Troy v. May

101 Ala. 401
CourtSupreme Court of Alabama
DecidedNovember 15, 1893
StatusPublished
Cited by1 cases

This text of 101 Ala. 401 (Troy v. May) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Troy v. May, 101 Ala. 401 (Ala. 1893).

Opinion

STONE, C. J.

The litigation presented in this appeal may truly be styled many-sided. It originated in a bill filed by appellee, May, to enforce a vendor’s lien on lands purchased by Walter Brothers from Ferrell. The purchase by Walter Bros, was made May 12, 1885, and they then gave as purchase-money three several notes, each for the sum of six hundred dollars, but -they obtained no title from Ferrell until August 13, 1885. Under a judgment against Ferrell obtained in the circuit court of the United States after May 12 aforesaid, and under execution issued thereon, the marshal sold the land on September 13, 1885, and Troy became the purchaser, receiving a conveyance. Up to this time Walter Brothers had not taken visible possession of the land so pui-chased from Ferrell, nor was there any notice of their purchase, actual or constructive, until the registration of the Ferrell deed to them, soon after its execution in August. The execution under which Troy purchased went into the hands of the marshal June 20, 1885.

[403]*403A few days after the purchase of Walter Brothers from Ferrell, and before the judgment was rendered under which Troy purchased, Ferrell sold and transferred to May the second and third of the purchase money notes given by Walter Bros. No question is raised on the bona fieles of this transfer, nor on the sufficiency of the consideration paid by May. There is testimony tending to show that before making this purchase May consulted Walter Brothers, and was assured by them that they had no defense to the notes. And no question was raised on this feature of the controversy, by any assignment of error.

Before May’s suit was brought to a hearing, Walter Brothers, in July, 1887, filed an original bill in the nature of a cross-bill, and made May, Troy and Ferrell defendants to their suit. In their bill they mentioned the other purchase money note which had not been transferred to May, charged that it too had been assigned to some person, alleged to be unknown. That suit was brought to this court by appeal, and is reported as Troy v. Walter Bros., in 87 Ala. 233, 6 So. Rep. 54. The substance of the facts as then presented in the pleadings and proof is set forth in the report of that case. It will be seen that up to that time it was not shown or averred who held the other note — the one not purchased by May — nor was it brought to the notice of the court in either of the suits that there was an. outstanding, unsatisfied mortgage on the lands, executed by Ferrell, and duly recorded, which was older than the sale to Walter Brothers. On the facts as they then appeared, when the marshal made the sale and conveyance to Troy the legal title of the lands was in Ferrell, and that legal title, for the term of Ferrell’s life, passed by the conveyance to Troy. We so ruled on that appeal. — Troy v. Walter, 87 Ala. 233, 6 So. Rep. 54; Daniel v. Sorrelle, 9 Ala. 436; Jordan v. Mead, 12 Ala. 247; Preston v. McMillan, 58 Ala. 84; Wood v. Lake, 62 Ala. 489; McCarthy v. Nicrosi, 72 Ala. 332; Watt v. Parsons, 73 Ala. 202; Dickerson v. Carroll, 76 Ala. 377; King v. Paulk, 85 Ala. 186, 4 So. Rep. 825; Paulk v. King, 86 Ala. 332, 6 So. Rep. 612.

After the reversal in this court — 87 Ala. 233 — the pleadings were changed in the court below, and the issues thereby materially enlarged. It was averred that [404]*404long before the agreement of sale from Ferrell to Walter Bros., Ferrell, being indebted to Molton for money borrowed and unpaid, had executed a mortgage to said Molton, conveying said land as security for the payment of the debt, with a power in the mortgagee to foreclose by a sale of the land, if there was default in payment. This mortgage had been duty and property recorded. There was a balance due, and still unpaid on the mortgage debt. Soon after the agreement of sale by Ferrell to Walter Brothers, the former turned over to Molton the purchase money note, the first of the series, (the one not traded or transferred to May,) as collateral security for the debt he owed him, so secured by the mortgage. This is the note which Walter Bros, alleged in their bill had been transferred, but they did not know to whom. It was also averred in the amended pleadings that, at a time which was probably after the reversal in this court, Molton had advertised and sold , said lands under the power contained in his mortgage, and that Walter Bros, became the purchasers, and received a conveyance. It is shown that at this sale by Molton, the bid and purchase were at a sum in excess of the balance due Molton on the debt secured by the mortgage, including expense of sale, and that this excess was paid by Walter Bros, to Molton, and by him to Ferrell. Molton was made a party to the litigation at this stage, and answered. All the foregoing averments were shown to be true, and there was no conflict in the testimony as to any of them. They are the admitted facts in the case, as now presented .

As we have said, when this case was first before us— 87 Ala. 233 — the record showed that Troy, by the deed the marshal gave him, acquired the legal title to the land, without notice, actual or constructive, of the equity which Walter Bros, had in virtue of their purchase from Ferrell. The present record adds strength to the equity of Walter Brothers, in this, that although they had not paid the purchase money, and had received no title when the lien attached under which Troy claims, yet, they had placed it out of their power to retire from the purchase without great loss. This because they had es-topped themselves from making defense to the notes held by May. The present record also presents Troy’s claim in a changed light. The marshal’s deed did not convey [405]*405to him a legal title, but only an equity of redemption— an equitable title. So, the contest between him and. Walter Bros, is a contest between equitable claimants, the claim of each being meritorious, when considered by itself. In 1 Pom. Eq., § 414, it is said: “As between persons having only equitable interests, if their equities are equal, ([wi prior est tempore ¡potier est jure.” Section 415. “When several successive and conflicting claims upon, or interests in, the same subject matter are wholly equitable, and neither is accompanied by the legal estate, which is held by some third person, and neither possesses any special feature or incident which would, according to the settled doctrines of equity, give it a precedence over the others wholly irrespective of the order of time,— under these circumstances the principle applies, and priority of claim is determined by priority of time.”

In defining the constituent elements of the defense of bona fide purchase without notice, this court, in Craft v. Russell, 67 Ala. 9-12, said : “A plea put in by a defendant claiming to be a bona fide purchaser for value without notice, in order to be available as a protection against a prior equity, * * must aver clearly, distinctly and without equivocation, the following facts : 1. That he is the purchaser of the legal, as distinguishable from an equitable, title.” — Hooper v. Strahan, 71 Ala. 75; O’Neil v. Seiras, 85 Ala. 81; 4 So. Rep. 745; Ledbetter v. Walker, 31 Ala. 175; Wells v. Morrow, 38 Ala. 125; Buford v. McCormick, 57 Ala. 428; Thames v. Rembert, 63 Ala. 561; Boone v. Chiles, 10 Pet. 177; Tourville v. Naish, 3 P. Wms. 307; Peabody v. Fenton, 3 Barb. Ch. 451; More v. Mayhow, Freem. Chy., (Eng.) 175.

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101 Ala. 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/troy-v-may-ala-1893.