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action was brought to recover for services rendered from 1887 to 1894, and after the death of John W. Purviance. There was scme evidence which tended to show that the decedent intended to pay or com pensate the appellee for the services rendered her, by making provision for appellee in her will. The court gave this instruction to the jury: "(4) An intention to pay for work and labor by one receiving the benefit of such work and labor may be shown by agreement to pay for such work and labor by bequest in will by such person so receiving the benefit of such work and labor; and, when such an agreement is shown, failure to make such bequest by the person agreeing to do so makes his estate liable for the value of such work and labor, and a claim therefor against his estate is good, and may be recovered." The appellant insists that this instruction is erroneous. But we find no substantial objection to it. It seems to come with the rule declared in Caviness v. Rushton, 101 Ind. 500, and Wallace v. Long, 105 Ind. 522, 5 N. E. Rep. 666.

The appellant also insists that instruction No. 5, given by the court at the request of the appellee, is erroneous, and had a tendency to mislead the jury. The instruction is as follows: "The family relation between persons not related to each other in any manner by blood or marriage can only exist on an agreement between such persons, express or implied, that they will live together in the family relation as members of the family. An infant under the age of 21 years cannot make such an express agreement, and such an agreement by an infant under the age of 21 years cannot be inferred where such an infant is not in any way related by blood or marriage to the person with whom such infant lives. Therefore, if you be lieve from a fair preponderance of all the evidence in this case that the said Elmina E. Purviance, deceased, kept the plaintiff living with her at her home until her death, and received her work and labor, and furnished the plaintiff with food, raiment, and shelter, and that said Elmina E. Furviance, deceased, and the plaintiff, were not in any manner related to each other by blood or marriage, then the family relation. ship is not presumed to exist between them; but it is for you to say from all the evidence in the case whether the plaintiff aed said Elmina E. Purviance, deceased, lived together in the family relation-as members of the same family." The jury, in an answer to an interrogatory found that the family relation did not exist between the appellee and the decedent during the time the services were being performed. It is evident that whether or not the family relation existed between the appellee and the decedent at the time the services were rendered was im portant, for the relation in which they stood to each other bore directly on the question of liability. It is not the law that an infant cannot make an express or special contract. Many special contracts are binding upon him, and he may enforce them, or they may be enforced against him. It is true that he may renounce his contract for services, and recover the value thereof, regardless of the contract. But, even as to such contracts, the fact that he may renounce them does not deprive him of the power of making or enforcing them. Until he chooses to renounce, they are valid. The instruction above does not relate to a contract for services. It relates to a contract for the establishing of the family relation. The jury is told that a minor cannot make an express contract for entering into the family relation. From the earliest dawn of history, the family seems to have been the unit of society; and it is now the most important

Rountree v.

factor in the fabric of our civilization. Pursell, 11 Ind. App. 522, 534, 39 N. E. Rep. 747. The home lies at the basis of our social and civil institutions. This court on another occasion, by Crumpacker, J., said: "The law recognizes the home as the most potent refining and humanizing agency known to our civilization, and its policy is to encourage the extension of its hospitalities to those, by the hand of misfortune, may have been deprived of its protection and beneficent influences." James v. Gillen, 3 Ind. App. 472, 30 N. E. Rep. 7. It is the policy of the law to secure homes for the homeless, and it fastens and encourage all contracts, no matter by whom made, which tend to accomplish this end. An infant may make a contract of marriage, which results in establishing the family relation, and it is valid. The family relation is not merely a contract. It is more than a contract; it is a status. When the status is once established, it cannot be destroyed simply by repudiating the contract that brought it into existence. To say that a homeless infant cannot sesure the benefits of a home, with its refining and elevating influences, by his express contract, is to overthrow the policy of our law. Again, the instruction under consideration is bad because it says to the jury, that, from the facts enumerated, the family relation is not presumed to exist. When the court undertakes to say to the jury that a certain presumption arises or does not arise from given facts, such presumption must be one of law. While it is true that all presumptions are, strictly speaking, presumptions of fact, yet there are certain presumptions to which the law has affixed degrees of certainty. Barr v. Railroad Co., 10 Ind. App. 433, 440, 37 N. E. Rep. 814. There is no rule of law creating a presumption or declaring that no presumption exists from the facts enumer ated. The court should have permitted the jury to draw its own inferences from the facts stated, untrammeled by the notions of the court. We think the instruction was erroneous and misleading. Judg. ment reversed, with instructions to sustain the motion for a new trial.

