59 W. Va. 225 | W. Va. | 1906
H. Childs & Co. brought a suit in equity in Tyler county to enforce judgment liens on land of Dunfee, and in it a decree was entered in August, 1891, to sell a tract of eighty-five acres of land of Dunfee for various debts, one of them to Hardman. Under this decree sale was made of said tract to Hardman, and the sale was confirmed in December, 1891. The decrees of sale and confirmation were by default. Dunfee filed a bill of review in April, 1894, but it was dismissed. On appeal to this Court the decree dismissing the bill of review ivas reversed for error of law, and the case was remanded to the circuit court. 45 W. Va. 155. The decree of reversal dates 6th May, 1898. In April, 1894, Dunfee and wife filed what is called a supplemental bill in the nature of a bill of review. In it the charge was made that Hardman chilled the bidding at the sale pretending to be buying the land with intent to let Dunfee redeem; and also that after his purchase Hardman, with knowledge that his title under the judicial sale was bad, went in company with a deputy sheriff, Hardman being at the time sheriff, to the residence of Dun-fee on the land, and represented that Dunfee’s wife had no contingent dower in the land, and that under his purchase he could at once turn them out of possession, and would do so, unless they would execute to him a special warranty deed to. the land; but that if they would do so, he would let them remain on the land for the balance of the year 1892, from March; that under this representation, and supposing that their .legal rights had been entirely taken away by the sale,. and that Hardman knew what he stated to be true, in order to keep from being turned out of doors, they executed such deed to Hardman, dated 28th March, 1892. The deed recites a consideration of one hundred dollars paid and other valúa-
The printed record contains 410 pages besides the record on the former appeal, and the briefs 381 pages, and the case has been complicated by numerous elaborate pleadings. It is to be noted that this appeal is only from the decree of October 10, 1900, dimissing the last bill of review. The question is, Should that decree be reversed? Instead of dismissing the bill of review of May, 1899, should the decree have been one reversing the decree of December, 1896, and cancelling the deed from Dunfee and wife to Hardman? At once I remark that wo cannot consider whether the court upon the bill of April, 1894, ought to have set aside the deed from Dunfee and wife to Hardman, for the reason that that matter turned on depositions, which cannot be considered upon a bill of review. To reverse the decree of December, 1896, for that matter, there must have been an appeal from it bringing the evidence under review. By the decree the court found that the evidence did not sustain the attack on the deed, and it could not reach this conclusion except by considering the evidence. The depositions were voluminous and conflicting upon the questions of duress, want of consideration, misrepresentation and improper procurement of the deed. Error of a court upon questions of fact under evidence is not roviewable on bill of review. Wethered v. Elliott, 45 W. Va. 436; Dunn v. Renick, 40 Id. 349.
The last bill of review, that of May, 1899, assigns only two errors in the decree of December, 1896, one the failure to stay the case until decision of the Supreme Court: the other, “in dismissing the bill, because, upon the face of the decree as shown by the pleadings, the plaintiffs were entitled to the full relief prayed for.” This is very indefinite and general. What is its meaning? The law requires definite assignment. This is hardly an assignment of error. If it means, as I sup
It is claimed that there is error in the decree of December, 1896, dismissing the bill of April, 1894, because the circuit court failed to stay the proceedings until the decision of the Supreme Court on appeal from the decree of sale of August, 1891. But there was nothing to show that, in fact, such an appeal was pending. It is enough to close this question, the only question of law involved, that the record does not present this error, as a bill of review for error of law can only be sustained by error on the face of the decree. The motion to stay the suit, it is true, did aver that there was pending in the Supreme Court an appeal; but no showing of that kind was made by affidavit, record or otherwise. And as against the adverse party this averment amounted to nothing. The answers of Childs & Co. and The Carter Oil Company denied the pendency of such appeal, and the bill does not allege its pendency, and no showing of it was made by the record, and the mere statements of the plaintiffs in their motion would not show the existence of an appeal, as it would not establish the fact of the appeal as against the other parties. So, there is no error in the refusal of a stay. On the contrary, instead of there being ground to stay the case, there was ground under this head to justify the dismissal of the bill, because by their motion to stay the plaintiffs admitted the pendency of an appeal in the Supreme Court for the same matter for which they had filed their bill of April, 1894, and thus admitted that they had already an appeal pending to reverse the decree of sale for error of law, and therefore could not have a bill of review in the circuit court for the same error of law. Instead of that being matter to stay the case, it was matter calling for the dismissal of their bill, so far as it is to be viewed as a bill of review — so far as the error of law was concerned. There cannot be a bill of review for error of law while
