Williams v. Jackson - 107 U.S. 478 (1883)
U.S. Supreme Court
Williams v. Jackson, 107 U.S. 478 (1883)
Williams v. Jackson
Decided April 9, 1883
107 U.S. 478
1. By a trust deed, duly recorded, land was conveyed to the trustees in fee and they were authorized to release it to the grantor upon payment of the negotiable promissory note thereby secured. Before that note was paid or payable, and after it had been negotiated to an endorsee in good faith for full value, a deed of release, reciting that it had been paid, was made to the grantor by the trustees and by the payee of the note, and recorded, and the grantor executed and recorded a like trust deed to secure the payment of a new note for money lent to him by another person, who had no actual notice that the first note had been negotiated and was unpaid and who, before he would make the loan, required and was furnished with a conveyancer's abstract of title, showing that the three deeds were recorded and the land free from encumbrance. Held that the legal title was in the trustee under the second trust deed, and that the note thereby secured was entitled to priority of payment out of the land.
2. Upon a bill in equity by the holder of a debt secured by deed of trust to set aside a release negligently executed by the trustee to the grantor, the complainant cannot have a decree for the payment of his debt by the trustee personally.
The facts are stated in the opinion of the Court.