Phillips v. Blair

38 Iowa 649
CourtSupreme Court of Iowa
DecidedJune 8, 1874
StatusPublished
Cited by13 cases

This text of 38 Iowa 649 (Phillips v. Blair) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips v. Blair, 38 Iowa 649 (iowa 1874).

Opinions

Miller, Oh.-J.

— I. An opinion having been filed in this case at the October term, 1872, affirming the judgment of the court below, defendants filed a petition for a rehearing, which was granted, and the cause re-argued and again submitted, presenting questions not made in argument on the former hearing.

It is conceded that the judgment of the justice upon which the land was sold on execution is void, for want of service of ■the original notice upon the defendant Wood. The plaintiff, therefore, having a regular chain of conveyances from the judgment debtor, Wood, will be entitled to the land unless he or his grantors are estopped from asserting title thereto,, as against the defendants.

The record shows that John Grether brought suit before J. A. Wilson, a Justice of the Peace of Boone county, against M. C. Wood and Eli Keeler, on a promissory note made by them for $87.05. An original notice was issued by the Justice-October 19th, 1857; the written return on the same shows that it was placed in the hands of the sheriff for service; that he sent a copy of the notice by mail to Wood on the day he received the notice, directed to Swede Point, his place of residence; that on the return day of the notice, October 29, 1857, John A. Hull appeared as the plaintiff Js attorney, (no appearance being made for defendant,) and moved for judgment on the note which was accordingly rendered. A transcript of this judgment was filed in the Clerk’s office of the District Court, and execution issued thereon, upon which the land in controversy was sold by the sheriff and purchased by John Grether [652]*652on the 28th day of April, 1860, and a certificate of purchase then delivered to said John A. Hull, the attorney of the plaintiff in execution. In 1865, Blair purchased the land and caused it to be divided into lots, streets and alleys, and the plat thereof duly recorded. He has sold numerous lots to the other defendants, who, since their purchases, respectively, have built upon and otherwise improved the same, and are now residing thereon. Wood never paid any taxes on the land after the sheriff’s sale. At the time of such sale the land was worth about ten dollars per acre; now it is worth in the aggregate, including the improvements, from $17,000 to $20,000. In 1868, the said John A. Hull purchased the land of Wood, knowing that it was claimed by Blair, and if not platted as a. part of the town of Boone, that it was very near to it.”

i. attobnby : toppei. ' It must be assumed that Hull as the attorney of Grether in the suit against Wood, knew when he moved for judgment therein, that the original notice had not been served on the defendant in the action. It was his duty as such attorney to know whether the notice was properly served. The notice with the sheriff’s return thereon was on file in the justice’s office. With this knowledge he moved for and obtained a judgment for his client, which he knew to be of no validity. Hpon this void judgment, the land was sold by the sheriff, and Hull’s client, Grether, ignorant of any defect in the judgment, became the purchaser. Hull concealed from his client all knowledge of the defect in the judgment and suffered him to purchase the land and satisfy his judgment. Indeed upon the evidence there are strong grounds for concluding that Hull attended the sale and bid off the land himself as Grether’s attorney. It is beyond question, that after the sale the sheriff delivered the certificate of purchase to him as such attorney. The relation of attorney and client existed at the time of the sale, and during the existence of that relation Hull suffered and assisted his client to purchase the land under this void judgment, knowing him to be ignorant of its invalidity; and which he, as Grether’s attorney had procured to be rendered. The question now presented is, whether, under these circumstances, Hull could take advantage of this [653]*653knowledge, and acquire, as against, and to the prejudice of, his client, a title to this land for his own benefit, from the opposite part)’- in the action? We think most clearly not. To allow him to do so, would open the door to, and sanction the perpetration of a gross fraud by the attorney upon his client. It would entirely destroy that just and necessary confidence which the client reposes, in not only the skill and learning, but also the integrity of his attorney.

The relation of attorney and client is one of peculiar trust and confidence. The client from necessity relies upon the ability and integrity of his attorney, and the latter is bound to act in perfect good faith toward his client. It cannot be, therefore, that an attorney, who obtains a judgment for his client, which he knows at the time to be void for want of service of notice on the defendant in the action, and also assists or suffers his client, to purchase the real property of such defendant on execution sale upon such judgment, in ignorance of the defect in the judgment, can afterwards take advantage of his own derelection of duty by privately procuring, for his own benefit, a title to the same land, and set it up against his client. Equity will not sanction such bad faith on the part of a member of a class of persons appointed and intrusted by the law with the important duty of assisting in the administration of justice in the courts.

If an attorney may be allowed to acquire title for his own benefit under such circumstances, then no plaintiff would be safe in purchasing land sold on execution issued upon a judgment rendered in his favor. He would be insecure in relying upon the attorney, in whom the law says he may place confidence, in respect to the validity of the proceedings conducted by him. The attorney might purposely procure the rendition of a judgment, void for want of jurisdiction, so as to enable him subsequently to acquire the title to land, sold under such void judgment, from the judgment debtor, and thus speculate upon .the professional confidence reposed in him by his client.

Ringo v. Bimes, 10 Pet., (U. S.) 269, was a case where the plaintiff was employed as an agent to assist in the division of a large tract of land between heirs. In the course of the [654]*654business he found that the title upon which' they claimed' the land was defective, indeed, that his clients had no title whatever to the' land, but that it belonged to the State of Kentucky. lie thereupon took the necessary steps to have the land surveyed and patented to himself. It was Held by the Supreme Court of the .United States, that the agent thus discovering a defect in the title of his principal and making use of such knowledge to acquire the title for himself, would be held as a trustee for his principal.

The case referred to, although not precisely similar to the. one before us, decides the principle that an attorney or agent, Qbtaining, during such agency, knowledge of a defect in the title of his principal, cannot take advantage of such knowledge to acquire the title for his own benefit, and that where he does purchase the title he will be held a trustee for his principal, In the case éited the agent' acquired the title while the relation of principal and agent subsisted. ' In the case before us the attorney acquired the title after the relation of attorney and, client had ceased to exist. Whether this latter fact would, change the rule, as stated in Ringo v. Bimes, we will not now, inquire, since there are important facts in this case that did not exist in that. Here the defect in the title of the principal (Grether) was not only known to his attorney, and by him concealed from Grether, but the defect was caused by the.

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Bluebook (online)
38 Iowa 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-blair-iowa-1874.