Norman v. Hill

2 Patton & Heath 676
CourtCourt of Appeals of Virginia
DecidedJanuary 15, 1857
StatusPublished
Cited by11 cases

This text of 2 Patton & Heath 676 (Norman v. Hill) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norman v. Hill, 2 Patton & Heath 676 (Va. Ct. App. 1857).

Opinion

NASH, J.

It appears from the testimony and pleading in this case, that John S. Norman, on the 24th day of September, 1846, executed to John W. George, a deed conveying a tract of land in the county of Culpeper containing five hundred and thirty-five acres in trust to secure the payment of $600, due from the said Newman to Thomas Hill, jr. by bond, dated the same day, and payable twelve months after date, with power to the trustee to sell the same for cash, upon the premises, upon default of payment, after advertising the time and place of sale for one month.

And on the 26th day of October, 1846, the said Norman executed another deed, conveying the same land to Thomas Hill, jr. in trust to secure the payment of a bond for $440, executed by thé said Norman to James H. Vowles on the same day, (which was transferred-'to William,..A. Hill,) and upon default of payment, the trustee was authorized to sell the land at Culpeper Courthouse, for cash, after advertising the time and place of sale for thirty days at Stevensburg and Culpeper Courthouse.

And on the 17th day of March, 1847, the said Norman executed a third deed to Coleby Cowherd, conveying the said tract of land, together with his interest in a house and lot in Stevensburg, and certain slaves, in trust to secure, first, to William A. Hill (who had become the holder of the two bonds, secured by the two previous deeds) for $1,040 with [907]*907interest thereon ; and to Thomas Hill, jr. the sum of $380 with interest from *the ISth day of January, 1847 ; and lastly, to secure certain other enumerated creditors. By the terms of this last deed, the said Norman was to remain in the possession of the property, until the trustee was required by any one of the creditors to make sale. And when so required, he was to sell the property in the town of Stevens-burg', before the front door of the storehouse, of Nalle and Ashby, to the highest bidder, for one half cash, and the other half upon a credit of six months; after advertising the tract of land and the house and lot in Stevensburg for at least twenty days, at Culpeper Courthouse, Stevensburg and Raccoon Ford. That on the 20th day of April, 1847, before the bond secured by the first deed, became payable, Coleby Cowherd the trustee, (who appears to have been a youth under twenty-one years of age, and the nephew and deputy of Thomas Hill, jr.,) sold under the last named deed, the tract of land and the house and lot at public auction, in the town of Stevensburg, before the front door of Nally and Ashby’s storehouse, for cash, at which sale Thomas Hill, jr. became the purchaser of the house and lot for $33, and of the tract of land for $1,150, and on the 17th day of May, 1847, the said Cowherd executed a deed conveying the said tract of land to Thomas Hill, jr., and upon the face of said deed recites that the same had been sold by him for cash.

The plaintiff filed his bill in the Circuit Court of Culpeper, impeaching the said deeds of trust, so far as the debts secured thereby to Thomas Hill, jr. and William A. Hill were concerned, on the ground that these debts were founded upon usurious contracts, made with the said Thomas Hill, jr. who was then acting as deputy sheriff for said county, to raise money to pay off a number of executions which the said Hill then had in his hands against him ; and to set aside the sale made under the last named deed of trust, on the ground that the house and lot and the tract of land had been sold by the trustee for a grossly inadequate *price, and for misconduct in the trustee in conducting the sale, and for selling the said property without complying with the terms of the deed. After the subpoena was issued, and before the bill was filed, Norman was taken in execution under a ca. sa. and took the oath of insolvency, surrendering in his schedule, his interest in the land in controversy, of which Thomas Hill, jr. became the purchaser at the price of $21.

The bill contains a detailed statement of the circumstances under which the said debts were contracted, and also a charge that “ whether the said sale was advertised by the said trustee in the manner required by the deed of trust or not, he did not know ; but if it was, he charges that the said trustee purposely conducted the business in such a manner as to prevent competition, with a view that the said Hill might purchase all the property at his own price.” Neither William A. Hill nor the trustee answered the bill, and the same was taken for confessed as to them. But Thomas Hill, jr. does answer, and denies the usury charged in the bill. And in regard to the sale, he says, “ the sale was duly advertised, and the property fairly sold.” On the hearing the bill was dismissed.

Without going into any detailed statement of the circumstances attending the origin of the debts secured in the two first deeds, I deem it sufficient to remark that I have given the statements in the pleadings, and the facts proved by the depositions of James H. Vowles and Edward R. Hill, a careful examination, and although the circumstances attending the creation of those debts are sufficient to create a strong suspicion that they were founded in usury, yet I do not think the proofs are sufficiently strong and convincing to outweigh the answer of the defendant and to establish the fact. In regard to the debt of $380 secured by the last deed, I do not think there is any proof to impeach it.

The question, however, as it respects the regularity and validity of the sale, is one of a graver and much more serious character. But, before considering that. *question, I deem it not improper to notice the argument of one of the counsel for the appellee, who again brought under review, the question in regard to the weight and effect of an answer in chancery responsive to the bill, decided by this court at the present term in the case of Roberts v. Kelly. It is not my purpose to re-open the argument of the question then decided, because the reasons for that opinion were then fully expressed ; but only to say, that after the best reflection which I have been able to give to the subject, aided, too, as we certainly have been, by the diligent researches of the learned counsel, who discussed the subject, I have not seen any reason to change my opinion.

In regard to the sale which was made under the last deed of ^ trust by Coleby Cowherd, the trustee therein named, the sale has been impeached by the plaintiff upon two grounds ; first, the irregularity of the sale, in failing to advertise the time and place of making it. And also upon the ground of the 'gross inadequacy pf the price at which the property was sold. And a further objection was taken in the argument of the cause, that it appeared from the exhibits filed in the case, that the sale was made for cash, instead of being made upon a credit of one-half for cash, and the other half upon a credit of six months.

In regard to the first objection, I think it may be safely affirmed, both upon principle and authority, that a purchaser at a sale made under a deed of trust, takes upon himself the risk of the regularity and fairness of the sale in a court of equity. And there is certainly nothing unreasonable in this : because the purchaser must necessarily have notice of the trust deed under which the sale is made ; and it is his duty to see that the terms of the deed are complied with ; because the deed furnishes the chart by which the [908]*908trustee is to be governed. It is -different in a court of law, because the trustee, being vested with the legal title, by his deed transfers the legal title to the'purchaser. *See Taylor v. King, 6 Munf. 358, and Harris v. Harris, Idem, 367.

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Bluebook (online)
2 Patton & Heath 676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norman-v-hill-vactapp-1857.