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(1855) 2 Macqueen 205
Reports of Cases Argued and Determined in The House of Lords.
No. 14
Subject_Question of Registration under the Entail Act, 1685, c. 22: —
1. A deed of strict entail, whereby the maker, reserving to himself a liferent merely, calls to the succession in the first place his eldest son and the heirs male of his body, whom failing a series of other heirs. The deed is recorded in the Books of Session. Afterwards the maker presents a petition for authority to register the entail in the proper Register of Entails, but in such petition represents the entail as being in favour of himself and the heirs male of his body. Upon the ground of this error: Objection that the authority to register was bad, and that the registration pursuantly thereto was insufficient under the Act. Objection overruled.
2. In the resolutive clause were the words, “in case the said J. S. shall fail, or neglect to obey or perform the said conditions;” but in the Register the words were different, being “shall fail to neglect or obey or perform.” Reasoning upon which, this discrepancy held immaterial.
3. Under a power reserved, the maker of the entail revoked the nomination of an heir. Objection by a creditor of the heir in possession, that the deed of revocation was not recorded in the Register of Entails. Answer, that the heir displaced was an heir who could not have come in until after the heir in possession.
Held, by the Lord Chancellor, that the entail stood upon both instruments (the deed of creation and the deed of partial revocation), and therefore that both must appear upon the Register.
Dissent by Lord St. Leonards, agreeing with the Court of Session. Decision below consequently affirmed.
This case is fully reported in the second series of the Court of Session Cases
(a). The question, one of
_________________ Footnote _________________ (
a) Vol. 14, p. 944.
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The Solicitor General (b) and the Dean of Faculty (c) for the Appellants, cited Broomfield v. Patterson (d), Lumsden v. Lumsden (e), the Hoddam case (f), Bontine v. Graham (g), Cathcart v. McLaine (h), Holmes v. Campbell (i).
Mr. Rolt and Mr. Anderson for the Respondents, cited Turnbull v. Hay Newton (k), Eglinton v. Montgomery (l).
Lord Chancellor's opinion.
The Lord Chancellor :—
My Lords, this is an appeal to your Lordships from the decision of the Court of Session upon an action of Declarator, which was brought by Miss Norton, as holder of a certain security for 600 l.; and the object of her summons was to charge the estate of Renton, in the hands of Sir Samuel Stirling, with the payment of that sum, upon the ground that he was the absolute owner of the estate, and that she, having this security, was entitled to charge it. He, on the other hand, contending that he was an heir, protected by a certain deed of entail, which he set up as rendering the estate not liable to the debts to which it might otherwise have been subject.
The summons of declarator states the title of this lady to the bond, which I need not go into; and then it states that Sir Samuel disputed the liability of his estate to the payment of this money, upon the ground that he held the estate as tenant in tail under a deed of entail created on the 28th of June 1788, which was recorded
_________________ Footnote _________________ (
a) Lord Cranworth. (
b) Sir R. Bethell. (
c) Mr. Inglis. (
d) 29 June 1784; Morr. 15,618. (
e) 2 Bell, 104. (
f)
Sharpe v. Sharpe, Sh. & McL. 618. (
g) 13 Sh. & D. 905. (
h) 8 Dunlop, 970. (
i) 13 Dunlop, 689. (
k) 29 June, 1836; 14 Dunlop, 1031. (
l) Bell, App. Ca. 149. (
m) Lord Cranworth.
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The summons then states that the power thus reserved was exercised by Sir Alexander Stirling very shortly afterwards; for that upon the 21st of August 1788, he executed a deed, whereby he “revoked and recalled the said disposition and deed of entail,” and declared “all hopes or chance of succession in the said lands and estate by the said Mary Stirling (she was the first daughter taking after the failure of all the sons) or the heirs of her body, in consequence of the destination in the said disposition or deed of entail thereof, frustrated and removed, and all sums of money or provisions or others, contained in said deed of entail or trust deed above mentioned, and which otherwise would have been payable to her or them, in no way
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The summons next goes on to state, “that the procuratory of resignation and deed of entail, and relative deed of revocation, have not been duly and validly recorded, and are not valid and effectual in terms of the Act of Parliament, 1685, chapter 22.” Then it gives three distinct reasons, upon which it alleges that the registration of that deed was invalid.
