Price's Heirs v. Evans

• Decision Date: 31 October 1857
• Citation: 26 Mo. 30
• Parties: PRICE'S HEIRS, Respondents, v. EVANS et al., Appellants.^a1
• Court: Missouri Supreme Court

26 Mo. 30

PRICE'S HEIRS, Respondents,

v.EVANS et al., Appellants.^a1

Supreme Court of Missouri.

October Term, 1857.

1. The rule that a purchase of an adverse title by a trustee, mortgagee, or tenant for life, enures to the benefit of the cestui que trust, mortgagor or remainder man, is not applicable to cases, where there is no title whatever in the cestui que trust, &c., and the trustee, mortgagee, or tenant for life, not being in possession, is guilty of no fraud or unfair dealing, and derives no unjust advantage from the relation he sustains to the cestui que trust.

2. Where the title to which a trust or mortgage attaches fails absolutely, the trustee or mortgagee--in the absence of fraud and unfair dealing, or unfair advantage arising out of the relation sustained to the cestui que trust or mortgagor--may purchase and hold for his own benefit an adverse title.

3. A judgment was rendered in the year 1829, in favor of one A. B. against one C. D. An execution was duly issued, and certain real estate of C. D. was seized and sold, and A. B. became the purchaser and received the sheriff's deed therefor. A second execution was duly issued, and a levy was made upon certain other real estate of C. D. On the day of the sheriff's sale under this execution, the plaintiff in the execution, A. B., executed and delivered to C. D. the following instrument in writing: “The understanding between C. D. and myself is that on the payment of my debt due me from said C. D. I am to reconvey all the property already purchased at sheriff's sale, and am also to purchase in the property to be sold this day by the sheriff, which is also to be reconveyed to C. D. on the payment and full satisfaction of my debt due as aforesaid. March 31, 1851. [Signed] A. B.” A. B., in pursuance of said agreement, did purchase in the various tracts of land advertised to be sold. Held--under all circumstances of the case, the lapse of time, the acts of the parties, the insolvency of C. D. from before the date of these transactions until his death in 1846 or 1847, the issuing with the knowledge of C. D. of other executions and the levying of them upon other lands of C. D., the little value of the lands purchased at the dates of the levies and sales, the fact that they were largely encumbered and were held for the most part under adversary titles--that the above agreement should be regarded in the light of a mere temporary privilege or indulgence granted to C. D. by A. B.; that A. B. could not be regarded as holding the lands, purchased in by him under said agreement, by way of mortgage.

Appeal from St. Louis Circuit Court.

This was a bill in chancery filed in the year 1845 by Risdon H. Price against Augustus H. Evans. The heirs of said Price were afterwards made complainants, and certain purchasers from Price were also made defendants. The bill, as amended, charges substantially that on the 28th of August, 1824, Risdon H. Price, sr., made and delivered to A. H. Evans a sealed note for $2089.64, payable one day after date; that though said Evans acknowledged by a writing under seal, [see below opinion of court] dated April 19, 1828, that he held a certain tract of 640 acres, located in virtue of New Madrid certificate No. 399 (the Robertson tract) as a security for the amount due upon said note, and also acknowledged in said sealed writing that some payments had been made on said note, he yet, notwithstanding this, instituted suit against Price on said note, and, not allowing any credits, obtained a judgment against Price, August 4th, 1829, for $2089.64 debt, and $397.35 damages and costs--$2486.99; that still allowing no credits, said Evans, between the date of said judgment and the year 1833, caused various executions to be issued and levied on a large amount of valuable property belonging to said Price, all of which was purchased at the several sheriff's sales by said Evans, either directly or by agent; that, for the purpose of quieting Price and obtaining his valuable property at a merely nominal price, Evans agreed with said R. H. Price that all the purchases he might make at such sheriff's sales of Price's property under process issued under said judgment should be held by him merely as a security for his debt and judgment aforesaid; that to put this beyond dispute Evans executed and delivered to said Price the following agreement in writing, to-wit: “The understanding between Risdon H. Price and myself is that on the payment of my debt due me from said R. H. Price, I am to reconvey all the property already purchased at sheriff's sale, and am also to purchase in the property to be sold this day by the sheriff, which is also to be reconveyed to Price on the payment and full satisfaction of my debt due as aforesaid. March 31, 1831. [Signed] A. H. Evans;” that from this it will appear that all purchases of property made by Evans under process issued on his debt and judgment, whether purchased on the 31st of March aforesaid or before that time, were expressly and solely made and to be made by said Evans and held by him as a security for said debt and judgment, and for the benefit of said Price entirely when said debt or judgment should be discharged.