AS there was no appearance of record to show the actual pendency of an appeal, it is unnecessary, except in deference to the point made by counsel to advert to the point that though the first appeal was dismissed on the 12th day of December, 1896, by the Supreme Court, yet this Court did not close its term until 31st December, 1896, and that the order dismissing the first appeal did not thus become final until 31st December, and was not in force on the 16th of December. This point is not tenable. For some purposes judgments relate to the first day of a term, for instance, as a lien; but hardly ever to the last day for any purpose. It is true that during a term the record is in the breast of the court, and may be set aside; but generally the date of actual rendition is the date by which the judgment is to be tested as to its force and operation. Long v. Perrine, 44 W. Va. 243, (28 S. E. 701). On December 12, 1896, the order dismissing the first appeal took effect; on that date that order put that appeal out of court; its life was gone for all purposes, and it had no existence on the 16th of December. Even if the 31st of December, the close of the term, had anything in the world to do with the question, when the term closed on that date, it would retroact and make the order dismissing the ap
Let us suppose, however, that there was pending on the 16th of December, 1896, an appeal. The stay of proceedings was not material as to the matters of law involved in that appeal, the matters affecting the decree of sale. The question whether that decree should be set aside was fixed by the record of the appeal. In case of reversal, such reversal would remove the decree of sale without any aid from a decree on the bill of April, 1894, reversing the decree of sale.
Can we regard such stay of proceedings material as to that matter of the bill of April, 1894, which sought the vacation of the deed from Dunfee and wife to Hardman, dating 28th March, 1892? I think not. If we should say that a stay had been granted, and that the Supreme Court had reversed the decree of sale, and that this fact had been brought into the case by amendment of the bill of April, 1894, would it demand a decree reversing the decree of sale (supposedly already reversed by the Supreme court) and.annulling the deed from Dunfee and wife to Hardman? If we concede that such reversal would alone constitute ground for the annulment of that deed, if Hardman still owned the land, yet could it be annulled as against McCoach and West and Ludwig & Mooney and The Carter Oil Company ? Could a reversal of that decree by the Supreme Court upon the appeal, or by the circuit court under the bill of April, 1894, treated as a bill of review, affect those purchasers for valuable consideration, though it would affect Hardman? Could a decree -upon that bill of April, 1894, treated as an original bill, setting aside that deed, affect the said purchasers, though they held title derivatively from Hardman? I hold that they could not be affected in either aspect, for the reason that they are purchasers for valuable consideration without notice. Further on I will seek to give reasons based on authority for this position. In connection with the subject of stay I will add, since that stay constitutes the
Refusal of the stay is the only error of law imputed in the dismissal of the bill of 1894, specified in the bill of review of May 1899, and we have seen that this does not constitute a reason for reversing the decree of 16th December, 1896, dismissing the bill of April, 1894. I will add another reason why there is no error of law in such dismissal. The bill of April, 1894, states that Dunfee had then pending a bill of review to reverse the same decree of sale for the same error of law, and that it was yet pending. There could not be two bills of review for the same cause. This matter was pleaded in bar of the bill of April, 1894, and was cognizable on final hearing.
Thus we conclude that there is no error in the decree of October 10, 1900, upon the bill of May, 1889, based on error of law: First, because if there was pending an appeal from the decree of sale, that would prevent the court from reversing that decree unde.r the bill of April, 1894; second, there was a bill of review yet pending in the circuit court to reverse the decree of sale; third, there was no evidence that an appeal was pending so as to show error in refusal of a stay before hearing the bill of April, 1894; fourth, because no reversal of the decree of sale or annulment of the deed of Dunfee and wife to Hardman could affect McCoach and other purchasers; fifth, if it had been assigned as error in refusing to reverse the decree of sale under the bill of May, 1899, the answer is that the Supreme Court had already done this. Though matter of error in the decree of sale, is incorporated in the bill of review of May, 1899, yet it is not assigned as error therein. So much for matter of law apparent.
But the bill of May, 1899, states that the Supreme Court
So, treating the bill of May, 1899, as a bill of review, we see no error in the decree of October 10, 1900, dismissing that bill. It is hardly necessary to say that we cannot look into the evidence bearing on the question whether the deed from Dunfee and wife to Hardman was procurred by fraud or coercion, because upon a bill of review we cannot look into such evidence, as that can only be done upon an appeal.
