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PINCKNEY v. WEIL

Supreme Court of Georgia1936-11-27No. No. 11427
183 Ga. 567

Summary

Holding. The court affirmed the denial of the injunction, holding that the simultaneous cancellation of the original security deed and execution of a new security deed by the widow constituted one integrated transaction, and that the new security deed was superior to the widow's year's support rights, permitting foreclosure.

Janie Pinckney sought to enjoin the foreclosure sale of property by Stella Weil, who held a security deed. The property had been set apart as a year's support for Pinckney and her minor children following her husband's death. Pinckney argued that the original debt belonged to her deceased husband, that the original deed had been canceled, and that Weil was attempting to sell the wrong property—specifically the year's support estate rather than Pinckney's own interest.

The court upheld the denial of the injunction, finding that the cancellation of the original deed and execution of the new security deed by Pinckney constituted a single integrated transaction occurring on the same day. The original deed from the husband was superior to the widow's year's support rights and could have been sold to satisfy the debt. When Pinckney took out the new loan for family support purposes, she became liable for the debt, and the new security deed likewise took priority over her year's support interest. The court determined that under established precedent, a widow may encumber property set apart for her support to secure loans for necessary family purposes.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a security deed held by a widow is subordinate to the year's support of the widow and minor children
  • Whether simultaneous cancellation and reissuance of security deeds on the same day constitutes a single transaction
  • Whether a widow may encumber property set apart for support to secure a debt for family purposes

Procedural posture

The trial court denied the plaintiff's request for an injunction and supersedeas against the foreclosure sale, and the plaintiff appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Atkinson, Justice.

Janie L. Pinckney brought suit against Stella Wassman Weil, asking injunction against a sale advertised by Weil under a deed to secure a debt. Practically the undisputed evidence showed that L. P. Pinckney, husband of the plaintiff, borrowed $1000 from defendant, and gave a deed to secure the loan. Subsequently he died leaving the plaintiff, his wife, and several minor children. The ordinary of Richmond County duly set apart, as a year’s support to the widow and minor children, the equity in said real estate. The original debt was for $1000. After-the grant of the year’s support, a new deed was made on July 27, 1925, by the plaintiff to the defendant, conveying the same property to secure a debt of $1500, to wit, the original $1000 and $500 additional, this deed reciting that the conveyance was made to secure "a loan for the purpose of raising money for the support of plaintiff and her minor children,” and the deed gave power of sale. On the same day. the defendant Stella Wassman Weil gave an acknowledgment that the debt to secure which the original deed was made by plaintiff’s husband had been paid in full, and the same was canceled, and the clerk of the superior court was authorized to enter a cancellation of record. The plaintiff made numerous payments on the $1500 specified in the deed of July 27, 1925. Not having paid the debt in accordance with the terms of her contract, the defendant, grantee in the loan deed of July 27, 1925, proceeded to advertise the property for sale. The plaintiff sought to enjoin the sale, on the ground that there was a novation, and that the sale was an attempt to sell the wife’s property for the debt of her husband, and the original deed from the husband had been canceled; and because the deed under which the sale was to be conducted recited on its face that the land had been.conveyed as a year’s support to the widow and minor children of L. P. Pinckney, and because the defendant was attempting to sell the wrong piece of property, to which the defendant had no title, i. e., the year’s support estate, and had not advertised for sale property to which title was conveyed, .that is, the interest of the plaintiff in the estate of L. P. Pinckney, and conveyed by her for the first time to Weil by said deed of July 27, 1925.

