94 Tenn. 459 | Tenn. | 1895
This is an ejectment suit, brought by A. E. Garrett and J. A. Hayes, Jr., to recover lots Nos. 23 and 41 in what is styled the O. B. Hayes plan, a suburb of Nashville.
The Belmont Land Company claims, and is in possession of,- lot No. 41, and defendant, Valentino, claims, and is in possession of, No. 23. Upon the hearing, the Chancellor gave judgment for the complainants for the lots, and defendants have appealed and assigned errors.
Both parties trace their titles to a common source, Joel A. Hayes, Sr., who was the father of complainant, J. A. Hayes, Jr., the father-in-law of 'complainant, Garrett, and the brother of Mrs. Adelicia Cheat-ham, under whom the defendants derived their title.
Complainants’ title is as follows: On December 5, 1873, the Second National Bank of Nashville recovered a judgment before Justice of the Peace James Everett, against one Henry M. Hayes, for $370 and costs. Joel A. Hayes, Sr., the brother of H. M. Hayes, became stayor on the judgment. After the stay expired, and on August 6, 1874, the Justice issued an execution on said judgment, which came to the hands of Constable W. C. Shaw, and was levied by him on lots Nos. 11, 20, 23, and 41,
On October 13, 1877, James McLaughlin, president of the Second National Bank, executed and delivered to A. E. Garrett and J. A. Hayes, Jr., a deed to said lots. It is insisted this deed is invalid, because, as signed, it was not the deed of the bank, but simply that of James McLaughlin, and because it was not executed under the seal of the bank. But it is insisted, if the deed shall be held valid, that Garrett and Hayes, Jr., held title to the lots not for themselves, but for the use and benefit of Joel A. Hayes, Sr., having in fact redeemed or repurchased them for him, and having afterwards been repaid the amounts advanced by them to regain the lots.
It is assigned as error that the Chancellor should have held:
1. That defendants, and those under whom they claimed, had been in adverse possession of said lots,.
2. That, the deed of James McLaughlin, president of the Second National Bank, under which complainants claim, was void, and conveyed to them no title in said property, or, at most, vested in them only an equity which was insufficient to entitle them to recover.
3. That the alleged purchase of the lots by complainants from the Second National Bank was, in law and in fact, a redemption for J. A. Hayes, Sr.
Appellants’ chain of title is as follows: On July 12, 1875, Mrs. Adelicia Cheatham, a sister of Joel A. Hayes, Sr., recovered a judgment in the Circuit Court of Davidson County against Joel A. Hayes, Sr., upon which execution issued, and was levied September 4, 1875,. on these two lots, 23 and 41, as well as lot No. 11, and other real estate not now in controversy, and on November 26, 1875, the lots were sold by the Sheriff, and lots Nos. 23 and 41 were bought by Mrs. Cheatham, and the Sheriff made a deed to her February 15, 1881. She conveyed the lots January 11, 1887, with other lots, to Lewis T. Baxter, for $49,000; and on October 17, 1889, Baxter and wife conveyed lot No. 23 to E. C. McDowell, who afterwards sold the same to defendant, J. L. Valentino. March 17, 1890, Baxter conveyed lot No. 41 to the Belmont Land Company. It is claimed that Mrs. Cheatham paid táxes on the lots from the time she bought them, in 1875, and claimed
Defendants plead and rely on the statute .. of limitations, coupled with this. adverse possession, which, they insist, was all that 'the lots were capable of, and they cite and rely upon the following cases: West v. Lanier, 9 Hum., 762; Creech v. Jones, 5 Sneed, 631; Copeland, v. Murphy, 2 Cold., 64; Pullen v. Hopkins, 1 Lea, 744; Bynum v. Carter,
In these several oases it was held that digging sand, digging ore, the annual making of turpentine, running a plowed furrow around a tract of prairie land, laying down sidewalks, and placing agent’s sign hoard on a town lot, growing and cutting willows for basket making, cutting underbrush, grubbing, and paying taxes on village lots, under the facts of the respective cases, constituted adverse possession, without actual inclosure or residence upon the premises.
