Simpson v. Niles

1 Ind. 196, 1 Smith & H. 104
CourtIndiana Supreme Court
DecidedDecember 1, 1848
StatusPublished
Cited by4 cases

This text of 1 Ind. 196 (Simpson v. Niles) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simpson v. Niles, 1 Ind. 196, 1 Smith & H. 104 (Ind. 1848).

Opinion

Smith, J.- —

This was a suit in chancery. The bill alleges that, on the 6th of March, 1837, Niles, the complainant, purchased from William Polke, certain lands in Fulton county, for which he, at that time, paid the full amount of the consideration money, and received a bond for a deed. Also, that, in the year 1834, a tract of land in Marshall county, was entered at the land office of the United States in the name of Polke with the money of Niles. It is alleged that, partly through negligence, and partly because the complainant desired to sell the land, and, to avoid expense and inconvenience, intended to have had deeds made to the purchasers directly from Polke, he took no conveyance from the latter until the 3d of May, [197]*1971839, when Police and wife executed to him a deed for the tracts above mentioned.

The bill then further states, that, on the 9th of March, 1837, Niles agreed to purchase Police’s interest in another tract of land in Marshall county, called the Plymouth tract, for 2,000 dollars, one fourth of which sum was .paid at the time, and for the balance three notes were given, for 500 dollars each, payable in twelve, eighteen, and twenty-four months respectively; and that a title-bond was received, conditioned for the execution of a deed upon the payment of the notes. Niles alleges that he paid the notes as they became due, and that, on the 3d of May, 1839, Police and wife executed to him a deed for this last mentioned tract also; but that, in consequence of a mistake or misdescription in this deed, a second deed for the same property was executed on the 13th of August, 1839.

The bill then alleges that, on the 20th of November, 1838, Simpson, the defendant, recovered a judgment in the Circuit Court of the United States, for this District, against one Lasselle for 2,760 dollars; that, on the 28th of December, 1838, Police, with others, executed a replevinbond to stay execution on the judgment, which bond was taken by the marshal, and was retened, with an execution which had been issued; and filed in the clerk’s office, on the 1st of April, 1839; that after the stay on the judgment had expired, another execution was issued and levied on part of the lands above mentioned, conveyed to Niles by Police; and that the defendant, Simpson, threatened and intended to levy on all said lands, &c. The bill prays for a decree perpetually enjoining the defendant, Simpson, from levying on said lands, and to quiet the title of the complainant, &c.

Simpson’s answer denies any knowledge or notice whatever of the claims of the complainant on said lands, and charges that they are fraudulent and void as against the lien of his judgment. He alleges that Lasselle has no property sufficient to satisfy his debt, and insists that the claims of Niles ought not to interfere with his hen.

[198]*198Several depositions were read, but the only fact proved by them which we shall notice for the purposes of the present inquiry is, that the last payment of 500 dollars for the Plymouth tract, which fell due on the 9th of March, 1839, was not paid at that time, nor until sometime about the month of October following, so that both the deeds described in the bill of complaint were executed by Police and wife to Niles before that payment was actually made.

The Court below found the material allegations of the bill to be true, and rendered a decree according to the prayer of the complainant.

It is understood that the only point contended for by the plaintiff in error is, that the decree should have required Niles to pay to Simpson, as a judgment-creditor of Police, that portion of the purchase money for the Plymouth tract, which remained due at. the time the replevinbond was executed, as the condition or terms upon which the relief prayed for should have been granted.

To determine the question thus raised, it is necessary to inquire what is the effect of a judgment obtained against the vendor of land, after the date of the, contract of sale, and before that of the conveyance of the land to the purchaser, a part of the purchase-money having been paid before the rendition of the judgment.

In England it appears to have been uniformly considered that, though a contract for sale is, as between the vendor and purchaser, a conversion of the realty into personalty, yet that judgments obtained against the vendor subsequent to the date of the contract are liens, of which, say the writers upon conveyancing, it is incumbent on the vendor to procure a discharge by release or satisfaction for the security of the purchaser, so far as any part of the purchase-money may remain unpaid after the judgment and notice thereof. Atk. on Tit. 585.— 1 Sugd. on Vend. 613. Equity would relieve the purchaser against judgments entered subsequently to the contract, to the extent that he had paid his purchase-money, if he had not taken a conveyance, or had taken one which was defective. 1 P. Wms. 278.—Finch’s R. 28. But [199]*199we can find no authority going so far as to say, that such relief would be granted when the lien of the judgments attached before payment of the purchase-money.

The principle upon which relief is afforded to purchasers, when the legal title remains in the vendor, and the land is consequently, at law, subject to execution upon judgments against the latter, seems to be, that the purchaser has as good an equity as the judgment-creditor, and prior in point of time, having honestly paid his money before the land became subject to the judgment-lien. But this principle pre-supposes that the land is subject to execution and to the lien of judgments against the vendor, and it is manifest that the purchaser has no such prior equity if the purchase-money was not paid before the lien of the judgment attached. In that case he would not have been bound to pay the purchase-money to the vendor; he might have retraced his steps and rescinded the contract if the vendor refused to procure a release or satisfaction of the judgment; or if a part of the purchase-money had been paid previous to the rendition of the judgment, he might have applied the portion remaining unpaid to the extinguishment of the lien thus created. Buell v. Tate, 7 Blackf. 55.—Park v. Johnson, 11 Wend. 450.—4 Mad. Ch. R. 508, n. If, instead of doing so, he voluntarily paid the money to the debtor, he certainly cannot claim any precedent equity as against the judgment-creditor for the value of the payment thus made.

In Finch v. The Earl of Winchelsea, 1 P. Wms. 277, tlie earl agreed with the countess dowager, that, in case she would surrender her -estate for life in certain premises to him, he having the remainder in tail, in order to enable him to mortgage part of the premises, he would settle the residue of the premises, together with the equity of redemption on himself for life, &c., remainders over, under which the plaintiff claimed. The countess dowager, accordingly, made her conditional surrender; the earl suffered a recovery, made the mortgage, and died without settling the premises according to the agreement. He [200]*200was indebted at his death by judgment.

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Bluebook (online)
1 Ind. 196, 1 Smith & H. 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-niles-ind-1848.