But suppose we treat the last bill, that of May, 1899, as an original bill to set aside the deed from Dunfee and wife to Hardman on the strength alone of the reversal by the decree of the Supreme Court of the decree of sale. There is, or might be, an objection to so* treating this bill, on the ground that it unites matter for a bill of review and matter for an original bill; in other words, it asks to set aside the decree of December 16th, 1896, for error of law and new matter, and to treat it as an original bill would make it operate as an original bill to affect said deed on the strength of the reversal of the sale decree. “A bill cannot be maintained which seeks in the alternative to review a decree for error apparent, or to impeach and set it aside on the ground of fraud.” Gordon v. Ross, 63 Ala. 363. The opinion in Kimberly v. Arms, 40 Fed. R. 559, takes the same view. But as there was no demurrer to the bill of May, 1899, for multifariousness,, let us waive this defect, though this Court might sua sponte raise that question itself, without demurrer, and dismiss the bill. Dunn v. Dunn, 26 Grat. 296; Hogg’s Eq. Proced. section 137; Oliver v. Pratt, 3 How. 411; 14 Ency. Pl. & Prac. 211. Then, treating this bill as an original bill setting up the fact of the reversal of the decree of sale, did it call for a decree annulling the deed from Dunfee and wife to Hardman? If that deed rested
But, for argument, let us say that the reversal of the decree of sale would, of its own force, as a new fact, an independent fact, call for the cancellation of the deed from Dun-fees to Hardman. We do not feel called upon to say decisively whether or no such would be the case, treating the last bill as an original bill, as we would have to say if Hardman yet owned the land, or a royalty issuing from it, because he conveyed the land outright to McCoach, by deed dated 2d February, 1893, under an executory contract of sale dating 2d April, 1892, and McCoach conveyed an interest to West, and McCoach and West, on 18th April, 1892, leased the land for oil purposes to Ludwig and Mooney, and they entered and developed oil upon it. These transfers were made after the decrees of sale and confirmation, and after the conveyance of the land to Hardman under his purchase under the decree of sale, and before any bill of review had been filed, or any move made against the decree of sale. Could a reversal of those decrees by the Supreme Court under the appeal from a decree made upon the bill of review dismissing it, or by a reversal of said decrees as asked by the bill of review of April, 1894, affect McCoach or those claiming under him ? Such reversals could not do so, because McCoach was a complete purchaser for valuable consideration without notice. Did McCoach have notice? Notice of what? When he purchased there was a final decree and no bill of review. Surely he was not bound to notice the single technical error which alone caused the reversal later of the decree of sale, that is, the failure of the record to show that the land would not by rents in five years pay the debts. This defect did not render the decree void, but only erroneous and voidable. Waldron v. Harvey, 54 W. Va. 610. This fact is material, for if the decree were void, it would be different, as if there were no jurisdiction of the subject matter or parties. If void, the decree would be nil and would confer no title on the purchaser. Hoback v. Miller, 44 W. Va. 635. And the purchaser having no title, could not confer it; but Hardman had title perfectly valid while the decree stood unreversed, and McCoach had right to think that as the court had decreed a sale, that sale would confer good title.
I ask if it can possibly be law that one who buys or recovers land under decree must wait three years for a bill of review, or two years for an appeal, or five years for a motion to reverse, before he can sell to a tona fide purchaser and give him good title? Is it the policy of the law to thus tie up land? The decree is presumed to be right until reversed. May not the victor in the suit or the purchaser act upon this presumption. “The successful party ought not to have his title clouded and the value of his property correspondingly diminished for three years by two doubtful contingencies: 1. That a writ of error will be sued out; and 2. That a reversal will take place.” Cheever v. Minton, 13 Am. St. R. 258. So says Bank v. Bank, 6 Peters, p. 17.
The case of Lynch v. Andrews, 25 W. Va. 751, cannot be used to show that the purchasers were pendente hite from Hardman. It is not authority in this case, because the decrees were not final, I mean the decrees of sale and confirmation, as there was a reservation of right to make final adjudication. From the case of Camden v. Raymond, 9 W. Va. 680,
In volume 9, page 1, of that excellent equity work, American and English Decisions in Equity, will be found valuable authority to support this holding. It reports the West. Virginia case of Ohio River Co. v. Fisher, Circuit Court of Appeals, 115 Fed. 929. This case protected lona úde purchasers purchasing between the decree and a filing of a bill of review. The Circuit Court of Appeals affirms the rule put in the case of Rector v. Litzgerald holding that a bill of review is not a continuance of the old suit, but a new one and that a third person bona fide purchasing under a decree after-wards reversed is not affected by the reversal. “Subsequent reversal of a decree of chancery does not affect the title of a bona dele purchaser who has acquired under such decree before suit in error to reverse it was commenced. ” McCormick v. McClure, (Ind.) 39 Am. Dec. 441. This case says that one. may purchase before appeal with safety. The opinion says that the appeal is a new suit.
