State ex rel. Dillman v. Weide
Opinions
SMITH, J.
Appeal from the circuit court of Grant county. A petition was filed in the office of the clerk of the incorporated town of Revilla, purporting to be signed by 28 qualified voters, requesting the submission at the next general municipal election of the question of granting permits for the sale of intoxicating liquors within the municipality for the then ensuing year. This proceeding was instituted to prohibit the trustees and clerk from submitting said question to the voters as demanded in the petition, and alleging that said officers were without jurisdiction for the reason that the petition was not signed by 25 legal freeholder voters of the town, and that seven of the persons who signed said petition were not freeholders and therefore not qualified to sign said petition. An alternative writ of prohibition was issued, to which defendants made return and answer, admitting that 3 of the persons who' had signed the petition were not freeholders, but denying the allegation's of plaintiff as to the other 4 persons named, and alleging that the petition was signed by 25 legal freeholder voters. It is further alleged in the answer that 24 of the signers of said petition were owners of the absolute fee tO' lands within said town, and that one Hans Helgeson was a legal freeholder voter, and had a legal freehold estate and interest in lot 5, block 3, of said town by virtue of a contract of sale thereof, entered into between said Hans Helgeson and -one Chloe Dillman on the 26th day of October, 1910, whereby the said Chloe Dillman, in consideration of the sum of $80, agreed to convey by warranty deed the fee-simple title to said lot to said Hans Helgeson on the 1st day of November, 1911, and that Hielgeson under and by virtue of said contract had paid $40 of the consideration for said lot, and had made all payments and done all things required under and by virtue of said contract, and had been put in quiet and peaceable possession thereof since the date of said contract, had paid all taxes and assessments thereon since said contract was made, was holding the same in good faith, and was financially able to pay, and would pay, the balance of the purchase price for said lot and [115] secure a warranty deed therefor on the ist of November, 1911; that the said Chloe Dillman at the time said contract was made was the owner in fee of said lot; that said contract was acknowledged so as to entitle it to record, and on the ist day of November, 1910, was duly recorded in the register of deeds office of said county. To this answer plaintiff demurred on the ground that it did not state a defense. An order was made by the trial court sustaining the demurrer upon the specific ground that Helgeson was not a legal freeholder voter.
Defendants elected to- stand upon the answer, and appeal from a judgment granting a peremptory writ prohibiting further proceedings on the submission at said election of the question of selling intoxicating liquors. The sole question presented is whether Helgeson was a legal freeholder voter, and qualfied' to sign the the petition. It is conceded that, if Helgeson was not a freeholder, the village trustees had no jurisdiction in the premises, and were not authorized to submit the question to a vote.
Free access — add to your briefcase to read the full text and ask questions with AI
SMITH, J.
Appeal from the circuit court of Grant county. A petition was filed in the office of the clerk of the incorporated town of Revilla, purporting to be signed by 28 qualified voters, requesting the submission at the next general municipal election of the question of granting permits for the sale of intoxicating liquors within the municipality for the then ensuing year. This proceeding was instituted to prohibit the trustees and clerk from submitting said question to the voters as demanded in the petition, and alleging that said officers were without jurisdiction for the reason that the petition was not signed by 25 legal freeholder voters of the town, and that seven of the persons who signed said petition were not freeholders and therefore not qualified to sign said petition. An alternative writ of prohibition was issued, to which defendants made return and answer, admitting that 3 of the persons who' had signed the petition were not freeholders, but denying the allegation's of plaintiff as to the other 4 persons named, and alleging that the petition was signed by 25 legal freeholder voters. It is further alleged in the answer that 24 of the signers of said petition were owners of the absolute fee tO' lands within said town, and that one Hans Helgeson was a legal freeholder voter, and had a legal freehold estate and interest in lot 5, block 3, of said town by virtue of a contract of sale thereof, entered into between said Hans Helgeson and -one Chloe Dillman on the 26th day of October, 1910, whereby the said Chloe Dillman, in consideration of the sum of $80, agreed to convey by warranty deed the fee-simple title to said lot to said Hans Helgeson on the 1st day of November, 1911, and that Hielgeson under and by virtue of said contract had paid $40 of the consideration for said lot, and had made all payments and done all things required under and by virtue of said contract, and had been put in quiet and peaceable possession thereof since the date of said contract, had paid all taxes and assessments thereon since said contract was made, was holding the same in good faith, and was financially able to pay, and would pay, the balance of the purchase price for said lot and [115] secure a warranty deed therefor on the ist of November, 1911; that the said Chloe Dillman at the time said contract was made was the owner in fee of said lot; that said contract was acknowledged so as to entitle it to record, and on the ist day of November, 1910, was duly recorded in the register of deeds office of said county. To this answer plaintiff demurred on the ground that it did not state a defense. An order was made by the trial court sustaining the demurrer upon the specific ground that Helgeson was not a legal freeholder voter.
