Porter, Taylor & Co. v. Hanson

36 Ark. 591
CourtSupreme Court of Arkansas
DecidedNovember 15, 1880
StatusPublished
Cited by16 cases

This text of 36 Ark. 591 (Porter, Taylor & Co. v. Hanson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter, Taylor & Co. v. Hanson, 36 Ark. 591 (Ark. 1880).

Opinion

OPINION.

Eakin, J.

This case presents these questions :

1. - Do the motion and accompanying answer and bill of appellants show in them any such rights as would entitle them to move the court to set aside the decree rendered on constructive service, and admit them to '

2. What are the. priorities as between them and the appellees claiming an attorney’s lien?

•3. If they have no priority, do they show any right to contest the amount of the lien?

Upon the first point, the case is prima facie in their favor. They were made defendants, which indicates the opinion of appellees (complainants below), that they had some such claim as should entitle them to a hearing, and which required to be adjudicated. Besides, the statute is imperative and unconditional, as to all defendants constructively summoned, who did not appear. (Gantt’s Digest, sec. 4732). All or any of them may, within five years, appear in court and move for a new trial, and are entitled, as a matter of right, upon giving security for costs, to be admitted to make defense. They need not show merits as a condition J precedent. They risk the costs, and are entitled to have the matter of merits determined on demurrer, or.evidence after the doors are opened. They have no right, however, to have the former judgment, meanwhile, vacated on motion. ' It remains until the case is re-tried, to be then confirmed, modified or set aside.

They need not first its01T mer" 2 Assignment: Ofréüeinp-“ of land bqught.untíón ex6fu) -■ ■

Nevertheless, if the court should refuse to admit a defendant to make defense, and the answer which he proposes to file should not disclose any substantial right, the error would not be so prejudicial to him as to require correction. If the defense is incorporated with the motion, it may be considered to include all the defendant means to stand upon.

The rights disclosed, rest upon the instrument called an ° assignment,” or “power of attorney, for the terms of which, reference is made to the reporter’s statement. It , . 7 was executed before the final confirmation of the sale in the original mortgage suit, but after the sale had been made and approved by the court. By order of the court, the title still remained in the original defendant.

' It will be observed that Barrow did not assign the decree itself, or his interests under it. He attempted only to assign the specific sum. which Parham, defendant in the original suit, might pay for redemption. He was under no obligation to pay anything, nor to redeem at all. This was a future contingent interest in a fund, which never came into existence, inasmuch as Parham never redeemed. As an assignment, the instrument had, at law, no original validity, and although good in equity if anything had. come into existence afterwards upon which it could attach, yet it fails there also for want of the specific .fund. As a power of attorney, it fails also at law, because, after Farrow’s death, it could not be executed for want of any legal or equitable title, in the attorney, which he could convey on sale. It only remains, then, to examine whether, by its provisions, any trust attached, in favor of appellants, upon the contingent equitable title then held by Farrow, and which, descending to his heirs, became perfected in them as a legal title, after the time allowed for redemption had expired.

The only express trust created by the instrument was in Cummins, the attorney, and he was made trustee, not of any estate or title, but simply of a power, which it became impossible • for him to execute after Farrow’s death, without the aid of a court of chancery. It created nevertheless in favor of appellants, an executed trust of the power, in the sense of fully.defining the interest of appellants in the subject-matter. It was none the less an executed trust, because the subject-matter was contingent; and being such, the trust would be supported by the pre-existing debt. It is clear, enough that Farrow had the right to give such a power for the purposes indicated, and that, but for his death, it would have been the duty of the attorney in fact, accepting the trust, to have proceeded to sell for the benefit of appellants, and that upon such sale, Farrow would have been compelled, in equity, to execute deeds to carry.out the powers be had thus conferred. It is clear enough if we consider Farrow as still alive. What equity is there in holding that the accident of his death should divest appellants of equities conferred upon them by Farrow, and which he desired them to retain ? Death does not operate by way of revocation of vested rights, although it severs the connection between principal and agent or attorney, as to future action.

Courts of chancery will not allow rights to be lost by accident unaccompanied with laches. Relief against' accidents is a common ground for their interposition. They will supply a trustee in case of the death or refusal to aot, of the one appointed. Here the trustee is not dead, but can not act, because the grantor of the power being dead, and title not being in the attorney, he can not sell and make title without the aid of a court. That this is a power in trust, as distinct from a mere authority to sell, as agenf, is. evident upon the face of the instrument. The appellants are the intended beneficiaries, and the expressed design is to secure their debt. The maker evidently meant that they should rest upon the instrument as a security for payment; and not simply to express just and.honest purposes of his own. It would not have been possible for him to use language more clearly expressive of this intention. All imperative powers are trusts. Perry on Trusts, secs. 248, 478.

Further, this trust not only bound the conscience of the trustee of the power, but attached to the estate, and followed it into the hands of the heirs, who obtain title through the donor. Mr. Sugden, in his work on Powers, vol. 2, p. 158, says: “But sometimes trusts and powers are blended; a man may be invested with a trust to be effected by the execution of a power given to him, which is in that case imperative, and if he refuse to execute it, or die without having executed it, equity, on the general rule that the trust is the land, will carry the trusts into execution at the expense of the remainderman, and without any regard to the person in whose favor it is to be executed, being a mere volunteer, and not a purchaser, creditor, wife or child.”

. Cases where powers are not trusts arise where they remain in the option of the donee to exercise for the benefit of others at his discretion. They are all trusts where other parties have the right to demand of them their execution.

Almost all the cases bearing upon the question now before us, have arisen under wills and testaments; but there is no principle to distinguish them from cases under deeds inter vivos, save that the latter, if of an executory character, require a consideration, whilst bequests and devises may rest solely on the bounty of the testator.

The conclusion of the court is, that it was meant by this instrument to give to appellants a security upon the lands in question, by the execution of a power to sell them for the purpose; that this power was imperative upon the donee, to be exercised upon the demand of the.

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Bluebook (online)
36 Ark. 591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-taylor-co-v-hanson-ark-1880.