Rice v. Hunt

59 Tenn. 344
Tennessee Supreme Court·Decided October 15, 1873·Published

Opinion

McFarland, J.,

delivered the opinion of the court..

Under a bill for that purpose, certain lands belonging to the heirs of Bland were, on the 19th of May, 1860, sold for partition, and bought by Wm. Joyner, on a credit of ten years. The title was vested and a lien retained to secure the payment of' the note. Some time afterward Joyner sold the land to Peyton, and Peyton’s note, with Hunt as surety, corresponding in date and amount to Joyner’s, was, by order of the court, substituted for the latter. Pey-ton then sold and conveyed the land, by deed with general warranty, to the complainant and two others. The complainant has paid the entire price to Peyton, and has become the owner of the shares of his co-purchasers. He had actual notice of the lien for the unpaid note to the clerk and master. Hunt, the surety of Peyton, agreed in writing with the complainant, that if he was compelled to pay the note to [347] the clerk and master, he would waive his right to-be substituted to the lien upon the land, and would not eomé upon the land to be re-imbursed. Peyton has died. The note to the clerk and master, for the purchase money, fell due on the 19th of May,. 187Ó, before the bill was filed, and is still unpaid.

The complainant filed this bill on the 26th of August, 1870, stating these facts, and charging that Peyton & Logwood, a firm of attorneys at law, represented the heirs of Bland, and had notice of his purchase, aud made no objection, but agreed to it. That Peyton, one of the firm, was the same person who bought from Joyner and sold to the complainant. That since Peyton’s death, Logwood has announced his purpose to make the unpaid purchase money out of the land in the first instance; whereas the debt should be made first out of the estate of Peyton and his-surety, Hunt; and this is the relief prayed for. The other material allegations of the bill will be hereafter referred to.

1st. It is very clear that the demurrer was properly sustained as to the defendant, Logwood. He was only one of the solicitors, having no interest in. the controversy. The only allegation. against him is,, that he said he was going to make the money out of the land.

2d. We think that the demurrer was also properly sustained as to Hunt, the surety of Peyton. He agreed that if he should be compelled to pay the note, to the clerk and master, he would waive his. right to a lien upon the land for re-imbursement,

[348] It is assumed in the argument that this was equivalent to an agreement upon his nart that if necessary he would pay the debt and save the land. But this was not his undertaking. It cannot go beyond the terms of his written agreement. He agreed that if ■he should be compelled to pay the debt, he would waive his right to a lien upon the land; meaning, doubtless, to look, in that event, to Peyton for indemnity. It is not charged that Hunt has violated this agreement.

3d. We think it clear that the parties in interest •in the proceeds of the land, some of them being married women and infants, are not affected by any tacit or express consent of their attorneys, Logwood & Pey-toD, to the terms of the contract between Peyton and the complainant, especially as Peyton had purchased the land, and was acting for himself and not his clients.

4th. We further hold that the clerk and master, or the beneficiaries in the fund, should not be embarrassed, or their remedy altered or delayed, by the arrangement under which the complainant purchased the land. Their right and remedy are precisely the same as before, and they cannot be enjoined from taking any steps they may see fit, to which they may be entitled under the law, to collect their debt. They cannot be compelled first to exhaust their remedy against Peyton and his surety; but they may proceed at once, if they choose, against the land. The relation of surety and principal did not exist between the complainant and Peyton. All that can be required of those entitled to the purchase money for the land [349] is, that in enforcing their own rights they must not interfere with the equities of others. But to protect the equities of others, they are not required to lose any right of their own, or to resort to a more expensive, dilatory, or uncertain remedy.

Where a vendor has sold land, retaining a lien for unpaid purchase money, and the vendee has made successive sales of different portions of the same land 'without removing the lien, it has been held, that in equity, as between the successive purchasers, the in-cumbrance should fall upon the different purchasers in the inverse order of time; and that the vendor may, in equity, be required, in enforcing his lien, to observe this order in the sale of the land. See Thompson v. Pyland, 3 Head, 537; Wright v. Atkinson, 3 Sneed, 588: — this, however, without having to adopt any different remedy.

We suppose that it will not be contended that a purchaser of mortgaged property,- with notice of the mortgage, could compel the mortgagee to resort to the personal obligation of the mortgagor, in exoneration of the mortgaged property; yet this is the proposition involved in the present attempt.

But the question remains, whether or not this bill may be maintained against the personal ■ representative of Peyton, to compel him to remove this incumbrance upon the land.

It is certainly true, as a general proposition, that, a purchaser of land, in possession under a deed with general warranty, can have no relief upon the warranty-for defects of title, before eviction.

[350] But this bill charges that, in addition .to the covenants in his deed, Peyton gave his solemn assurance and promise that he would pay the note to the clerk and master at maturity, and thus remove the incum-brance; and that this promise was required before the purchase from him was made.

He having received the full price agreed to be paid him for the land, ought, in equity, to pay off the incummbrance; and he ought to do so without delay, whether he had promised specially to do so or not. For so long as this incumbrance remains upon the land, it is an embarrassment upon the complainant’s title, which, as between him and Peyton, is unjust, and in violation of Peyton’s agreement to remove it, as alleged in the bill.

Ought not Peyton to be required specifically to execute this agreement? Is any other remedy adequate and complete?

Peyton’s obligation to pay the debt is not secondary, or dependent upon any condition; but is primary and absolute. Judge Story lays it down:

“A general covenant to indemnify for the purchase money due for land, upon an assignment thereof to an assignee, although it sounds only in damages, will be decreed to be specifically performed, upon the principles of quia timet.” 2 Story’s Eq. J., sec. 785.

Free access — add to your briefcase to read the full text and ask questions with AI

Rice v. Hunt, 59 Tenn. 344 (Tenn. 1873).

59 Tenn. 344 (Rice v. Hunt) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.