Newlin v. Phillips

80 A. 640, 9 Del. Ch. 165, 1911 Del. Ch. LEXIS 30
CourtCourt of Chancery of Delaware
DecidedApril 5, 1911
StatusPublished
Cited by5 cases

This text of 80 A. 640 (Newlin v. Phillips) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newlin v. Phillips, 80 A. 640, 9 Del. Ch. 165, 1911 Del. Ch. LEXIS 30 (Del. Ct. App. 1911).

Opinion

The Chancellor:

James B. Newlin, by will, gave all his property to his wife, Emma Alice Newlin, desiring her to carefully husband it so as that the income therefrom should give her a comfortable livelihood for the remainder of her life, and desired that at her death such as might then be remaining be equally divided between the brothers and sisters of the tes[166]*166tatar then living. After his death in 1896 his widow, Emma Alice Newlin, became his executrix, and at the death of the widow in-1904, there were living two sisters of James B. Newlin, the complainants, but no brothers. At the time of his death, James B. Newlin held a mortgage for $1,650, made by Louis M. Sawdon, on real estate in Wilmington, and in 1901 Emma Alice Newlin, executrix, foreclosed the mortgage. The land was sold and conveyed to one Williams, who, by deed dated the same day as the deed from the Sheriff, conveyed the land to Emma Alice Newlin, and she continued to hold the title to the time of her death. By her will; Emma Alice Newlin gavé Harriet I. and Mary A. Newlin, the complainants, sisters of her husband, all the estate and property which she received from her husband, and by a codicil gave all the residue of her estate to Amy Eugenia Clark, the defendant.

By the bill it is alleged that Williams, the grantee in the Sheriff’s deed above mentioned, became such only as a conduit for the title to Emma Alice Newlin, and was only nominally the purchaser at the Sheriff’s sale; that the real estate took the place of the mortgage and represented a part of the assets, which had been received by Emma Alice Newlin from her husband; that the costs of the foreclosure suit and taxes on the mortgaged premises were paid by the estate of James B. Newlin, aggregating $201.83, which was the only money paid for the land. Possession of the real estate was held and enjoyed by Emma Alice Newlin until her death in 1904, and has been held and enjoyed by the complainants since that time. It is claimed that there is a cloud on the title and the bill is filed to remove it. The cloud is this: On the record, Emma Alice Newlin was the owner of the land by purchase and deed from Williams, and as it did not appear of record that she had received it from her husband, it apparently passed under the general residuary devise of her will to Amy Eugenia Clark and net to the complainants, the latter being devisees of that property only which Emma Alice Newlin received from her husband; but that notwithstanding this apparent title, it was a matter of proof aliunde the record that the mortgaged premises were substituted for the mortgage held by James B. Newlin; and the money used [167]*167to buy in the mortgaged premises through the medium of an intermediate purchaser, Williams, was part of the estate of James B. Newlin; and as it had been heretofore held by Chancellor Nicholson, in another proceeding had for the construction of the will, that Emma Alice Newlin took only a life estate and had no power of disposition by will of property of her husband, the mortgaged premises continued to be in fact part of his estate, and passed as his property to his devisees in remainder, the complainants, and not to Amy Eugenia Clark, under the will of Emma Alice Newlin, as property of Emma Alice Newlin, the apparent owner therof.

The defendant, The Penn Syndicate,- Guardian as aforesaid, has demurred generally to the bill, and relied on a want of. jurisdiction and lack of equity. But taking all the allegations of the bill to be true for the purpose of the argument, my conclusion is that the land being substituted for the mortgage thereon, and being purchased by moneys of the estate of James B. Newlin, was subject to the terms of his will, whether it be regarded as real estate, or, as in legal effect, personalty, as was the mortgage which he held, and that his wife took under his- will only a life estate with remainder to the complainants. By the bill it sufficiently appears that to establish their title, facts aliunde . the record must be shown in order that when attacked the complainants could properly defend their title. This outstanding claim of Amy Eugenia Clark, if valid, would impair the title of the complainants, and on its face has that effect, but by extrinsic evidence it can be proved an invalid claim. Such a state of facts constitutes a “cloud”.

The jurisdiction of a court of equity -to remove clouds on ■titles is too well established to be discussed. Equity interferes to remove clouds upon title because they embarrass the owner of the property clouded and tend to impede his free sale and disposition of it. Suppose Amy Eugenia Clark should bring ejectment against the complainants, based on the deed from Williams .to Emma Alice Newlin, and the will of the latter, whereby she devised all her estate other than that which she received from her husband to Amy Eugenia Clark, would not. the complainants be obliged to offer in evidence the fact that [168]*168the land was substituted for the mortgage, and was bought with money of the estate of James B. Newlin, and the other facts to show the connection between the estate of James B. Newlin and the land? If so, then the deed to Williams and the will of Emma Alice Newlin constitute a cloud which equity will remove. It is clear that the above query is to be answered affirmatively, and it follows that there is a cloud to be removed, provided the allegations of the bill are sustained by proper proof.

Petition for Allowance of an Appeal from an Order Overruling a Demurrer. On May 1st, 1911, The Penn Syndicate, Guardian of Amy Eugenia Clark, one of the defendants, filed a petition praying the allowance of an appeal from an order entered in conformity with the foregoing opinion overruling the demurrer. Robert Adair, for the petitioner, relied on the general right of every person to an appeal. Harry Emmons, for the complainants.

The Constitution of the State of Delaware provides that the Supreme Court shall have jurisdiction “to receive appeals from the Court of Chancery, and to determine finally all matters of appeal in the interlocutory or final decrees and proceedings in chancery.” The order overruling the demurrer cannot be considered an interlocutory or final decree. Tatem, et al. v. Gilpin, et al., 1 Del. Ch. 13; Thompson v. Thompson, 6 Houst. 225; Barksdale v. Butler, 74 Tenn. 450. An appeal will not lie unless there has been a final disposition of the case as to the parties. Meagher v. Minn. Thresher Mfg. Co., 145 U. S. 608; Gulf City, &c., Co. v. Becker, 23 S. W. (Texas) 1015; People v. McFarlan, 3 Ill. App. 237; Hunter v. Gardenhire, 78 Tenn. 87. An order overruling a demurrer is not appealable. Morrison v. Bernot, 108 Pac. 772.

The demurrer is overruled and order for answer.

It is quite clear that this defendant is not entitled at this time to an appeal, and it is manifestly unwise that she should be allowed it, and two reasons may be urged against it: First, that an appeal will not lie in equity [169]*169from an order overruling a demurrer, even where there is a single defendant. And secondly, where there is more than one defendant, and one defendant answers and the other demurs and the demurrer is overruled, the cause cannot be split up, one defendant going to the appellate court and the other defendant continuing in the Court of Chancery.

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Bluebook (online)
80 A. 640, 9 Del. Ch. 165, 1911 Del. Ch. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newlin-v-phillips-delch-1911.