Woods v. McGavock

18 Tenn. 133
Tennessee Supreme Court·Decided December 15, 1836·Published

Opinion

Gheejt, J.

This bill is brought to enforce a re-conveyance of certain tracts of land, which were sold as the property of Samuel Wright, under a deed of trust, which land was purchased by the defendants, and is sought to be redeemed by the complainants, who (laim the right to " do so, because they say they are bona fuls creditors of said Wright, and have tendered to the defendants the amount" of money, which by law, they arc entitled to receive. The right of the complainants to redeem is resisted upon several grounds. The first ground we shall notice, upon which the defendants resist the bill, is, that the complainants agreed they would not redeem, and thereby induced the defendants to make the purchase, and to expend large sums of money in constructing improvements on the laud. The lands were sold b}' virtue of deeds of trust, which were made to secure debts, to a large amount, due the complainants. They expected to experience a loss of part of their debt, and were anxious that the property should bring the highest possible price. They did not wish to become purchasers of the land, and would have preferred losing a considerable amount of the debt, rather than to bid [134]*134it ¡n. On the day of the sale, their agents, Mr. Ewing, tile . . ,, , ,. , - . i • ¶ and Mr. Bradford urged the delendanrs to bid. They were told, that if they would bid §7000 for the land, tjaer0 wag ^ut ]¡tti0 doubt, but that the complainants would wait one, two or three years for the money; and Mr. Bradford says, that his impression at the time of the sale was, that the complainants would not redeem the property, and he has no doubt he expressed that opinion to the defendants in strong terms; that his impression is, the complainants autho-rised him to say to the defendants that they would notredeem, and that he did say so; as to that, he will not be positive, but that when he heard the property would be redeemed, he was very' much surprised. Mr. Erwin states, that he had heard Mr. Robert Woods say, that he was willing to make a sacrifice rather than to be troubled with the property, and that Mr. Woods had told him, that he (Woods) had, in a conversation with one of the defendants, told him he would not redeem the land, or did not expect to redeem it. After-wards he said to witness, that this remark was a voluntary one, and formed no part of the consideration in the purchase, or that it was after the purchase was made. Mr. Ewing, the trustee, states, that when the deed was about to be executed by him to the defendants, Mr. Robert Woods and the defendants talked a great deal about the probability of a redemption, and that Mr. Woods stated, that Ogden Ferguson & Co. were the only creditors that had a debt that would justify a redemption. When asked to release his claim on Wright to the defendants, he stated, as one reason why he would not do so, that he hoped to get a negro (belonging to Wright) that had runaway, and no other reason is recollected to have been given. It is admitted by complainants, that defendants have made considerable improvements on the land since they purchased it, and before they knew complainants entertained any purpose of redeeming it. This evidence, we think, proves beyond a doubt, that one of the complainants gave assurances to the defendants that no redemption would be made of the land in controversy, and that acting upon this promise, large expenditures have been made in improvements on the land. It is true no positive promise not to redeem is [135]*135expressly proven by any witness, except Mr. Erwin. But bis statement is clear and unequivocal, and proves the knowledgcment of Mr. Woods, that lie had said to one of the defendants, that he would not redeem. He afterwards told Mr. Envin, that the promise formed no consideration for the purchase, or was after the sale. But whether it was made before or after -the sale is not material, if the defend-dants acting upon the faith of it afterwards expended their money in making improvements. There 'is strong reason to believe, however, that a like promise was made before the sale. Mr. Bradford’s impression is, that he told the defendants before the sale, that Mr. Woods authorised him to say to them, that if they would bid $7000 for the land he would not redeem it. The subject of the redemption was a matter of solicitude with the defendants, and they had a great deal of talk about it with Mr. Woods, at the time they received the deed for the land. Mr. Woods at that time mentioned Ogden Ferguson & Co., as the only persons who were likely to redeem. It is clear that the defendants must have had the most satisfactory understanding that he would not redeem, or their solicitude would not have had such entire reference to the probable conduct of others. When we add to this the admitted fact, that he did make such promise after the sale, the conclusion is satisfactory, that a like promise was made before the sale, through Mr. Bradford, his agent. We have then the case of a purchase made at the solicitation of the complainants, under a promise not to redeem the land, and that promise repeated after the purchase, inducing the expenditure of considerable sums in improvements, and after all this an attempt to enforce a re-conveyance, under the statute by a tender of the purchase money and ten per cent, interest. Can such an attempt find countenance in this court? We answer unhesitatingly, it cannot. There is now, to be sure, an offer to pay any sums which may have been expended in improvements, but if they were guilty of no fault there is no ground upon which this court could require them to do so; and if guilty of such wrong, as to justify the imposition of such a condition, this court will not assist them to reap the benefit of a judicious 'improvement, enhancing [136]*136l^e va'l,e °f ^le property greatly beyond its cost, on pay* of the money expended. If this were done, tbe creditors of a debtor, whose land might be sold, would be encouraged to stand by, promising not to redeem, and stimulating the purchaser to make improvements, and tV.cn, if they succeeded in greatly enhancing tbe value of the property, they would come in and by redeeming, obtain a premium for their breach of faith. This is what no man, unbiassed by the force of bis own interest would ask, and what no court of chancery ought to permit. But it is said, this promise is not obligatory, because it was 'not made in writing, and to enforce it would be against the statute of frauds. In answer to this, it may be sufficient to say, that the promise contains no relinquishment of any interest in land. The complainants bad no interest in this land after tbe sale. They were in tbe situation of every other creditor of Wright, having by the statute tbe legal right to redeem the land upon tbe performance of certain conditions, but certainly having no interest in tbe land until the conditions were performed. The entire and absolute estate was vested in the purchaser, subject to be divested upon tbe terms prescribed in tbe statute, which gives any creditor a right to purchase tbe laud, by tbe payment of the money bid at the sale and ten per cent, thereon.

The case of Fay vs. Valentine, 12 Pick. Rep. 43, fully sustains the defence in this case. That was the case of a purchase of a mortgage. There tbe party entitled to the equity of redemption, urged the defendants to purchase tbe mortgage, assuring him that it should never be redeemed. The purchase was made, and buildings erected upon the land at great cost and expense, before the plaintiff gave notice of his intention to redeem. It was objected, that tbe mortgagee could not relinquish bis interest by parol.

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Woods v. McGavock, 18 Tenn. 133 (Tenn. 1836).

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