Buckner v. Jones

Oeeutt, J., delivered the opinion of the Court. Stanley Jones and Eliza, his wife, on October 20th, 1926, filed, in Circuit Court No. 2 of Baltimore City, their bill of complaint against Alexander A. Buckner and Elsya, his wife. In it they alleged that on March 15th, 1919, those defendants sold to them the leasehold property known as 405 South Bond Street in that city for $5,000, the purchase price to be paid out of weekly instalments of $12.50, from which was to be deducted current charges and assessments, and interest at six per cent, per annum on the unpaid balance of the purchase money; that the vendors agreed, upon the.payment of the purchase price, to convey the property to them free of all liens except the annual ground rent charged against it, and that, pending the completion of the purchase, the vendees were to have possession of it; that pursuant to that agreement they paid the defendants $6,155.20, for which they exhibited receipts, and $1,162.50, represented by receipts which they had delivered to the defendants but which they had “confiscated and destroyed”; that several instalments were overdue, and that they had been tendered to the defendants but that they refused to accept them. Finally, they charged that, although they had performed all the requirements imposed upon them by the contract, the defendants refused to perform their part of it; and that, although thereto requested, they had failed to account for the money paid them under the ²⁴² agreement, but had threatened to oust the complainants from the property.

Upon those averments they prayed: (1) that the agreement be specifically enforced; (2) that the defendants be required to account for money paid them under the agreement; (3) that upon the full payment of the purchase price of the property the defendants be required to convey it to the complainants free of all liens excepting the annual ground rent; and (4) that they the defendants be enjoined from interfering with the complainants’ possession of the property. On October 24th, 1928, about two years later, the complainants filed a petition in which they alleged that, after the defendants had appeared and answered that bill, the case was referred to the court’s auditor for an account, and that thereafter, the cause standing ready for hearing, testimony was taken and counsel for the parties heard; that at that hearing it appeared from the testimony that, while Alexander A. Buckner and Elsya, his wife, held the record title to the property, one Louis Buckner was the real owner thereof; “that he exercises full control thereover, negotiated the sale of said property to your petitioners with the acquiescence of the said Alexander A. Buckner and Elsya Buckner, having received the purchase price in various instalments from the petitioner and retaining the same for his own use, without accounting to the said Alexander A. Buckner and Elsya Buckner; originally purchased and paid for said property, recording the title in the name of Alexander A. Buckner and Elsya Buckner, and has in all respects dealt with said property as the actual owner thereof and your petitioners believe and therefore aver that the said Louis Buckner is either the real owner of said property, or has a substantial interest therein and that the defendants herein are merely holding the legal title thereto and that the said Louis Buckner should be made a party defendant in this action and bound by any decree of this honorable court passed in this cause.” They further stated that, just prior to the filing of the bill of complaint, the defendants with Louis Buckner, for the purpose of defeating the rights of the petitioners, had executed a mort ²⁴³ gage on the same property which had been sold by them to the Mayflower Savings & Loan Association for $2,990; that, while Louis Buckner was financially responsible, Alexander A. Buckner and Elsya Buckner were not, and that, unless Louis was made a party defendant and bound by any decree which might be passed in the case, the petitioners would be seriously prejudiced in their rights, etc. And they prayed (1) that they be permitted to amend their bill (1) by making Louis Buckner a party defendant, and (2) by adding thereto an additional paragraph to be known as “paragraph LA,” to read as follows: “That while the defendants, Alexander A. Buckner and Elsya Buckner, hold the record title to the said property No. 405 South Bond Street, the said Louis Buckner originally purchased and paid for said property and took title therefor in the name of the said Alexander' A. Buckner and Elsya Buckner, his wife, who are merely the nominal owners of said property and that the defendant, Louis Buckner, was, prior to the making of said contract of sale with your orators, the real owner of said property, has exercised full control thereof, negotiated the sale of said property to your orators with the full acquiescence of the said Alexander A. Buckner and Elsya Buckner, his wife, has received from your orators all payments which they made on account of the purchase price of said property and has retained said payments for his own use without accounting to the said Alexander A. Buckner and Elsya Buckner for said payments.” The court, by an ex parte order, allowed the amendments to be made as prayed, and in due course a subpoena was issued and served upon Louis Buckner. He appeared on November 26th, 1928, and moved the court to strike out its order of October 24th, 1928, to refuse to receive the petition upon which it was based, and to quash the subpoena. On the following day Alexander A. and Elsya Buckner demurred to the amended bill on the grounds (1) that it was “without equity”; (2) that the material facts stated in the amendment were known to the complainants when the original bill was filed; (3) that the plaintiffs were “on notice” at the time they filed their original bill of the mortgage re ²⁴⁴ ferred to in the petition; and (4) that the amended hill was multifarious.

The court overruled both the motion and the demurrer, and from those orders these two appeals were taken. Dealing first with the demurrer, we have, after a very careful examination of the amended bill, been unable to discover any force in the objections to it. Briefly stated, in effect it charges that Alexander A. Buckner and Elsya Buckner, his wife, hold the legal title to the property in question under a secret trust for Louis Buckner, who is its real owner; that he bought it, paid for it, controls it, and has received and retained ail the rent, income, and profits from it, which were paid under the agreement, and that while he, for some undisclosed purpose of his own, had the legal title to it placed in their names, they own it in name only; that Louis Buckner himself negotiated the contract in issue and that all payments made under it on account of the purchase price of the property were made directly to him, and that he retained such payments for his own use without accounting to.- Alexander A. or Elsya Buckner for them, that the contract was negotiated by Louis Buckner with the full acquiescence of Alexander A. and Elsya Buckner, and that under it they sold the property to the appellee for $5,000, and agreed that, upon the payment of that sum together with accrued interest and charges, they would convey it to him by a good and merchantable title, free of all liens except an outstanding ground rent; that they took possession of the property and paid Louis Buckner $7,-327.70 on account of the purchase price and charges, and performed all the requirements the contract imposed upon them, but that the defendants refused to carry out their part of the contract or to convey the property to them; that shortly before this suit was instituted Louis Buckner joined Alexander A. Buckner and Elsya Buckner in executing a mortgage for $2,990 on the property, and that while Louis is financially responsible Alexander and Elsya. are not. These facts show a contract definite, full, and precise as to subject matter, parties, and terms, fair and mutual in all ²⁴⁵ its parts, and based upon a valuable consideration; that the complainants have fully performed all of its! requirements-, but that the defendants, after receiving over $7,000 from the complainants on account of it, now refuse to carry it out-, and that the nominal owners, the holders of the legal title, who are financially irresponsible, executed a mortgage on the property in which the true owner joined, which would prevent them from conveying the property to the appellee “free of all liens” except the annual ground rent, as they agreed to do, and are sufficient to entitle the appellee to the- relief prayed.

Assuming these