34 Ind. App. 577 | Ind. Ct. App. | 1905
This action was commenced by the appellees against the appellants and others in the court below to quiet title to ten acres of real estate adjoining the town of Wellsboro, in Laporte county, Indiana. The complaint was in two paragraphs. The judgment is based upon the first paragraph. In the first paragraph of complaint the appellees aver that they are the owners in fee simple of the real estate; that appellants and others are claiming some interest therein, which is unfounded and adverse and a cloud
The finding of facts is, in substance, as follows: That on August 15, 1895, Charles E. Wells, a bachelor, was owner in fee of ten acres of land, described by metes and bounds; that on August 15, 1895, said Wells conveyed said real estate to Shadrach H. Carey by deed duly recorded on August 16, 1895; that on June 15, 1895, Charlotte Krotz bought said real estate of said Wells, and went into immediate possession of the'same; that no conveyance by deed was made to her by Wells; that said Shadrach II. Carey advanced money to her with which to pay for said real estate, and that, as a security to him for the repayment of said money, the conveyance herein above found was made by said Wells to said Carey, pursuant to agreement between •said parties, and at the request of said Charlotte Krotz; “that on July 28, 1895, said Carey and the defendant Charlotte Krotz duly prepared, executed and acknowledged a plat or map of all of said real estate, designating the same as ‘Krotz’ addition to Wellsboro,’ which plat is as follows: [Here follows the plat of the real estate, together with a description of said ten-acre tract. The plat shows the streets, alleys, blocks, lots, size of the lots and width of the streets. The plat was signed and properly acknowledged on the 18th day of July, 1895, and filed in the recorder’s office of Laporte county on December 19, 1895.] That some time between July, 1895, and April, 1896, said ten-acre tract was, by the owners thereof, actually and physically divided into blocks and lots and public highways as indicated, and that said lots, as platted, were staked out, and said highways
On the 10th day of July, 1903, the court filed the followr ing conclusion of law on its special finding of facts: “That the plaintiffs are the owners in fee simple of the real estate described in their complaint herein, and against all the defendants and all persons by, through or under them, and entitled to a decree quieting their title to said real estate accordingly,” to which conclusion of law the appellants jointly and'also separately and severally excepted, and thereupon separately and severally, in writing, “moved the court to state an appropriate conclusion of law upon each issire
This is a term-time appeal. Eo question is presented on the pleadings. The evidence is not in the record. It is admitted by counsel for appellants that the joint error assigned presents no question, nor does the separate error assigned by Shadrach H. Carey present any question, as it appears from the record that he had disposed of all his interest in the real estate prior to the commencement of this suit. Each of the other appellants has assigned separate and several errors as follows: “(1) The court erred in the conclusion of law stated upon the special finding of facts. (2) The court erred in overruling his [or her, as the case may be] motion for an appropriate conclusion of law upon each issue made by the pleadings.”.
Do the facts as found by the court in the case at bar affirmatively show a full compliance by appellees with our
Appellees insist that, the legal title being in Carey at the time they began suit to foreclose their liens, he was, as to them, the owner of the land, and whatever rights the appellant Charlotte Krotz had in the real estate were in the nature of a secret equity, of which they had no knowledge, and therefore not binding upon them. A reference to the special finding will show that Charlotte Krotz was in the full possession of the land at the time the material used in the building on the land was furnished; and that the material was furnished to her for the purpose of erecting a factory building. Nowhere in the special findings does it appear that the material furnished by appellees- for the cop
“The rule of caveat emptor, therefore, applies against a mechanic as well as in the case of a vendee. If a contractor proposes erecting a building, furnishing materials, or putting labor on a lot of ground, it behooves him to examine and assure himself of the fact that the person with whom he contemplates making the contract, or for whose benefit he is about to employ his means or labor, has such an interest or title, unencumbered, as will enable him to avail himself of a valid or efficient lien. Under the system of registration in this country, a little diligence will always impart to a person the requisite information; and, if he fails to inform himself, the law will not relieve him against the consequences- of his own negligence. In these cases the mechanic was put on inquiry by the fact that his employer had no title, and consequently he entered into the building contract subject to the equities existing between the parties, which equities he might have discovered by reasonable inquiry.” Phillips, Mechanics’ Liens (3d ed.), §232.
Jones, in his work on liens, says: “The equitable owner can not make a contract which will, subject the estate of the legal owner to a lien, though he can subject his equitable interest to a lien; and when the lien is enforced by sale, the sale is sribject to the rights of the'legal owner.” 2 Jones, Liens (2d ed.), §1244 Again the same author says: “In general, it may be said that only the interest of the contracting party can be subjected to the lien; and if he has no interest, there is nothing to which the lien can attach. But one in possession of land under a contract of purchase
It is claimed by appellees that at the time they furnished the materials used in the construction of the building on the land, that whatever interest Mrs. Krotz had or claimed therein depended upon a parol contract, and therefore was not enforceable. Supposing that to be true, it was a matter wholly between Carey and Mrs. Krotz, and of which the appellees could take no advantage. Savage v. Lee (1885), 101 Ind. 514.
Pomeroy in his work on equity jurisprudence says that the rule is well settled in England and in this country “that a purchaser or encumbrancer of an estate, who knows or is properly informed that it is in the possession of a person other than the vendor or mortgagor with whom he is dealing is thereby charged with a constructive notice of all the interests, rights, and equities which such possessor may have in the land. He is put upon an inquiry concerning the grounds and reasons of the stranger’s occupation, and is presumed to have knowledge of all that he might have learned by means of an inquiry duly and reasonably prosecuted. If he neglects to make an inquiry, or to make it with due diligence, the presumption and notice, of course, remain absolute.” 2 Pomeroy, Eq. Jurisp. (2d ed.), §614; Glidewell v. Spaugh (1866), 26 Ind. 319 ; Old Nat. Bank, etc., v. Findley (1892), 131 Ind. 225.
The supreme court of Nebraska, in a case wherein the parties who had foreclosed a mechanic’s, lien, not making
In our opinion the appellant Charlotte Krotz had an equitable interest in the land in question at the time the mechanic’s lien suits were instituted, which was not cut off or affected by the judgment and decree in the foreclosure proceedings. This equitable interest having since ripened into a fee, appellees are bound to respect it, and the court erred in its conclusions of law, for which error the judgment must be reversed.
Having determined to reverse the judgment, it will answer no good purpose to pass upon any of the other questions here presented!
The judgment of the lower court is reversed, with instructions to restate its conclusions of law'in accordance with this opinion.