Van Eaton v. Napier

Citations

• 63 Miss. 220

Syllabus

<p>Limitation op Actions. Right of action on collateral barred when debt barred. Note held for another, when not in trust.</p> <p>In 1860 C. & L., partners in business, borrowed money from S. to pay for a tract of land which they had bought. In 1866 they sold the land to A., and took his promissory note for the purchase-money, which, by agreement between them (C. and L.), was made payable to S. It was further agreed between C. and L. that the former should deliver A.’s note to S., or collect the proceeds thereof and pay the same to S. O. failed to do either. The existence of this note and the agreement in respect thereto were never made known to S., -who died in 1881. In 1885 the legal representative of S.’s estate filed a bill in chancery charging that C. held the note of A. in trust for S., and that it was secured by a vendor’s lien on the land for which it was given, and praying that such land be sold and the proceeds thereof applied to the payment of the amount due on the note. Held, that no legal and equitable title to A.’s note passed to S.? and when the debt of C. & L. to him became barred by the statute of limitations he lost all right to bollect such debt, either from the debtors directly, or by resort to the note of A.</p>