6 Ohio 227 | Ohio | 1833
delivered the opinion of the court:
The complainant, claiming to be a judgment creditor of the estate of St. Clair, upon which execution has been issued and been returned nulla bona, prays this court to charge his demand upon certain real estate which was of the intestate, now in the hands of the defendants. Yolurainous matters are set forth in the bill, answer, exhibits, and evidence, many of which, in the estimation of the court, have no material bearing upon the real controversy before it. I will not, therefore, state the allegations of the bill and answers in detail, but content myself with giving a statement of
The complainant with his brother, now deceased,'shortly before St. Clair’s death, in September, 1820, entered into an agreement with him, by which they undertook to satisfy certain liabilities of St. Clair to the Farmers and Mechanics’ Bank of Cincinnati, then about to be transferred to the Bank of the United States, and for the sum so satisfied, the Piatts were to have credit upon a mortgage, held by St. Clair against them, then amounting to about eleven thousand dollars; and for the residue, they were to be paid in land on Main street, in Cincinnati, at seventy-five dollars a foot. In pursuance of this agreement, the Piatts satisfied for the said St. Clair the sum of twenty-three thousand eight hundred and seventy-five dollars and forty-nine cents, and took a transfer to themselves of the liabilities of St. Clair. This arrangement with the bank was not fully completed until about October 14, 1820, a few days after St. Clair’s death.
St. Clair died suddenly, intestate, in September, 1820. Administration on the estate was granted to William Lytle, in March, 1821. The administrator did not pay the claim of the Piatts, but admitted a part of it as a general claim upon the estate, and confessed judgment for the amount, in favor of the Farmers and Mechanics’ Bank, for the use of Piatts, May 10, 1821, for seventeen thousand seven hundred and forty-one dollars and twelve and 229] one-half cents, supposing thereby, that *he secured to himself the privilege of paying it in the notes of that bank.
When St. Clair died, the taxes upon his real estate were unpaid for the years 1819 and 1820. The administrator paid .these taxes, and those for 1821, but having no faith in the validity of tax sales, .and finding it inconvenient to raise money to pay the taxes for 1822, suffered them to x-emain unpaid, expecting that no sale would take place, and that the tax would lie until another year. •Contrary to his expectation, the lands were brought to sale for taxes, and bidders attended. Arthur St. Clair, jr., one of the children and heir, then a few months over nineteen years old, attended the sale without any intention of bidding, but being advised to bid, and assured of pecuniary aid, he did, on December .24, 1822, buy in the estate at the tax sale. By his consent, the collector’s deed was made to Jones, his guardian, on May 24,1823
On February 26, 1822, the administrator, representing the personal assets as insufficient to pay the demands against the estate, applied to the probate court, according to law, for an order to sell the real estate of the intestate. Upon this ápplication, an appraisement was made in March, 1822, though not returned to the court and confirmed until March 17, 1823, on which day a sale was ordered, returnable on August 19, 1823.
On June 11, 1823, Jones, guardian, at the request of A. St. Clair, his ward, conveyed the estate to Joseph S. Benham, in trust for the heirs of St. Glair. Two days after this, Arthur St. Clair, jr., filed a bill to quiet the title to these lands, in the name of Ben-ham, the pendency of which he caused to be advertised in the newspapers. This bill was afterward dismissed.
On June 20,1823, the administrator took out the order of court, for the sale of the estate, advertised the sale on the 23d of the same month, in the same paper with the notice of the quia timet bill, in the name of Benham. The sale took place on August 6, 1823. In the written conditions of this sale, the administrator set forth a number of liens upon the estate, subject to which the purchaser of him would take. Amongst these, were Benham’s claim, under the tax sale to Jones, and the Piatt claim, “under an alleged contract” with St. *Clair, before his decease. The [230 terms of sale were payment in four equal installments, in nine, fifteen, twenty, and twenty-four months, with interest from the sale, upon satisfactory security. At this sale, the estate was struck off to Arthur St. Clair, jr., who wanted a few days of being twenty years of age. He paid no money, nor gave any security. The administrator returned the sale to the court, without naming the purchaser, and it was confirmed August 19, 1823, by the court, without its being shown to whom the sale was made.
