83 So. 411 | Miss. | 1919
delivered the opinion of the court.
Biles filed suit in the chancery court against E. Y. Walker to cancel a claim of E. Y. Walker to certain lands deeded to the appellee by one West, the former employee of Biles, conveying a half section of land worth approximately twelve thousand dollars for the sum of two thousand dollars and the assumption of a mortgage outstanding against the lands for two thou
It appears that J. "C. Walker, the husband of E. Y. Walker, conducted all the negotiations with West and made the payments for E. Y. Walker and examined the records, acting for her in the premises prior to the filing of the suit. It appears from the evidence of J. C. Walker that he made an examination of the records to determine the title before buying the land, and' in this examination he saw the deed of trust executed by Biles to the National Insurance Company, which had been recorded, in which deed of trust Biles was conveying the land in suit to secure an alleged debt due the insurance company. It further appears that Walker had a conversation with West over the telephone in reference to the deal between West and Walker, in which West stated that he was anxious to sell the property, as he needed the money, and-that he feared that Biles would tie the property in the chancery court. It further appears that Walker had knowledge of another transaction, relating to other land between West on one side and Biles and the bank on the other, in which the bank’s interest was derived through Biles, which suit was compromised. It further appears that Walker knew that West had formerly been employed by Biles, and that this last suit grew out of a similar transaction, in which West had sold certain land near Shaw, Miss. 'It further appears that West had been in financial trouble after his -severance ^ of his relations with Biles, and this was known to'--Walker. It will be noted that Walker had'sold the property for forty dollars an acre, amounting to about twelve thousand dollars, and that the land in reality was worth that much, whereas he bought the land from West under the circumstances related for approximately one-third of its real value. Taking all these facts together, we think they were sufficient to cause a reasonably prudent man to halt
Notice or knowledge by an agent who is examining the title or making a purchase for a principal, acquired at such a time or while he is investigating the title, is notice to and equivalent to knowledge by such buyer. Edwards v. Hillier, 70 Miss. 803, 13 So. 692; Ross v. Houston, 25 Miss. 591, 58 Am. Dec. 231; Baldwin v. Anderson, 103 Miss. 462, 60 So. 580; Buck v. Paine, 50 Miss. 648; Parker v. Foy et al., 43 Miss. 260, 5 Am. Rep. 484.
It is contended by the appellee that the fact that Biles had the property conveyed to his agent instead of to himself is such an act on his part as constitutes a fraud upon the purchaser, and that equity will not relieve a person who has voluntarily placed his title in a tlfird person where a fourth person must suffer loss by reason of his act, and rely upon Pomeroy’s Equity Jurisprudence, vol. 2, section 278, 16 Cyc. 773, 10 R. C. L. 788, section 102, and various other authorities io support the contention of the appellee. Whenever a person for fraudulent purposes places the title of his property with a third person, or does an affirmative act for the purpose of misleading, or places it for the purpose of concealing it from his creditors, the doctrine would apply, but it would not apply in a case like the present one, where the buyer had knowledge of all facts or of sufficient facts which, if followed up, would place him in possession of all the facts. Equity will not grant relief to a person who is guilty of fraud in any part of a transaction involved in a suit, but the only evidence in the record before us of a reason for placing title as it was placed is that Biles could more readily sell the property, or could secure a better price
The judgment of the lower court must he reversed, and the cause remanded, with directions to grant the relief prayed for.
Reversed and remanded..