Pomeroy Eq. sec. 632 (3rd Ed.) says that if the unsuccessful party is entitled to appeal, he must do so in a reasonable time to keep the lis pendens alive. Even under this rule the Us pendens had ceased, as the bill of review was not filed for thirty-two months after the decree.
So there was no proceeding pending when Mc.Coach got his deed to make him a pendente lite purchaser.
The bill of April, 1894, alleges that Hardman was guilty of wrongful conduct in chilling the bidding at the court sale, so as to keep down the price, and that he purchased with intent that Dunfee should redeem. If we had before us an appeal from the decree on that bill, we could examine the evidence to see whether this charge is true, and whether Mc-
Next we consider the demand of the bill of April, 1894, to set aside the deed of March 28, 1892, from Dunfee and wife to Hardman. The Court could not set aside that deed to the prejudice of McCoach, because he was purchaser for valuable consideration without notice of the misrepresentation, coercion, or want or failure of consideration on which the attack upon that deed was predicated. We find in 2 Story Eq, Juris. § 1503, the following basic principió applicable aSwell tó the demand to set aside said deed as to the 'claim that the reversal of the decree of sale destroyed the title of McCoach and those claiming under him : “In short, courts of equity will not take the least step imaginable against an innocent purchaser in such a predicament; and will, on the other hand, allow him to take every advantage, which the law gives him; for there is nothing which can attach itself upon his conscience in such a case in favor of an adverse claim. ” Remem-bér we are in a court of equity, which never lifts its hand by affirmative action hurtful to a purchaser bona -fide for valuable consideration. Reflect that McCoach, under judicial sale and under the deed from Dunfee and wife, obtained legal title, and would thus prevail in a court of law, and equity will not make h'is condition worse by depriving him of legal title which gives him advantage in a court of law; for as Judgó Moncure said in Burwell v. Fauber, 21 Grat. p. 463, “Certainly a bona fide purchaser for value, and without notice, is a great favorite of a court of equity, and that court will not disarm such a purchaser of a legal advantage.” We find it stated in National Valley Bank v. Harman, 75 Va. p. 609; that Lord Rosslyn said what is approved by the Virginia court and held everywhere as equity law: “I think it has been decided, that against a purchaser for valuable consideration Without notice, this court will not take the least step imaginable. You cannot even have a bill to perpetuate testimony against him. I am pretty sure it is determined that no advantage the law gives him will be taken from him by this court.. The doctrine as to the jurisdiction of, this court is
There is another decisive view against the appellants. The bill of April, 1894, charges that Hardman knew of the error infecting the sale decree. He was not bound in law to notice it, and actual notice of it ought to he 'proven. The bill charges that Hardman at the sale bought under the pretense of- allowing’ a redemption by the Dunfees, and that he employed coercion by threatening to eject Dunfee from the land, unless he would make the deed of March 28, "1892, and that he represented that he had the right to do so, and that Mrs.-Dunfee had no. contingent right of dower, and that the one hundred dollars stated as the consideration for the deed was not paid, and that McCoach and West had notice of all these things. W hether these charges are true or not depends wholly on evidence contained ‘in depositions, and under authorities above cited, as we are deciding upon a! bill of review, wé cannot read those depositions to sustain these chai’ges against Hardman and McCoach, as we could do upon an appeal from the decree of 16th December, 1896. - Therefore, those charges-are impotent in this case to fix fraud or misconduct on Hard-man or knowledge or notice on McCoach. We have no read
But it is contended that McCoach cannot occupy the position of a tona fide purchaser, because he holds the land under a special warranty deed. Seeing that a special warranty deed would give McCoach the cast' and character of a tona .fide purchaser, counsel frequently call this deed a quit-claim deed, and rely on some cases holding that a purchaser under a quit-claim deed cannot make the defense of a tona fide purchaser, but that position is not sound law. “The receipt of a quit-claim deed does not of itself prevent a party from becoming a tona fide holder; and the doctrine expressed in many cases that the grantee in such a deed cannot be treated as a tona fide purchaser does not rest upon any sound principle. It is asserted upon the assumption that the form of the instrument, that the grantor merely releases to the grantee his claim, whatever it may be, without warranty of its value, or only passes whatever interest he may have at the time, indicates that there may be other and outstanding •claims or interests, which may possibly affect the title, and, therefore, it is said that the grantee, in accepting a conveyance of that kind, cannot be a tona fide purchaser and entitled to protection as such, and that he is in fact thus notified by his grantor that there may be some defect in his title, and he must take it' at his risk. This assumption we do not think justified by the language of such deeds or of the gen