In the answer filed by the defendants, they state that 1£ said blocks or lots of land are what is known as fine blue grass lands, and are suitable for cultivation. They are located in the suburbs of the city of Nashville, and are entirely too small for agricultural purposes. It is true no person has attempted to build a house on either of them, or to inclose any part of either of them, until recently, when each lot was inclosed. Said blocks or lots are like, a great many other lots in the suburbs of Nashville; they have been left uninclosed and unimproved until recently, awaiting a purchaser wdio desired to build. The only acts of ownership of which they were susceptible in their uninclosed condition was the payment of taxes upon them, which
It is proper to remark in this connection that taxes were not paid ■ upon the lots by either party by specific description, and none have at any time been paid or ' claimed to have been paid by complainants, but defendants claim that Mrs. Cheatham paid taxes upon these lots along with other property and lots owned by her • in the same locality after her purchase until the sale.
We are of opinion that neither party has had such- actual adverse possession of the lots as would ripen their claims into perfect titles by virtue of such possession, and that the property has not had such inclosures as it was susceptible of. They have recently been inclosed, and the proof shows ■ that, before the war, they were inclosed by fences, and the cases cited do not apply, even if it were conceded that they are good law in Tennessee, which it is not necessary now to determine. There must be actual inclosure, whenever the property is susceptible of such inclosure, in order to make out a case of adverse possession of town lots. Pullen v. Hopkins, 1 Lea, 741; Hicks v. Trederick, 9 Lea, 492; Newell on Ejectment, p. 728, Sec. 41.
It is insisted that the deed executed to Garrett and Hayes was invalid to convey to them a legal title to said lot, and, at most, could only vest them with an equity. The objection to the deed is as to the mode in which it was signed and acknowl
“(Signed) James MoLaughlin, '■'■President Second JPational Borní.’’1
The acknowledgment was taken before -the Clerk of the County Court, and recites that the within named James McLaughlin, president of the Second National Bank, appeared, etc., and acknowledged that he executed the annexed instrument for the purposes therein contained. The seal of the bank was not impressed upon or affixed to the instrument! It appears in proof that the bank had a seal; that it was not its custom to affix it to deeds or other instruments, except its stock certificates. It is insisted that a deed thus executed is not the deed of the Second National Bank as a corporation, because not properly signed and not sealed, and the following authorities are cited and relied on:
In Love v. S. N. L. W. & M. Co., 32 Cal., 639, the parties in the mortgage were described as “The
In Richardson v. Scott River W. & Mining Co., 2 Cal., 150, a mortgage was made in connection with a bond to secure a debt of a corporation styled the ££Scott River Water & Mining Company,” and named as parties of the first part (grantors), W. P. Pool, C. W. Tezer, Gr. T. Terry, and J. Reid, ££ president, directors, and members of the Scott River Water & Mining Company,” and concludes as follows: ££In witness whereof, the said parties of the first part hereunto set their hands and affix their seals,” followed by the signatures of the four
In Brinley v. Mann, 2 Cush., 337, a deed from the New England Silk Company, a corporation, was set up as a muniment of title. The formal parts of one of the deeds was as follows: “Know all men by these presents, that the Now England Silk Company, a corporation legally established by Christopher Colt, Jr., in behalf of said corporation, and as their treasurer, of Dedham, etc., in consideration, etc., do hereby give, grant, sell, and convey, etc. In witness whereof, I, the said Christopher Colt,’ Jr., in behalf of said corporation, and as their treasurer, have hereunto set my hand and seal, this,” etc. Signed and sealed: “Christopher Colt, Jr., treasurer of New England Silk Company.” The certificate of acknowledgment stated, that “Christopher Colt, Jr., treasurer, etc., acknowledged the above instrument'to be his act and deed.”
Tn the other deed, Christopher Colt, Jr., described himself, in the concluding recital, as “treasurer of the New England Silk Company, and duly authorized for that purpose,” and in the certificate of acknowledgment it is stated that, “in his said capacity,” he acknowledged the instrument to be his act and deed. The case was an action to tiy title. The defendant
The Court said: “On examining the deeds to Colt, we are of opinion they conveyed him no title. * * * Both of these deeds were executed by C. Colt, Jr., in his own name, were sealed with his seal, and were acknowledged by him as his acts and deeds. • In one of them, it is true, he declared that he acted in behalf of the company, and as their treasurer, and in the other he declared himself to be their treasurer, and to be duty authorized for the purpose of executing it. But this was not enough. He should have executed the deeds in the name of the company. He should, also, have affixed to them the seal of the company, and. have acknowledged them to be the deeds of the company.” Citing 1 Crabb on Real Property, Sec. 703, 705; 4 Kent’s Com. (3d Ed.), 451; Stinchfield v. Sittle, 1 Greenl., 1231; Savings Bank v. Davis, 8 Conn., 191.
