Watson v. Le Row

6 Barb. 481
CourtNew York Supreme Court
DecidedMay 7, 1849
StatusPublished
Cited by4 cases

This text of 6 Barb. 481 (Watson v. Le Row) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watson v. Le Row, 6 Barb. 481 (N.Y. Super. Ct. 1849).

Opinion

By the Court, Paige, P. J.

On the 26th of May, 1841, the interest of Bigelow in the lot of land in question, was an equitable interest. He was .in equity the owner in fee, having paid the whole consideration money of the land to Marcy and Clark, from whom he purchased it; and they, in equity, were his trustees. (1 Barb. Sup. Court Rep. 499. 2 Story's Eq. Jur. § 1212. 6 John. Ch. 402, 405.) At law, Marcy and Clark were the legal owners, but were liable to be compelled by a bill in equity to convey the legal title to Bigelow. The revised statutes (1 Vol. p. 728, §§ 45, 46, 47, 48) did not divest the legal estate of the vendors and vest it in the vendee, although in equity the vendors were mere naked trustees, as the vendee did not acquire his interest by virtue of any grant, assignment or devise. The equitable interest of Bigelow, in the premises in question, although he had paid all the purchase money, was not the subject of sale on an execution; nor could a docketed judgment or decree create a lien on it. The revised statutes declare that the interest of a person holding a contract for the purchase of land, shall not be bound by the docketing of any judgment or decree, nor be sold by execution upon any such judgment or decree. (1 R. S. 744, § 4. Talbot v. Chamberlain, 3 Paige, 220. Grosvenor v. Allen, 9 Id. 76. Griffin v. Spencer, 6 Hill, 525.) This provision of the revised statutes excepts the case of an equitable interest in real estate created by a contract of purchase, from the rule applicable to equitable interests in lands, which in equity subjects them to the lien of judgments. (9 Paige, 76. 10 Id. 569. 18 Wend. 240, 241, 253.) It is very apparent that the judgment recovered by the plaintiff in this suit and William K. Watson against Bigelow,, on the 7th May, 1841, under which the defendant Harris claims, was not a lien in equity upon the equitable estate, of Bigelow, in the premises in question, at the time of the conveyance by Marcy and Clark to trustees, in trust for Mrs. Bigelow.

If the conveyance by Marcy and Clark to trustees, in trust for Mrs. Bigelow, by the direction of Bigelow, passed the legal estate to Mrs. Bigelow; and if a trust resulted to Bigelow in favor of his then existing creditors, under the revised statutes, (1 Vol. 728, [485]*485§ 52,) as is asserted by the plaintiff’s counsel, and as is conceded by the counsel of Harris, did the judgment against Bigelow, under which Harris claims, become a lien in equity on the trust estate, which so resulted to Bigelow in favor of his creditors ?

According to the opinion intimated by the chancellor in Brewster v. Power, (10 Paige, 560,) such judgment became a lien in equity, upon such trust estate, and was entitled to a preference over all subsequent liens and claims, except as against a purchaser for a valuable consideration, without notice, although the premises could not be sold upon execution on the judgment.

It is a familiar principle, where several equities affect the same estate, that if the equities are otherwise equal, they will attach upon the estate according to the periods at which they commenced; for it is a maxim of equity as well as of law, that qui prior est tempore potior est jure. (2 John. Ch. 608. 18 Wend. 240, 253. 9 Paige, 76.) If the chancellor’s view of this question is the correct one, although there might be some doubt whether the assignment of Bigelow to the receiver, and the sale by the receiver of the lands in question to Harris, passed to Harris, any legal interest in such lands, yet the sale to Harris, and the payment by him of the purchase money, and the acceptance of the same by Stephen Y. R. and W. K. Watson, would at least create, in favor of Harris, an equity to compel them to assign to him their judgment against Bigelow, so far at least as to enable him to enforce their lien in equity by a complaint in the nature of a bill in equity against the premises in question. And this equity of Harris would be sufficient to deprive the plaintiff in this suit of the relief he asks in his bill.

It is insisted, on the part of the plaintiff, that the creditor’s bill filed by the plaintiff and William K. Watson against Bigelow, did not reach the trust which resulted in favor of the creditors of Bigelow, because Mrs. Bigelow apd the trustees were not made parties to the bill. And it is also insisted, on the part of the plaintiff, that the only interest which was reached by that bill, and which was, or could be sold by the receiver, was the estate of Bigelow as tenant by the curtesy in the lot in [486]*486question. Upon the hypothesis assumed by the counsel of the plaintiff, that the, conveyance to the trustees in trust for Mrs. Bigelow came within the 51st and 52d sections of the article of the revised statutes relative to uses- and trusts, a trust on the execution and delivery of the conveyance resulted to Bigelow in favor of his then existing creditors. This resulting trust was an equitable interest of Bigelow in the lands, for the benefit of such creditors. This equitable interest was peculiarly a proper subject for the operation of a creditor’s bill.1 It is the appropriate office of a creditor’s bill, to reach the property of the judgment debtor, which is not the subject of levy and sale on execution. Such property consists of equitable interests in real and personal estate and things in action. (2 R. S. 174, §§ 38, 39, 1 Paige, 308, 9. Beck v. Burdett, Id. 637. Edmeston v. Lyde, 4 John. Ch. 687.) The creditor obtains no specific lien on the equitable estate and things in action of his debtor- by the issuing of an execution, or by its return unsatisfied. He only acquires such lien by the filing of his bill in equity, after the return of his execution at law. (1 Paige, 309, 640.) And wherever there remains in the debtor an equitable interest in real or personal property, the filing of the creditor’s bill against the debtor alone, will give the judgment creditor a specific lien thereon, and such interest may be transferred to a receiver, and sold and conveyed by such receiver under the order and decree of the court; and the purchaser can call upon the trustee of the defendant for a conveyance or an assignment of the real or personal property in which the debtor has such equitable interest, in the same manner as the defendant himself might have done, previously to the filing of the bill. (1 Paige, 640.) In all such cases the trustee is not a necessary party. It is only where the debtor has fraudulently assigned his property, and has no legal or equitable rights as against the assignee, that it is necessary to make the assignee a party, to enable the court to reach the property in his hands. (Edmeston v. Lyde, 1 Paige, 640.) In this case, if the conveyance by Marcy and Clark to S. Bigelow and Kingsley, in trust for Mrs. Bigelow, came within the 52d section of the article relative to [487]*487uses and trusts, a trust under the provisions of that section resulted to Bigelow in favor of his existing creditors, which was an equitable interest in the premises in question. Upon this equitable interest Stephen Y. it. Watson and William K. Watson obtained a specific lien on the filing of their creditor’s bill; and it was transferred to the receiver by the assignment of BigeL loxv, and passed to the defendant Harris on the sale to him, by the receiver, of the lands in question.

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Bluebook (online)
6 Barb. 481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-v-le-row-nysupct-1849.