Defendants elected to- stand upon the answer, and appeal from a judgment granting a peremptory writ prohibiting further proceedings on the submission at said election of the question of selling intoxicating liquors. The sole question presented is whether Helgeson was a legal freeholder voter, and qualfied' to sign the the petition. It is conceded that, if Helgeson was not a freeholder, the village trustees had no jurisdiction in the premises, and were not authorized to submit the question to a vote.
In Pomeroy’s great work on Equity Jurisprudence (volume 6, c. 42, page 1372), treating of equity estates and interests under contracts of -sale and purchase of land, the learned author quotes with approval the language of Eord Eldon in Seton v. Slade: “The estate from the signing of the contract is the real property of the vendee. It descend® to his heirs, it is devisable by his will, [121] and the question whose it is, is not to be discussed merely between the vendor and vendee, but may be discussed between the representatives of the vendee.” Again (section 840) the author says: “Thus where the vendee die-s having a contract for lands, but, the conveyance has not yet been made to him, the vendee’s interest in the lands shall be considered as real estate and descend to his heir, or he may -devise them by will, and his representatives ■shall pay the purchase money out of the assets.” In Loventhal v. Home Ins. Co., 112 Ala. 108, 20 South. 419, 33 L. R. A. 258, 57 Am. St. Rep. 17, -ci-ted by the author, it is said: “As land, the vendee may convey or -devise it, and, as land-, it is descendible to his heirs, who may, in a court of equity, compel specific performance of the contract.” Again, at section 847, the author says: “Rands contracted for pass by the devise of the vendee, and his executor must pay the purchase price out of the personalty. Even though the devise is general as, ‘all my lands,’ it passes the equitable title of lands contracted for by the vendee. A devisee can bring -suit to compel specific performance of the contract.” In 1 Warvelle on Vendors (2d Ed.) p-. 224, the same doctrine is announced. “The equity which is vested in the vendee is a proper subject of devise by him, and will descend to his heirs the same as- realty. The same rights which- were possessed by their ancestors- will devolve on them, and they may have an- enforcement of the contract in their own favor. Hence where there is a contract for the purchase of land, inasmuch as- it descends in equity to the heirs of the vendee as real estate, they may call on the executors or administrators -to discharge the contract out of the personal estate .so as to enable them to demand a conveyance, from the vendor.” And in passing we may observe that it is in connection with the descent of real property that the doctrine of equitable conversion has its appropriate -and most frequent application. In the c-ase of Clapp v. Tower, 11 N. D. 556, 93 N. W. 862, under a statute identical with our own, the question under discusision was directly passed upon by the Supreme Court of North Dakota in a -carefully considered opinion by Mr. Justice Young, in which the rule laid -down by Mr. Pomer-o-y in his work on Equity Jurisprudence is -approved and adopted. The question [122] arose between the executors and heirs and devisees under the will. The court says: "The rule is uniform, we think, that, where a valid and binding contract of sale of land has been entered into, such as a court of equity will specifically enforce against an unwilling purchaser, the contract operates as a conversion.” It was there 'held that, upon the death of a vendor, all his interest passes to his executors as personalty, and that the vendor holds the legal title only as trustee and as security for the performance of the contract by the vendee. To the same effect is Bowen v. Lansing, 129 Mich. 117, 88 N. W. 384, 57 L. R. A. 643, 95 Am. St. Rep. 427. See, also, Woodward v. McCollum, 16 N. D. 42, 111 N. W. 624; Croxall’s Lessee v. Sherrerd, 72 U. S. 268, 18 L. Ed. 572; Commonwealth v. Briucher, 41 Va. 826.
