The case arose in this way: In the year 1869, John L. Adderton bought a lot of land from James P. Guerry, paid him for it, and was entitled to have a deed of conveyance perfected and delivered on request. Mr. Adder-ton was indebted to Harrold, Johnson & Co., and was paying them usurious interest on his account. To secure this usurious debt, Adderton went to Mr. Guerry and procured from him a deed of conveyance directly to his creditors, Harrold, Johnson & Co., brought it and delivered it to them. This was done merely to save the trouble of making two deeds, one from Guerry to him (Adderton), and another from Adderton to the creditors.
In the year 1877, at the April term of Sumter superior court, one W. H- Morgan obtained a judgment against Adderton, and against the same James P. Guerry who made the deed above mentioned as surety, and execution issued thereon. Guerry paid off the judgment, thus obtaining control of the execution. Afterwards in the same year, in October, 1877, the execution was levied on the lot of land above mentioned, as the property of Adder-ton, and Harrold, Johnson & Co. claimed it. The claim case was tried in Sumter superior court, and resulted, under the charge of the court, in a verdict for the plaintiff in fi.fa. subjecting the property. There was a motion for a new trial on various grounds, which was overruled, and this writ of error is brought seeking to reverse that judgment.
On the trial of the claim case, as appears in the record, the evidence showed the facts substantially as above
1. Whether the deed from Guerry to Harrold, Johnson & Co.was void for usury. It is provided in the Code of this state that “all titles to pr iperty made as a part of a usurious contract, or to evade the laws against usury, are void.” In.this case the consideration by which Guerry was moved to execute the conveyance was entirely free from the usurious taint, but the consideration which, induced Adderton to procure Guerry to name Harrold, Johnson & Co. as grantees, and which induced Adderton to deliver the deed to them, and also the consideration which induced Harrold, Johnson & Co. to accept delivery of the deed to them is tainted with usury. In order for a deed to be valid, there must be a grantee — a lawful grantee —and there must be also a good delivery. The usurer is not, and cannot be a lawful grantee, and there can be no good conveyance of title to Harrold, Johnson & Co. unless there is a lawful delivery of the deed. Here there is neither a lawful grantee nor a valid delivery. We think, therefore, the title, or what is sought to be set up for title in Harrold, Johnson & Co., is void,, and that they cannot recover upon it in a claim case. The effect of the transaction is a resulting trust for the benefit of defendant in fi.fa., Adderton, the party who had paid for the land. — • complete equitable title in him; and this is an interest which is subject' to levy and sale at the instance of his judgment creditors. It was contended on the argument that as Guerry, who made the deed, was no party to the usurious contract, his deed is necessarily in all respects valid. We think this contrary to both reason and authority. The deed is valid so far as to pass the beneficial interest out of Guerry, but void as to vesting any interest in Harrold, Johnson & Co. See Tyler on Usury, 392, 398 ; and 35 Barbour, 96.
2. The second point is whether Guerry, being a third person, and not a party to the usurious contract, or in
3. And the third question is, whether Guerry, plaintiff in fi. fa., is estopped from denying complete title in Harrold, Johnson & Co., when he was the same person who, before that time, had made them a deed. And here, we
The charge of his honor, Judge Crisp, who tried the case, is in perfect harmony with the views here expressed, and we find no error in the record demanding a re-hearing-We therefore affirm the judgment of the court below.
Judgment affirmed.
