There was no DD for January 1, a holiday which the Editor celebrated at the Rose Parade

Daily Development for Wednesday, January 30, 2002

By: Patrick A. Randolph, Jr.
Elmer F. Pierson Professor of Law
UMKC School of Law
Of Counsel: Blackwell Sanders Peper Martin
Kansas City, Missouri
prandolph@cctr.umkc.edu

DEEDS; VALIDITY; CONSERVATORS: Deed from party subject to legal conservatorship is void and cannot provide basis even for remote grantee who is a BFP under applicable recording acts.

Scott v. Nelson, No. 2000-CA-01927-COA, 2002 WL 85766 (Miss. 1/22/02)

Benard, apparently an elderly woman, was the subject of a legal conservatorship. Her nephew Nelson was the court appointed co- conservator. During the conservatorship, Benard conveyed certain real estate to Scott. Later, Benard died. Scott conveyed the property to Clark. Then Nelson brought an action against Scott to set aside the deed. Clark joined, and argued that he was a bona fide purchaser for value.

The trial court found that Clark indeed was a bona fide purchaser for value. The appeals court does not explain why it reached this conclusion, as the property was in the same county as the conservatorship had been filed. Perhaps the event of Benard's death created some event that deprived Clark of constructive notice of the conservatorship. Perhaps there was an error in names. We just don't know.

Nor do we have to know, since the appeals court held that, regardless of the impact of recording acts, Clark has no claim because the deed to Scott was totally void. Consequently, Clark cannot claim through Scott.

The appeals court analogized to cases involving deeds from minors. Even after majority, minors are permitted to attack any title passed under such deeds because the deeds are completely void. (The court does not say so, but presumably such deeds, as well as deeds from parties in conservatorship, can later be ratified or approved and then become valid as of their original delivery.)

Comment: Simply one more good reason for title insurance to exist. There are innumerable situations in which it is impossible to investigate completely all of the circumstances that might adversely affect title. Of course, in this case, Clark (or his insurer) probably has an action against Scott, assuming Scott still has the money.

Readers are urged to respond, comment, and argue with the daily development or the editor's comments about it.

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