Ghormly v. Samuel P. Sherrill.
| Decision Date | 31 January 1872 |
| Citation | 66 N.C. 527 |
| Court | North Carolina Supreme Court |
| Parties | D. C. GHORMLY v. SAMUEL P. SHERRILL. |
1. Where one, who stands in the position of a quasi mortgagee of land, sells the same to a purchaser with notice of the equity of the quasi mortgagor, such purchaser takes subject to such equity.
2. Where one T handed to B certain papers which would enable the holder to procure grants for certain tracts of land, receiving from B certain depreciated currency with the understanding that B should take out the grants in his own name, and whenever T paid him $750.94 in greenbacks B should convey to T; and B took out the grants in his own name and sold and conveyed certain of the tracts to G with notic??c of his trust to T; Held, that T had an equity of redemption, and that the purchase-money paid by G to B, should be regarded as paid by T to B in redemption; and Held, further that a purchaser of the land from T before any of those transactions, is entitled to take the place of T and succeeds to his equitable rights.
This was a civil action, heard before His Honor Judge Cannon, on a counter-claim and demurrer, and His Honor, having at Spring Term, 1871, overruled the demurrer and given judgment accordingly, the plaintiff appealed.
The facts are sufficiently stated in the opinion of the Court.
M. Erwin, Strong, Ovide Dupré, Folk and Batchelor for the appellant .
Phillips & Merrimon for the appellee .
On May 30th, 1868, W. H. Thomas was in the possession of “transfers, agents receipts and papers,” of such character; but of what precise character we are not informed, as would enable him to procure grants from the State for the following tracts of land: Numbers 595, 10, 6, 12, 23, 17, 7, 9, 24 and 28. For some reason, not stated, he did not wish to take out grants in his own name, and, therefore, gave up his “transfers, agents receipts and papers” to one T. D. Bryson, for which Bryson gave him $2,252.83, in “road certificates,” which were a sort of scrip circulating as a depreciated currency in that locality, with the understanding that Bryson was to take out grants from the State for said lands in his own name; and whenever Thomas should pay him $750.94 in greenbacks, with interest, which we suppose was the estimated value of the $2,252.83 of “road scrip,” Bryson would convey said lands to Thomas. Bryson took out grants from the State as agreed on. The agreement was in writing signed by Bryson.
The effect of all this was to vest the legal title in Bryson with an equity of redemption in Thomas.
In February, 1869, and before Thomas had paid anything in redemption, Bryson sold several tracts of the land, including those in dispute, to the plaintiff, informing him at the same time of Thomas' equity. The effect of this was to put the legal title out of Bryson, into the plaintiff, subject, however, to the equity of Thomas.
Since the sale by Bryson to the plaintiff, the plaintiff has sold off several of the tracts of land for the sum of $550. And Bryson has sold other tracts to other persons for the sum of $177.79,...
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