Neal v. Gregory

19 Fla. 356
CourtSupreme Court of Florida
DecidedJune 15, 1882
StatusPublished
Cited by24 cases

This text of 19 Fla. 356 (Neal v. Gregory) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neal v. Gregory, 19 Fla. 356 (Fla. 1882).

Opinion

Mr. Justice Westcott

delivered the opinion of the court.

As to the first ground upon which a reversal of the decree is sought, a failure of the court to order a reformation of the deed, it is very clear that there was no error. The accident or mistake alleged in the bill is directly denied by the answer supplemented by an averment that the deed was made to defraud creditors, and there is no proof at all of any mistake or accident. Proof of mistake in the manner of the execution of an instrument whenever admissible should be very clear.

Real, the plaintiff, before the deed from Atkins, Dunham & Co. to him, and before he had any knowledge of any conveyance, or any pretended conveyance, from Nixon to Atkins, Dunham & Co., purchased this land of Nixon for one hundred thousand oranges paid him, and Nixon agreed verbally to give him a deed therefor. The decree of the Chancellor here was without prejudice to any right of Real to file a bill setting up title by virtue of this purchase. If Nixon’s administrator is in such position that he can make no title the remedy of Real arising out of this transaction is an action at law for the value of the oranges, and if the title remained in Rixon, and upon his death the land became subject to the statute of descents and occupies the relation of the real estate of a decedent, then as against a parol vendee (Real) from the decedent in his lifetime, the vendee [366]*366only paying the purchase-money, his judgment creditor in his lifetime would be preferred. Under such parol sale no title passed to Real, and the title being in Rixon the judgment became a lien upon the land. It is thus apparent that Real by virtue of the payment of the oranges acquired no title superior to the lien of the judgment creditors of Rixon, and that so much of the decree as is based upon that view is erroneous.

The statute of frauds prevents the acquisition of any interest in the land by Real under such purchase. Ro interest in the land was required. Ro decree for specific performance could have been had. Basford vs. Pearson, 9 Allen, 387 ; Kidder vs. Hunt, 1 Pick., 328 ; Seymour vs. Bennett, 14 Mass., 266 ; Brown’s Statute of Frauds, 4th Edition, page 136, §118; Tate vs. Jones, 16 Fla., 216 ; Purcell vs. Minor, 4 Wall., 513.

Say the Supreme Court of the United States in the case last cited : “ Payment of price in whole or in part will not of itself be sufficient for the interference of a court of equity the party having a sufficient remedy at law to recover back the money.” It is thus apparent that as to the orange transaction Real stood to Rixon as to the land in relation, having no greater equity than that of a general creditor to an amount equal to the value of the oranges he delivered.

So far as the acts of Real, the grantee of Atkins, Dunham & Co., are concerned we do not see that the evidence shows that he was aware of any fraud on the part of Nixon or Atkins, Dunham & Co. in the sale of the land by Nixon to Atkins, Dunham & Co. The facts seem to be that he was not aware of such sale until after he had purchased the land of Rixon and had paid the oranges agreed to be paid; that he was then informed that A., D. & Co., and not Nixon, had the title; that he, in company with Nixon, proceeded to Apalachicola and took a deed from A., D. & Co., Nixon [367]*367being present and silent when the agreement of purchase was made. The price agreed to be paid for the land by Keal he subsequently paid after entering into possession, and there is no evidence that it was not the full value of the property.

The rule is that a bona fide purchaser for value without notice from a fraudulent grantee gets a good title. “As against the debtor the fraudulent deed is effectual, and the fraudulent grantee has a title and right to alienate. The only infirmity in his title is its liability to be impeached by creditors. As to all others it is perfect, and when it has passed into the hands of a bona fide purchaser for value without notice even this infirmity is cured and the title becomes sound and indefeasible.” Bump on Fraud. Con., 2d Ed., 482, and cases cited ; Jackson vs. Walsh, 14 Johnson, 415.

This brings us to the question whether A., X). &.Oo. had any title to convey.

What was the nature of the transaction between Kixon and A., D. & Co. as to the instrument executed by Kixon to them ? The answer denies positively that there was any consideration for the alleged deed. The proof shows none, but on the contrary it appears that subsequent to the execution of the paper Kixon remained in possession of the property for years, appropriating the rents and profits of the land and making absolute sales of the personal property, A., D. & Co. making no objection thereto. Ko explanation of these facts is attempted. Such a sale as this is void as against creditors. Such possession and such acts generate a legal presumption of fraud when not explained so as to bring them, within the operation of the exceptions to the general rule, that a conveyance accompanied by such acts render the deed void as to creditors. In this case these acts not only tended to deceive, but did in fact deceive Keal to [368]*368such an extent as to cause him to purchase the property of Nixon, and to pay him the oranges agreed upon. Neal, to the extent of this purchase, is and was a creditor, and this antecedent retention of possession did in fact deceive him. “ The retention of the possession of land with the exercise of unequivocal acts of ownership over it is a badge of fraud, for it is not in the usual course of business, and indicates a secret trust for the debtor.” Again, under the circumstances of this case it devolved upon the plaintiff to prove the consideration. That this sale was a bona fide transfer for the consideration expressed in the instrument is alleged in the bill and denied in the answer. The proof shows retention by vendor of possession and acts of ownership. Under these circumstances the burden of proof was upon the plaintiff to show payment of the consideration. This he did not even attempt to do. Callan vs. Statham, 23 How., 477.

We'think Nixon in this case acted in good faith and paid value, but the difficulty here is that A., I). & Co. had no title to convey to him, and he got none through their act. The paper purporting to convey the land was not under seal and was not effective to pass the title. It was void under our statute. Hart vs. Bostwick, 14 Fla., 162 ; Sicards Lessee vs. Davis, 6 Pet., 136 ; Clark et al. vs. Graham, 6 Wheat., 577.

It insisted, however, that even if the paper from A., D. & Co. was not effective to vest any estate or title in them, still that Nixon being present and silent at the time of the execution of the deed from A., D. & Co. to Neal was es-topped from denying that the title was in them, that the title was thus good as against him, and that such estoppel would operate against his then creditors subsequently obtaining judgments, and now seeking a sale of the land to satisfy their debts.

[369]*369The estoppel here insisted upon is an equitable estoppel as contradistinguished from an estoppel by record or deed, and as the existence or non-existence of such an estoppel is determined by a very slight variation in the facts in any given case we think it proper to repeat the general facts established so far as they have a bearing upon the subject in order to an intelligent determination of the question. The bill alleges that Nixon was the agent of A., D.

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19 Fla. 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-v-gregory-fla-1882.