deed to defunct corporation void
How later courts described this case
- deed to defunct corporation void
Written by the judges who cited it.
The opinion
Rehearing denied and former opinion supplemented Mareli 22, 1927.
On Petition for Rehearing.
( 254 Pac. 200 .)
*85 All parties sued by plaintiff other than Ernest Cole have made default, and as to them we take the allegations of the petition for foreclosure to be true. It appears from the admitted allegations that Wells- and his wife,, either directly ,or indirectly, through the agency of the Ernest Wells Realty Co., Inc., obtained loans from plaintiff to the amount of about $1,000, and that they, for themselves and their corporation, executed to plaintiff, as security for these loans, a deed conveying to the plaintiff the land involved herein. It is a rule of law governing the conveyance of real property that, if the true owner conveys by any name, the conveyance as between the grantor and grantee will transfer title: Devlin on Real Estate (3 ed.), §§ 188, 189; 3 Washburn on Real Property, 281. However, the lien of Ernest Cole had attached prior to the execution of the deed above described.
In deciding the ease, we held that the deed executed by Ernest L. Wells and Vera B. Wells to the Ernest Wells Realty Company, Inc., on March 29, 1924, was void as to the answering defendant Cole, for the reason that, at the time of the execution thereof, the corporation was civilly dead, its charter having been legally annulled on January 7, 1924. Under this holding, the judgment of Ernest Cole became a lien, subject to the first and second mortgages, *86 on all the title and interest which Ernest L. Wells owned or had in the land hereinbefore referred to.
We adhere to our former holding, and, in addition, we direct the foreclosure of plaintiff’s deed in satisfaction of her third cause of suit, which lien, however, is subsequent to the lien of Ernest Cole on the interest in the property possessed by Ernest L. Wells. We direct that the property be sold according to law, and that the proceeds be applied to the payment of the liens in the order of their priority, and that any balance remaining after such liens are satisfied be paid to Ernest L. Wells and Vera B. Wells, the exclusive shareholders of the defendant Ernest Wells Realty Company, Inc.
Rehearing Denied. Former Opinion Supplemented.
Belt, J., absent.