Only one decision is cited by respondent which is apparently m conflict with the conclusions here reached, and that is the case of Cohn v. Wellivar, 84 Neb. 230, 121 N. W. 107. In that case language i's used by the court which it must bq conceded tends to sustain respondent’s contention, but the decision is based largely, if not wholly, upon the definition of a freehold estate by Justice Holcomb, cited in 20 Cyc. 843, where it is said: “From the definitions given, it < will readily be seen that, in order to be a freeholder, a person must have a property right in and title to real estate amounting to an estate of inheritance or for life, or for an indeterminate period. What is required is title to the property, and not simply a contingent or an expectant estate, nor a right of occupancy, or a privilege with power to prevent alienation or incumbrance by the holder of the legal title.” The language quoted is absolutely in line with the authorities above quoted and the conclusions we have reached in the case at bar. Under this definition, a person having a right and title in real estate amounting to an estate of inheritance or for life is-a freeholder. “What is required is a title to the property” are words in this definition to which respondent apparently attempts to attach the meaning that the “title” referred to can be nothing else than a legal title. The language of Judge Holcomb does not warrant such a conclusion, but clearly does sustain the conclusion that, to be deemed a freeholder, a person must have a property right in real estate [123] ‘‘amounting to an estate of inheritance.” Respondent’s confusion in the application of this definition apparently arises from overlooking the universally admitted rule above stated, that an equitable interest or estate in real property is equally inheritable with a legal estate, and that both are freehold estates. The case of Marica v. Yost, 85 Neb. 842, 124 N. W. 460, cited by respondent, goes no further than to hold that a petitioner must be a bcjir fide freeholder, and i's decided upon -the ground of fraud and a ro'orable attempt of the signor to qualify as a freeholder. In the case of Cohn v. Wellivar, supra, cited by respondent, the same question of bona fide freeholder is 'also involved, and, while the decision contains language which perhaps sustains respondent’s contention, the court very strongly intimates that the contract •there construed did not purport to vest in the vendee any present interest in the real estate, but might be considered merely an agreement to sell in -the future,' upon compliance with terms and payments stipulated in the contract, and that no purpose was disclosed to vest any present interest in the purchaser, nor to give any right to claim any interest, until the terms of the contract were fully met. This decision rests upon the definition of Judge Holcomb above quoted, which in our judgment -does not sustain the conclusion announced. In the case of Hannah v. Shepard, (Tex. Civ. App.) 25 S. W. 137, the exact question was passed upon which is before us upon .this apeal. The court there said: “We are of the opinion that the court did not err in holding that the petition for the election was- signed by 20 freeholders. The signers who had not paid for their land were equitable freeholders, and the one who was not in possession of the land he had contracted for had the right of possession.” Goodwin v. Board of Lducation, 38 Mich. 95. The case of Commonwealth v. Reynolds, 31 Va. 663, cited by respondent, was decided many years ago, and the question as to what constitutes a freehold estate -appears to have been but very casually considered by the court. In our opinion -the ruling should be given but little weight in this discussion. Respondent’s contention is, in effect, that the Legislature intended to qualify as signer of a petition only the holder of the legal title. But this contention utterly ignores the very language [124] ■of the statute itself, which says, not that the owner of the legal title oor the owner of the equitable title is qualified as a signer, but that the owner of a freehold estate is qualified, and as it must be conceded that either a legal or an equitable estate in real property is a freehold, . if would be a plain preversion of the language of the statute, and of the legislative will as therein- expressed, for this court to decide that only'' the holder of the legal title is so qualified.
The term “estate,” as descriptive of rights in property, “signifies the quantity of interest which a person has, from absolute ownership -down to naked possession” (Bouvier, L. D. 692), while “title” is “the means whereby the owner of lands has the just possession of -his property” (Bouvier, L- D. 121). As between vendor and vendee of real property, the term “estate” may be defined to be “an -interest -in real property which confers -the right to a full and complete or to a limited, beneficial use of the property its-elf.” The “title” and the “estate” are not identical. The “title” may be said to be -the evidence of the right. Formerly the equitable right -or title could -only be -exhibited in .a court of chancery. But either in law or -in -equity the substantial thing — the estate — is the same, the right to a beneficial use of the property its-elf. One person may hold the legal “title,” while the “equitable title” or right is held by another. But the same estate — the right for example to the full, perpetual beneficial use of property — cannot be vested .in one person, while the equitable estate or right to the full and perpetual use of the same property is- vested in another (except, perhaps, certain' classes of express trusts), for the simple reason, that the same -thing cannot be in two- separate and [125] distinct places at the same time. But when the right to the complete unconditional and perpetual beneficial use of (or equitable title) has become vested in one person by contract or operation of law, while the legal title is -in another (except when held as security only), a count of chancery will compel a transfer of the legal title -to the holder of the equitable estate or title, because the legal title and the right to the beneficial use should be united in the same person. As we have shown, when the naked legal title is