Stokes v. Middleton

28 N.J.L. 32
CourtSupreme Court of New Jersey
DecidedNovember 15, 1859
StatusPublished

This text of 28 N.J.L. 32 (Stokes v. Middleton) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stokes v. Middleton, 28 N.J.L. 32 (N.J. 1859).

Opinion

The opinion of the court was delivered by the

Cjiieu' Justice.

The deed itself is a deed of bargain and sale, operating under the statute of uses, and vesting in the grantee the absolute legal estate in the premises. A trust is grafted upon the legal estate, and the trustee is authorized, for specified purposes, to make sale of the real estate. It is perfectly clear that, independent of the statute, the trustee had full power to make sale of the real estate, and the deed conveyed the legal estate to the grantee.

The deed does not purport to be an assignment under the statute. It is executed obviously for other and different purposes. The statute was designed to secure an [34]*34equal and just distribution of the estate of an insolvent-debtor among his creditors, and to secure to the debtor a discharge of his debts from all the creditors who consent to receive a dividend of his property. All the provisions of the act look to this result. It is in the nature of a voluntary bankrupt law. This conveyance contemplates no such result. None of the parties so understood it. Neither the grantor nor the grantee took a step in compliance with the requirements of the statute. The wife of the grantor joined in the conveyance. It was not a mere assignment of the debtor’s estate—it included that ■ of the wife also. It provides for three objects, viz. 1, the payment of the debts of the grantor; 2, a provision for the wife of the grantor for life; 3, the conveyance of the residue to his children. The grantor was not insolvent at the time, nor supposed, to be so. The leading design of the conveyance appears not to have been the satisfaction of creditors, but the creation of a trust for the wife and children after the debts were paid. It was rather in the nature of a post-nuptial settlement than an assignment for the benefit of creditors.

It is unnecessary to inquire whether, in case of a deficiency in the estate for the payment of debts, the grantee might have been compelled, at the instance of creditors, to proceed under the act. The debts were satisfied; there are no creditors who complain of the proceedings of the trustee : neither the grantor or his heirs, or those claiming under him, can object to the validity of the conveyance.

There is nothing in the objection that the sale was not conducted in compliance with the requirements of the assignment act.

There is a further objection to this deed involved in the offer of evidence on the pari of the defendants. The defendants offered to show that all the debts of Joel Middleton subsisting at the time of the execution of the trust deed were paid by the sale of other lands by the trastee, and that the lot in question was sold for the payment of [35]*35debts subsequently incurred by Middleton. This evidence was overruled and properly so.

Admitting the fact to be as alleged, that the trustee sold the land for other purposes than those specified in the trust deed, it would not impair the legal title. The absolute legal title to the estate was vested in the trustee. He had not a mere naked common law power of sale, which expired when the object was effected for which the trust was created. As the absolute owner of the legal estate, the trustee may exercise all the powers which the legal ownership confers. The legal estate in the hands of the trustee has precisely the same properties and incidents as if the trustee were the usufructuary owner. At law it may bo assigned, conveyed, or encumbered by the trustee, and the conveyance will vest in the grantee the clear legal title. Lewin on Trusts 242, 244, 412; Hill on Trustees 229, 278.

The evidence for the defence was therefore properly overruled. Though, in making the sale, the trustee acted m violation of his trust, the legal estate nevertheless passed by the conveyance, and vested in the grantee.

The second question certified relates to the validity of the deed made by the commissioners appointed by three judges of the Court of Common Pleas of the county of Burlington, to make partition of the real estate whereof David Claypole died seized to Samuel Shinn. The deed itself is in due form. But it is objected that there was no evidence before the court of authority in the commissioners to make the deed. The plaintiff offered only a certified copy of the report of sale by the commissioners, and the rule of court confirming the sale and ordering the conveyance to be executed. Neither the application to the judges for the partition, nor the order appointing the commissioners, nor any of the other proceedings previous to the report of sale, were in evidence. It is admitted that the certified copy of the report of sale was not competent evidence; as the law stood at the date of the report, there [36]*36was no law authorizing the report to be recorded, nor making a certified copy thereof by the clerk of the Court of Common Pleas evidence. The provision for that purpose in the existing law is of later origin. Elmer’s Dig. 495, § 41; Nix. Dig. 575, § 17. The plaintiff’s case, therefore, so far as it regards proof of authority to make the deed, rests upon the order of the Court of Common Pleas confirming the sale and the recitals in the deed itself. There is no other proof of the appointment of the commissioners, or of their authority to make the sale; The order itself recites the fact, .that the commissioners were appointed; that they were ordered to sell the land, and that they had made report of sale, and thereupon confirms the sale as valid and effectual in law. The law does not prescribe that any of the previous proceedings shall appear of record. They are' conducted before and under the authority of the judges, not of the court itself. * They are not in the possession nor under the control of the court, and as the law stood at the date of their proceedings, were neither required to be filed nor recorded. The first step in the cause which brings the case within the cognizance of .the court is- the report of sale; and that, as we have seen, was not required to be recorded. The only record in the cause is the rule confirming the sale and ordering the conveyance to be executed. The court had jurisdiction of the subject matter. They were a court of general jurisdiction, not a tribunal constituted for a specific purpose, exercising a special delegated statutory authority. Den v. Hammel, 3 Harr. 73.

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Cite This Page — Counsel Stack

Bluebook (online)
28 N.J.L. 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stokes-v-middleton-nj-1859.