Refeld v. Woodfolk - 63 U.S. 318 (1859)
U.S. Supreme Court
Refeld v. Woodfolk, 63 U.S. 22 How. 318 318 (1859)
Refeld v. Woodfolk
63 U.S. (22 How.) 318
The Real Estate Bank of Arkansas was established on a loan by the State of Arkansas of its bonds, which the bank sold to form its capital. The stockholders gave their bonds and mortgaged their lands to the extent of their subscriptions. Notrebe subscribed for three hundred shares, and mortgaged his land for thirty thousand dollars.
Notrebe sold the land with a covenant of warranty, and then died. The purchaser paid all the money, and the widow and heir at law of Notrebe offered to convey the land by a deed, with a covenant of warranty of title.
The circuit court, sitting as a court of equity, decreed that the executors should remove the encumbrance whenever it could be done, and in the meantime they should deposit with the clerk of the court bonds of the State of Arkansas to an amount sufficient to pay Notrebe's subscription, with interest, in case the bank should prove a total loss.
This decree was erroneous.
The purchaser must rely upon his remedy at law under the covenant of warranty. He can either take the deed offered by the widow and heir at law or retain the original agreement.
The cases examined upon the point, how far a court of chancery will interfere in such a case.
The case is fully stated in the opinion of the Court.