ARE JUDGMENTS QUASI NEGO

TIABLE.

In Freeman on Judgments it is said that the purchaser of a judgment stands in the same position as the assignee of a note past due, and that he takes subject to all equities existing between the original parties to the judgment, but free from the equities of third persons. In Black on Judgments the statement is made that "the generally recognized doctrine is that the assignee of a judgment is not affected by the latent equities of third persons, not parties to the judgment, of which he had no notice at the time of the assignment."2 Likewise in the American and English Encyclopedia of Law it is said that "the rights of the assignee are not subject to equities existing in favor of third persons of

1 Freeman on Judgments, Sec. 428. 2 Black on Judgments, Sec. 956.

which he had no notice when the assignment
was made.''
In the face of the unanimous
opinion of the text-writers, it may seem some-
what rash to contend that the assignee of a
judgment takes subject to all equities, and to
the equities of all persons, and that judg-
ments do not possess any character of quasi
negotiability. But examination of the cases
cited by the learned authors and considera-
tion of the principles governing the assign-
ment of choses in action generally, justify
the contention. My purpose is to show that
the statements of the text-writers quoted, if
not entirely erroneous, require important
qualification and modification, and that an
assignee of a judgment takes subject to the
equities of third persons of which he has no
notice, unless such third persons have by
their conduct estopped themselves from as-
serting their rights. It is a general and
fundamental rule that no one can by assign.
ment pass a better title to, or greater interest
in, a non-negotiable chose in action than he
himself has, and that the assignee takes sub-
ject to equities existing against the assignor.
With respect to the equities of the original
parties this rule has remained unquestioned.
But some attempt has been made to dis-
tinguish between the equities of the immediate
parties and those existing in favor of third
parties or prior assignees. The latter have
been called "latent equities," and it has been
held to some extent that, while an assignee
of a chose in action not negotiable takes sub-
ject to all equities between the immediate
parties, yet as to these so-called latent equi-
ties an assignee for value without notice will
be protected. The doctrine that equities of
third persons and of prior assignees cannot
be set up against assignees for value without
notice, which may be referred to as the doc-
trine of latent equities, is exhaustively exam-
ined by Mr. Pomeroy. After a critical dis-
cussion of the cases, he comes to the conclu-
sion that, on principle and by the great weighting
of authority, the supposed rule as to latent
equities has no foundation. He points out

that the

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trine of latent equities has generally been repudiated. Cases where the doctrine of estoppel applies, that is, those wherein the person who is asserting an equity has in some way conferred upon the assignor of the defendant the apparent absolute ownership of the chose in action, and thus put it into his power to deal with it as his own to the injury of third persons, in no way conflict with the general rule, that an assignee of a chose in action not negotiable takes subject to all equities against the assignor. Since the exhaustive discussion of this subject by Mr. Pomeroy, his view has been accepted by writers on equity jurisprudence. A brief review of the subject, though of necessity little more than an abridgment of Pomeroy's presentation of it, is required, in order to explain the statements made by the writers on judgments. The principal source of the doctrine of latent equities is the case of Murray v. Lylburn. It is also one of the principal authorities relied upon by the writers on judgments quoted above. This case is examined in Bush v. Lathrop, the leading case on the subject, and the doctrine of latent equities is there repudiated after a critical examination of the authorities. A long line of subsequent cases in New York sustain this conclusion, which undoubtedly represents the law in that State at present, although at one time there was some doubt. This doubt arose from the case of Moore v. Metropolitan Bank, and the headnote of the reporter, who stated that Bush v. Lathrop had been overruled. Moore v. Metropolitan Bank was a case of estoppel. It followed the case of McNeil v. Tenth National Bank, which is the leading case on the subject of estoppel in assignment of choses in action. In that case the plaintiff had transferred shares of stock by an indorsement in terms absolute as security for a sum of money much less than the value of the shares. It was held that, havconferred the apparent absolute ownership upon another, he was estopped from setting up his equity against a subsequent as

