Welch v. Farmers' Loan & Trust Co.

Citations

• 165 F. 561
• 1908 U.S. App. LEXIS 4783

Syllabus

<p>1. Vendor and Purchaser (§ 265*) — Vendor's Lien — Loss of Lien as Against Subsequent Purchaser.</p> <p>A vendor’s lien, being a creature of equity, and not of positive law, must yield to a superior equity, and cannot be enforced against a purchaser or mortgagee without notice and for a valuable consideration from the vendee, who has been clothed by the vendor with apparent full title.</p> <p>[Ed. Note. — For other cases, see Vendor and Purchaser, Cent. Dig. §8 70Ó, 702; Dec. Dig. § 265.*]</p> <p>2. Vendor and Purchaser (§ 254-'1')’ — Vendor’s Lien-Equitable Lien — Payment to be Made in Property.</p> <p>Where, in carrying out a contract to convey a tract of land and assign certain judgments for a lump sum, the vendor was paid a part of such sum in cash and for the remainder accepted a covenant from the grantee to convey to him a stated number of town lots, to be laid out, no vendor’s lien arose in his favor, especially where it did not appear how much of the expressed consideration was for the land, nor how the cash payment was applied.</p> <p>[Ed. Note. — For other eases, see Vendor and Purchaser, Dec. Dig. § 254.*]</p> <p>3. Vendor and Purchaser (§ 205*) — Vendor’s Lien — Estoppel to Assert Lien Against Subsequent Mortgagee.</p> <p>An owner of land gave an oiition to purchase the same, which was assigned to a corporation. The corporation issued and sold bonds secured by a mortgage on such land and other lands, and the vendor, with knowledge of such fact, conveyed the land by a warranty deed and accepted part payment of the price from the proceeds of the bonds. Held, that no vendor’s lien arose in his favor for the unpaid purchase money as against the mortgagee.</p> <p>[Ed. Note. — For other cases, see Vendor and Purchaser, Gent Dig. 88 700-712; Dec. Dig. § 265.*]</p> <p>4. Judgment (§ 685*) — Persons Concluded — Decree Establishing Lien-Mortgagee Not Made Party.</p> <p>A corporation executed a mortgage to a trustee to secure its bonds, which it sold. To a suit