Wickham v. Morehouse

16 F. 324, 1883 U.S. App. LEXIS 2143
CourtU.S. Circuit Court for the District of Western Pennsylvania
DecidedApril 13, 1883
StatusPublished
Cited by1 cases

This text of 16 F. 324 (Wickham v. Morehouse) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wickham v. Morehouse, 16 F. 324, 1883 U.S. App. LEXIS 2143 (circtwdpa 1883).

Opinion

Acheson, J.

The complainant is the assignee and owner oí a judgment for $2,500, in favor of Hiram 0. Johns against Orlando L. Ballou, entered in the court of 'common pleas of Tioga county, Pennsylvania, September 13,1876, and which then became alien upon lands in that county conveyed to Ballou by Mrs. A. M. More-house, one of the defendants. On August 28, 1876, Mrs. Morehouse obtained judgment by confession against Ballou in this court for $16,653, and subsequently caused execution to be issued thereon, and a levy made upon said lands, which the marshal, by virtue of said ex-[325]*325edition, sold on April 9, 1879, to Mrs. Morehouse for $4,800. Pursuant to the Pennsylvania statute regulating judicial sales to lien creditors, which has been adopted by this court as a rule of practice, the marshal took the receipt of Mrs. Morehouse as the first lien creditor for the amount of her bid, less the costs of sale. To his return showing this appropriation the complainant excepted, and thereupon filed his bill on the equity side of the court. The bill alleges that the complainant’s lien is prior in time to that of Mrs. Morehouse; but, if not, that her judgment as against tho complainant is fraudulent and void; and the bill prays that the complainant bo decreed the first lien creditor of Ballou, and that the claim of Mrs. More-house to the proceeds of the marshal’s sale be postponed to his claim; that the fund be paid into court for distribution, and so much thereof as necessary bo applied to the satisfaction of the complainant’s judgment.

At the threshold of the case we encounter an objection to the jurisdiction of the court to entertain the bill, the defendants contending that the proper and Only remedy of the complainant is on the law side of the court, agreeably to tho state practice, upon his exceptions to the special return of the marshal. I am, however, of the opi nion that tho bill is maintainable. Bayard v. Lombard, 9 How. 530. Without doubt the controversy is of equitable cognizance. Id. The order of court adopting the act of assembly as a rule of practice, was not intended to interfere with the right of the parties in interest to seek equitable relief. Where the amount in controversy brings the case within the appellate jurisdiction of the supreme court, it may be of the last importance to the parties to have their rights determined upon a bill in equity, to the end that the decision of the court may be reviewed, which could not be done if the case were disposed of merely upon the exceptions to the marshal’s appropriation. Id.

The bill charges that the judgment of Mrs. Morehouse was entered before the delivery of the deeds for said land to Ballou, and before any title vested in him, and therefore that she acquired no lien by virtue of her judgment; and further, that Ballou was falsely stated to be a citizen of the state of Ohio, when he was not such, to the end that the judgment might be entered in this court. The bill also charges that the conveyance of said lands by Mrs. Morehouse to Ballou was made under a corrupt and collusive agreement, for the purpose of giving Ballou a fictitious credit, and enabling him to defraud creditors whom it was intended he should create by placing the apparent un-incumbered title to said lands in him, so that he might incur debts [326]*326by reason of such apparent ownership; that the judgment was taken for a fictitious sum and not the real consideration of $16,-653; that it was entered in the United States circuit court at Brie, Pennsylvania, by Hiram C. Johns, the attorney and agent of Mrs. Morehouse, for the purpose of secretly creating a lien upon said property, in such manner that the same could not be ascertained by reference to the records of Tioga county, thereby enabling Ballou to procure credit upon his apparent unincumbered ownership of said lands; that subsequently Johns, as agent of Mrs. Morehouse, borrowed and received from the Exchange Bank of Titusville, of which the complainant is assignee, $2,000, (less discount,) upon a note for that sum signed by himself and Mrs. Morehouse, by said Johns, as her agent"; Johns giving the bank as security an assignment of the aforesaid judgment for $2,500 (Johns v. Ballou) in the court of common pleas of Tioga county, representing the same to be the first lien upon said lands, and exhibiting a certificate from the records of Tioga county showing it to be so, upon the faith of which representation and certificate the bank gave Johns the money and took the assignment of said judgment; that said debt was not paid when due; that Johnsis insolvent and the bank has been unable to collect the debt.

Undoubtedly, if these allegations are true, the complainant is entitled to the relief sought. But all the material averments of the bill, in so far, at least, as they affect Mrs. Morehouse, are denied by her answer. It remains, then, to inquire whether the bill is sustained by the evidence.

The deeds from Mrs. Morehouse to Ballou bear date July 8, 1876, and were recorded August 30, 1876. The judgment bond of Ballou to Mrs. Morehouse, upon which her judgment was obtained on August 28, 1876, also bears date July 8, 1876. It was given for the purchase money of said lands, and this is recited in the bond itself. Upon the execution of the deeds they were given to Johns to be delivered to Ballou, but there is no direct evidence as to the date of their delivery to the latter, or of the date of the delivery of the bond. In the absence of express evidence of a previous delivery to Ballou, the complainant contends that the date of the recording of the deeds must be taken as the date of the delivery thereof, and as that was two days after the entry of the judgment, the lands, it is claimed, were not bound thereby, Ballou then having no title to which the lien of the judgment could attach. But clearly the presumption is that the deeds and purchase-money security were delivered simultaneously.

[327]*327It cannot bo inferred from the mere fact that the deeds wore not recorded until two days after the entry of the judgment that the purchase-money security was delivered before the deeds, for that would be altogether against the ordinary course of business. In McDowell v. Cooper, 14 Serg. & R. 299, the court say: “The man who executes a mortgage to the vendor for the payment of the purchase money must be presumed to have accepted the conveyance.” According to Hall v. Benner, 1 Pen. & W. 407, the delivery of a deed “is always presumed to be the time of its date, unless the contrary do appear.” Upon the whole case, the only admissible conclusion is that the lien of Mrs. Morehouse’s judgment is prior in time to the lien of the complainant’s judgment.

As to the citizenship of Orlando L. Ballou, little appears outside of the record of the confessed judgment. In the bond he is described'as of Montgomery township, Wood county, Ohio, and he is declared against as a citizen of the state of Ohio, and throughout the whole record is so styled. Now, the rule is that where jurisdiction is properly averred in the pleadings, it must be taken prima facie as existing, and he who asserts the contrary for causes dehors the pleadings must prove his assertion. Sheppard v. Graves, 14 How. 510. I think the complainant has failed to make good his allegation that Ballou was falsely stated to be a citizen of Ohio.

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Cite This Page — Counsel Stack

Bluebook (online)
16 F. 324, 1883 U.S. App. LEXIS 2143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wickham-v-morehouse-circtwdpa-1883.