Taylor v. Atwood

47 Conn. 498
Supreme Court of Connecticut·Decided January 15, 1880·Published·Cited by 3 cases

Opinion

Hovey, J.*

This case comes here upon a motion in error to obtain the reversal of a decree of the Superior Court founded, mainly, upon the following facts:—One William M. Kellogg, being the owner of certain real and personal property in the town of Rocky Hill, and being indebted in a considerable sum to several parties, two of whom had sued him for the recovery of their claims, applied to the defendant Atwood, another creditor, for assistance, requesting him to pay his debts, take a deed of his real estate as security, and give him five years in which to redeem the property. Atwood gave no [500] definite answer to this application at the time it was made, but subsequently, having ascertained upon inquiry that one of the claims in suit was secured by attachment upon the real estate, he took from Kellogg an absolute deed of warranty of all his real estate, but made no provision in the deed or otherwise for the payment of his unsecured debts. The real estate was in two parcels, one of which, called the homestead, was of the value of $1,825, but was subject to a mortgage for $1,000; the other, which , was in the Rocky Hill meadows, was of the value of $1,000, but was subject to a mortgage for $600. It was expressed in the deed that Atwood should assume and pay the two mortgages. Kellogg’s personal property available for the payment of debts was worth less than $200. Atwood’s claim against Kellogg amounted to about $227; the amount of the claim secured by attachment upon the real estate was $191.91; the other claim in suit.amounted to $76.43, and the remaining unsecured claims amounted to $869.57. Kellogg was an ignorant and illiterate man, and at the time of executing the deed to Atwood was laboring under so much excitement arising from pecuniary embarrassment and the suits pending against him that he was incapable of making such a contract or of comprehending the nature, character and consequences of the business he was transacting. These facts were known to Atwood when he took the deed. The only consideration for the deed, as Atwood testified at the hearing, was his own claim against Kellogg, and his assumption of the debt which was secured by attachment on the real estate, amounting in the whole to about $418; though he paid in addition to that amount, after he obtained the deed, the other claim in suit, amounting to $76.43. About a month after the deed was taken by Atwood he conveyed the homestead to the respondent Mary Warriner, who took the conveyance in good faith, for a valuable consideration and without notice of the circumstances under which the deed was obtained. A part of the consideration was the assumption by her of the mortgage upon the property, of one thousand dollars. And about a month later Kellogg made an assignment of his property for the benefit of his creditors [501] under the insolvent laws of this" state, and the petitioner was duly appointed trustee of the property assigned.

The decree of the Superior Court upon these facts ordered the respondent Atwood, within a reasonable time, to convey to the petitioner as. trustee aforesaid, the parcel of land in the Rocky Hill meadows, free of all incumbrances created by him or by any one under him, and deliver to him possession of the same, and declared so much of the deed from Kellogg to Atwood as conveyed to the latter the meadow land to be null and void, and the title to that land, subject to the mortgage upon it of $600, to be vested in the petitioner as trustee for the benefit of Kellogg’s creditors. It also ordered the respondent Atwood, within a reasonable time, to pay to the petitioner as trustee the sum of $825, the sum received by him from the respondent Warriner for the homestead, with interest thereon from March 8th, 1879. And it perpetually enjoined the respondent Atwood from proceeding in or any further prosecuting an action of ejectment pending in the Superior Court in which he was plaintiff and Kellogg defendant, to recover possession of said meadow land.

The grounds upon which the reversal of this decree is sought by the plaintiff in error, are—

1. That it does not appear from the record or from the finding of the court below that the petitioner has ever accepted the office of trustee of the assigned estate of Kellogg, or has ever qualified as such, or that he was acting in that capacity when this suit was brought.

2. That the record does not show that the petitioner is at present entitled to any relief in equity, but shows that he has adequate remedy at law.

3. That the court below erred in declaring to be void so much of the deed from Kellogg to Atwood as conveyed to the latter the meadow land, and in not decreeing that said deed, as to that land, should be and remain an equitable mortgage in Atwood’s hands.

4. That the court erred in decreeing that the sum of eight hundred and twenty-five dollars be paid by Atwood to the petitioner, without making any deduction or allowance for the [502] amount of Atwood’s own claim and the sums paid by him on the two claims in suit.

6. That the court should have allowed to Atwood $191.91, the amount of the claim secured by attachment upon the property conveyed to him by Kellogg, and paid by Atwood to free the property from the attachment'.

6. That the relief granted was improper, as not placing or attempting to place Atwood in statu quo, but leaving him in a worse position than before the conveyance, and Kellogg’s estate in a better position than he was at that time.

7. That the court erred in not decreeing a specific performance of the contract between the parties in accordance with the terms of the proposition made by Kellogg to Atwood, and impliedly accepted by the acceptance of the deed of the premises.

Other errors are assigned, but a decision of the questions which they raise, being unnecessary to a proper disposition of the case, a statement of them is omitted.

The first question may be disposed of in a few words. The record shows that the petitioner was duly appointed trustee of the estate assigned by Kellogg for the benefit of his creditors ; and the bringing of the present suit and the prosecution of it to a final decree by him, furnish conclusive evidence of his acceptance of the trust and that he was acting in the capacity of trustee of' the assigned estate at the time the suit was brought. They also furnish primd facie evidence that he was duly qualified to act in that capacity; and that was sufficient, in the absence of evidence to the contrary, to satisfy the requirements of the law. Pond v. Hine, 21 Conn., 519; O’Neill v. Henderson, 15 Ark., 235; Penny v. Davis, 3 B. Monr., 314 ; Perry on Trusts, § 261.

The next question is whether the petitioner is entitled to equitable relief. The plaintiff in error contends that he has adequate remedy at law. •

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Taylor v. Atwood, 47 Conn. 498 (Colo. 1880).

47 Conn. 498 (Taylor v. Atwood) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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