In Flower v. Shearer, 7 Mass., 19, Parsons, Ch. J., says: “It is- not enough for the attorney, in the form of the conveyance,, to declare that he does it as attorney; for he being in the place of the principal, it must be the act and deed of the principal. ’ ’
In Elwell v. Shaw, 16 Mass., 42, the deed was
It was further said that the authority of Coombes’ case is not at all shaken by modern decisions. In Coombes’ case, 19 Co., the rule is very explicitly stated: “When anyone has authority as attorney to do any act, he ought to do it in his name who gives the authority; for he appoints the attorney to be in his place, and to represent his person; and, therefore, the attorney cannot do it in his own name, nor as his proper act, but in the name, and as the act, of him who gives the authority.”
In Danville Seminary v. Mott, 136 Ill., 289, 394, real estate, the property of the Danville Seminary, was conveyed by the “Board of Trustees of the Danville Seminary,” and the seal of the latter corporation was not affixed to the deed. The Court says: “A deed - of conveyance by a corporation must be executed in the corporate name and under the corporate seal. A corporation, like an individual, may adopt any seal which is convenient to the occasion; it must, however, be shown to have been
A deed purporting to be executed by a corporation to a trustee, which bears the signature and seal of the president, with the suffix ‘‘ President of D. R. Co.,” is not the deed of the corporation, but the personal act of the president. Clayton v. Cagle, 97 N. C., 300. See, also, McKensey v. Edwards, 88 Ky., 272; 21 Am. State Rep., 339, note. “When the conveyance describes the grantors as a corporation, but is executed by the president, under his own nam'e and seal, it is not the deed of the corporation.” Leggett v. N. J. M. & B. Co., 23 Am. Dec., 746, note. See, also, 4 Am. & Eng. Ency. of Law, 240; 3 Wash. Real Property, 294, Secs. 573, 574; 1 Am. Leading Cases, 577, and cases cited.
It will be noticed in this case that' the deed does not purport to have been authorized by any order of the board of directors, and the authority of the president to execute the deed does not appear, unless it be assumed that, as a matter of law, he had such authority. If the seal had been affixed, such recital would have been unnecessary, and the authority would have been present.
The Code (M. & V.), § 2819, provides that
It is insisted that the words, “President Second National Bank,” are only descriptive of the person (Coche v. Dickens, 4 Yer., 34; Fitzpatrick v. Fain, 3 Cold., 17), and, therefore, the signature is no more than the individual signature of James McLaughlin; and, not purporting on its face to be done by order of the bank directors, and not being under seal of the bank, it was only the act of James McLaughlin as an individual. It is insisted the signature should have been: “James McLaughlin, President, for the Second National Bank;” or “The Second National Bank, by James McLaughlin, President;”- or, “The Second National Bank.” See M. & Y. Code, § 2819.
This will be further considered and disposed of in connection with the question of the necessity for a seal to a conveyance executed by a corporation at common law and in Tennessee. Prior to the adoption of the Code of 1858, the seal of the grantor was necessary to the validity of any deed made by an individual or a corporation. The use of seals by individuals arose out of necessity, as, in former days, many persons of extensive estates were too
These Conveyances did not involve conveyances of real estate, and none of the citations are authority for the proposition that a corporation can execute a deed without using a seal. But we think the contrary is held, more or less directly, in the following, as well as other authorities: Spelling on Private Corporations, Sec. 195; Beach on Private Corporations, 376, and Sec. 742 as to mortgages; Jones on Mortgages, Sec. 128; 1 Waterman on Corporations, Sec. 95, p. 303; Boone on Corporations, Sec. 54; 3. Washburn on Real Estate, p. 288, Sec. 7; Leggett v. N. J. M. & R. Co., 23 Am. Dec., 746, note; 4 Am. ,& Eng. Ency. of Law, p. 240; 2 Am. & Eng. Ency. of Law, p. 910; Osborne v. Temis, 23 N. J. L., 633, 658; Duke v. Markam, 18 Am. St. Rep., 889, note; Miller Ditch Co. v. Zellenbach, 37 Cal., 543; Hutchins v. Byrnes, 9 Gray, 367; Flint v. Clinton Co., 12 N. H., 430; Tenney v. East Warren Lumber Co., 43 N. H., 343; Hatch v. Barr, 1 Ohio, 390; Savings Bank v. Davis, 8 Conn., 191; Isham v. Bennington Iron Co., 19 Vt., 230; Zoller v. Ide, 1 Neb., 439; Brierly v. Mann, 2 Cush., 337; Koehler v. Iron Co., 2 Black, 715, 721.