The Lords of Session have held that neither of them was well founded; that the objections were all immaterial, and that consequently the entail was good, so that in their opinion the Pursuer had no case, and the Defenders were entitled to be assoilzied. Such was the decision of the Lord Ordinary, and that decision was confirmed by the First Division of the Inner House.
Now, my Lords, the first objection rests upon an alleged non-compliance with the terms of the statute of 1685. That statute “declares that it shall be lawful to His Majesty's subjects to tailzie their lands and estates, and to substitute heirs in their tailzies with such provisions and conditions as they shall think fit, and to affect the said tailzies with irritant and resolutive clauses, whereby it shall not be lawful to the heirs of tailzie to sell, annalzie, or dispone the said lands or any part thereof, or contract debt, or do any other deed whereby the same may be apprized, adjudged, or evicted from the others substitute in the tailzie, or the succession frustrate or interrupted, declaring all such deeds to be in themselves null and void, and that the next heir of tailzie may immediately, upon the contravention, pursue declarators thereof, and serve himself
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Now, the objection is, that the deed as to which the Lords of Session, in the language of the Act of Parliament, are ordained to interpone their authority to have it recorded, was not a deed corresponding in truth with the real deed, for that the order of the Lords of Session was that they ordained the deed of entail executed by Sir Alexander Stirling, of Glorat, Baronet, of the lands of Renton, lying in the shire of Berwick, in favour of himself and the heirs male of his body, whom failing, the other heirs and substitutes therein mentioned.” Whereas, that was not a correct description of the actual deed, and, consequently, there was no valid authority for recording it. I think that that argument was hardly pressed eventually, and I must confess, that when the matter is looked into, it appears to me that it is an argument utterly untenable, and which it is hardly necessary to say much about, because the petition presented on the 2d of March, 1790, for interposing the authority of the Lords of Session,—the petition of
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_________________ Footnote _________________
(a) On the first objection (above considered by the Lord Chancellor) the Lord President M'Neill made, in the Court of Session, the following remarks:— “The authority to record the entail is a statutory requisite. But the form of the petition, and the other parts of the machinery for obtaining that authority, are not statutory. The statute merely requires the entail to be produced, and authority to be given; and it appears to me that there is evidence that this entail was produced, and that authority was given to record it. No doubt the deed is called in the petition a deed of entail in favour of the petitioner himself and the heirs of his body; and in the strict language of conveyancers this is not correct. But there were conditions in the deed in favour of the granter himself; and, therefore, although in strict technical language it was not a deed in favour of the petitioner himself, the expression was not altogether erroneous, or so clearly indicative of another deed as to come into competition with the evidence of identity which the proceedings afford.”
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The next objection is one that was very much argued, but which upon full consideration I confess I think is equally without foundation. It is this:—It is said that the deed actually recorded is a deed in which the irritant clause is described as a clause which is to take effect, “in case the heir of entail shall fail to neglect or obey or perform” certain conditions; whereas in the deed it is “shall fail or neglect to obey or perform.” And it is urged that the doctrine of the courts in Scotland, and of your Lordships' House, has always been to hold very strictly the necessity of accurately recording these deeds upon the Register of Entails, so as to give effect to the fetters of the entail, and that this is an important difference—that “failing or neglecting” to obey or perform, is a different thing from “failing to neglect or obey or perform;” and consequently that the real deed has never been validly recorded.
In support of this doctrine decisions were cited. There was the case of
In that case, in the prohibitory clause, there was a prohibition against “alienating redeemably or under reversion;” it was said that that must be a clerical error, because the common form is “irredeemably or under reversion,” and it was said that the “ir” must have been left out, and that it was patent that it must have been a clerical error. Looking at it, and knowing the forms of conveyancing, one cannot help having a very strong conviction that that was a mere clerical error; but there was nothing nonsensical in the way in which it was actually written, and it was held by the Court of Session, and ultimately by your Lordships' House, that you could not put the two letters “ir” and make “irredeemably” of what was
_________________ Footnote _________________ (a) 2 Shaw, 425.
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So, again the case, which was argued, I think when Lord Brougham was Lord Chancellor, or in which he took a leading part—I think it is spoken of by the name of the Hoddam case (a). There in truth a whole line had evidently been left out, and it was said,—You see what the line must have been; you cannot but form a very strong conjecture what it was. But the noble and learned Lord held, and the House adopted the same view, that there were twenty ways in which the line might have been filled up quite sensibly, and although you might have felt it extremely probable that the way to fill it up was the particular mode pointed out, still that was not a matter which you could act upon, and therefore that again was a case in which the record was held bad.
