56 Mich. 421 | Mich. | 1885
As we view this case it presents questions of fact almost exclusively.
The purpose of the bill is to quiet the title of complainants to certain lands in the county of Marquette. The bill avers that on June 21, 1876, Buel S. Bigelow and Alexander W. Myers, of Ishpeming, executed to complainants a deed of the lands in consideration of the sum of $1309.03, which complainant Peter was to pay to Myers & Bigelow, who were then doing business as partners, and that said Peter gave back to Myers & Bigelow a mortgage for said purchase price, and that both the deed and the mortgage were placed on record.
That the deed was represented by the grantors to be a warranty deed, and was on a printed form containing the words “Warranty Deed” in large letters on the outside, and the words “Warranty Deed, Covenant — Own Act,” on the upper margin inside, and was, as complainants afterwards learned, only a quitclaim deed calculated to impose on the unwary.
That complainant Peter learned, soon after the giving of said mortgage that the lands were, with a large quantity of other lands, covered by a mortgage of over a hundred thousand dollars, executed by the Morgan Iron Company to Hichard S. Pay and Peter White, trustees, which mortgage
That on learning of the Pay and White mortgage Peter informed Myers &■ Bigelow- he would pay nothing on his mortgage until they cleared his title of such incumbrance ; that Myers & Bigelow had purchased the lands of the Morgan Iron Company, and after being notified that they must clear the title, they concluded to purchase the lands again at the foreclosure sale when made under the Pay and White mortgage.
That the last-mentioned mortgage was foreclosed and the lands sold under the same January 22, 1878, the lands so deeded to said Peter were struck off and deeded to Myers & Bigelow, and complainants were notified by them that the lands were now free from all incumbrances.
That thereupon an arrangement was made whereby complainant Charles La Coss was to take the lands from Peter and assume the payment of the purchase price, and Myers & Bigelow canceled the mortgage from Peter; Peter gave a quitclaim deed of the land to Charles, and Myers & Bigelow took from Charles a mortgage for $1530.41 for the purchase price thereof and said Myers, acting for both, then represented to said. Charles that he now had a perfect title subject only to said last-mentioned mortgage. That said Myers took both the deed and the mortgage and caused them to be recorded, and then returned the deed in a letter signed by the firm, stating therein that it completed the title subject only to the mortgage in their favor, but making claim for a small sum paid by them for taxes the first year Peter had the lands.
That complainants resided on the lands before and at the time of the purchase from Myers & Bigelow. That on July 14, 1880, Charles conveyed to Peter an undivided half thereof, and on May 13, 1882, complainants gave to Gibson & Ilirschman a mining lease to mine ore on said lands for a term of years for a royalty, under which the lessees expended $10,000 in exploring for iron ore, and finally discovered a
That defendants knew of such discovery, and knew that ■complainants were residing on said land claiming the same in fee ; nevertheless Myers & Bigelow intending to defraud complainants and Gibson & Hirschman have given to the ■defendants deeds of said lands with covenants of warranty against their own acts, for the nominal sum of $7000, the ■defendants well knowing that-by the discovery of the mine the lands had become worth at least $50,000.
That the defendants now claim the lands in fee, pretending that such title as was conveyed by Myers & Bigelow to Peter was cut off by the foreclosure sale, and that the deed ■on that sale to Myers & Bigelow vested in them a new title which has now passed to defendants. In opposition to which ■claim complainants say that the transaction whereby Peter conveyed to Charles and Mj’ers & Bigelow took a mortgage from Charles and canceled the one from Peter, was six weeks .after the foreclosure sale, and that Myers & Bigelow assigned the mortgage from Charles to F. G. Bigelow on July 6,1878, and in the assignment recited that the mortgage was given for purchase money of the lands described therein ; that this assignment was recorded, and the record was constructive notice to defendants.
That Myers & Bigelow, before forming the design to •defraud complainants did actually execute a quitclaim deed to complainants and deliver it to a third person to be unconditionally delivered to complainants, but that the deed has not come to complainants’ possession, and they are at present unable to tind it, and may be unable to prove its delivery as a defense to an action of ejectment.
That defendant Wadsworth, claiming an undivided nine-tenths of the lauds has brought suit in ejectment to recover the same, and the suit is now at issue, and the other defendants threaten to bring similar actions.
That the following instruments have also been duly exeCAited and placed upon record: A mortgage by complainant Charles to Hirschman & Gibson for $1000, dated December
The prayer of the bill is that suits at law be restrained; that defendants be decreed to convey to complainants the title received by them from Myers & Bigelow, and that complainants be decreed to be owners in fee-simple of the lands, with the usual prayer for other and further relief.
Defendants appeared and answered fully, and without giving the substance of the answer in detail, it will be sufficient to state a few of the leading averments.
Defendants admit the giving of the deed from Myers & Bigelow to Peter La Coss, but deny all deception, and deny that it was meant to convey a complete title. On the contrary, they say complainants had previously bargained with the Morgan Iron Company for the land but could not obtain the title. That Myers & Bigelow were creditors of the company and endeavoring to obtain a lien for the payment of their debt, and the whole arrangement whereby Myers & Bigelow were to and did receive a deed from the company, and then convey to Peter and receive from him the purchase money, was entered into in recognition of the claim of Peter upon the company for a title such as the company could then convey, and at the special instance and request of said Peter and for his convenience; and Myers & Bigelow acted merely as the irresponsible medium or channel for transferring from the company to Peter such title as the company then had.
That Peter was made a defendant in the Fay and White foreclosure and the rights of himself and his grantee Charles, were thereby foreclosed. That Myers & Bigelow bought as they rightfully might at the foreclosure. That the arrangement whereby Peter conveyed to Charles, and Myers & Bigelow discharged Peter’s mortgage and took one from Charles, was one for the purposes of comjDlainants exclusively,
And defendants deny knowledge of any equities in complainants at the time of receiving conveyance themselves, and knowledge of complainants’ possession; aver that they purchased in 'good faith and for value, as they lawfully might, the title at the time being in Myers & Bigelow.
The circuit judge granted the relief prayed, and the defendants appealed.
The evidence occupies nearly three hundred printed pages, and the argument upon it has been full, elaborate and able. We are satisfied, on a review of the evidence since the hearing, with the briefs before us, that the complainants have made out their case on all essential points, and are entitled to an affirmance of the decree. A few of the points made by defendants on the argument will be briefly noticed.
Upon the equitable case the complainants set up, a remedy at law, if they have any, would be inadequate, because the legal title derived through the Morgan Iron Company appears to be in the defendants, and recovery in ejectment would still leave the title of complainants clouded.
Decree of affirmance will be ordered.