On November 12, 1823, Lytle, in his capacity as administrator, in conjunction with young St. Clair, conveyed the estate to Joseph S. Benham, as trustee, “ without interest in, or responsibility for the lands,” to hold to him or his successors, assigns, or grantees, in trust, to pay the purchase money, and of “liquidatingsuch claims against the estate of A. St. Clair, as the parties to the deed might see fit and expedient.” Amongst other things, this deed recites, that young St. Clair was “ desirous of securing to himself and co
Some time prior to this sale, a negotiation had been opened by the administrator, with the Bank of the United States, one of the creditors of St. Clair’s estate, having in view the liquidation of her claim, by the conveyance of a portion of the lands of the estate held under Benham’s conveyance from Jones. On November 13, 1823, one day subsequent to the deed from the administrator to Benham, the Bank of the United States adopted a resolution, in these words : “ Resolved, That if the legal representatives of Arthur St. Clair, deceased, convey to the president, directors, and company of the Bank of the United States, by a clear, undisputed, and unincumbered title to the satisfaction of George W. Jones, the lots designated in the draft exhibited by Henry Avery, and described in the ‘ article for adjusting,’etc., forwarded by George ~W. Jones, together with the lots marked in the same draft, Nos. 35 -and 32, then the agent is authorized to make án advance to the family of Arthur St. Clair of five hundred dollars; to advance 231] for the ^payment of taxes belonging to that estate a sum not exceeding three hundred dollars ; to give to the said representatives a check on the Miami Exporting Company for the sum of two thousand dollars, and'to execute a release of all claims by the bank on said estate.” Under the authority of this resolution, after its receipt in Cincinnati, Jones, as agent of the bank, completed the arrangement with the administrator; took from Ben-ham a conveyance of the lots, on December 8, 1823, and executed a release to the administrator and heirs of that date. At that time, the bank had the control of a mortgage upon St. Clair to the Miami Exporting Company, of June 29, 1820, on out-lot No. 23,. for fourteen thousand five hundred and eighty-four dollars; another, dated March 6, 1820, given to the Cincinnati College, upon out-lot No. 34, for four thousand dollars, and a judgment entered in the Hamilton common pleas, February 24, 1820, for twelve thousand four hundred and thirteen dollars and fifty-five cents, and other claims against the estate, amounting to nine thousand
Piatt filed a bill in chancery against the representatives of St. ■Clair, praying for a specific performance of the contract made with St. Clair in September, 1820, for the lot on Main street, which was dismissed.
In August, 1824, the administrator not having credited anything to Piatt on the mortgage, or paid him anything on account of the judgment, brought a sci.fa. upon the mortgage against him, to which he set up as a defense payment under the contract of September, 1820; and on trial in May, 1824, he gave in evidence to the jury the contract aforesaid, and the whole amount of claims paid under it (including the note embraced in the payment in his favor), against the administrator, and obtained a verdict of the jury that the defendant was “entitled to have so much of the matter set off by his plea, arising under an agreement made with Arthur St. Clair in his lifetime, as is equal to the amount due upon the mortgage, in the writ of scire facias mentioned, set off against the same, which mortgage money amounts to ten thousand eight hundred and seventy-two dollars and twenty-four cents on October 14, 1820, leaving a balance due to the defendant May 20, 1828, of twenty thousand one hundred and thirteen dollars and forty-one and three-fourths cents, besides costs.”
^Martin, one of the jurors, testifies that the jury allowed [232 Piatt’s entire claim, which consisted of various notes, one or two accounts, and a judgment, and gave him a verdict for twenty thousand dollars.