vested in a decedent, and the equitable estate in another, the heirs of -the -decedent acquire no estate whatever in real property. The. naked legal title passes to them, but no estate, for the simple reason that -the -estate, not being in the ancestor, cannot descend .to his heirs. If in .such case two- estates could exist at the same time — the legal estate in the decedent and the equitable estate in another — the legal estate would certainly descend to the heirs. But no- court has ever bo held. It is granted, of course, that a vendor of real property may* carv-e out of his complete estate and -sell a limited portion-, such as an estate for life or for years, and retain the residue in himself; and in such case the residue of the estate would descend to his heirs as real property. But no case has been found holding that any estate in real property ever vested in heirs, where the contract of the vendor is intended to convey and vest his entire beneficial interest in the property in the vendee. It would seem illogical, therefore, to say, as respondent contends, that there can never exist an equitable -estate in real property, unless there exists at the same ■time -a legal estate in -some -other person. The right to the same “beneficial use of real property” cannot exist in -two persons at the same time. But -the legal title to real property may be in one person- while the equitable title or right is- in -another, and the confusion of thought arises from assuming .that the -legal title always confers, or has back of if, the estate, the right to the beneficial use of the property, thus confusing the “title” with- -the “estate.” It may be granted, of course, that an equitable title or right to real property cannot exist without legal title to the property vested somewhere. The same confusion of thought inheres in the suggestion that a person- must bring- an action in a court of [126] chancery before he can acquire an equitable title or estate. The “title” and the “remedy” are confused. It is only when the rights of the holder of the title, whether it be legal or equitable, are denie'd him, that the holder of the estate is compelled to enforce his rights -in a court, and the necessity for legal proceedings to enforce the holder’s rights when denied is the same whether his title be legal or equitable. In either case the judgment or decree of the court may become incontrovertible evidence of the title and of the right to the estate, but the title or right existed before the judgment or decree. Were it not for the dual aspect of the 'question presented by discussions of courts and law-writers, as to the effect of executory contracts for the sale of land at law, and in equity, two minds could hardly differ as to conclusions.
But these different aspects of estates and titles and rights of parties under such contracts had their origin in differences of procedure in the common law and chancery courts, which do not exist in states like our own, which have abolished the distinctions between law and equity as rules of right, and have but a single court with jurisdiction to ascertain and adjudicate all such ultimate rights in a single action. This change in jurisdiction and procedure renders inoperative and practically destroys the common-law rules governing substantive rights, in so far as those rights were dependent upon or grew out of the modes of procedure in common law and chancery courts. It is apparent that the rules of equity which determine ultimate substantive rights now supersede and render ineffectual any technical rules of the common law which were in conflict with or which made inapplicable those equity rules. Under the rules of law as formerly administered, the vendor in an executory contract for the sale of land remained to all intents and purposes the owner of the land (Pomeroy’s Equity Jurisprudence,' § 367), while in chancery courts the vendee was looked upon 'and treated as the owner of the land, and an esitate was vested in him commensurate with that provided for by the contract, whether in fee, for life, or for years (Id. § 368). It follows that the equity rule as to rights of parties and conditions of titles and estates should be adopted by our courts. [127] Speaking of the class of contracts- under discussion, the learned author, Mr. Pomeroy, says: “The equitable interest of the vendor is correlative with that of the vendee. His beneficial interest in the land is gone, and only the naked legal title remains, which he holds in trust for the vendee, accompanied, however, by a lien upon the land as security when any of the purchase price remains unpaid. This lien, like eveiy other equitable lien, is not an interest in the land, is neither a jus ad rem, nor a jus in re, but merely an encumbrance.’ ’ The conclusion seems , clear that as between vendor and vendee any contract which operates to vest the equitable estate in -the vendee -divests the vendor of his entire estate, and that the vendor cannot thereafter be considered a freeholder for any purpose. Equally clear is the conclusion that the vendee becomes a freeholder. It has been suggested' that the application of the law itself by municipal officers charged with its administration would be rendered simpler and easier if we should decide that the holder of the legal -title only are qualified signers of a petition. But is it not clear that it requires not less legal information -on the part -of municipal officers to- know that the holder of the naked legal title is not a freeholder than to know -that the holder of the equitable title and estate is a freeholder? We believe that, when the Legislature s-aid “freeholder,” they meant “freeholder” — nothing more an-d nothing less — and we do not believe that this court by a construction founded upon technicalities of procedure applied to- English land tenures -and the Feudal law should give the language of the act an interpretation which excludes a class of freeholders plainly within its terms. It is conceded that the term “freeholder” includes the holder of the equitable estate.
The order of the- trial court sustaining the demurrer is reversed, and the cause remanded for further proceedings according to law.
135 N.W. 696 (State ex rel. Dillman v. Weide) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.