Riley v. Martinelli

21 L.R.A. 33, 32 P. 579, 97 Cal. 575, 1893 Cal. LEXIS 593
CourtCalifornia Supreme Court
DecidedMarch 21, 1893
DocketNo. 18084
StatusPublished
Cited by63 cases

This text of 21 L.R.A. 33 (Riley v. Martinelli) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riley v. Martinelli, 21 L.R.A. 33, 32 P. 579, 97 Cal. 575, 1893 Cal. LEXIS 593 (Cal. 1893).

Opinion

Searls, C.

This action is brought to obtain a judgment decreeing Ellen L. Riley, the appellant, to be the owner of certain premises situate in Woodland, Yolo County; that a sheriff's sale thereof to defendant F. Martinelli be declared null and void, etc.

J. T. Riley, one of the defendants, and Ellen L. Riley, the plaintiff, were at the several dates herein mentioned husband and wife.

About January, 1880, plaintiff and her husband negotiated for the purchase of the premises in question, which negotiations culminated in the purchase and paying for the same by the plaintiff, who took a deed of conveyance therefor in the name of her husband, which deed was duly recorded in the office of the county recorder of the county of Yolo.

The purchase price of the land was $375, and was paid by the plaintiff from her separate property. She also, according to her testimony, built a dwelling-house upon the land, at an expense of one thousand dollars, which was also paid for by her out of her separate property.

Plaintiff and her husband, J. T. Riley, occupied the [579]*579premises as a family residence up to the time of the levy of the execution hereinafter mentioned, and subsequent thereto, which was known to defendant Martinelli, but there was nothing in the manner or method of the residence or occupation or use of the property which imparted or tended to impart notice to any person that plaintiff had or claimed to have any separate property, interest, or estate in or to said premises.

There was a private understanding between plaintiff and her husband, before the conveyance, that the title to the premises should be conveyed to the latter, and that thereafter, when plaintiff desired him to do so, he would convey to her. Plaintiff often requested her said husband to make such conveyance, but he failed and neglected so to do. Plaintiff stated to her friends that she claimed said premises as her property, but such claim was not openly proclaimed, was not known by the defendant Martinelli, or by the public generally.

Defendant Martinelli held a mortgage,against property of the husband, J. T. Riley, other than the premises in question, which he foreclosed, and under which he sold, and there being a deficiency, judgment was docketed in his favor and against J. T. Riley, upon which judgment execution issued to the sheriff, who levied upon the premises in question in this action, and in due time, and after proper notice, sold the same as by law required, said Martinelli, the judgment creditor, becoming the purchaser for $1,265.73, the amount of his judgment and costs.

A certificate of sale was issued to him as purchaser, and a duplicate thereof recorded in the office of the county recorder of the county of Yolo. The time for redemption expired July 10, 1891, and no redemption was made or had.

Before purchasing the property, Martinelli examined the records of the county, and found it stood in the name of the husband, J. T. Riley, and that there was a mortgage thereon executed by the latter.

The findings show that Martinelli, up to the time of [580]*580his purchase, had no notice of any equitable claim of plaintiff in or to the premises. Martinelli received a sheriff’s deed of the premises after the filing of the original complaint herein, but before the amended complaint was filed, viz., August 5, 1891,

As between the plaintiff, who is appellant here, and her husband, there is no question but that the latter held the legal title to the premises in trust for the former.

The doctrine is well established that where land is purchased in the name of one person, and the consideration is paid by another, the land will be held by the grantee in trust for the person furnishing the consideration. (Bayles v. Baxter, 22 Cal. 575; Hidden v. Jordan, 21 Cal. 92; Millard v. Hathaway, 27 Cal. 119; Currey v. Allen, 34 Cal. 254.)

The doctrine is well established, also, that the lien of a judgment and execution attaches to the real, instead of the apparent,'interest of the judgment debtor in and to his property, and that under ordinary circumstances a sale made under such lien transfers no interest beyond that in fact held by the defendant when the lien attached, or acquired by him subsequently thereto, and before the sale. (Freeman on Executions, sec. 335; Freeman on Judgments, secs. 356, 357; Frink v. Coe, 70 Cal. 296.)

“ The purchaser at an execution sale takés his title subject to such liens, easements, and equities as it was subject to in the hands of the defendant in execution, unless he can show that he is a purchaser in good faith, and without any notice, actual or constructive, of the existence of such lien, easement, or equity.” (Freeman on Executions, sec. 336.)

This doctrine does not, however, reach the point under consideration in this case. We may concede that the rule enunciated above applies to a third party purchasing at a sale under execution, and the question still remains: Does the judgment creditor, who purchases at his own sale, and pays no money, but credits the amount [581]*581of his bid on his judgment, stand in the same position as a third party, who has purchased at a like sale, and paid a money consideration?

In other words, Is the judgment creditor, who bids at his own sale, and as the effect thereof satisfies his judgment in whole or in part, a purchaser for value in that sense which entitles him to protection? The authorities are by no means uniform on the question.

In Iowa, in Gower v. Doheney, 33 Iowa, 36, a case in which the judgment debtor held lands under an implied trust, in pursuance of which, subsequent to the judgment, he conveyed to the cestui que trust, the latter failed to record his deed, and the lands were purchased by the judgment creditor at execution sale, without notice of the deed or of the equitable estate, and it was held that the execution creditor took his title freed from the equity.

The decision was based upon the equitable theory that where one of two innocent parties must suffer, the loss should fall upon that party who has been guilty of the first negligence.

Other cases in Iowa hold that when a creditor merges his judgment into a title, without notice, actual or constructive, of private equities, he becomes a purchaser, and is entitled to protection, equally with any subsequent bona fide purchaser.

In Indiana the court held both ways on the question. (See Vitito v. Hamilton, 86 Ind. 137, and Carnahan v. Yerkes, 87 Ind. 62.)

In the latter case it was held that " an execution creditor, who bids off property at a sale upon Ms own execution, and applies the bid to the payment of his own judgment, is not regarded as a bona fide or innocent purchaser."

It is sufficient to say that a large number of cases to like effect are to be found, and holding, with more or less uniformity, that a plaintiff purchasing at a sale under his own writ takes subject to all equities against áhe defendant in execution, whether he has notice of [582]*582them or not. This view is founded upon the theory that, to constitute a person a bona fide

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Bluebook (online)
21 L.R.A. 33, 32 P. 579, 97 Cal. 575, 1893 Cal. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-martinelli-cal-1893.