There is some uncertainty attending the transaction between Piatt and the administrator. The arrangement with the bank by which the Piatts acquired St. Clair’s paper was completed as early as October 14,1820. The amount at that time is conceded to have been twenty-three thousand eight hundred and seventy-five dol
It does not appear that any part of the sum due from St. Clair’s estate to Piatt was ever paid by the administrator or the heirs, though it is testified by Kirby that in behalf of G-eneral Lytle he once called on Piatt, and offered to convey to him, in satisfaction of his claim, a lot on Tine street, a part of the premises held by Ben-ham. This offer was refused, because the lot was remote and of but little value.
The out-lots in Cincinnati which were conveyed to Benham were subdivided into four or more squares of small building lots, and sold from time to time under the direction of the trustee, the heirs, and their guardians. And many claims against the estate of St. Clair were liquidated by the conveyance of portions of this estate as subdivided; and Benham, the trustee, conveyed some thirty or forty different lots in the subdivision for the satisfaction of such claims between the date of the deed to him and the year 1828. Many of these lots have been resold, and passed through various hands. Much of the estate has been enhanced in value by improvements.
Lytle, the administrator, died in 1831, without having settled up his administration account. The greater proportion of the disbursements he "made were of the proceeds of sales of portions of the trust property.
From the month of June, 1827, down to March, 1832, the heirs of St. Clair made numerous conveyances of portions of the trust property included in Benham’s deed, and by him subdivided, the consideration for which conveyances, expressed in the deeds, amounts to upward of forty-one thousand dollars.
In 1831 partition was made among the heirs of St. Clair of the 233] then remaining portions of said real estate, and each *one’s portion thereof was allotted in severalty. Some of this estate still remains in said heirs.
The conveyance to Benham in trust, and by him to his various grantees, has been recognized and confirmed by repeated acts of
There can be little doubt but the arrangement with Benham was made with the assent of Lytle, the administrator, and the other persons concerned, with the intention to place the real estate of the intestate in a situation to be managed for the benefit of the heirs, and to use it advantageously for them to discharge the demands against the estate. In this no fraud was intended by the administrator and the others concerned. The measures were prosecuted with good feeling for the children, without intention of injury to creditors, and without any distinct impression that the injury would result to them. Such things are frequently done; and it is quite probable that the proceedings in this case saved this estate from actual insolvency.
Besides the claim of the complainant, there are still some other claims upon the estate outstanding and unpaid.
The first question arising in the case is, whether the complainant shows himself a judgment creditor, entitled to come into this court for relief?
Lytle, the administrator, confessed a judgment in favor of the; complainant as early as 1821, one month after he was appointed. By the chancery act, judgment creditors, where the debtor has not| sufficient effects subject to levy to satisfy the execution, may proceed | in chancery to subject the effects of the debtor, in the hands of any j person to the payment of the judgment. 29 Ohio L. 84. The chancery act of 1824 gave to judgment creditors the same power, but restrained them from proceeding in this court, in some cases,' until after the execution had issued and been returned at law! 22 Ohio L. 85-88. The jurisdiction of the court may be sustained upon either of these laws, on the case made, if the judgment remains in force, or upon general principles, because the case is so; connected with trusts and equities, and involves such a variety of!, interests that plain and adequate remedy can not be had at law.;
But it is urged that the judgment of Piatt having been set off in satisfaction of the suit on the mortgage, no longer exists, but is merged in that proceeding. It appears that upon the scire **-facias against Piatt, on the mortgage, the defendant re- [2$i lied upon the plea of payment.. To sustain this plea, he proved to the satisfaction of the jury the original contract with St. Clair,
The amount of Piatt’s claim on October 14, 1820, was $23,875 49
The mortgage of the same date................................. 10,872 24
Left due Piatt...................................................$13,003 25
Interest on this, balance to May 2, 1833....................... 9,789 50
Balance due Piatt then......................................$22,792 75
To which add costs and interest on the two judgments, 121 22
Sum due Piatt, May 2, 1833, .$22,913 97
It is objected to the complainant’s right that since this suit was commenced he has entered into the agreement of May, 1831, which had a fraudulent object as it regards the Bank of the United States, one of the defendants, and that he is so affected by this fraud that the chancery will afford him no relief, but leave him to his legal remedy. As to this, it will he sufficient to observe that the testimony shows that this paper was executed by the complainant and the heirs under the expectation that the bank would accede to it. But the bank having refused its sanction to the proposed measure, it has not since been esteemed valid amongst the-parties to it. This objection therefore fails.