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holding in Bush v. Lathrop, and do not affect the general rule that, in the absence of conduct estopping him from so doing, a third person can set up equities against such an assignee. Accordingly, in subsequent cases, the court pointed out the distinction, reaffirmed Bush v. Lathrop, and set all doubts at rest. In Owen v. Evans," decided in 1892, the question is regarded as well settled, the court saying: "Our courts recognize no distinction between equities existing in favor of the mortgagor and those existing in favor of a third person, but hold that, in the absence of estoppel, an assignee of a mortgage takes only the interest of his assignor, and subject to any latent equity in favor of any person." The doctrine of latent equities has been completely overthrown in the State of its origin, and in other jurisdictions, where it has fairly come up, unaffected by questions of estoppel, the same conclusion has generally been reached.12 "It is only where the owner by his own affirmative act has conferred the apparent title and absolute ownership upon another, upon the faith of which the chose has been purchased for value, that he is precluded from asserting his real title, and this conclusion was arrived at by the application of the doctrine of estoppel."13 The general rule as to non-negotiable choses in action being settled, it remains to be seen whether judgments constitute an exception and possess a character of quasi negotiability not belonging to other choses in action. It is not perceived on what ground it can be contended that there is any difference on principle between judgments and other species of personal property in this respect. reasoning that will apply to judgments, applies equally to mortgages, certificates of stock, and chattels of every sort. There is always a certain risk in purchasing any article of personal property, or any non-negotiable chose in action. But, as many courts have said, that is no reason for making all 10 Trustees v. Wheeler, 61 N. Y. 88 and 113; Cutts v. Guild, 57 N. Y. 229; Green v. Deal, 64 N. Y. 220; Fairbanks v. Sargent, 104 N. Y. 108; Owen v. Evans, 134 N. Y. 514; Knox v. Eden Musee American Co., 148 N. Y. 441.

11 134 N. Y. 514.

Any

12 Barstow v. Savage, 64 Cal. 388; Paterson v. Rabb, 38 S. C. 138; Cowdery v. Vandenburg, 101 U. S. 572; Baker v. Wood, 157 U. S. 213; Sutherland v. Reeve, 151 Ills. 384, 38 N. E. Rep. 130.

13 Davis v. Bechstein, 69 N. Y. 440; Smith v. Clews, 114 N. Y. 190.

choses in action negotiable. That no distinction can be made between a judgment and any other non-negotiable chose in action in this respect has been expressly decided.14 In cases where this question has arisen uncomplicated with questions of estoppel, it has been laid down that the assignee of a judgment takes subject to equities of third persons as well as to those of the judgment debtor. 15 Some of these cases are cited by the text-writers, and are stated to be in conflict with the weight of authority, a statement which will be examined presently. The explanation of the view taken by the text-writers appears to be this. All of them cite in support of their text the case of Murray v. Lylburn. 16 That case has already been adverted to. It did not involve the assignment of a judgment at all, but is one of the principal sources of the general doctrine of latent equities applied to all choses in action. As has been said, it is now thoroughly discredited in its own State. The first edition of Freeman on Judgments was published in 1873, and the second in 1874-two years before the case of Trustees v. Wheeler,1 and at a time when the doubts thrown on Bush v. Lathrop by Moore v. Metropolitan Bank had not been dissipated, and the distinction as to cases involving estoppels had not been pointed out. The statement in his text and the citation of Murray v. Lylburn were, therefore, natural at that time. In his last edition, Mr. Freeman has copied verbatim the statement in the former editions of his work, and has continued to cite Murray v. Lylburn in support of his text without adverting to the fact that that case did not involve the assignment of a judgment and that the general principle it lays down as to all choses in action has been overthrown. As frequently happens, subsequent writers have adopted his statement without question. If there were much doubt of this, there is sufficient proof at hand. In the earlier editions of Freeman, the name of the defendant in Murray v. Lylburn is misspelled "Lilburn."

