Whelchel v. Lucky

41 F. 114, 1890 U.S. App. LEXIS 1963
U.S. Circuit Court for the Northern District of Georgia·Decided February 1, 1890·Published

Opinion

Newman, J.

This is a bill to enjoin further proceedings under an execution issued from this court on a judgment against Alexander S. Whelchel on the foreclosure of a mortgage, or, more properly, a deed made under sections 1969, 1970, and 1971 of the Code of Georgia, and treated as an equitable mortgage. The bill is by the wife of Alexander S. Whelchel, thehlefendant in execution, she claiming title to the land levied on, and asserting that it is not subject to the execution. She bases this claim [115] on two grounds. She says, first, that while the deed to the land in question was made to her husband, and the title by the records, at the time the deed to secure the loan wras made to Lucky, was in her husband, that her money, given her by her father, paid for the land, and that the deed should have been made to her, as she always supposed it had been until after decree in this case was taken. She says, therefore, that she had the equitable title to the land, and that Lucky’s agent who negotiated the loan to her husband had express notice of her claim of title before the loan was made, ánd while it was under consideration. The evidence, uncontradicted, established the fact that money given Mrs. Whelchel by her father paid for the land, and it is not denied that she thought the legal title in her. The real question on that branch of the case is, did Lucky, by his agent, have notice, as contended, of Mrs. Whelchel’s equitable title? The agent of Lucky, Gregory, asserts positively that he had no such notice. He says that he talked to Mrs. 'Whelchel about the land, and told her that her husband was negotiating a loan on the place; that “she made no objection whatever to the loan, and made no claim to any interest in the land; she said nothing at all about having bought the place with her own money, and said nothing that would in any way put me on notice of any such thing.” Mrs. Whelchel, on the other hand, testifies that two men she supposes now to have been Mr. Gregory and his companion, although she did not know them at the time, came to her house in the fall of 1885. She supposes they were the same men, because no other two men came there that would Jit the description of Mr. Cox and Mr. Gregory. She supposed at the time that they were -miners who came to look at the lands for mineral purposes. They asked her some questions about the place, which she answered as best she could. She told them that she was expecting some miners. They did not tell her whether they w'ere miners or not. They asked her about the land, and whether there were any minerals on it, “and, in the course of the conversation, said something about the title. I told them that my father had given me the money to buy the place, and that it was all paid for, and was all right, — not a cent owdng for it. They did not tell me that they were out there to loan money to my husband, nor did either of them say a word to me, or in my presence, about a loan, or anything to that end, or say one word to disabuse my mind that they were mining men, — that they came to look about the place for mining purposes; nor did they say anything that gave me the slightest hint that they were fixing to loan money to my husband on the place; nor did I know that he wanted to borrow any money, nor that he was embarrassed about money matters at all.” The testimony of Alexander S. Whelchel, the husband, is that his wife had no knowledge of his making a deed to Lucky, and did not consent to it, but, by all the evidence, he was not present at the time of the principal conversations between Mrs. Whelchel and Mr. Gregory; so that the issue is really between Mr. Gregory and Mrs. Whelchel, as to his having been put on notice as to the fact that her money paid for the land. She does not claim that.she gave Mr. Gregory any warning, or stated anything specifically [116] in the way of a notice. Gathering her intention from her testimony as given in this case, it would seem that all she was endeavoring to impress upon Mr. Gregory was that the title to the place was all right; that it was paid for, and unincumbered; and, in connection with that, that her father gave her the money to pay for the place. The testimony of Gregory is positive, certain, and specific. I do not think that it can be fairly said that this evidence establishes the fact which it was incumbent on the plaintiff to show, namely, that the agent of the lender had notice of Mrs. Whelchel’s equitable interest in the land conveyed to Lucky as security for the loan. Besides this, it seems unreasonable that a good loan agent, as Gregory seems to have been, would have loaned the money of his client to.Whelchel, after he had notice from the wife that her money had paid for the land taken as security. On this branch of the case, therefore, I think the plaintiff has failed to sustain the position taken in her bill.

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Whelchel v. Lucky, 41 F. 114, 1890 U.S. App. LEXIS 1963 (circtndga 1890).

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