This brings us to consider Whether the sale to Arthur St. Clair for taxes, and hy the administrator, were'such as to discharge the lands which descended to him and others, from the payment of the debts of their ancestor. At the death of St. Clair, his real estate descended at once to his children as heirs at law, incumbered, it is true, with a liability'for his debts; but until actually subjected to the debts by the personal .representative, or the creditor, by some judicial proceeding, they were the property of the heirs. The possession was theirs — the rents and profits theirs. They were bound of course to pay the'taxes. It would be strange, indeed, if either a court of law or equity should feel compelled to give such effect to the culpable omission of the heir to keep down the taxes, as to enable him, in consequence, to acquire a perfect right to the estate, to the total exclusion of those whose rights he was bound to protect. We look upon the purchase by the heir for taxes as but his own method of paying them. He was bound to pay, and the conveyance *to the heir, or under his direction [239 to his guardian, in no way changes the situation of the estate. The guardian could not purchase up the* estate of his ward and acquire any right, except for his ward. Whatever, therefore, passed by the sale for taxes accrued to the benefit of the heirs who before held the fee. The conveyance by the guardian to Benham,.as trustee, effected no change in the estate, at least so far as it regards creditors. None of the parties at the time regarded these transactions as disincumbering, in fact, the estate from the debts of the intestate. This is conclusively evidenced by the subsequent sale to the same person by the administrator. If, as is contended, the first -sale passed the estate from the heirs of St. Clair, what was there for the administrator to sell?
If the sale by the administrator was made in pursuance of an understanding, on his part, to place this estate out of the reach of creditors, for the benefit of the heirs, it was, in legal contemplation, fraudulent and void, however laudable the motives which influenced the act on the part of the administrator. As administra- ■
It is strenuously argued that the Bank of the United States and the other defendants and alienees were bona fide purchasers without notice, and entitled to be protected against the creditor.
In cases where several distinct tracts of land have descended to the heir, some of which have been aliened by him and some not, equity will so far control the creditor in asserting his lien as to require him to resort, first, to the land remaining in the heir unaliened, and discharge the residue from the lien on payment of the balance due, if the property is more than sufficient for that purpose. It will ascertain the value of the property descended and the amount of the claim upon it. Where justice requires it, we doubt not the power of the court to permit a liquidation of the demand in discharge of the lien, or to imposo such conditions upon 242] the sale of the estate as shall do ^justice to all having interest in the subject. It seems to us equally clear that the demands.of justice cam not require, and that a court of equity will not lend its aid to enforce a lien upon a particular tract of land, which has passed into the hands of third persons, until the residue of the estate subject to the lien, which can be conveniently realized, is exhausted. It is a rule of equity, perfectly well established, that where one has a lien upon two funds, and another a posterior lion upon only one of them, the one having both liens will be compelled to assert his claim first upon the subject of his exclusive lien, so that he may be satisfied, if possible, without interfering with the rights of the junior creditor. 1 Hopk. 66, 460; 4 Johns. Ch. 123; 19 Johns. 486; 2 Atk. 446; 1 H. Blk. 159; and Miami Exporting Co. v. Bank of the United States and Ruffners, decided at this term. The rule, in our view, is directly applicable to this case. That portion of the real estate of St. Clair which re
It was urged in argument that the claim of the alienees rested on the same foundation with that of the heirs, and if the sale by the administrator was considered invalid, that all the proceedings under it should be disregarded, and the creditor left to assert his lien upon the entire estate descended or upon such portions of it as he should select. Perhaps this position might be true if urged in a court of law on a scire facias, but it will not obtain in this court, having the whole subject and all the parties before it, and the power so to shape its proceedings as to attain the ends of justice and settle the whole matter amongst all interested without further' litigation. A party asking justice at the hand of this court is always required to do justice, and the court never lends its aid to do an unjust or unequitable act, or one calculated to involve others in vexatious litigation or controversy further than is absolutely necessary.