I have said that we cannot read the depositions for decision, and therefore we need not state their contents; but as-bearing on the substantial justice of this case I will say that-the depositions fall far short of sustaining the charges off fraud, coercion and misrepresentation against Hardman, and proving notice theteof on the part of McCoach. Even if Hardman were culpable in the manrier of his procurement off the deed; thefe is no evidence to show that McCoach and those claiming under” him had notice of it. Therefore, Mc-Coricli Woüld be protected against this charge of fraud in the-procurement of the deed. The law above given touching the-prbtéction of an innocent purchaser against loss of title by the reversal of a decreé fully applies to protect McCoach
It is charged that Hardman; when he got the deed, knew there was error in the decree of sale that would invalidate the sale. Will the law say that he was bound to bé á jurist, seer and prophet and anticipate the effect of the single technical error affecting the deed, for the purpose of fixing actual fraud in his mind? I know that for some purposes a purchaser is bound to know defects in his chain of title; he is bound to know the contents of a record under which he claimfe for certain purposes arid to a 'certain extent, as; for instance, if he buys under a decree, he must see that the court has jurisdiction of the subject matter and the parties; but is it possible that he is bound to know in advance the effect of every error and irregularity for which the decree riiáy bé in the end reversed, when such error does not affect the authority and jurisdiction of the court? But even say that Hard-man and McCoach were bound to see this defect iri the decree; say that you cari use this for the purpose of fixirig intentional fraud in the Mind of Hárdiüan, theri I ask why did Dunfee allow Hardman to avail himself of that fraud by making a deed ? Did not Dunfee have the same means to know of that defect in the decree aS Hárdmán had? Was riot the samé avenué of information open to Dunfee as to Hardman ? If Hardman took the deed with knowledge of that error, so did Dunfee make the deed with like knowledge.
It is charged that negotiation was commenced by MbCoacli to purchase of Hardman before Hardman got the deed from
And another point is this. If there was anything wrong-in the procurement of that deed, why did not Dunfee attack it sooner after March 28, 1892, than April, 1894? He having knowledge of every circumstance connected with the execution of his deed, the law demanded quick attack, especially when he and his wife, living on the land, saw the oil operators spending thousands of dollars in their uncertain enterprise of development. Pie waited too long to invoke the power of equity to overthrow rights in those people. The many cases cited in Whittaker v. Southwest Improv. Co., 34 W. Va. 217, will establish this. “To set aside a sale for fraud and conspiracy, suit must be brought within a reasonable time after the discovery of such-fraud.” Williams v. Maxwell, 45 W. Va. 297. As oil operations were going on before Dunfee’s eyes, and as he knew that those engaged in them were resting on his deed, equity would require,-in this particular case, prompt and speedy attack. And I will mention as pertinent here the fact that on the 2nd of January, 1893, McCoach having before that purchased the land by ex-ecutory contract of Hardman, Mrs. Dunfee leased the house on it from McCoach, and thus inspired confidence in the title of the operators.
The law of estoppel plays an active part in this case also. Dunfee and wife made that deed to Hardman, and they took those leases from Hardman and McCoach, thus admitting title in Hardman and McCoach, and they rested quiet and silent upon that land seeing' money expended in oil operations, knowing that Hardman relied upon the judicial purchase, the deed and his lease to Dunfee, and knowing that the oil operators relied upon them, and went on with their expenditures, and they made no protest. These facts not only call for speedy notice of dissatisfaction to those interested, and
I need hardly say that some evidence was given to show that after the delivery of the deed of Dunfees to Hardman, Hardman said that if he could sell the land for oil for enough to pay his debt due from Dunfee, he would give Dunfee the surface. This is not in the bill. It was after delivery of the deed, and cannot affect that. If such agreement were made, it was voluntary, based on no consideration, merely oral and not enforceable. In no view does it play any part in this case. Decree affirmed.
Affirmed.