Page: 818↓
Subject_Implied Assignation—Right in Security—Service—Bankruptcy.—
1. A party, conceiving himself to be feudally vested in lands, granted a heritable bond for £3000, containing a procuratory of resignation of “all and whole the lands, &c., together with all right, title, and interest which I have or can pretend thereto, or to any part or portion thereof:” and he bound himself in absolute warrandice: his feudal title proved inept, but there was a jus crediti as to these lands vested in him under a trust-deed executed by his father: held, that the heritable bond contained an implied assignation of this jus crediti; that this assignation required no intimation to the trustee, who was himself granter of the bond; and that the registered infeftment on the bond, though flowing from a party not feudally vested in the land, might, as an instrument of possession, be deemed equivalent to intimation to his co-trustee. 2. After the sequestration of the estate of a party who had granted an infeftment when his feudal title was inept, the heritable creditor got him to sign a claim of service, as heir under a particular deed, and served him heir, and infeft him, with a view to validate the previous infeftment: Observed, that this attempt to complete the bankrupt's title, after sequestration, was ineffectual. 3. Where a party disponed lands in trust, and all reversionary interest under the trust, and the trustees were infeft, held, that nothing was taken up out of his hereditas jacens by charging his heir to enter in special, and thereon adjudging the lands.
The late Dr Boyd, proprietor of the lands of Culbratton and others, executed an entailed disposition of these lands in 1787, under reservation of his own liferent, to his eldest son, John, whom failing, his second son, Edward, &c.
In 1794, on the narrative that he had sundry debts, and the provisions of Edward Boyd and other younger children to secure, besides an annuity to his wife, Dr Boyd executed a trust-conveyance of the lands of Culbratton to his wife, and Edward Boyd, jointly; and, after his wife's decease, to Edward Boyd. The purposes of the trust were declared to be to pay the truster's debts; the annuity to his wife; and the provisions to his children. To secure the full execution of these purposes, it was appointed that the trust-disposition “should be in force for twenty-one years after my decease, and thereafter until the said debts, &c. are paid.” Declaring, “That on the expiration of this trust-right,
Dr Boyd died in 1794, upon which his widow and Edward Boyd accepted the trust, and were infeft, under the conveyance in their favour, on 12th July, 1794.
John Boyd, the eldest son, survived his father, but died without making up any title. Edward Boyd expede a general service to his father, with the view of thereby taking up the open precept in the disposition 1787; and, on the assumption that he had done so, he was infeft under that precept. In 1802, he obtained from Mark Sprot and Sir William Douglas, who were trustees of his wife, a loan of £3000, and he granted a heritable bond to them. By that deed he bound himself to infeft them, for their security, “not only in all and whole an annualrent of £150 sterling,” &c., to be uplifted “furth of all and whole the lands of Culbratton,” &c.; “but also in all and whole the said lands, teinds, and others before specified, with the pertinents themselves, in farther security to the said Mark Sprot and Sir William Douglas, and the survivor of them, and his foresaids, of payment of the said sums of money.”
The procuratory of resignation not only included the annualrent, “but also all and whole the said lands, teinds, and others before specified, themselves, together with all right, title, and interest, which I have, or can pretend thereto, or to any part or portion thereof, in time coming, in real security and more sure payment,” &c.
Edward Boyd bound himself in absolute warrandice both of the annual-rent, and of “the said lands and others themselves;” and he assigned “the whole writs and evidents, rights, titles, and securities of and concerning the said lands and others,” as well as the rents “surrogating and substituting the said Mark Sprot and Sir William Douglas in my full right and place of the premises, under reversion, as said is, for their security and payment of the sums of money,” &c. It was specially provided that the trustees might either use personal diligence upon the bond, or real diligence under the heritable disposition, “or both jointly, as cumulative and distinct rights, the one without prejudice of the other, in their option, and without any innovation or confusion of rights.” The precept of sasine directed infeftment to be given both in the annualrent and in the lands themselves; and the trustees were infeft under this disposition.
In 1826, Edward Boyd's estates were sequestrated under the Bankrupt Act, and William Paul, accountant in Edinburgh, was appointed trustee. Paul was advised that the trust-conveyance of 1794 was inept, and, being desirous to avoid the entail of 1787, he gave the bankrupt a charge to enter heir in special to his father, and obtained a decree of adjudication,
Pleaded by Mrs Boyd's Trustees—
1. The title made up by Paul was inept. There was nothing in here-ditate jacente of Dr Boyd to be taken up by any heir. He had effectually conveyed his estates to trustees, who were infeft accordingly; and even the reversionary interest under the trust was expressly disponed away. Neither a service to Dr Boyd, nor the equivalent adopted by Paul, of charging Edward Boyd to enter heir, and then adjudging, could take up any thing whatever. 2
2. The heritable bond in 1802 was an effectual conveyance to the trustees of Edward Boyd's wife of the jus crediti, which was then vested in him, under the trust-deed of Dr Boyd, by which the whole reversionary interest under the trust was then in Edward Boyd, Though the purpose directly in view was merely to constitute a good security over the lands of Culbratton, on the erroneous supposition that Edward Boyd was feudally vested in them, still as he disponed these lands themselves with their pertinents, and with every right and interest which he had in them, and assigned their whole rents to the creditors, and bound himself in absolute warrandice, this was enough to convey his reversionary interest in these lands, under the subsisting trust which embraced them. To the effect of securing the loan, this deed was therefore as good as an express conveyance of the jus crediti would have been; and, in a competition of personal rights, which was the utmost that Paul could now contend for, such conveyance was effectual to create a preference. It was sufficiently intimated, seeing that Edward Boyd, who as a trustee was debtor under the jus crediti, was the granter of the heritable bond; 3 and the infeftment which passed was sufficient intimation to the widow of Dr Boyd, the other trustee.