14 Cutts v. Guild, 57 N. Y. 229, 233.

15 Cutts v. Guild, 57 N. Y. 229; Downer v. South Royalton Bank, 39 Vt. 25; De La Vergne v. Evertsen, 1 Paige, Ch. 181; Thompson v. Jones, 56 Hun, 268; Cox v. Palmer, 60 Miss. 793; Mitchell v. Hockett, 25 Cal. 538; Clarke v. Hogeman, 13 W. Va. 718; Barhorst v. Armstrong, 42 Fed. Rep. 2.

16 2 Johns. Ch. 441. 17 61 N. Y. 88 (1876).

Not only is this misspelling retained in the last edition, but the same citation and the same misspelling are to be found in Black and in the American and English Encyclopedia of Law. It is pretty clear from that circumstance that the latter did not indulge in much independent investigation of the matter. They adopted Freeman's statement and his citations, and added a few later ones to bring their notes down to date. Bearing in mind the decisions establishing the effect of the doctrine of estoppel in this connection, a review of the cases cited in the text books will show that the cases there claimed to be in conflict with the weight of authority are in reality in perfect accord with the great majority of the decisions cited, and that there is no authority for the conclusion that judgments are an exception to the general rule governing all non-negotiable choses in action. The cases cited by the text writers are almost without exception typical cases of estoppel. A few are mere dicta, and these, as well as the one case cited which did not involve an estoppel, proceed expressly upon the general doctrine of latent equities, as applied to all choses in action-in several cases in jurisdictions where that doctrine has since been overthrown. For convenience, the cases will be taken up in the order in which they are cited in Black on Judgments.18 Wright v. Levy, 19 is a mere dictum as far as the point in question is concerned, as the court found on rehearing that its reasoning as to third parties did not apply. What is said, proceeds upon the general doctrine of latent equities. California now holds otherwise both as to judgments and as to choses in action generally, as shown by cases already cited. 20 McCotter v. McCotter,21 could have been decided on the ground of estoppel. In that case a partner knowingly permitted his copartner to take judgment in his own name upon a partnership claim. This was clearly sufficient to estop him from setting up his rights against an assignee for value. The court, however, decided on the general doctrine of latent equities, which is no longer held in that State even as to judgments.22

18 Black on Judgments, Sec. 956.

19 12 Cal. 257.

20 See notes 12 and 15.

21 16 Abb. Pr. 265.

22 Thompson v. Jones, 56 Hun, 268.

Hale v. First National Bank,23 does not involve or decide this question. In that a case a party who had a contract to purchase a judgment sought to incumber it with further contracts while in default under his own. The court point out that he was at no time owner of the judgment and would not be until he complied with his contract. In other words, those claiming under him had no equity in the judgment, "latent" or otherwise. Starr v. Haskins, 24 is the one case cited which supports the statement of the text in its entirety and which has not been expressly or substantially overruled. It should be noted, however, that the decision is expressly based on the general doctrine of latent equities, and that no claim is made that there is anything peculiar to the law of judgments in this respect. Murray v. Lylburn has already been considered. Hendrickson's Appeal, 25 is a case which comes squarely within the distinction made by the later authorities in New York. A mortgage and a judgment having become liens on land on the same day, an agreement was entered into between the mortgagee and the judgment creditor that the mortgage should have precedence. The mortgagee kept the agreement off of the record, and afterwards sought to obtain priority over an assignee of the judgment. As he kept the agreement off of the record and thus by his own act left the apparent lien in the judgment creditor, this was a clear case of estoppel. And the court point this out. What is said in Green v. Dailey,2 as to equities of third persons is said casually arguendo. There is no decision on the point. This dictum was before Bush v. Lathrop27 had overruled the prior decisions as to equities of third persons. Garland v. Harrison," is a typical case of estoppel, expressly decided upon that ground. The court say: "Garland by his own act put it into the power of Crow to show himself the purchaser and owner; he must then be bound by Crow's acts in this matter. He gave Crow authority to do the deed, and when done, Garland will not be permitted to set it aside against an innocent purchaser without notice.' Ives v.

23 50 Ia. 642.