The court declined to grant an injunction or a supersedeas; and we think this judgment was correct. The transaction of canceling the deed from the husband, and the giving of the new deed by the plaintiff were contemporaneous transactions on the same day, and constituted one integral transaction. The deed given by the husband was superior to the right of a widow to a year’s support, and the property could have been sold to pay the debt. The case of Baker v. Kimzey, 34 Ga. App. 184 (128 S. E. 923), involved a similar transaction, in which the court held: “Where the maker of a deed to secure a debt dies, and his widow and the holder of the security deed and the administrator on his estate all agree that the land shall be sold by the administrator, and the administrator, after procuring an order of sale from the ordinary and advertising as required by law, sells the land at public outcry, before the court-house door (where a large crowd is assembled), to the highest bidder, at a fair price, after first telling those present that he is selling the land free from all liens and that the title is absolutely good, it is lawful and proper for the administrator to pay off the secured loan from the proceeds of the sale before applying any part to the year’s support of the widow; and this is true even though at the time of the sale the deed is on record uncanceled and the legal title to the land is in the grantee. Thompson v. Atwater, 84 Ga. 270 (10 S. E. 718); Mallard v. Curran, 123 Ga. 872 (51 S. E. 712).” The same principle was involved in Lewis v. Banks, 171 Ga. 188 (4) (154 S. E. 785): Where land is conveyed by a vendor to a purchaser, who simultaneously conveys it to another as security for a loan of money used in discharging the purchase-price of the land, the two conveyances being parts of one transaction, the title passes through the borrower without being affected, as against the lender, by the lien of a judgment against the borrower which would have attached had the title remained in him. This principle applies as well where a part of the purchase-money is paid, and the security deed is given to secure the balance, as where none of the purchase-money is paid, and the security deed is given to secure the whole.’ Protestant Episcopal Church v. Lowe Co., 131 Ga. 666 (63 S. E. 136, 127 Am. St. R. 243); Missouri State Life Insurance Co. v. Barnes Construction Co., 147 Ga. 677 (95 S. E. 244).”

At the time it was sought to effect the sale the additional $500 loaned had been paid, and it was sought to sell the property in order to collect the balance of the debt, with interest. The children had become of age, and four of them had lived with the widow upon the property. It has been held that while a wife may not ordinarily assume the debts of her husband, she may, when she purchases property, in order to secure an unencumbered title pay off any debts created by him which are a lien upon the property purchased. Vizard v. Moody, 119 Ga. 918, 921 (47 S. E. 348); Anderson v. Higginbotham, 174 Ga. 565 (163 S. E. 477); Lowenstein v. Meyer, 114 Ga. 709 (40 S. E. 726); Taylor v. American Freehold Land Mortgage Co., 106 Ga. 238 (32 S. E. 153); Daniel v. Royce, 96 Ga. 566 (23 S. E. 493). Under these decisions it appears that the wife was made liable for the debt. It is clear that the equity in property, subject to a loan deed, may be set apart as a year’s support. Whatley v. Watters, 136 Ga. 701 (71 S. E. 1103). “Where land has been set apart to a widow as a year’s support’for herself and minor children, the widow, without an order from any court, may lawfully sell the property for the purpose of obtaining a support for the beneficiaries thereof, and may lawfully execute a mortgage, or security deed upon the property for that purpose.” Reynolds v. Baxter, 177 Ga. 849 (171 S. E. 706), and cit. A widow to whom real estate has been set apart for support of herself and minor children may convey the land to secure a debt for the purchase of lumber and materials used in building a residence to be occupied by herself and her children. The court said: “The jury was authorized to find that she executed the security deed to secure payment for lumber used in erecting a dwelling for the use of herself and children. A dwelling is necessary and essential for their maintenance, and is one of the purposes for which property set aside for a year’s support can be used.” Morris v. Hasty, 171 Ga. 648 (156 S. E. 602). A widow to whom a year’s support has been set apart in land can exchange it for other land, the purpose being to provide a support for herself and minor children. Jones v. Wilkes, 146 Ga. 803 (92 S. E. 517). Therefore, where a debt is secured by a deed which would be superior ,to a year’s support, and in one transaction that deed is canceled, and another deed taken to the same premises from the beneficiary of the year’s support, the second deed would also be superior to the year’s support, and it would be inequitable.to enjoin the creditor from collection of his debt out of the premises conveyed to him under the circumstances set forth.

Judgment affirmed.

All the Justices concur.