3. But a good feudal title had been made up in the person of Edward, by serving him heir of provision to his brother John Boyd, and infefting him under the disposition 1787. By the principle of
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1 Jan. 22, 1833 (ante, XI. 292).
2 Renton, Dec. 20, 1833 (ante, XII. 266).
3 Turabull, June 12, 1756 (Mor. 868).
Pleaded by Paul—
1. The title made up by his adjudication was good; but, even if defective, it was enough to entitle him to prevail in the competition, if he could show that there was no preferable right in the other party. Failing such right, the trustee under the sequestration, to whom every right and interest of the bankrupt were adjudged, must carry off the price, leaving the other party to rank as personal creditors.
2. At granting the heritable bond, nothing was intended except the ordinary heritable security by a feudal proprietor. There was no reference to the existence of a trust, or to any jus crediti arising under it. The general terms of conveyance, which were said to reach it, must be read in reference to the context of the deed, and the nature of the transaction which was truly in the view of the parties. And they could not embrace the jus crediti in question, as it was a right of a totally different kind, and not properly an accessory of the rights which were specially conveyed. But, separately, even if it were an assignation of the jus crediti, it was incomplete without intimation, and no intimation ever followed on it.
8. The feudal title which it had been attempted to rear up, in the person of the bankrupt, to the prejudice of the general creditors, was altogether ineffectual. Besides, the bankrupt had himself signed the claim of service on which the whole proceeding was founded, and that alone sufficed to vitiate it. 2
The Lord Ordinary * “sustained the claim of William Turnbull and
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1 Watsons, July 31, 1724 (1180); E. of Selkirk, June 20, 1752; Elch. v. Fraud, No. 29; Mitchell, Nov. 12, 1799 ( Dict. v. Bankt. App. No. 10); M'Lagan, May 21, 1800, ( Dict. v. Bankt. App. No. 11); Cormack, July 8, 1829 (ante, VII. 868).
2 Mansfield, June 28, 1833 (ante, XI. 813).
* “Note.—This case is attended with difficulty, and it is not without hesitation that the Lord Ordinary has preferred the claimants, Messrs Turnbull and Campbell, as in right of the trustees for Mrs Boyd. The interlocutor proceeds upon the following grounds:—
“It is admitted that the title of Edward Boyd to the lands of Culbratton, made up by general service to his father, Dr Boyd, was inept, and, consequently, that the infeftment of the trustees on the heritable bond by Edward Boyd in their favour was inept also. The Lord Ordinary is clearly of opinion, that the attempt by the trustees to complete the title of Edward Boyd, after his sequestration, was ineffectual. The heritable bond contained no express mandate to infeft him as heir to his brother John, and it cannot be held as an implied mandate to that effect. Again, he had no power after his sequestration to grant such a mandate, as he would thereby have bestowed a preference on the personal creditor, to the prejudice of all the rest.
“On the other hand, it is thought, that Paul, the judicial trustee under Boyd's sequestration, has not completed a valid title to these lands, Dr Boyd being not only denuded of them for the purposes of the trust, but having conveyed away the reversionary right after the purposes of the trust had been fulfilled.
“The case in this view, resolving into a competition of personal rights, it will be observed that the heritable bond in favour of Mrs Boyd's trustees, contains a conveyance, in general terms sufficiently broad, to carry Mr Boyd's jus crediti, or right of reversion, to the estate of Culbratton. It not only binds Edward Boyd to infeft the trustees in the lands, teinds, &c., but procuratory is granted for resigning the lands, teinds, &c., together with all right, title, and interest, which the granter has, or can pretend thereto, or to any part or portion thereof in time coming, in real security and more sure payment of the principal, interest, expenses, and penalties. But, even if this bond were not to be construed as expressly assigning the jus crediti of Edward Boyd, it must be held as an implied assignation to that right, agreeably to the decision in the case of Dewar, March, 1686, in which an appriser, uninfeft, having infeft his wife in an annualrent of the apprised lands, she was preferred to an adjudger of her husband's right, on the ground that her infeftment, though otherwise invalid, was to be held an implied assignation of the apprising. There are other decisions to the same effect.
“It has been objected by the judicial trustee, that, holding the heritable bond, an assignation of the jus crediti, it is ineffectual, not being completed by intimation. But the answer appears satisfactory, 1st, That no intimation to Edward Boyd was necessary, as he was not only granter of the bond, but one of the trustees under his father's trust-disposition, and therefore, not only the cedent, but a debtor in the right assigned. With regard to the other trustee, Mrs Boyd, the registered infeftment upon the bond, as an instrument of possession, may be held equivalent to intimation.
“There is no plea in law in the record, that the heritable bond is to be held an assignation of Edward Boyd's jus crediti under the trust; but the facts stated, and deeds referred to, raised that plea, and therefore the Lord Ordinary allowed it to be added.”
Richard Campbell, in right of the trustees of Mrs Boyd; ranked and preferred them upon the fund in medio in terms of their claim, and decerned in the preference accordingly.”
Paul reclaimed; the Court stopped the counsel for the trustees of Mrs Boyd.
The Court adhered.
Solicitors: W. Srewart, W.S.— Tod and Hill, W.S.—Agents.
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1 Ante, II, 682, (or 574, new Edit.)
2 Ante, I. 199, (or 175, new Edit.)