24 26 N. J. Eq. 414. 25 24 Pa. St. 363.

26 2 Mason, 214.

27 22 N. Y. 355.

28 17 Mo. 282.

26

held, was intended to make judgments quasi
negotiable. The court say that the object of
the statute was to put judgments "upon &
footing altogether different from that occu-
pied by non-negotiable choses in action."
It was therefore held that the legislature in-
tended that an assignee of a judgment in
good faith for value should take free from the
claims of third persons. Under prior stat-
utes, the Georgia courts held otherwise."7
From the foregoing review it is apparent that
the conclusion stated by Freeman in his
former editions, and now repeated by him
and by all the text writers, is far broader than
the cases cited will warrant. The cases are
for the most part perfectly reconcilable. The
result of an examination of all the cases cited
by the text writers shows that where a third
party has by his own act knowingly put it in
the power of the assignor to confer the abso-
lute title, he is estopped to set up an equity
in himself against an assignee in good faith
for value who took relying upon the title he
had apparently conferred. And the great
preponderance of authority further holds that
in the absence of such estoppel, the assignee
of a judgment takes subject to all equities of
all persons.
In fact, the latter statement is
the general rule; the former an exception to
it. The text writers state the exception far
too broadly, and ignore the general rule.
Lincoln, Neb.
ROSCOE POUND.

Addison 29 merely holds that where a judg- the decision, however, will show that it was ment has been assigned before notice of gar-expressly based on a statute, which the court nishment has been served, it is not subject to garnishment. The party seeking to hold the judgment acquired no right or equity in it till after service of the notice. At the time of the assignment he had none, and there was nothing to which the assignee could take subject. Thompson v. Noble,30 is the case already cited, reported officially as Thompson v. Jones.31 It in no way supports Black's text, but on the contrary expressly decides that in the absence of facts working an estoppel, the assignee of a judgment, though for value and without notice, takes subject to the equities of third persons. The language of Worden, J., in Robeson v. Roberts,82 quoted by Black, is a dictum without any relevancy to the issues in that case. The question was whether the assignee took subject to the equities of the judgment debtor. The court rightly held that he did, and the discussion as to what the law might be with respect to third persons is entirely gratuitous. The reporter takes no notice of it in his head note. The same must be said of Isett v. Lucas, cited in the last edition of Freeman on Judgments. Not only is all that is said on the subject of equities of third persons in that case entirely without the issues, but Dillon, C. J., the ablest member of the court, expressly refused to concur in it, though concurring in the decision rendered. Miflin County Bank's Appeal, is a case of estoppel. In that case the plaintiff had confessed judgment to indemnify a party who was surety on certain of his notes. This comes within the rule laid down by Church, C. J., in Davis v. Bechstein, quoted above. Having by his own acts conferred the apparent absolute title and ownership upon the assignor, he could not set up rights to the contrary against purchasers for value who took relying on the appearance he had knowingly given to the transaction.

33

35

34

A case decided since the publication of the text books may be thought to sustain their position. An examination of the grounds of

29 39 Kan. 712.

30 8 N. Y. Suppl. 373.

31 56 Hun, 268.

32 20 Ind. 155.

33 17 Ia. 503.

34 98 Pa. St. 150.

35 69 N. Y. 440.

36 Western National Bank v. Maverick National

Bank, 90 Ga. 342, 16 S. E. Rep. 942.
37 Rawson v. McJunkins, 27 Ga. 432.

EMPLOYMENT OF HUSBAND BY WIFE-
RIGHTS OF CREDITORS OF HUSBAND.

TALCOTT v. ARNOLD.

Court of Chancery of New Jersey, Oct. 2, 1896.

1. A debtor cannot be compelled to work for his creditors; but, if he puts his latent property earning ability into action, equity will apply any property created to the payment of his debts.

2. If the debtor is a husband, his first duty is to support his family, and he can devote enough of the proceeds of his labor to effect that purpose.

3. Such a debtor can give to his wife, in her separate business, or in respect to her separate property, those incidental services which a husband, as head of a family, would naturally render, without subjecting the business or property of the wife to any liability for his debts.

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