Truebody v. Jacobson

2 Cal. 269
California Supreme Court·Decided July 15, 1852·Published·Cited by 10 cases

Opinion

For plaintiff it was argued that this was an original bill, in the nature of a bill of review. 1 Story’s Eq. Plead. § 455.

1st. If the decree be allowed to stand, then defendant, Wilson, gets the property without pretending that he paid any consideration for it. This is wrong in itself, and the claim inequitable and fraudulent. 6 How. S. C. R. 189.

2nd. We are entitled to a decree; for the answer does not set up that defendant is a bona fide purchaser for valuable consideration, without notice. 2 Peters, 209. 211. 212. 213. 207.

3rd. This being a contract to convey, on the performance of conditions, and not a conveyance of the legal title, the doctrine of the vendor’s lien, has nothing to do with the case. It is in the nature of a mortgage to secure the purchase-money, 10 Peters, 209. 2 Smedes & Marshall, 590; 4 Ib. 294.

We having the contract and the title to the estate, and the right to subject it to the payment of the purchase-money, every act done by the defendant tending to defeat the payment and destroy the title, is a fraud. Wilson was attorney for defendants throughout the controversy. He inquired of Dunbar into the situation of the title, before he took an assignment, and while. Sparks was in possession. He refused to be sworn touching the point where the equitable title was. And it is proved that Guzman was in possession at the date of the purchase, and up to January 28th, 1851; thus deluding the plaintiff by the possession, as well as by concealing the title.

At the time Wilson was making affidavits as Guzman’s attorney, to set aside plaintiff’s decrees and judgments, he himself was the owner of all the interest Guzman ever had in the property, and had been since 9th September before.

The sale was void under which Truebody bought, for want of confirmation by the Court. Daniel’s Oh. Prac. 1455.

Truebody’s purchase was void for want of authority tobid, given by the Court. Daniel’s Chan. Prac. 1451. Partedas, vol. 2. 1893. Pract. Act. sect. 25, of 1850, as to pendente lite and remedies'.

[275]*275As to the sufficiency of the verdict, 1 Moran’s Rep. 153. And what constitutes the record in a chancery cause in this country, and the difference of practice here and in England, 13 Peters’s Rep. 6.

For plaintiff it was further argued:—

That this is an original suit alleging fraud, &c., and not a bill of review.

Fraud is cognisable in courts of law and equity, and the case termed a bill of review may be treated as an original suit charging fraudulent practices. Bills of review are only granted upon two grounds; of error at law upon the face of the decree without leave of the Court, and upon newly discovered evidence; this case does not fall within either of the rules. Sto. Eq. Pleadings, § 4045.

The Court had power to revise its judgment at any time within a year, after it was rendered; sect. 68, Practice, Act of 1850; and this proceeding was commenced in May, 1851, before the Act of 1851 went into operation, which provides that all proceedings under the former Act should be saved. See repealing sect, of Practice Act of 1851.

Viewed as an application under the 68th section, this Court had power to amend the judgment. 1st. To order the sale of the land and the interests of all parties claiming under Guzman, instead of his interest alone. 2d. That the purchaser be placed in possession. 3d. To amend the execution or return thereon, when it appeared by such return, that the whole amount of the judgment was bid for Guzman’s interest alone, which as respondent contends had been previously disposed of, by ordering a resale of the land, or by awarding the return, and treating the sale as a sale of the land, and requiring the sheriff to give a deed for the land conveying the interest of Guzman and all claiming under him. This the Court had power to do, as the other parties were affected with notice, and could derive no title from Guzman until the purchase money was paid. The sale was therefore not such a sale as should have been made ; the purchase not such a purchase as was expected or intended by the parties; and it is at this point that the respondent starts, claiming title by the omission of the Court, when in fact the sale, by its effects, ex-[276]*276eluded him from all interest, for the sale of Guzman’s interest was the sale of Wilson’s interest; but the Superior Court has not so declared, but should have so declared upon the application made, and this Court should so now declare.

Considering it as an original suit alleging fraud, consisting of the concealment by Wilson and Sparks of their title, at the date of the decree in January, 1851, and of the true position of Wilson while conducting the defence for Guzman in his own name as attorney, thereby misleading the Court and the plaintiff so as to induce the Court to believe that by ordering a sale of Guzman’s interest, no adverse claim under Guzman could arise. To show these facts, it was proper to introduce the proceedings in the two former trials upon the issue of fraud, made by the pleadings, and submit them to the jury. There can be no doubt, that if the Court had known on the 31st January, 1851, the date of the original decree, that Wilson and Sparks claimed an interest in the lot, the matter would have been brought before the Court, and disposed of.

This is the case of an attorney conducting a suit for a defendant from its commencement to its final decree, settling the rights of the parties to a piece of land, declaring a lien in favour of the plaintiff and against the defendant, in which the attorney after the decree, asserts a title against the plaintiff, and under the defendant, acquired during the suit, trom a party who stood affected with notice of the lien declared by the decree. Is this law or equity ?

The jury having passed upon the facts, and the Court having overruled a motion in arrest of judgment, nothing was left to be done, but to enter up the decree in accordance with the verdict. And after the refusal to arrest the judgment, another judge, who succeeded to the bench, and who did not try the cause, had no authority, upon a new motion to dismiss the bill—and this upon a motion for a new trial, after the time for filing such motion had passed. Further: '

The grounds upon which the bill was dismissed, so far as may be surmised, are the same as those presented in the demurrer to the complaint, and overruled by the Court, by a different judge, several months before the judge came upon the bench; who, by [277]*277his act, on motion, revived, but without a bill of revivor, the former proceedings.

There is a privity of estate, if not of contract, between the vendor and those purchasing with notice of the lien. 2 Story’s Eq. Juris, sect. 1217, and 19. 15 Yes. 340. 7. 9.

The vendor’s lien attaches until payment of the purchase-money, and the burden of proof is on the purchaser, to establish that it has been intentionally displaced, or waived by consent of the parties. If, under all the circumstances, it remains in doubt, then the lien attaches. 2 Story’s Eq. 1224.

And even if a receipt of the purchase-money is endorsed on the face of the conveyance, and it is not in fact paid, the lien is not gone, but attaches against the vendee, and all persons claiming as volunteers, or with notice under him; and taking security, is but prima facie evidence of such intention. Ib. sect. 1226.

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