31 Ala. 689 | Ala. | 1858
— The charge of the court below authorized a recovery, in an action for a breach of warranty, of damages for money paid to remove a paramount equitable title existing at the time of the conveyance. The appellant contends, that a vendor, who has the legal title, cannot be made liable at law for a breach of warranty, growing out of the necessary purchase by the vendee of. an outstanding adverse equitable title. That the existence of such an equitable title, and the compulsory purchase of it, amount to a breach of covenant of quiet enjoyment, is not denied; but the point made is, that a court of law cannot take cognizance of the equitable outstanding title.
’While we concede that an equitable title cannot be enforced in a court of law, we think that it may be the ground from which the legal right springs, and that, in the enforcement of the legal right, it may become necessary and competent for the court of law to recognize the equitable title. The contrary of this doctrine was held, in 1800, by Lord Kenyon, who said, “Sitting in a court of law, we cannot take notice of an.equitable title.” — Alpass v. Watkins, 8 Term R. 516. In that case, a recovery back of a part of the purchase-money, paid by the plaintiff oh a contract for the purchase of land, was refused, upon the ground that, for the purpose of a trial at law, the vendors had a good legal title. The same question came up two or three years later; and Lord Alvanley decided, that a plaintiff, who had paid a deposit on the purchase of a
The same question again occurred in 1814, in the Eng-glish court of common pleas; and Gibbs, Chief-Justice, having before him the decisions in Alpass v. Watkins, and Elliott v. Edwards, decided that the deposit made by a purchaser might be recovered back at law, because the title was defective in equity. He uses the following language : “Here is a contract to make out a good title. If that contract be a contract to make a good title both in law and equity, we must collaterally look to see whether the title be good in equity, as well as in law. It is true we sit here only as a court of law, to administer the legal rights which arise out of the contract; but one of those rights is, to have a title good in equity. See to what a length the defendant’s doctrine would proceed! If a deed appeared on the abstract, whereby lands were conveyed to A. and his heirs, to the use of B. and his heirs, in trust for C. and his heirs, it would prove that a good title at law was made out in B. and his heirs, to convey without the concurrence of 0.” This decision, it is said in 1 Sugden on Vendors, 243, “ appeared to have set the point at rest.” In the later case of Bayman v. Gutch, 7 Bing. 379, the question does not seem to have been, whether a court of law could take cognizance of the fact that a title was bad in equity; yet the court, without controverting the cases above cited, make some remarks which do not harmonize with the law as laid- down in them. The question in Willet v. Clark, 10 Price, 207, was altogether different; and that case is not at war with the proposition which we have laid down. The question in that case was, whether the purchaser could defend against a suit for the purchase-money, because the title of the vendor was derived by a purchase at a bankrupt sale by the assignee, and was, therefore, liable to be avoided in equity. The principle laid down in the decisions of Lord Alvanley and C. J. Gibbs, is asserted in Addison on Contracts, 177, and the authority of those decisions is there recognized.
The breach of the covenant gives a right at law to recover damages; and if that breach has grown out of the existence of an equitable title, it is, in our judgment, competent for a court of law to take notice of the equitable title, so far as it constitutes an element of the breach of warranty. It results that the charge is not erroneous, because the outstanding title bought in by the covenantee was equitable.
The judgment of the court below is reversed, and the cause remanded.