United States v. Debell

227 F. 760, 142 C.C.A. 284, 1915 U.S. App. LEXIS 2340
Court of Appeals for the Eighth Circuit·Decided September 29, 1915·No. No. 4350·Published·Cited by 12 cases

Opinion

SANBORN, Circuit Judge.

The United States appeals from a decree of dismissal of its suit in equity against E. J. Debell and W. H. Butterfield to avoid a patent dated February 24, 1908, to Pehinji, a Rosebud Sioux Indian of the full blood, for a tract of 320 acres of land which had been allotted to, and was on February 24, 1908, held by the United States in trust for, him without power in him to alienate it for 25 years after February 23, 1907, the date of the trust patent to him of his allotment of this land, and to avoid Pehinji’s deed of the land to Debell on March l7, 1908, and Debell’s deed of the same to Butterfield of July 27, 1908. The patent of February 24, 1908, was issued under this provision of Act of May 8, 1906, c. 2348, 34 Stat. 182, 183:

“Provided, that the Secretary of the Interior may, in his discretion, and he ,is hereby authorized, whenever he shall be satisfied that any Indian allottee is competent and capable of managing his or her affairs at any time to cause to be issued to such allottee a patent in fee simple, and thereafter all restrictions as to sale, incumbrance, or taxation of said land shall be removed and said land shall not be liable to the satisfaction of any debt contracted prior to the issuing of such patent'.”

The ground of the relief sought, which is set forth in the complaint,. is that Pehinji was incompetent and incapable of managing his own affairs, that Debell; who was the licensed Indian trader at the agency for the Rosebud band of Indians, of which Pehinji was a -member, W. C. Courtis, the manager of Debell’s store at the agency, and Edward B. Kelley, the United States Indian agent and superintendent of the Rosebud Indian Reservation of the Rosebud band of Indians- and of Pehinji, knew this fact, but in order to enable Debell to purchase Pehinji’s land at less than its value, they colluded to cause Kelley to represent, and to induce the Secretary of the Interior to believe, that Pehinji was Competent and capable of managing his own affairs, and to issue- to him his patent in fee simple, that Debell then bought the land of Pehinji for $2,000, when it was worth much more, and obtained a deed from him therefor dated March 17, 1908, and that on July 27, 1908, Debell sold and conveyed this land to Butterfield, who knew all the facts alleged, for the sum of $3,200. In their answers Debell and .Butterfield denied the incompetence of Pehinji, the collusion between Debell, Courtis, and Kelley; the misrepresentation to the Secretary regarding the competency of the Indian; that the land 'was worth more than $2,000 when Debell purchased it; and Butter-field alleged that he bought and paid $3,200 for it in reliance upon toe patent in fee simple and the deed to Debell, without any notice of any of the alleged facts pleaded in the complaint in derogation of Debell’s title. Upon the issues of the competency of Pehinji, the collusion of Debell, Courtis, and Kelley, the inducement and purpose of the representation of his competency to the Secretary by Kelley, the evidence was conflicting, but it was conclusive that Butterfield purchased the land of Debell and paid $3,200 for it in good faith in reliance upon the patent in fee simple to Pehinji, and upon the latter’s. [763]*763deed to Debell, and this fact is fatal to the claim to avoid that patent and deed as against Butterfield.

[1] The United States by its acts of Congress empowered the Secretary of the Interior to consider and determine whether or not Pehinji was competent and capable to- manage his own affairs, and, empowered him, if he found that he was so competent, to issue to him a patent in fee simple, and the Congress enacted that if he did so, all restrictions upon the sale and conveyance by Pehinji of this land were thereupon removed. The Secretary so found, and issued the patent. This patent constituted in itself a conveyance of the complete title to the land and an adjudication that all restrictions upon the sale and conveyance thereof by the patentee were removed. In reliance upon that grant and adjudication Butterfield purchased and paid for the land, and the United States and all parties claiming through or under it are thereby estopped from assailing the patent or the title under it as against such an innocent purchaser. The title of a bona fide purchaser of land subsequent to the issue of the patent is superior to the equitable claim of the United States to avoid it for fraud or error of law in the issue of it. United States v. Detroit Timber & Lumber Co., 131 Led. 668, 677, 67 C. C. A. 1, 10; United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 26 Sup. Ct. 282, 50 L. Ed. 499; United States v. Winona & St. Peter R. Co., 15 C. C. A. 96, 109, 67 Fed. 948, 961; Colorado Coal & Iron Co. v. United States, 123 U. S. 307, 313, 8 Sup. Ct. 131, 31 L. Ed. 182; United States v. Burlington, etc., R. Co., 98 U. S. 334, 312, 25 L. Ed. 198; United States v. California & Oregon Land Co., 148 U. S. 31, 41, 13 Sup. Ct. 458, 37 L. Ed. 354; Wright-Blodgett Co. v. United States, 236 U. S. 397, 402, 403, 35 Sup. Ct. 339, 59 L. Ed. 637. As the United States was estopped from destroying or impairing the patent or the title under it as against Butterfield, the court was right in its dismissal of the suit .against him.

[2] But the United Stales prayed in its complaint that if Butter-field should be found to have been a bona fide purchaser, so that the patent and the deeds could not be avoided as ag'ainst him, it recover of Debell for the benefit of Pehinji the value of the land, alleged to he $4,000, or that Debell be decreed to hold the consideration received by him from Butterfield in trust for Pehinji, and to pay it to the plaintiff for Pehinji’s benefit, and counsel insist that the court below erred because it failed to grant any of this relief. This claim is sturdily opposed by counsel for Debell on the grounds: (1) That the bill is multifarious because Butterfield was not a necessary party to the portion of the relief now sought, but he was a proper and a necessary party to the portion of the relief which has heretofore been considered, and that is sufficient to warrant his joinder; (2) that the claim for conversion and for money had and received are inconsistent, and that the claim for an avoidance of the patent and the deeds and for money had and received are likewise inconsistent, but it is not a fatal objection to the grant of such relief as the court deems just and equitable that the plaintiff in a suit in equity prays in the alternative for inconsistent relief; (3) that courts of equity have no jurisdiction of actions at law, and that actions for money had and received and for [764]

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United States v. Debell, 227 F. 760, 142 C.C.A. 284, 1915 U.S. App. LEXIS 2340 (8th Cir. 1915).

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