Virginia Trust Co. v. Minar

18 S.E.2d 879, 179 Va. 377, 1942 Va. LEXIS 232
CourtSupreme Court of Virginia
DecidedMarch 2, 1942
DocketRecord No. 2441
StatusPublished
Cited by3 cases

This text of 18 S.E.2d 879 (Virginia Trust Co. v. Minar) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia Trust Co. v. Minar, 18 S.E.2d 879, 179 Va. 377, 1942 Va. LEXIS 232 (Va. 1942).

Opinion

Campbell, C. J.,

delivered the opinion of the court.

This appeal brings under review a decree entered in a chancery suit instituted by Virginia Trust Company and John S. Barbour, Executors of Presley M. Rixey, deceased, against Ruby Lee Minar, Ruby Lee Minar, Inc., J. G. Hiden, Trustee, Harry R. Thomas, Trustee, D. S. Mackall, Trustee, Joseph B. Deming, Trustee, Glen E. Eakin, Trustee, James Sherier, Trustee, The Peoples State Bank of Cherrydale, Trustee, John S. Barbour, Trustee, and the estate of P. W. Hiden.

The record discloses that the Minars (meaning Ruby Lee Minar, John M. Minar and Ruby Lee Minar, Incorporated), were extensive real estate operators in Arlington and Fairfax counties, Virginia. In June, 1923, in the course of their real estate operations they purchased from Presley M. Rixey a tract of land situated in Arlington county, for the sum of $161,000, and executed a deed of trust to John S. Barbour, Trustee, to secure the purchase price. Default having been made in the payment of the purchase money notes, this deed of trust was foreclosed and a deficiency judgment was recovered against the Minars in the sum of $131,000. In the year 1926, the Minars purchased from Presley M. Rixey a tract of land known as “The Sleepy Hollow” tract, situated in Fairfax county, containing 34.23 acres. To secure the purchase price, they executed a deed of trust to J. G. Hiden, Trustee.

At the time of the purchase of these tracts of land it was generally understood between the parties that the tracts would be devoted to suburban development, sub-divisions and re[380]*380sale, as lots. The Minars, in due time, divided these tracts into lots and proceeded to sell them to numerous purchasers who signed contracts of purchase and executed instalment notes for the purchase price. These contracts of purchase were not recorded, but in order to protect the purchasers and the subsequent assignees of the purchase money notes, the Minars conveyed the lots so sold to the defendant trustees under a trust clause reading as follows:

“To sell, lease, encumber or convey the said land, or any part thereof, or any interest therein, at such time and at such price and to such person or persons as the trustees may ascertain are entitled to have conveyed a lot or parcel, upon such conditions as to the trustees may seem advantageous and proper without any liability on any purchaser or purchasers, of any part thereof, or any interest therein, to see to the application of the purchase money; and to carry out the provisions of this trust the said trustees are authorized, empowered and directed to execute, acknowledge and deliver any deed, deed of trust, lease, encumbrance or lease of said property as though they were the owners in fee simple.”

These various deeds of trust were duly recorded. Although default occurred in the payment of the purchase price for the “Sleepy Hollow” tract, the deed of trust was not foreclosed.

At the January Rules, 1937, the executors of Rixey filed their bill of complaint, as lien creditors of the Minars, to subject the alleged beneficial interest of the Minars in the land purchased from Presley M. Rixey. The basis of complainants’ claim is that the judgment lien obtained against the Minars is a lien against the beneficial interest of the Minars in the aforesaid tracts which were conveyed by them to the defendant trustees. It is alleged that the various trusts were void for uncertainty, were without consideration and executed for the purpose of hindering, delaying and defrauding the creditors of the Minars. The main prayer is that the deeds of trust be set aside and that the land be subjected to the hens thereon.

The appellees filed their respective answers, denying that the judgment of appellants was a hen upon the property pur[381]*381chased by them from the Minars. No question was raised in the answers as to the deed of trust lien on the “Sleepy Hollow” tract of land.

Issue was joined upon the bill and answers, and over the specific objection of Thomas, Sherier and Eakin, Trustees, the cause was referred to a commissioner in chancery, to ascertain and report to the court as follows:

“1. All real estate upon which the plaintiff’s judgment against Ruby Lee Minar and Ruby Lee Minar, Inc., constitutes a lien, together with the location, quantity and value of such piece of real estate, and in whose name the several parcels now stand, and the state of the title of record in respect to each.
“2. Whether the said plaintiff’s judgment constitutes a lien upon any of the real estate conveyed to Ruby Lee Minar and/or Ruby Lee Minar, Inc., to J. G. Hiden, Trustee; to Harry R. Thomas and D. S. Mackall, Trustee; to Harry R. Thomas and Glen E. Eakin, Trustee; to Harry R. Thomas and James Sherier, Trustee; to the Peoples State Bank of Cherrydale, Trustee; or on any of the property conveyed by Presley M. Rixey and wife to John S. Barbour, Trustee, and if so the extent of such liens; the names of the present holders of the legal title thereto, and the hens on said properties with their priorities.
“3. An account of the delinquent taxes, if any, on any of said real estate.
“4. The commissioner is also authorized and directed to convene all hen creditors of the said Ruby Lee Minar and Ruby Lee Minar, Inc., and all claimants to any of said property, and require them to appear before him and prove any hens or other claims that may be asserted against any of said real estate, upon which the plaintiff’s judgment constitutes a hen.
“5. Any other matter or thing in dispute under the pleadings in this cause with his conclusions in respect thereto proper to be considered by the court in respect to said property which any party in interest may request and the Commissioner thinks should be reported prior to final decree.”

The only evidence offered by the complainants, in the [382]*382hearing before the Commissioner, was the “Sleepy Hollow” note and the deficiency judgment.

Though the evidence taken is somewhat voluminous, it clearly appears that the deeds of trust under attack were executed and recorded previous to the procurement of appellants’ judgment and previous to any default of the Minars.

In due season the Commissioner returned his report and held that the eight deeds of trust were invalid; that the beneficial title of the Minars did not pass under the terms of the deeds of trust, and therefore, the complainants’ judgment was a lien on all the lots conveyed by the respective deeds of trust superior to the rights of the lot purchasers and to the rights of the holders of the notes.

The appellees excepted to the report of the commissioner, on the ground that the eight deeds of trust set up valid express trusts for the benefit of the purchasers and the note holders. The exception was sustained by this pertinent part of the decree:

“ * * # that the purposes and objects of said trusts created by said deeds in

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Bluebook (online)
18 S.E.2d 879, 179 Va. 377, 1942 Va. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-trust-co-v-minar-va-1942.