By the Code of Tennessee of 1858, it is provided (M. & V., ^ 2478) that “the use of private seals in
Did the Act change the rule as to conveyances by corporations in Tennessee so as to dispense with the necessity of a seal? There is certainly nothing in the Act to so indicate, but the fact that seals of corporations are excepted by its provisions is an indication that the seal was to be used by corporations after the ,Act was passed, as had been done before its passage, at least in some cases. Statutes similar to this have been passed in Alabama, Arkansas, Delaware, Florida, Kentucky, Iowa, Kansas, Maryland, Minnesota, Mississippi, Nebraska, North Carolina, Ohio, Indiana, Texas, Pennsylvania, West Virginia. Nevertheless, in most of these States corporations are still required to use their seals in making-conveyances, as in Ohio, Indiana, Kentucky, Maryland,, Minnesota, Mississippi, Pennsylvania, Nebraska, Kansas,, and Texas. See 3 Wash, on Real Prop., p. 288, And not only must the deed be sealed, but the seal must be affixed by some one authorized to affix it. Idem,, p. 289.
The conveyance of real estate is one of the most solemn and important acts a. corporation is called upon to perform, and if the seal is required for any purpose, it is difficult to conceive of any other act for which its use is more necessary. If it was intended to abolish the use of seals by corporations
Prior to the Code, the use of an individual or private seal worked various effects, as for example: If not under seal, it was necessary to aver and prove a consideration in all contracts, oral or written, except in cases of bills and notes. Roper v. Stone, Cooke, 499; Shelton v. Bruce, 9 Yer., 26; Read v. Wheeler, 2 Yer., 55; Brown v. Parks, 8 Hum., 297. The consideration of a sealed instrument could not be inquired into in an action of law. Nivens v. Merrick, 1 Tenn., 314; Coleman v. Sanderlin, 5 Hum., 563. And the statute of limitations was different in cases of sealed and unsealed instruments. Anderson v. Settle, 5 Sneed, 203; Thompson v. Thompson, 2 Head, 407, and other cases. A release was required to be under seal. Evans v. Pigg, 3 Cold., 397, 398; Simpson v. Moore, 6 Bax., 373. A sealed contract merged one not under seal. Nunnelly v. Dunn, 1 Yer., 31; Bishop on Contracts, Sec., 31. A person could not bind another by seal unless authorized by seal. Nunnelly v. Dougherty, 1 Yer., 27; Turberille v. Ryan, 1 Hum., 113. Creditors under sealed instruments had certain preferences at common law in estates of deceased persons. Anson on Contracts, p. 48.
The application of this section of the Code, No.
We are of opinion that this -Act, 2478 M. &■ V. Code, does not change .the rule of the common law requiring corporations ’ to use their seals in all conveyances of real estate, and a conveyance not under seal, made by a corporation, does not vest' a legal title in the grantee, except, it may be,, cases of corporations created under the Act of 1875, and which have no common seal, in which case-that Act provides that, in such corporations, having-no common seal, the signing of the name of the corporation, by any duly authorized agent, shall be-legal and binding. See Act 1875, Ch. 142, Sec. 5; M. & V., § 1704.
The corporation now in question was not created, under the Act of 1875, but under the Acts of Congress providing for national banks, and we are not called upon to say whether, under this Act of 1875, a corporation may convey without seal in any case. That question is in no way involved in this-case. We are of opinion that the deed in question in this case was not properly signed nor sealed, and hence did not vest the legal title to the lots-
Complainants base their right of recovery in this case upon the claim that they have a legal title to the lots, and they repudiate the idea that they have only an equitable' interest or estate. This being so, to entitle them to recover, they must show a perfect legal title. And this is ti*ue, whether their suit is brought in a Court of equity, or law, and they cannot recover upon any equitable title that may appear from the proof. Code of Tenn. (M. & V.), § 3953; Langford v. Love, 3 Sneed, 308; Rogers v. Cawood, 1 Swan, 146; Campbell v. Campbell, 3 Head, 325; Walker v. Fox, 1 Pick., 160; Evans v. Belmont Land Co., 8 Pick., 348.
