Opinion
1 Div. 57.
May 11, 1939.
Appeal from Circuit Court, Baldwin County; F. W. Hare, Judge.
J. B. Blackburn, of Bay Minette, for appellants.
When parties to a contract void merely because violative of some statute file a bill in equity to cancel such contract he must come into equity with clean hands, and to obtain equitable relief must offer and be ready and willing to do equity. Douglass v. Standard R. E. L. Co., 189 Ala. 223, 66 So. 614; Shamblee v. Wilson, 233 Ala. 164, 170 So. 769; Glenn v. Birmingham, 223 Ala. 501, 137 So. 292; Baggett Mer. Co. v. Vickery, 213 Ala. 427, 105 So. 207; Mitchell v. Baldwin, 154 Ala. 346, 45 So. 715; George v. New England Mtg. Co., 109 Ala. 548, 20 So. 331. As a general rule, no special equity being shown, courts of equity refuse to entertain bills for the purpose of canceling deeds or other instruments not shown on their face to be void when complainants are not in possession of the land affected by such instruments, because a party out of possession and possessing the legal title has an adequate remedy at law. Smith v. Roney, 182 Ala. 540, 62 So. 753; Mitchell v. Baldwin, supra.
Beebe, Hall Beebe, of Bay Minette, for appellee.
The bill was drafted under § 8046, Code, under which grantor may revoke conveyance for substantial failure or refusal of consideration, although no fraud intervened in procurement or execution thereof. Such cases are sui generis, and are dealt with on principles not applicable to ordinary conveyances. Phillips v. Sipsey C. M. Co., 218 Ala. 296, 118 So. 513, 522. Recording of the conveyance with reservations to grantor carried notice of conditions running with the land to subsequent purchasers or mortgagees. Lewis v. Owen, 231 Ala. 480, 165 So. 229; Bank of Hartford v. Buffalow, 217 Ala. 583, 117 So. 183. Any right of grantees to compensation or credit is defensive matter and should be raised by plea. Morrow v. Morrow, 213 Ala. 131, 104 So. 393. Grantees accepted the deed with statutory limitations written into it and full knowledge of grantor's rights and consequent defeasible character of the instrument. Bush v. Greer, 235 Ala. 56, 177 So. 341. There is no adequate remedy at law. Woods v. Wright, 223 Ala. 173, 134 So. 865; Hunter v. Watters, 226 Ala. 175, 145 So. 472, 473; Craig v. Craig, 219 Ala. 77, 121 So. 86.
The bill of complaint was drawn and prosecuted under Section 8046 of the Code.
Under the application sought of this statute, the grantor and grantee only are involved, not the rights of third parties. The codification was to state the decisions of our courts as to cancellation of such conveyances and as affecting original parties and privies, not bona fide purchasers. Such cases are sui generis. Phillips v. Sipsey Coal Mining Co., 218 Ala. 296, 305, 118 So. 513, 518, 522.
The recording of the conveyance, with the reservation, carried notice of its conditions, running with the land, and notified (Patterson v. Atlantic Coast Line R. Co., 202 Ala. 583, 81 So. 85) subsequent purchasers or mortgagees. Lewis v. Owen, 231 Ala. 480, 165 So. 229; Bank of Hartford v. Buffalow, 217 Ala. 583, 117 So. 183.
This statute has been recently applied in Bush et al. v. Greer, 235 Ala. 56, 177 So. 341, wherein it was stated that grantees in a deed conveying lands, in consideration partly of their agreement to support grantor for life, accept such conveyance with the statutory limitations written therein, and with a full knowledge of the grantor's rights and consequent defeasible character of such instrument, and that such provision did not affect the freedom of contract, as per the constitutional guaranty. West Coast Hotel Co. v. Parrish, 300 U.S. 379, 57 S.Ct. 578, 582, 81 L.Ed. 703, 108 A.L.R. 1330.
There was no error in overruling demurrer to the bill, and the decree of the circuit court is affirmed.
Affirmed.
ANDERSON, C. J., and BROWN and KNIGHT, JJ., concur.