1923 Ga. LEXIS 303
Supreme Court of Georgia·Decided October 13, 1923·No. Nos. 3619, 3620·Published

Opinion

Hill, J.

(After stating the foregoing facts.)

The National City Bank of Borne filed an amendment to the answer to the plaintiff’s petition, in which it prayed “ that a decree be entered, in case the deed from plaintiff to defendant is set aside, declaring 'that the conveyance from Luther Moss to his wife, the plaintiff in this case, dated June 11, 1920, is a conveyance in fraud of-the rights of the creditor of the said Luther Moss, that is to say, in fraud of the rights of the bank, and that the same be set aside and held null and void.” Another prayer of the amendment to the answer was “that the plaintiff, the said Mrs. Jennie Moss, be held and declared to be a trustee of said property for the benefit of the National City Bank of Borne, Georgia, a creditor of her said husband, Luther Moss, and such other creditors as may appear and interplead in this action, if there be other creditors.” This amendment was disallowed by the court. We are of the opinion that as to the first part of the answer the court did not commit error in disallowing it. As far back as the case of McCleskey v. Leadbetter, 1 Ga. 551, it was held: “A party claiming under a grantor, as distributee or legatee, can not impeach his deed for want of consideration, or because it was intended to defraud creditors. Both,the grantor and his privies are estopped from denying it.” Under the above decision, which has never been overruled so far as we are aware, the defendant would be estopped from having the deed from the husband to the wife canceled. Therefore the court below did not err in disallowing that portion of the amendment to defendant’s answer which sought to cancel the deed from the husband to the wife, the plaintiff.

However, we are of the opinion that the other portion of the amendment to the answer, which sought to declare the plaintiff a trustee of the property conveyed to her, for the benefit of the bank/ should have been allowed. The following sections of the Code of T910 throw light upon and are applicable to the present case: § 4519. “Equity jurisdiction is established and allowed for the protection and relief of parties, where, from any peculiar circumstances, the operation of the general rules of law would be deficient [676] in protecting from an anticipated wrong, or relieving for injuries done.” § 4521. “ He who would have equity must do equity, and give effect to all equitable rights in the other party respecting the subject matter of the suit.” § 4522. “ Equity seeks always to do complete justice; and hence, having the parties before the court rightfully, it will proceed to give full relief to all parties in reference to the subject of the suit, provided the court has jurisdiction for.that purpose.” § 4523. “Equity considers that done which ought to be done, and directs its relief accordingly.” § 4532. “Equity will not force parties to litigate in order to have done what they ought, and are willing, voluntarily to do.”

In Blalock v. Newhill, 78 Ga. 245 (1 S. E. 383), this court held: “Where both parties t,o a suit for land derive title from a common grantor, the elder of the two would take precedence, in the absence of fraud or illegality therein; and where it appears that the holder of the junior title was put on such inquiry as was equivalent to notice of the senior title, a verdict finding in favor of the latter was demanded by the evidence. . . Where, on a bill in equity, a decree was rendered against the defendant, fixing the title in the complainant, to whom the defendant was indebted, the fact that the defendant had voluntarily made a deed to his wife while he owed the debt and was insolvent, and that he subsequently conveyed it to the complainant, did not make her conveyance void as being a pledge or sale of her separate property in payment of the debt of her husband.” In delivering the opinion of the court in the above stated case, Hall, J., said: “ Both parties derived title from a common grantor. The plaintiff’s title was the elder of the two; and in the absence of fraud or illegality in procurement, it took precedence of the defendant’s. The decree under which the plaintiffs obtained their title was older than the judgment on which the execution issued, which was levied on and sold the land when Blalock became the purchaser. Apart from the riile caveat emptor, which ordinarily obtains at such sales, there is ample evidence in this record to charge Blalock with actual notice of plaintiffs’ right to the properly, and to affect him with bad faith in bringing it to sale in disregard of their rights, for he knew of the pendency of the suits in which they obtained a decree for the land, and he is chargeable with notice of all the facts that could have resulted from a full investigation of the matter, [677] which, in good conscience, he should have made, having been thus put upon inquiry. The technical defects he discovered in the proceeding at their instance, if they in fact existed, while they might have resulted in an erroneous or irregular decree, were not such as would have rendered it void. Nor did it matter that the title to the land was in the wife of the common grantor of the parties litigant-at the time the decree was rendered,' and that she subsequently conveyed it to the plaintiffs in execution, and that there was performance of this decree in their favor; it was not a pledge or sale of her separate property in payment of her husband’s debts in a legal sense, for she held under a voluntary conveyance from him at a time when he owed this debt and was utterly insolvent, and merely did voluntarily what, in honor and conscience, she should have done, and what she would have been compelled to do had the parties been forced to resort to law for the assertion and enforcement of their rights. As to the superiority of plaintiffs’ title over defendant’s, see Scott v. Singer, 54 Ga. 689; Wood v. McGuire’s Children, 17 Id. 303, 321; Miller v. Surls, 19 Id. 331, 333; Harrison v. Hatcher, 44 Id. 639. Without reference to any other question made by this record, we are of opinion that the verdict in this case is not only sustained, but imperatively demanded, by the law and evidence; and even if there was error in some other particulars (and we do not decide that there was), it could have no influence in bringing about a different result on another hearing, and therefore any discussion of the questions raised by them would be fruitless and unnecessary.”

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National City Bank v. Moss, 119 S.E. 704, 156 Ga. 669, 1923 Ga. LEXIS 303 (Ga. 1923).

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Related

M'Cleskey v. Leadbetter
1 Ga. 551 (Supreme Court of Georgia, 1846)
Scott v. Singer
54 Ga. 689 (Supreme Court of Georgia, 1875)
Blalock v. Newhill
1 S.E. 383 (Supreme Court of Georgia, 1887)
Smith v. Smith
85 S.E. 1034 (Supreme Court of Georgia, 1915)