It is useless to pass upon the validity of defendant’s title, as complainants must recover, if at all, upon the strength of their own title, and not upon any supposed or real weakness in their1 adversary’s title.
It is next insisted that the lots in controversy were redeemed or repurchased by complainants for Joel A. Hayes, Sr., and that complainants have been repaid the amounts advanced by them for that purpose, and have now no real, beneficial interest in
While it is true the complainants were not parties of record to that suit, we think it was competent to introduce the record as a contemporaneous transaction, showing how all the parties, and especially Joel A. Hayes, Sr., regarded the transaction with the bank. The language of the deed from complainants to Mrs. Hayes supports the contention of defendants that the lots were being regained from
On the same day this deed was made to Mrs. Emily Playes, and the same day the deed was made to complainants by Mr. McLaughlin, Joel A. Hayes, Sr., executed to complainants a mortgage to secure them the sum of $700, which they had advanced for him, and other amounts, and had the same recorded. There can be no doubt that this $700 is the same $700 advanced to the bank to regain the lots. Complainant Garrett states that this mortgage was executed without his knowledge, and sent to him, after registration, by mail; whereupon, he canceled it, and returned it satisfied. It stood, however, on the Register’s books unsatisfied and as a subsisting mortgage until July 1, 1883, when Joel A. Hayes, Jr., acknowledged satisfaction of all debts secured to him
It further appears that, on January 19, 1878, or about two months after complainants had made the transaction with the bank, a judgment by motion was taken against H. M. Hayes for the amount of the judgment stayed by Joel A. Hayes, Sr. This judgment was taken in the name of Joel A. Hayes, Sr., * * * and recites that complainants had paid and advanced the amount to the bank for J. A. Hayes, Sr., necessary to redeem the lots, and hence the judgment was taken for théir use and benefit. Complainant Garrett caused execution to issue on this judgment and sent it to Williamson County, where it was satisfied by a sale of II. M. Hayes’ lands, and the money realized therefrom was paid over to complainant Garrett, amounting to $608, and a receipt was indorsed on the execution docket therefor signed by A. McClain, attorney for J. A. Hayes, Jr., and A. E. Garrett. Complainant Garrett sent part of this money to complainant Hayes, Jr., and retained a part himself, and states that it was applied to other debts owing him by his father-in-law, Joel A. Hayes, Sr. Complainant Garrett shows that this judgment was taken without his direction or knowledge by the attorney of the bank, but it appears that it was in accordance with instructions to his own attorney, McClain, who otherwise would have taken the same judgment, in the
From the date of the deed to Mrs. Emily Hayes, in 1817, down to the death of Joel A. Hayes, Sr., in August, 1890, we hear nothing of complainants in connection with these lots. During this period of thirteen years they paid no taxes on them, and exercised no public acts of ownership, and made no claim of a public character except the deed, which they had registered soon after obtaining it. In 1887, about three years before Joel A. Hayes, Sr., died, the lots made a phenomenal rise in market value, but this seems to have aroused no interest or concern in complainants. In August, 1890, Joel A. Hayes, Sr., died, and soon thereafter his son, W. O. Hayes, ascertained the condition of the title to these lots, and wrote to complainant Garrett. Soon thereafter complainant Garrett came to Nashville, and went to the abstract office and had a conference with its manager, asking many questions in regard to the title to the lots, and within a month thereafter this bill was filed.
Upon a careful examination and analysis of the proof in this case, we are convinced that, whether the transaction between complainants and the bank is called a repurchase or a redemption, it was, in.
The conduct of the parties toward each other strengthens this conclusion. While Joel A. Hayes, Sr., was involved to insolvency, he was desirous that his brother’s estate should not suffer loss by him, and complainants, as his son and son-in-law, were co-operating with him to avoid such loss. The record discloses that Joel A. Hayes, Jr., was continually sending money to his father, contributing to his support "and maintenance and that of the family so long as the father lived, and, when he ■died, assuming the entire cost of his burial, exhib
Both upon the defects in complainants’ title and the merits of the case, we think they must fail in their suit, and the decree of the Chancellor is reversed, and bill dismissed, at complainants’ cost.