Mayo v. . StatonMayo v. . Staton
- Reporters:
- , ,
- Before:
- Connor
In Harrison v. Battle, 16 N.C. 537, one Hunt conveyed to Mr. Battle valuable real and personal estate in trust to sell and apply the proceeds to the payment of certain debts scheduled in the deed, with a resulting trust to the grantor. Judgment was recovered on a debt not secured in the deed and execution levied upon Hunt‘s interest in the property. Before the sale of any part of the property, Hunt assigned to several persons his interest in the residue after the payment of the debts, notice of which was served on the trustee. The debts secured in the deed were paid from the proceeds of the personal property assigned to the trustee. The plaintiff being the owner of the judgment against Hunt, filed his bill in equity against the trustee and all others interested in the property and its proceeds. The court decreed a sale by the trustee, with direction to hold the proceeds subject to the direction of the court. Henderson, C. J., delivering the opinion after an advisari, says that prior to the act of
In Davis v. Petway, 27 N.C. 576, Ruffin, C. J., after stating the distinction between those cases in which the cestui que trust could, at once, call for the conveyance of the legal title, and those wherein it was necessary that the trustee should retain the legal title to protect the interest, either of immediate or ulterior trusts, says: “Now, the act of 1812 did not mean to change the nature of trusts, the relation of trustee
The question was again before this Court at the same term in McKeithan v. Walker, 66 N.C. 95. The plaintiff having a docketed judgment against the defendant, made a motion based upon an affidavit pursuant to section 266, C. C. P., section 490 of The Code, setting forth that an execution had been issued on the judgment and returned unsatisfied; that W. J. Brown had property in his possession belonging to the defendant, etc. Brown, pursuant to notice, appeared and stated that he held a deed of trust executed by defendant to secure certain debts, etc. That if said debts were not paid he was directed to sell the land and from the proceeds pay them and pay the surplus to said Walker. Plaintiff asked the court to direct the sale of the land, etc. Motion denied, and plaintiff appealed. Rodman, J., said: “At the time of the docketing, therefore, the defendant Walker had a resulting trust in the land (680)
Counsel overlooked the fact that the language stricken out in subsection 4, section 450, is incorporated in section 452. Hence, so much of the argument as relates to that phase of the
The real test which is applied in all of the cases is whether the trust is pure and unmixed, so that the cestui que trust may, immediately and without affecting or disturbing the relation of the trustee to any other person, call for the legal estate. If so, his estate may be sold under execution; otherwise, it may not be. We think this the true criterion by which to solve the question. To the end that we may be clearly understood, we deem it not improper to say that our decision is confined to deeds of trust, both in form and substance. It does not in any manner involve mortgages wherein an estate is conveyed, either to the creditor or to some third person, upon condition that if the indebtedness be
1. That when land is conveyed to a trustee upon a declaration of trust (and there is no clause of defeasance in the deed) to sell for the payment of debt or to discharge any other duty, in which persons other than the judgment debtor have an interest, or when for any other reason the judgment debtor may not call for an immediate transfer of the legal title, the interest, estate, or right of the judgment debtor, although subject to the lien of a docketed judgment, cannot be sold under execution. The lien can be enforced only by judgment rendered in a civil action.
2. That an equity of redemption, as we have defined it, whether created by mortgage deed made to the creditor or to a third person with or without power of sale, may be sold under execution as provided by section 450, subsection 3, of The Code, being section 2 of the act of 1812.
We do not think the interlocutory judgment rendered by Judge Brown at March Term, 1903, affects the rights of the parties. The recitals by his Honor were made only for the purpose of directing the commissioner how to proceed in that action. It was not a final determination of the rights of the parties. The land was not sold by the commissioner. His Honor‘s judgment, from which this appeal is taken,
For the reasons pointed out, the judgment of the court below must be reversed, with directions to it to render judgment for the defendant upon the case agreed.
Reversed.
Cited: McPeters v. English, 141 N.C. 494; Johnson v. Whilden, 166 N.C. 111; Williams v. Parsons, 167 N.C. 531; Fowle v. McLean, 168 N.C. 540; Parrott v. Hardesty, 169 N.C. 668; Evans v. Brendle, 173 N.C. 155, 160.
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