Whitehurst v. Abbott

33 S.E.2d 129, 225 N.C. 1, 159 A.L.R. 380, 1945 N.C. LEXIS 248
Supreme Court of North Carolina·Decided February 28, 1945·Published·Cited by 22 cases

Opinion

Barnhill, J.

E. L. Hinton was a devisee, executor, and propounder of tbe will of John L. Hinton. He purchased tbe interest of tbe other [4] devisees in tbe Camden County property. He and tbe other devisees were dealing inter partes in tbe property of tbe estate. He conveyed tbe land after tbe caveat was filed. Any claim tbat be was an innocent third party and tbat bis deed, executed pendente lite, conveyed a good title is without substance. To bold otherwise would open tbe door for parties to litigation to convey tbe subject matter of tbe litigation pending a hearing and thus render tbe court powerless to enforce its own decrees. Newbern v. Hinton, 190 N. C., 108, 129 S. E., 181.

As to T. G. McPherson, grantee of E. L. Hinton, a different question arises. Had be purchased before tbe filing of tbe caveat unquestionably under our decisions bis title would have been unassailable. G. S., 31-19; Newbern v. Leigh, 184 N. C., 166, 113 S. E., 674; Whitehurst v. Hinton, 209 N. C., 392, 184 S. E., 66; Anno. 26 A. L. R., 270. But such is not tbe case. He acquired title to tbe property in Camden after tbe filing of tbe caveat from one of tbe devisees who was directly affected by tbe proceedings then pending in Pasquotank, tbe county in which tbe original will was probated. Is be charged with constructive notice of tbe claim of plaintiffs?

At common law a pending suit was regarded as notice to all tbe world. Tbe complaint or cross-complaint, as tbe case might be, was tbe lis pendens and any person dealing with tbe property pendente lite was bound by tbe judgment rendered. Insurance Co. v. Knox, 220 N. C., 725, 18 S. E. (2d), 436; 34 Am. Jur., 363.

Tbe ever-increasing volume of litigation rendered this common law rule so harsh and burdensome upon abstracters tbat tbe Legislature intervened and adopted tbe modifying Acts now incorporated in Article 11, chapter 1, General Statutes of North Carolina. Now tbe pending action does not constitute notice as to land in another county until and unless notice thereof is filed in tbe county in which tbe land is located. G. S., 1-116, et seq.; Collingwood v. Brown, 106 N. C., 362; Spencer v. Credle, 102 N. C., 68.

When a will is probated in common form, any interested party may appear and enter a caveat. G. S., 31-32. But a caveat is an in rem proceedings. In effect it is nothing more than a- demand tbat tbe will be produced and probated in open court, affording tbe caveators an opportunity to attack it for tbe causes and upon tbe grounds set forth and alleged in tbe caveat. It is an attack upon tbe validity of tbe instrument purporting to be a will and not an “action affecting tbe title to real property.” Tbe will and not tbe land devised is tbe res involved in tbe litigation. Prospective purchasers were held to notice tbat probate jurisdiction was in Pasquotank County and if they acquired title without ascertaining tbe status of tbe proceedings in tbat county they did so at their peril.- Hence tbe lis pendens statute has no application. So contend tbe appellants.

[5] Thus we are called upon to decide the force and effect of the Us pendens statute as it relates to a caveat proceedings.

The registration statute, G. S., 43-18, modifies the common law rule of lis pendens. Its purpose is to stabilize titles by requiring recordation of all deeds, mortgages, or other paper writings which transfer or encumber the title to land. Our lis pendens statute, above cited, is designed to supplement the registration law and to provide a simple and readily available means of ascertaining the existence of adverse claims to land not otherwise disclosed by the registry. Notice under the Act is required to give constructive notice to prospective purchasers when the claim is in derogation of the record. Insurance Co. v. Knox, supra.

The effect of lis pendens and the effect of registration are in their nature the same thing. They are only different examples of the operation of the rule of constructive notice. One is simply a record in one place and the other is a record in another place. Each serves its purpose in proper instances. They are each record notices upon the absence of which a prospective innocent purchaser may rely.

Bearing this broad general purpose in mind, it would seem to be apparent that the Legislature intended the term “action,” as used in G. S., 1-116, to embrace all judicial proceedings affecting the title to real property or in which title to land is at issue.

Naturally proceedings in court are divided into various classifications. Each class has its own particular label. But the word “action,” when unqualified is an inclusive term and connotes -all judicial proceedings of a civil nature maintained and prosecuted for the purpose of asserting a right or redressing a wrong. When qualified, as in the statute, by the term “affecting the title to real property,” it includes and embraces all such proceedings wherein the title to real property is at issue.

Such is a caveat. Though not an adverse proceedings in the ordinary sense, interested parties are notified and given an opportunity to be heard. Legal rights.are at stake and the issues raised are tried as in other civil actions.

While in one sense the will is the res involved in the caveat proceedings, it is quite clear that any final decree entered therein will directly affect the title to the land devised. The probated will constitutes a muniment of title unassailable except in a direct proceedings. G. S., 31-19. It operates as a conveyance of title to the land devised. Any action or proceedings contesting its validity directly assails the validity of such conveyance and necessarily involves the title. Hence the filing of notice under the Us pendens statute is essential to give constructive notice to those who are not directly interested in the proceedings. McIlwrath v. Hollander, 39 Am. Rep., 484.

[6] But lis pendens notice under tbe statute is not exclusive. Nor is it designed to protect intermeddlers. "When a person acquires an interest in property pending an action in wbicb tbe title thereto is at issue, from one of tbe parties to tbe action, witb notice of tbe action, actual or constructive, be is bound by tbe judgment in tbe action just as tbe party from whom be bought would have been. This rule seems to be universal and is considered by all tbe courts to be absolutely necessary to give effect to tbe judgments of tbe courts because, if it was not so held, a party could always defeat tbe judgment by conveying in anticipation of it to some stranger and tbe claimant would be compelled to commence a new action against him. Rollins v. Henry, 78 N. C., 342; Jarrett v. Holland, 213 N. C., 428, 196 S. E., 314.

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Whitehurst v. Abbott, 33 S.E.2d 129, 225 N.C. 1, 159 A.L.R. 380, 1945 N.C. LEXIS 248 (N.C. 1945).

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