Canal Bank v. Hudson

• Decision Date: 24 March 1884
• Citation: 28 L.Ed. 354,4 S.Ct. 303,111 U.S. 66
• Parties: CANAL BANK and others v. HUDSON and another
• Court: U.S. Supreme Court

111 U.S. 66

4 S.Ct. 303

28 L.Ed. 354

CANAL BANK and others v. HUDSON and another.

March 24, 1884.

W. L. Nugent, W. Hallett Phillips, and Wm. A. Maury, for appellants.

W. P. Harris and Frank Johnson, for appellees.

BLATCHFORD, J.

The litigation involved in this appeal is a continuation of that which was before this court in Bank v. Partee, 99 U. S. 325. The plaintiffs in the suit were appellants then and are appellants now. The original bill was filed April 1, 1873, in the circuit court of the United States for the Southern district of Mississippi, by the appellants, as creditors of Sarah D. Partee and William B. Partee, her husband, to secure to them the benefit of a deed of trust executed by the debtors to one Bowman, covering lands in Yazoo county, Mississippi, the object of the deed being to provide for the payment of debts, among which were those due to the appellants. The circuit court excluded the appellants from the benefit of the deed of trust, because of their failure to notify in writing within a time limited by the deed their acceptance of its terms; and that court also held that the title to certain of the land covered by the deed had failed in the trustee because of a paramount title thereto perfected under a judgment recovered against the debtors by one Stewart before the execution of the deed of trust. This court held that, notwithstanding the provision in regard to an acceptance in writing of the terms of the deed, the appellants were entitled to its full benefits, and that the judgment of Stewart was a nullity as respected Mrs. Partee, who was the debtor to Stewart and was the owner of the lands covered by the deed of trust. This court reversed the decree below and remanded the cause for further proceedings, in April, 1879.

Stewart and James D. Partee, a son of the debtors, had become the purchasers of the land sold under the Stewart judgment. In May, 1879, after the filing in the circuit court of the mandate from this court, the appellants filed a supplemental bill. One acre of the land bought by Stewart and a part of the land bought by James D. Partee are involved in that bill and in the present appeal. The original deed of trust was made November 19, 1866. The deed of the sheriff to James D. Partee, on the sale under the Stewart judgment, was made January 4, 1869, the judgment having been recovered June 6, 1866. The land so conveyed to James D. Partee was in quantity equal to five and one-eighth sections, and was all in township 9, of range 4 W., in Yazoo county, embracing land in seven different sections. The land constituted what is known in this controversy as two plantations, called 'No Mistake,' and 'Tyrone.' In February, 1870, James D. Partee and his wife conveyed these plantations to one Barksdale, in trust to secure an indebtedness of $41,500 to the firm of Nelson, Lamphier & Co. Under this deed of trust the plantations were sold and conveyed by the trustee to one Nelson, a member of that firm, in June, 1872. On April 15, 1873, Nelson conveyed the plantations to one Short, in trust to secure an indebtedness of $35,000, embracing 18 promissory notes, to said firm. Two of these notes came to be owned by Joseph P. Benson, and two by Charles C. Ewing, as administrator of S. S. Ewing, and they, with holders of others of the notes, brought a suit in equity, in August, 1876, in the chancery court of Yazoo county, to foreclose said trust deed. A decree of sale was made in January, 1877, and the said Benson and Ewing and one Robert G. Hudson purchased the lands at the sale, in February, 1877. On July 3, 1877, Benson conveyed to Ewing and Hudson all his interest in the plantations. They are the appellees in this appeal.