But these cases having been so decided, nevertheless there were several others in which the doctrine of common sense prevailed, as it would always prevail, if you could see what the words left out must have been, or what the alteration is, if there is a difference between the record and the deed. In such case the difference becomes absolutely immaterial, and you have no right to pretend not to understand what it is impossible not to understand. Now that, I think, is the doctrine applicable to the present case, for here it appears to me that it is a mistake to say that there is any error in the irritancy at all, because the irritancy is that “in case the said John
_________________ Footnote _________________ (
a)
Sharpe v. Sharpe,
1 Sh. & McL. 594.
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Now, my Lords, let us see more closely what is the difference between the two. The words in the deed are—“shall fail or neglect to obey or perform the said conditions,” and so on; in the registry they are “shall
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I wish, as far as one can have a wish in such a case, that I could have said that I also agreed with the learned Judges of the Court of Session upon the third point. But, I must confess that I do not concur with them. The third point, as it appears to me, is one not of form, but of substance. The Act of 1685 requires a register to be kept, wherein shall be recorded “The names of the maker of the tailzie, and the heirs of tailzie, and the general designations of the lordships and baronies, and the provisions and conditions contained in the tailzie,” and so on; “to remain in the said register in perpetuam rei memoriam;”—and no tailzie is good as against creditors unless the provisions of the Statute have been strictly pursued. The question here is, whether the names of the heirs of taillie have been duly recorded in the Register of Taillies. There is no doubt that they were so recorded, if the deed of the 28th June 1788 is to be treated as the only deed creating the entail; but if the subsequent deed of the 21st of August 1788 is the deed, or one of the deeds, creating the entail, then the requisitions of the Statute have not been complied with, for that latter deed never has been recorded. I am of opinion that the entail subsists, not under the original deed only, but under the two deeds taken together. Both deeds were, it must be recollected, deeds executed mortis causa. They were not to have any operation during the life of Sir Alexander Stirling, the entailer, who reserved to himself in both deeds the most complete powers to revoke and alter as he might think fit. By his death these powers came to an end. The destination of the heirs who were to succeed was then finally established, but established by the two deeds taken together, and
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The policy of the Statute was to make void as against creditors every taillie in which the heirs of taillie were not recorded—that of course means correctly recorded in the register. Here the register would represent to a creditor searching it, that on failure of the heirs of the body of George Stirling the lands would go to Mary Stirling, and the heirs of her body, whereas, in fact, they would go to Jean Stirling and the heirs of her body. This, therefore, is not a correct record of the taillie. It is true that this is an inaccuracy (so far as it is inaccurate) subsequent to the line of heirs against whom the creditor is seeking to obtain adjudication; but I do not think that is material. The enactments of the Statute are matters juris positivi, and if its provisions have not been duly complied with, a deed, whose operation as to creditors depends on such compliance, is as against them void to all intents and purposes.
Now, one of the requisites of the Statute is that the heirs of Taillie shall be correctly recorded. If this has not been done, it can be no answer to a creditor that this inaccuracy does not affect him, any more than if there had been an error in the record of prohibition against alienation, it would have been a good answer to the creditor to say that the prohibition against contracting debts was correctly set out on the register. The Statute requires entire accuracy throughout, and as a penalty upon inaccuracy makes the deed void in favour of third persons without permitting any inquiry whether, in fact, the inaccuracy was or could be prejudicial to them. I do not suppose that this principle is disputed. If the inaccuracy occurs in the deed which is in fact recorded—if, for instance, Mary Stirling's name had not been recorded in the original
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This appears to me to be the fair result of the Statute, looking at it independently of authority. But I think further that the question, even if it were doubtful, is settled by decision, for I cannot distinguish the present case in principle from that of Broomfield v. Paterson (a), and also more satisfactorily in a note to Turnbull v. Newton (b).
In the former of these cases Sir John Paterson created an entail in 1743, reserving to himself unlimited power of revocation and alteration. In 1758 he made a new entail referring to the former deed of 1743, but varying from it by omitting wholly from the designation James Paterson and the heirs of his body. There were two other slight variations from the former Deed, but Lord Jeffery, in observing on the case, treated the omission of this line of successors
_________________ Footnote _________________ (
a) Morr. 15,618. (
b) 14 New Series, 103.
