Preston's Adm'r v. Nash

76 Va. 1, 1881 Va. LEXIS 68
Supreme Court of Virginia·Decided August 11, 1881·Published·Cited by 2 cases

Opinion

Christian, J.

This case is before us on an appeal from a decree of the circuit court of Bussell county. It comes up to this court for the second time. The original bill was filed for specific performance of a contract entered into between Samuel H. Nash and William Nash. The main question in controversy in that case was whether Samuel H. Nash, upon the pleadings and evidence then in the cause, had made a valid contract of purchase; had paid all the purchase money, and was entitled to a conveyance of the legal title. The circuit court held that there was a valid contract; that the purchase money had all been paid, and that Samuel H. Nash was entitled to a specific performance; but also held that a deed of trust executed by William Nash to Beckem, trustee, to secure Preston a debt due by him, William Nash, had priority over Samuel H. [3]*3Wash’s contract of purchase. This court affirmed the decree of the circuit court so far as that court held that Samuel H. Wash was, as against William Wash, entitled to specific performance of his contract, and reversed so much of said decree as declared that the deed of trust to secure Preston’s debt had priority over Wash’s contract of purchase; and the cause was remanded with leave to the plaintiff to amend his bill, and to the defendants to amend their answers so as to put fairly in issue the priority of right as between the contract of purchase of Samuel H. Wash from William Wash and the deed of trust executed by William Wash to Becfcem, trustee, to secure Preston’s debt.

The case is reported in 28 Gratt. 686. Judge Anderson, delivering the unanimous opinion of the court, said: “ The court is of opinion that the plaintiff, Samuel H. Wash, fairly purchased the land in question from the defendant, William Wash, as evidenced by the paper made an exhibit in the cause * * *; that he was let into possession and continued in the quiet and peaceable possession of the same under his said contract from the date of his purchase until the bringing of this suit; that he had fully paid the purchase money at the date of his contract, and is entitled to a conveyance of the title from the said William Wash.”

The court accordingly entered its decree, affirming so much of said decree of the circuit court as confirmed the sale of the land by William Wash to Samuel Wash, and as declares that the whole of the purchase money had been paid, and that the plaintiff was entitled to a conveyance of the title to said lands from William Wash, and also so much of said decree as ascertains the balance of the debt from William Wash to John M. Preston. But the court, il being further of opinion that under the pleadings the cause was not in a condition ” (for the court) to decide the ■question of priority of right under the deed of trust and the contract of purchase so as to secure a fair and just de[4]*4cisión, thereof between the parties, it is adjudged, ordered and decreed that so much of the interlocutory decree as decides that the deed of trust has priority, dissolves the injunction, and directs a sale of the land, be reversed and annulled, * * * * and that the cause be remanded to the circuit court, with instructions to allow the plaintiff, if he desires it, to file an amended and supplemental bill, in which to put in issue the question aforesaid, and any other matters which may be proper and relevant, and to allow the defendants, or either of them, to file amended answers—to put in issue any other matters which they may desire and which may be deemed proper and relevant, and for further proceedings to be had therein in order to a final decree. See Nash v. Nash, 28 Gratt. 686.

When the case went back to the circuit court an amended and supplemental bill was filed by Samuel H. Nash, and was answered by Preston, who held as security for his debt the trust deed executed by William Nash to Beckem, trustee, and also by the personal representative of Beckem, who had died before the amended bill was filed.

Upon these pleadings the sole question (all the other questions arising in the original suit having been settled in this cause in Nash v. Nash et als., supra), before the circuit court was, Which has priority, Preston, the creditor of William Nash, secured by the deed of trust to Beckem, trustee, or Samuel Nash, the purchaser?

The circuit court held that Samuel Nash’s contract of purchase had priority over the deed of trust to Beckem, and perpetuated the injunction forbidding the trustee to sell the land for the payment of Preston’s debt. It is from this decree that an appeal was allowed by one of the judges of this court.

The case presents a single question, but one of great interest and importance. That question is, Who is entitled [5]*5to priority upon the facts of the case, the creditor or the purchaser?

First. It is important to state briefly the conceded facts in this case. We are saved from any embarrassment in this respect by the former case, in which all questions of fact were settled. They are briefly stated as follows:

Samuel Nash purchased of his brother, William Nash, certain lands in the county of Russell in March, 1851. No conveyance of the title was made, but a paper very inartificially drawu was delivered to Samuel Nash signed by William Nash. Samuel Nash paid the whole of the purchase money, and was in the exclusive, open and notorious possession of the land, cultivating it and using it as his own. Having paid all the purchase money, he frequently applied to his brother for a deed. No deed was made. In April, 1850, William Nash executed a deed of trust to Beckem, trustee, to secure John M. Preston a debt of $7,283.34. This deed was not recorded until the 30th April, 1858. There is no sufficient or reliable proof to show that Samuel Nash had any notice of the existence of this deed. On the contrary it is plain from the record that he knew nothing of its existence until the land was advertised to be sold by the trustee. From March, 1851, when Samuel Nash purchased the land, up to 1858, when the deed was recorded, he had no knowledge of any such deed or of any claim of any human being to the land he had purchased and paid for, and of which he held the exclusive possession openly and notoriously as its owner, cultivating it and using it as his own property, which he had bought and paid for.

Upon these facts, already determined by adjudication of this court in this case, the question and the only question we need have to decide is, Which is entitled to priority, the contract of purchase between Samuel and William- Nash, or the deed of trust made by the latter conveying the land to Beckem, trustee, to secure Preston’s debt?

[6]*6While the deed of trust was executed before the contract of purchase, it was not recorded until several years after-wards.

Under our statute known as the registry act (§ 5, ch. 114, Code 1873), an unrecorded deed is declared void as to creditors and to subsequent purchasers without notice. It is said, however, and the stress of the argument in this case is laid on this point, that under this sentence the purchaser, to avail himself of the benefit of this statute, must be a complete purchaser; and that to constitute a complete purchaser, the party must not only have paid the purchase money, but must have received a conveyance of the legal title. Very high authority is invoked for this principle.

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Preston's Adm'r v. Nash, 76 Va. 1, 1881 Va. LEXIS 68 (Va. 1881).

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