White v. Iselin

5 N.W. 359, 26 Minn. 487, 1880 Minn. LEXIS 196
CourtSupreme Court of Minnesota
DecidedApril 20, 1880
StatusPublished
Cited by16 cases

This text of 5 N.W. 359 (White v. Iselin) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Iselin, 5 N.W. 359, 26 Minn. 487, 1880 Minn. LEXIS 196 (Mich. 1880).

Opinion

Gileillan, G. J.

The plaintiffs Harry K. and Harriet M. were minors, owners of certain- real estate in the city of Saint Paul, and Dana White was their general guardian, [488]*488appointed by the probate court of Ramsey county. On his petition, the probate court issued license to him to sell the real estate. He sold the same, July 19, 1873, nominally to one Hoffman, and made his report of sale, not disclosing that he was in any way interested in the purchase; and the sale was confirmed by the probate court, July 24, 1873. On the same day, White executed to Hoffman the deed of conveyance of the real estate so sold. On January 2,1874, Hoffman conveyed the real estate to Dana White, the guardian. Both deeds were recorded April 13, 1874. The purchase by Hoffman was in fact made in the interest and for the' benefit of Dana White, pursuant to a secret. understanding between them, made prior to the guardian’s sale. On May 1, 1874, the Equitable Trust Company loaned Dana White $9,000, and, to secure repayment of that sum and the interest, he executed a mortgage npon said real estate to Jonathan Edwards, trustee, which mortgage was recorded May 20, 1874. The mortgage was afterwards duly foreclosed, the real estate sold to this defendant, he paying the purchase price by surrender of the bonds of Dana White, to secure which the mortgage was given, and the proper master’s deed was executed to the defendant.

The said loan was made and mortgage taken in good faith, and the purchase at the foreclosure by defendant was made in good faith; neither said trust company, nor Edwards, nor this defendant, having, prior to the commencement of this action, any actual notice that Dana White had any interest in the purchase by Hoffman at the guardian’s sale, nor of any of the facts, except such as appeared of record. There was nothing in the record to charge either the company, or Edwards, or defendant with notice of the illegality in the sale. The facts that the purchaser at the sale conveyed some months afterwards to the guardian making it, and that the deed to the purchaser, and that from him to the guardian, were recorded the same day, were not sufficient to charge a purchaser from the guardian with notice of any [489]*489infirmity in either of the conveyances. • The defendant is in the position of a purchaser in good faith; The question in 'the case is, was the sale by the guardian, by reason of his being interested in the purchase, so far void that a purchaser in good faith can make no title through it ?

The statute regulating such sales, Gen. St. 1S78, c. 57( § 41, provides that “no executor, administrator or guardian making the sale shall directly or indirectly purchase, or be interested in the purchase of, any part of the real estate so .sold; and all sales made contrary to the provisions of this section shall be void.”

The plaintiffs contend that under this statute the sale is an absolute nullity — void as to everybody — so that no rights •could be lost, or acquired, or in any way affected by it. If the plaintiffs be right in this, of course it is no protection to the defendant that he is a bona-fide purchaser. The defendant contends that the statute merely affirms the rule which, prior ~to its passage, had become established by decisions of the courts, that the sale is void only as against those having an .interest in the estate sold, and only when they, while it remains in the hands of some one chargeable with notice of the facts, seek to avoid it; and that the statute uses the word “void” in the sense in which it was,'prior to its passage, very frequently used by the courts — that is, voidable at the election of the cestuis que trust. If the defendant be right in this, the plaintiffs cannot avoid the sale as to him.

We find few decisions upon similar statutes. The statute in New York does not differ from ours. In Forbes v. Halsey, 26 N. Y. 53, the court construed the statute to make such ■sales absolutely void, so that “the title remains in the original owners, as though the sale had never been made.” The same thing was held in Terwilliger v. Brown, 44 N. Y. 237. In neither case is any reason given for holding such to be the meaning of the statute, other than that such is its language.

The statute of California provides: “No executor or administrator shall directly or indirectly purchase any property of [490]*490tbe estate -which he represents.” The absence of words declaring such a purchase void in no way lessens the effect of the prohibition. In Boyd v. Blankman, 29 Cal. 19, it was held, in an opinion reviewing the authorities, and stating well the reasons, that a sale made contrary to this statute was not absolutely void, but only voidable, and might be ratified by the persons at whose instance it was voidable.

In Ohio, a statute regulating sales on execution provided that “no sheriff or other officer making the sale of property, either personal or real, nor any appraiser of such property,, shall either directly or indirectly purchase the same; and every purchase so made shall be considered fraudulent and void.” The character of such a sale was determined in Terrell v. Auchauer, 14 Ohio St. 80. Although the opinion attaches considerable — as we think, undue — importance to the-word “considered”■ in the statute, it is, aside from the meaning given to that word, to the effect that the statute is one of those instances in which the legislature uses the word “void” in the sense of “voidable.”

The statute of Michigan as,to executors’, administrators’ or guardians’ sales is the same as ours. As to whether a sale contrary to the statute was utterly void, so that a bona-fide purchaser could make no title through it, or only voidable, and so passing a title to a bona-fide purchaser, the supreme-court, in Hoffman v. Harrington, 28 Mich. 90, was equally divided. It is an instructive case, as the opinions say about-all that can be said on each side of the question.

• Instances where courts have held the word “void” in statutes as having the effect of voidable, occur under statutes against usury both in England and the older states of the-Union. Cuthbert v. Hale, 8 Term Rep. 490; Hussey v. Jacob, 1 Ld. Raym. 87; Jackson v. Henry, 10 John. 185; Dix v. Van Wyck 2 Hill, 522; Green v. Kemp, 13 Mass. 515; Reading v. Weston, 7 Conn. 409.

In Allis v. Billings, 6 Met. 415, the court say: “The term ‘void,’ as applicable to conveyances and other agreements,. [491]*491has not, at all times, been used with technical precision, nor restricted to its peculiar and limited sense as contradistinguished from the term ‘voidable,’ it being frequently introduced, even by legal writers and jurists, where the purpose is nothing further than to indicate that a contract was invalid and not binding in law.”

It is difficult to lay down a rule when courts may construe the term “void,’-’ occurring in a statute, to mean voidable. We think, generally, it is to be understood that the legislature employs the term in its strict and precise meaning, and that when it says a thing shall be void, it means that the thing shall be null, and of no effect whatever.

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Cite This Page — Counsel Stack

Bluebook (online)
5 N.W. 359, 26 Minn. 487, 1880 Minn. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-iselin-minn-1880.