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The view I take of the law is quite consistent with the case of Turnbull v. Newton, and other similar cases, where, in truth, there was no alteration in the course of succession, but merely a propelling of the fee. That is an act done by an heir of entail—an act which he may do according to the law of his entail as it stands recorded in the register. Nor do I at all dispute the doctrine, that, if between the date of the deed creating the entail and its being recorded in the register, one of the substitutes has died without issue, still the whole deed must be registered. Or if during that period the maker of the entail has sold a part of the property, still the whole of the lands included in the deed must be noticed in the register. What the Statute requires to be registered is the entail, as it is created by the maker of it. This can only be done by recording the deed in its integrity as executed by the settler. If after the creation of the entail a line of heirs becomes
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The short ground, therefore, on which I rest my judgment is, that what the Statute requires to be registered is the entail created by the settler, that is the names of the maker and of the heirs of entail—and the designation of the lands, and provisions and conditions with the irritant and resolutive clauses. In this case, in order to get at these particulars, recourse must be had to both deeds, and both, therefore, ought in my opinion to have been registered. This, however, is not the view of my noble and learned friend, and consequently the Appeal will be dismissed.
Lord St. Leonards' opinion.
The Lord St. Leonards :
My Lords, I entirely concur with my noble and learned friend in his view upon the first question—indeed, the first point I consider was given up by the counsel at the bar; but I may just observe that every thing was done that was necessary to establish the identity of the deed of entail. The description was not wrong. It is quite a mistake to say that the description of the deed was wrong; in point of fact, the grantor had reserved to himself a life interest, and had settled the estate upon his heirs male. Therefore to say that this was a settlement upon him and his heirs male was perfectly correct, so far as to satisfy the Act of Parliament.
As to the second point, which my noble and learned friend has so much discussed, as I entirely agree with
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Now, my Lords, after a very anxious consideration of the third point, upon which my noble and learned friend and myself are not agreed, I think the Court of Session were perfectly correct in the decision at which they arrived. The Judges were unanimous, and I observe that Lord Cuninghame treated the objection as a perfectly novel one and not capable of being sustained. So that, so far as their knowledge of the practice and general opinion went, they thought that this was an attempted innovation which had never been made before.
Now it is necessary to be very distinct in order to come to a right conclusion upon this subject. There is nothing in the law of Scotland, or in the Act of 1685, which affects the original settlement as a mere settlement in this case. The settlor might have made
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If that be so, what is there to affect that valid deed? That deed could, by the law of Scotland, be defeated, irrespectively of the prohibitions and the irritant and resolutive clauses, if they did not intervene, by persons entitled just in the same way as any person having an estate conveyed by the law of Scotland might have his title defeated. The statute of 1685 does not prevent you, if you have an estate, from making any settlement of that estate. And, therefore, supposing that settlement to exist, and
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This point is settled in the case of Turnbull v. Newton, which is reported in 4th Shaw and Dunlop. It was there held that it is not necessary to register a propelling deed. But what is a propelling deed? If it is an actual striking out of one of the heirs of taillie in order to accelerate the estate of another, it takes that heir of taillie really out of the line of succession, and accelerates the estate of the one in remainder. Such a deed does not require registration; it accelerates, but it does not alter the line of succession. It gives the next in the line of succession the substitute; a great advantage, because his estate, which is accelerated, but for this propelling deed, might never have taken effect at all. Non constat that the first estate that was granted would have ceased, so as to give the party over, as we call it, a right to inherit or to take. Then there is a case in which you actually remove an estate which is upon the record, and you introduce an estate as the immediate estate, which might never have come into, being in the original order or course of the taillie; but still that is not necessary to be registered.
Now, what was done in this case? The grantor having reserved to himself a general power of revocation, revoked an estate subsequent to the estate of the party now in question. He revoked Mary Stirling's estate, so as, leaving everything else untouched, to
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Well, then, the power of revocation having been partially exercised, the effect of a reversal of the decision of the Court below would be this, that that partial revocation operated as an entire revocation of the whole settlement, because it is insisted that that partial revocation, limited to one estate in remainder, operated to defeat the entire taillie from the beginning to the end. By the original deed John is to have the estate, then James is to have it, then Mary is to have it, and then Jean is to have it. Mary is struck out by the exercise of the power of revocation, and then the estate stands limited to John, James, and Jean. It is said that John and James cannot take the estate, and that the effect of this is in point of law to revoke the whole deed. Is there any precedent for that?