As there is an administrator of St. Clair’s estate party defendant, there will be little difficulty in ascertaining the outstanding claims upon the estate; chargeable upon the realty and so shaping our proceedings as to effect a complete adjustment, *not [243 only of the claim of the complainant, but of all others remaining unpaid. The continuing minority of some of the heirs is no- obstacle in the way. A creditor’s lien for debts of the ancestor may be enforced against minor as well as adult heirs coming into an estate by descent. The conveyances to and by Benham, the subdivision of the estate by him, the partition among the heirs, are. all acts of confirmation of those transfers, and more or less obligatory upon the heirs; perfectly obligatory upon the adult heirs-who have done any act of confirmation since they have attained to majority or shown a disposition to acquiesce. But we are not called upon now, in the view we take of the case, to decide the-questions amongst the heirs. Questions touching their interests-may arise in some future stage of the cause, and if they do they, will be then considered.
1. That the complainant has an outstanding judgment against the estate of Arthur St. Clair, for which he can have relief in this court, and that- there are other outstanding claims against the estate.
2. That the personal assets of the estate have been exhausted.
3. That the purchase of the realty for taxes accrued to the benefit of the heirs and the estate.
4. That the pretended sale of tbe'realty by the administrator is fraudulent and void as against creditors, and that the estate descended upon the children and heirs at law, subject to the payment of the debts, and is still liable for the same.
5. That the estate be charged with the sum necessary to pay the outstanding debts, the costs of the complainant, and the master’s further proceeding.
The following decree was entered in the cause:
This cause came on to be heard upon the bill, amended bill, answers, replication, exhibits, and evidence, and the court having .seen and read the papers and evidence, and heard the argument ■of counsel thereon, finds that the complainant recovered a judgment against the administrator of St. Clair, on May 10, 1821, upon which execution has been issued and returned; that there are no goods or chattels of the defendant out of which to make the amount, and that after allowing to the estate of St. Clair credit for the amount of the mortgage money, and all other demands of the estate against the complainant, there is left due the complainant SM] in equity, on May 2„ 1823, ^including costs and interest, a balance of twenty-two thousand nine hundred and thirteen dollars and -ninety-seven cents; that the personal property of the intestate, St. Clair, has been completely exhausted in the payment of debts and expenses by the administrator, leaving the amount due the complainant and other claims unsatisfied; that the real estate described in the bill descended to the heirs at law, subject to the payment of the -debts due by their ancestor; that the purchase by A. St. Clair, one of the heirs at law, for arrears of taxes, and the conveyance under said purchase to John T. Jones, guardian for said heir, inured to the benefit of all the heirs of the intestate St. Clair, and left the estate so purchased subject to the debts due by their ancestor. That ,th,e subsequent sale of the real estate of the intestate by the administrator to young St. Clair, then a minor,
1. How much is due from the intestate to other creditors than the complainant, including interest up to May 2,1833, showing the name of the creditor and the amount of each claim and interest.
2. What land of the intestate descended to his heirs at law, designating what lies in the city of Cincinnati, by the description by which it is known in the subdivisions made by Benham and the heirs.
3. What parcels of said lands are still held in common by the heirs at law.
4. What portions of the land descended have been since aliened by the heirs, or the trustee, or otherwise, specifying the date of the conveyance, the names of the grantors and ^grantees, [245 the tract conveyed, and the person holding the same on July 10, 1828, at the filing of the bill in this case.
