Williamson v. Payne

49 S.E. 660, 103 Va. 551, 1905 Va. LEXIS 25
CourtSupreme Court of Virginia
DecidedFebruary 2, 1905
StatusPublished
Cited by12 cases

This text of 49 S.E. 660 (Williamson v. Payne) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williamson v. Payne, 49 S.E. 660, 103 Va. 551, 1905 Va. LEXIS 25 (Va. 1905).

Opinion

Whittle, L,

delivered the opinion of the court.

The facts of this case necessary to be stated are as follows: Appellants, who are creditors by deeds of trust of the Franklin Log & Lumber Company, together with their respective trustees, filed a bill in equity in the Circuit Court of Henry county for an injunction to restrain the grantors in said deeds, and ■other persons, from removing or in any manner interfering with the trust property. The bill further prays for the appointment of a receiver, and for the sale of the trust subject and the application of the proceeds to the payment of the debts secured.

At the December term, 1903, the court awarded an injunction and appointed a receiver in accordance with the prayer of the bill, and also directed the receiver to take possession of the trust property, sell the live stock at public auction, and to ■deposit the proceeds of sale in bank, subject to the order of the court.

At the same term the appellee, Cassell, recovered a judgment against the Franklin Log & Lumber Company for more than $300; and, having subsequently caused an execution to issue on the judgment, intervened in the suit in equity, and asserted priority of lien for the execution to the demands of appellants, upon the property in controversy.

From a decree in the cause sanctioning that contention, this appeal was allowed. The ground of decision of the Circuit Court was that, while the deeds in question were valid and binding between the parties, the property conveyed was not sufficiently [553]*553described for tbe recordation of said deeds to affect third parties with constructive notice of the identity of the property conveyed.

Before considering the case in that aspect, it will be necessary to notice the contention of appellee that each of the amounts in controversy, exclusive of costs and interest accrued since the decree appealed from, is less in value or amount than $300, and that this court is consequently without jurisdiction to entertain the appeal.

The demand asserted by Williamson, with interest to the date of the decree, is $47 5; but it is said that the amount in controversy as to him is the original demand, less the sum directed to be paid him by the decree under review, which payment, it is alleged, reduces his debt to less than $300.

The property in dispute had been sold by the receiver under a former order of the court, and the decree appealed from directs him, out of the proceeds, to pay to the appellee, Cassell, the amount of his execution, including interest and costs, and his costs in this suit expended, and, after paying all other unpaid costs, to pay the residue to the appellant, Williamson. What that residue amounts to, the record does not disclose.

Generally spealdng, the value or amount in controversy must be made to appear affirmatively. If it cannot be ascertained, the appeal will be dismissed, and the burden is on appellant to establish the jurisdiction.” 2 Cyc. 555.

On the other hand, where the original demand is pecuniary and in excess of the jurisdictional amount, but is alleged by the appellee to have been reduced below tbat amount by payment, the onus rests upon him to make that fact appear. Fink Bros. & Co. v. Denny, 75 Va. 663; Filler v. Tyler, 91 Va. 458, 22 S. E. 235.

The debt of the appellant, Clement, amounts, with interest to the date of the decree, to $293, and his deed of trust also [554]*554secures the expenses of executing the trust and drawing and recording the deed, which, it is conceded, raise luis demand beyond the juiisdictional amount. That these latter items are proper to be considered in arriving at the amount in controversy, see 2 Bar. Ch’y Pr. (2nd Ed.), p. 1208.

So that, if appellee’s apprehension of what constitutes the amount in controversy in this case is correct, the allegation that appellants’ respective demands are less than $300 is not sustained.

On the merits of the case, the decision of this court in Hardaway v. Jones, 100 Va. 481, 41 S. E. 957, is relied on to show the insufficiency of the description of the property to affect Cassell with constructive notice under the registry act.

In that case the deed of trust conveyed four mules, without further description. It did not state where or in whose possession they were, nor did it mention the residence of either the grantor, the trustee, or the beneficiary. The deed was acknowledged before a notary public in Scott county, and was put to record in that county. Within less than one month after the deed had been recorded, the grantor removed the mules to Wise county, and sold them for a valuable consideration to a purchaser residing in that county, who had no actual notice of the deed of trust. A few days thereafter the trustee demanded possession of the mules, and upon the refusal of the purchaser to surrender them, brought an action of detinue for their recovery, which resulted in a judgment in his favor. That judgment was reversed on appeal; this court, as remarked, holding that the' description of the property was inadequate to affect innocent third parties with constructive notice under section 2468 of the Code.

It must, however, be observed that there are many distinguishing features between that deed and the deeds drawn in question in this case.

[555]*555The two deeds convey the same property, and, with the exception of- dates, amounts, trustees and beneficiaries, are practically identical in form. Both deeds show that the grantors resided in the county of Henry, and the trustees and beneficiaries in the town of Martinsville. The horses, mules, oxen, and wagons were conveyed in the same clause with a definitely described lumber plant, consisting of an engine, boiler, and sawmill, and would naturally have been regarded as parts of that outfit. The deeds further show that the property was to remain in the possession of the grantors until default was made in the payment of the debts secured. And, finally, it appears that the deeds were executed and duly recorded in thq clerk’s office of the County Court of Henry county before the recovery of Cassell’s judgment.

The doctrine of Hardaway v. Jones, supra, is that a deed of trust or mortgage conveying chattels, constitutes constructive notice to third persons, when the description in the deed or mortgage is such as would enable them to identify the property, aided by the inquiries which the deed or mortgage itself indicates and directs. And the court, in that case, at p. 485, observes : “In no case that we have seen has the recordation of a deed of trust been held to be constructive notice, which contained no description of the animals conveyed except their number, which did not state in whose possession the property was, or where it was located or might be found, or where any party to the deed resided.”

The converse of that proposition is also true, that the recordation of a deed -which furnishes a stranger with the obvious means of identifying the property, which these deeds afford, does give constructive notice.

The registry of the deeds in question affected Cassell with constructive notice of the following facts: That his debtors resided in the county of Henry; that they had conveyed their [556]

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Bluebook (online)
49 S.E. 660, 103 Va. 551, 1905 Va. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williamson-v-payne-va-1905.