The plantations were originally the property of one James Dick, who was the uncle of Mrs. Sarah D. Partee. They were known together by the name of 'No Mistake.' By that name they were devised by Dick, by will, to Mrs. Partee. The will was proved in March, 1849. Mrs. Partee's parents were Christopher Todd and Sarah Todd. The will contained these provisions: 'To my niece, Sarah D. Todd, wife of William B. Partee, of New Orleans, and to her heirs, I give and bequeath (1) my plantation, commonly called 'No Mistake' plantation, near Satartia, Yazoo county, state of Mississippi, with all the negroes, horses, mules, cattle, buildings, and farming utensils that may be found on said estate at the time of my death and belonging to me. (2) I give and bequeath to the said Sarah D. Todd and to her heirs about six thousand acres of land, situated in this state, and entered by E. Lawrence and Brashear, in my name. This bequest is made to Sarah D. Todd, wife of William B. Partee, upon the following conditions, under the penalty, in case of non-compliance, of loss of the above property: The first of said conditions is that the said Sarah D. Todd, wife of the said William B. Partee, shall within the next ensuing month after my death pay to Miss Elizabeth Calhoun, of Maury county, state of Tennessee, and to Nathaniel Calhoun, and to Christopher Calhoun, his brother, children of Margaret Todd, wife of Charles Calhoun, and residing in Maury county, Tennessee, the sum to each of twelve thousand dollars; that is to say, to Miss Elizabeth Calhoun the sum of twelve thousand dollars, to Nathaniel Calhoun the sum of twelve thousand dollars, and to Christopher Calhoun twelve thousand dollars, and in the case of the death of either or any of them without issue, then the sum or sums coming to said deceased parties or their heirs to be given to the survivor or survivors, in equal proportions. The second of said conditions is that the said Sarah D. Todd and her heirs shall pay to Christopher Todd and to Sarah, his wife, my sister, one thousand dollars per annum during the life of either, payable as they or the survivor may require it.' The will then gives various lands and legacies in money to various persons named, and then proceeds: 'And my will, as follows: That all the legacies which I have given in money and not charged upon any particular fund is not demandable from any person whomsoever for the term of two years after my decease. * * * And should any legatee endeavor by action of any kind or nature, before any court in any state, to break, injure, or destroy any of my depositions, the bequest or legacy to such person or persons is annulled or rescinded by me. The legacies of $12,000 each to Elizabeth Calhoun, Nathaniel Calhoun, and Christopher Calhoun may be paid by Sarah D. Todd, wife of William B. Partee, in the following manner, viz.: To Elizabeth Calhoun, on the day of her marriage, and to Nathaniel and Christopher, when they become of age, upon condition that the said Sarah D. Todd pays to the said legatees annually interest at seven per cent. upon their respective legacies, after she comes in possession of 'No Mistake' plantation.'

Mrs. Todd having died in 1853, and Christopher Todd having been paid his annuity up to January 1, 1861, he filed a bill in chancery, in November, 1867, in the chancery court of Yazoo county, against William B. Partee and his wife, claiming that such annuity was a charge on the land so devised to Mrs. Partee, and praying for a sale of the land to pay the arrears due on the annuity. Christopher Todd having died during the pendency of the suit, it was revived in the name of Edward Drenning, his special administrator, and the court, on June 8, 1868, made a decree that there was due to Todd at his death, as an annuitant under said will, $7,680.04; that that sum was a lien on said 'No Mistake' plantation, against all liens created thereon since the death of Dick; and that said land be sold to pay that sum. It was sold, by the same description as in said conveyance to James D. Partee, to said Hudson and Ewing, on April 15, 1878, they being then the owners of the decree in the suit, and they received a deed of that date therefor. In 1871 James D. Partee, as owner of the land, had paid a part of the Drenning decree. In February, 1877, Drenning was paid the balance by Robert G. Hudson, and assigned the decree to him, under an order of the chancery court, the assignment being for the benefit of Benson, Hudson, and Ewing. Afterwards Hudson and Ewing acquired all the interest of Benson therein.

Hudson and Benson, and Charles C. Ewing, individually and as administrator of S. S. Ewing, and Drenning, as executor of Stewart and as administrator of Todd, were made parties to the supplemental bill in this suit. That bill attacks the validity of the Drenning decree and claims an account of the rents and profits of the land. The parties defendant having put in answers, to which there were replications, the court ordered that the controversy as to Hudson and Ewing and Drenning proceed separately.

On the twenty-ninth of November, 1880, that court made a decree setting aside the deeds under which Hudson, Benson, and Ewing obtained title, and decreeing that the deed of April 15, 1878, to Hudson and Ewing, on the sale under the Drenning decree, was subject to the right of redemption of the appellants as junior incumbrancers, under the original trust deed of November 19, 1866; that Hudson and Ewing were entitled to be reimbursed what they had paid to Drenning in purchasing his decree, with interest, that amount being $9,391.23, paid February 5, 1877, and being a paramount lien on the lands in controversy; that Hudson and Ewing were entitled to be reimbursed what they had paid for taxes, and the value of all improvements of a permanent character put on the lands by them, and repairs, but were responsible for a reasonable sum annually for the use and occupation of the lands up to January 1, 1881; that for the balance due them on an accounting they should have a lien on the lands superior to that of the appellants; that the balance, if any, due by them should be deducted from the amount due them on account of the Todd legacy; that the appellants were entitled to foreclose their...