The bill then proceeds to set forth the issuing of various executions under the judgment against Price, and the sheriff's sales thereunder; also the purchases by Evans at said sales, either directly or through his agent and attorney; also that said sales were made at enormous sacrifices, and at a ruinous loss to said Price; also that, “for a long series of years before his death, said Price was greatly afflicted both in body and mind, and by reason thereof incapacitated to give any proper attention to his business, and so to watch and to exert himself as to supervise and counteract the frauds, infidelities and shocking spoliations practiced upon him by said Evans, who has, from the time of acquiring the 640 acres of land and New Madrid location in the year 1828, and before the rendition of said judgment against said Price, continued to avail himself of the inert, helpless and defenceless condition of said Price, to practice the most atrocious frauds and spoliations upon him and his property, and still perseveres in his iniquitous conduct by refusing all settlement and satisfaction,” &c. that as far back as the year 1832 said Evans had been fully paid the debt due him from Price. Complainants pray for an account of the original debt and of the rents and profits received, and for a decree vesting in them the title to the lands; also that any sum found due to complainants may be decreed to them; also for such other and further relief,” & c.

The court rendered the following decree: “This cause coming on for further proceedings therein, the parties being present by their respective counsel, and due deliberation being had therein, and forasmuch as it appears to the court that on the 4th day of August, in the year 1829, as alleged in complainants' bill, the said defendant, Augustus H. Evans, recovered in this court a judgment for two thousand five hundred and eighty-six dollars and ninety-nine cents against Risdon H. Price, sr., since deceased; and forasmuch as it appears that the said Augustus H. Evans, at two several sheriff's sales on executions under said judgment--which said sales took place respectively as alleged in complainants' bill, on the 30th day of July, in the year eighteen hundred and thirty, and on the 31st day of March, in the year 1831--purchased in certain tracts and lots of land belonging to the said Risdon H. Price, sr.--which said tracts and lots of land are all those embraced in the two sheriff's deeds to said Augustus H. Evans, the one dated the 5th of August, in the year 1830, and recorded in the recorder's office of St. Louis county, in book Q, page 240, the other not dated, but acknowledged April 23d, 1831, and recorded in the same office in book R, p. 66--under an understanding and agreement with the said Risdon H. Price, sr., that he, the said Augustus H. Evans, should hold the tracts and lots of land, so purchased in by him, in trust as a security for the payment of said judgment debt, and should reconvey the same to the said Risdon H. Price, upon payment of the said judgment debt to him the said Evans; and forasmuch as it appears to the court, and the court so declares the facts to be, that the said tracts and lots of land so purchased in by the said Evans (excepting a tract of 640 acres located in virtue of New Madrid certificate No. 399, issued to Andrew Robertson, or his legal representatives, as to which, under the facts of the case, the court adjudges and declares that the trust sought to be enforced by the complainants does not in equity attach) were, until the payment of the said judgment debt, in the manner stated below, held merely as a security for the payment of the said judgment; and forasmuch as it appears from the report of the commissioner appointed by the court to take an account in this cause, as the same has been corrected, amended, and reformed by this court, after due consideration thereof, that the said judgment debt--by the purchase, at sheriff's sales other than the two sheriff's sales above mentioned, of other lands belonging to the said Risdon H. Price, sr., by the proceeds received by the said Evans of sales of various portions of the tracts and lots of land so acquired and held as a security as above declared and sold and conveyed away by the said Evans, and by the receipt of the said Evans of the rents and profits arising from the said tracts and lots of land, and in other ways--has long since been paid to the said Augustus H. Evans; and forasmuch as it appears--after making all just allowances to the said Augustus H. Evans, for all his expenditures concerning the said tracts and lots of land, so as above acquired and held as a security, in paying taxes on the same, and in paying costs and counsel fees in suits in respect thereof, and in purchasing in...