Observe what the object of the Statute of 1685 is. The object is not to tell the creditors what events after the execution of the tailzie or the record may have happened, or what circumstances may have occurred; such, for instance, as the sale of the estate, the recovery of it adversely, or the revocation; but it is to show this, that those persons who claim under the original taillie are or are not prohibited from selling or recovering, and to show that the prohibitions are or are not guarded and fenced by proper irritant and resolutive clauses.
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What would happen in this case? Nobody can deny this, that the power of revocation being executed this was a perfectly valid instrument as between heirs, and it put an end to the estate of Mary Stirling for ever. Nobody can dispute that, irrespectively of the Statute of 1685. The Statute of 1685 does not touch that at all. There is nothing in the Statute of 1685 which says, that if you take away one particular limitation, you must put it upon record. Why should you put it upon record? Mary Stirling, being by the effect of that deed, which is a perfectly valid and operative deed, struck out of the line of succession, never could be found in possession of this estate, and therefore the creditors never could have had occasion to resort to the register in order to see whether there was any prohibition against her. She never could have the estate; and therefore never being able to serve as heir, and never being able to claim it under the deed, the creditors would know at once that her estate had been in some way defeated.
But it is a mistake to suppose that the Statute of 1685 at all strikes at this deed which removes this lady. There is no ground for saying so. It does not touch it. My noble and learned friend says very truly that the Statute of 1685 requires that all the heirs of taillie should appear upon the record of the deed recorded. The question still remains. Is it necessary to record this deed? Nobody doubts that the original deed was properly recorded, and that every person in succession who would take under that deed is now upon the record, and every creditor will be able to go to the record, and see whether the person who succeeds to the estate under that taillie is or is not within the line of prohibition, and is or is not fenced by the irritant and resolutive clauses. No question can arise—no
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Now, supposing the estate had been so limited as that the subsequent deed operated as a new settlement, which it can only do where the effect of the second grant is to supersede the first grant, then no doubt the law requires that the second deed, in order to have efficacy, should be registered under the Act of 1685. There is no question about that. But whilst the estate remains unaffected, and upon the register fenced with proper prohibitory, irritant, and resolutive clauses properly created, there never can be any occasion to register any other deed, as it appears to me with regard to those existing valid estates which are not effected by that other deed.
Now, Broomfield v. Paterson is, I think, a perfect instance of what I am now advising your Lordships to hold. For there the second deed did operate entirely to defeat the first deed, and therefore it was that the second deed never could be operative unless it was recorded properly on the Register of Taillie, as well as the first, so as to bind creditors, purchasers, and others. My noble and learned friend has said that that case is perhaps better stated in the Lord Ordinary s note to the case of Turnbull v. Newton. But in Morrison it is stated thus—In 1743 Sir John Patterson made an entail in favour of his grandson John, and reserved power to revoke. He completed the deed of entail, and it was registered in the Register of Taillie. The Lord Ordinary observed in this case that the fee was considered to remain in the grantor, and that the grandson must be entitled as heir of provision. In 1755 Sir John Paterson renounced his power of revocation. Now that was a mere personal act. It was recorded in the Register of Taillie only—it could not qualify the right—it was merely a personal act—it
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Now here the original settlement is in perfect existence, and it has been properly recorded, and all the prohibitions and fences are properly upon the record. The party in possession has taken in his order according to the limitations of the deed. There is no question between him and his creditors, except with reference to that which strikes at the root of the original deed.
It appears to me, my Lords, that the Court of Session was quite right in holding that this second deed was not a new settlement, but merely a striking out of one of the heirs who never could come into possession except in the order of the deed. Under this deed Mary would never come into possession at all. There is no question, therefore, as to her creditors. It was impossible that there should be. They never could find her in possession subsequently. And this limitation not being a new settlement, this is not a case which is required to be registered by the Statute of 1685. If it had been necessary under the Statute, then every deed relating to the estate must equally be registered. There were two months between the execution of the first deed and the execution of the second
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My Lords, I have taken some time to consider this question, and have considered it very minutely, and have looked at it in every point of view, and with all deference to my noble and learned friend I have come to a strong opinion upon the point that the decision of the Court below should be affirmed.
Interlocutors affirmed.
Solicitors: Deans & Rogers— Maitland & Graham.