In the taking of which accounts the said master may examine the documents and evidence on file, and the parties may take other testimony, and may, if necessary, compel the parties or witnesses to produce before him any books or vouchers, or written evidence in their possession or control; and if the sum due the complainant, and those found due to other creditors of the intestate, with the accruing interest, the costs of this suit, and of the master in executing this order, be not paid within sixty days thereafter, into the hands of the master, for those interested, the said master shall, forthwith, after the expiration of said sixty days, proceed to raise the money required to discharge the said claims and costs, by sale of so much of the real estate descended as aforesaid, ac
1. Those lands, if any, which the said heirs still hold in common.
2. Those now held by the heirs in severalty, apportioning to each heir the proportion of the same required, and selling so much of each one’s share as may be necessary to raise from each so much of his proportion of said sum as shall not be otherwise paid to said master.
3. Those which have been aliened or conveyed by the trustee or heirs since July 10, 1828, or so much of them, beginning with the latest conveyed, as maybe necessary to produce the required sum.
4. And if, after the foregoing sales, the sum raised is insufficient to discharge said claims, that then the master report the deficiency to the court, with his proceedings, and the evidence by him taken.
And it is further ordered, that if the parties are dissatisfied with any of the accounts stated and allowed by the master, or his proceedings from time to time in the progress of his acts, and file exceptions, the master shall forbear proceeding to make sale of the premises until the exceptions are disposed of.
And for the coming in of the report and further proceedings the cause is continued.
Memorandum of an agreement made between Arthur St. Clair, John St. Clair, Eliza St. Clair, of full age; Erancis M. St. Clair, Margaret Belfour St. Clair, Laura St. Clair, minors, by their guardians, heirs of St. Clair, deceased, on the one part, and George Wallace and Daniel Gano, as securities for D. Shepherd, Benjamin M. Piatt, survivor of John H. Piatt, deceased, and Richard Eosdiek, on the second part:
Whereas, the Bank of the United States holds a large and valuable real" estate, which was of the late Arthur St. Clair, deceased, which the said hank received in payment of certain debts against said estate, amounting, as is supposed, to the sum stated in the schedule below; and whereas it is considered that the proceedings by virtue of which they (the bank) became the holders-of said real estate are void, or voidable, and irregular, especially that the said arrangement was so made as to secure to said bank the whole amount of her debt, to the exclusion of the other creditors aforesaid; and whereas it is supposed that the real estate aforesaid is sufficient in fact to pay all the debts held by tho said bank, as aforesaid, against said estate, and all the other debts enumerated, and as specified in the schedule below: Therefore, for the purpose of a just and fair settlement of said debts of said estate, it is agreed by the said heirs and the said creditors, as follows, to wit: The real estate held by said bank aforesaid shall be decreed to be sold by the court, either m the suit now pending, or such other suit as shall be brought; and Sainual Lewis, or.
It is also understood that Charles Vattier has a claim against said estate which is contested, and is supposed to be without foundation; which claim, if, recovered against said estate, is to be admitted to a pro rata dividend with the-creditors above enumerated; provided, however, that no greater sum shall be admitted to a distribution than what will, with the debts above enumerated, amount in all to ten thousand dollars, besides the Piatt debts.
In witness whereof, the parties have hereunto set their hands, this 14th day of May, a. d. 1831.
John St. Clair, for myself and Arthur St. Clair, and Eliza St. Clair, and as guardian for Margaret B. St Clair and Laura St. Clair.
Charles Eox, guardian for Francis M. St. Clair.
Benjamin M. Piatt, survivor, etc.
SCHEDULE OE THE DEBTS TAKEN INTO VIEW IN THIS AGREEMENT.
Claim of George Wallace, April 8, 1824..................................... $2,253 45
D. Shepherd ............................................................. 1,100 00-
Eosdick, January 20, 1820........................................... 202 81
Benjamin M. Piatt, May 30, 1828...................................... 20,113 41
Claims of Bank of United States:
September 25, 1820.......................................$12,422 00
May 11, 1821..................................................... 8,107 90
June 29, 1820........................................................ 14,587 00
March 6, 1820......................................................... 4,000 00
December 8, 1823................................................... 2,250 00
Taxes ....................... 350 00
--$41,716 90'