Case Name: ALBERT SMITH, Complainant, Appellant, vs. EPHRAIM MARINER, Appellee, impleaded with the La Crosse and Milwaukee R. R. Co.
Court: Wisconsin Supreme Court
Jurisdiction: Wisconsin
Decision Date: 1856
Citations: 5 Wis. 551
Docket Number: 
Parties: ALBERT SMITH, Complainant, Appellant, vs. EPHRAIM MARINER, Appellee, impleaded with the La Crosse and Milwaukee R. R. Co.
Judges: 
Reporter: Wisconsin Reports
Volume: 5
Pages: 551–595

Head Matter:
ALBERT SMITH, Complainant, Appellant, vs. EPHRAIM MARINER, Appellee, impleaded with the La Crosse and Milwaukee R. R. Co.
APPEAL ET EQUITY FROM MILWAUKEE CIRCUIT COURT.
Where a party, intentionally or hy design, misrepresents a material fact, or produces a false impression in order to mislead another, or to entrap or cheat him, or to obtain an undue advantage over him, equity will regard such conduct as fraudulent, and will relieve against it.
Where one party gives information to another of'facts, upon which the latter acts, dnd such information is wrong, and misleads him to his injury, the party giving such information is not answerable in damages, provided he believed the information to be true, and had no intention to deceive.
Where the complainant and defendant had one or more casual conversations about the time of a public sale of forfeited school lands, in which the defendant informed the complainant that the sale -would be made on the 19th of August, when, in fact, the sale was to take place and did take place on the 11th of August, at which the defendant bid off certain lands in which the complainant was interested, the latter not attending the sale, nor redeeming the land before sale; it was held, that the defendant was not chargeable with fraud or misrepresentation, if he supposed the information to be true at the time he gave it.
A court of equity seldom interferes to mitigate a forfeiture expressly imposed by statute.
At any time before a re-sale of school lands, forfeited for non-payment of principal or interest, the purchaser may revive the contract of purchase, by the payment of the amount due and interest, and costs, with five per cent, damages on the purchase money.
The disposition of the school lands, as provided by the 24th chapter of the Revised Statutes, is not a sale thereof on credit, within the meaning of section 8, of article 10, of the Constitution. Smith, J., dissenting.
The word “ sale,” as used in chapter 24, of the Revised Statutes, has a different signification from the word “ sale,” in section 8, of article 10, of the Constitution. Smith, J, dissenting.
The disposition of school lands provided for by chapter 24 of the Revised Statutes, is a contract of sale, but not a sale, and hence is not repugnant to section 8, of article 10, of the Constitution. Smith, J., dissenting.
The purchaser of school lands under the provisions of chapter 24 of the Revised Statutes is not an equitable mortgagor of the land for the unpaid purchase money
The importance of tbe questions involved in this case justifies a fall statement of tbe pleadings and evidence therein.
Tbe bill was filed by tbe complainant setting, forth that on tbe 15th day of June, A. D. 1850, at a sale of school and university' lands, in the county of Milwaukee, in accordance with the pro: visions of chapter 24 of the Revised Statutes of the state of Wisconsin, Clinton Walworth became and was the purchaser of lot number 18, in township number 7 north of range number 22 east, in the southeast quarter of section number sixteen, according to the plats of said lands recorded in the office of the secretary of said state, containing seven acres and seventeen hundredths of an acre, for and amounting to the sum of five hundred and thirty-nine dollars and ninety-seven cents, of which sum the said Clinton Walworth paid at the time of purchase, fifty-four dollars and ninety-seven cents on account of the purchase money, and eighteen dollars and thirty-eight cents, being the interest money on the amount unpaid to the first day of January, A. D. 1851, and thereupon Wm, A. Barstow, then secretary of state, J. C. Fairchild, then state treasurer, and S. Park Coon, then attorney-general, and constituting the commissioners of the school and university lands, issued and delivered to the said Clinton Walworth their duplicate certificate number forty-one, Milwaukee county, bearing date the day and year first aforesaid, in which the purchase of the said lot at the time and for the amount and the payment of the sum aforesaid were recited and admitted, and in which said certificate it was provided, that if the said Clinton Walworth, his heirs, assigns, or other legal representatives, should pay to the state treasurer, at his office, the further sum of four hundred and eighty-five dollars- at any time within ten years from the date thereof, and also the interest annually in advance on the first day of January in each and every year, at the rate of seven per cent, per annum, and also all taxes properly assessed thereon, then the said Clinton Walworth, his heirs or assigns, would be entitled to a patent for the said lotofland herein-before described; and the said certificate further provided that the said commissioners might take possession and resell the said lot in case the said Clinton Walworth, his heirs or assigns, failed to pay tlie balance of the purchase money and interest thereon as aforesaid, or non-payment of taxes as aforesaid, which. said certificate was duly acknowledged by the commissioners before D. M. Seaver, a notary public.
“ And your orator further shows, that at the time, of making such purchase and sale of said lot of land as aforesaid, by the said Clinton Walworth, the money paid by him therefor as aforesaid was advanced to him by your orator; and that in consideration thereof, on the twenty-fourth day of June, 1850, the said Clinton Walworth duly assigned, transferred and delivered the said certificate of said lot, under his hand and seal, unto your orator, which said certificate and assignment thereon indorsed as aforesaid, are now in your orator’s possession and ready to be produced as this honorable court may direct, and to which, when produced, your orator for greater certainty would refer. And your orator further shows, that under and by virtue of said purchase and sale, certificate and assignment thereof as aforesaid, your orator entered in and upon said lot of land and took and claimed possession thereof.
“And your orator further shows, that'in-pursuance of the terms and conditions of said certificate of sale, your orator caused to be paid to the state treasurer of Wisconsin, at his office in Madison, the sum of thirty-three and 95-100 dollars, in full for one year’s interest in advance for the year 1821, on said school land certificate number 41, in Milwaukee county, as by the receipt therefor duly executed by the said treasurer, and countersigned by the secretary of state, now in your orator’s possession, ready to be produced, will more fully and at large appear.
“ And your orator further shows that he neglected to pay the interest due upon said lot on the first day of January, 1852, and also the interest due on the first day of January, 1853; but that the said commissioners, nor their successors- in office, did not resell said lot until the time hereinafter mentioned and set forth.
“ And your orator further states that he had the right to redeem said lot from the default which had arisen by reason of the non-payment of interest as aforesaid, at any time before a re-sale of said lot by the commissioners, or proper officers for that pur pose authorized, by paying to the state treasurer tbe amount of interest then due and unpaid, together with five per cent, damages on the amount of purchase money unpaid, and all costs occasioned by the delay, and to revive the said certificate thereby to its full original force.
“ And your orator further shows, that some time in the latter part of the month of July, A. D. 1853, your orator was informed that said lot of land was advertised to be sold at Madison, for the non-payment of the interest money due thereon; which sale your orator was informed was to take place on the 11th day of August, A. D. 1853; but your orator states that he never saw said notice of sale at any time, nor did he know of the day of sale, except by hearsay ; and that on or about the fourth day of August, 1853, in order to procure some portion of the money' to pay said unpaid interest, costs and damages, and to prevent a re-sale of said lot, your orator applied to Ephraim Mariner, at Milwaukee, one of the defendants in this cause, for a loan of money to enable your orator to pay said interest, damages and costs as aforesaid, and informed the said Mariner that your orator wished to procure said money for the purpose of paying the interest, damages and costs due on said lot of land before the sale, and in order to prevent the sale, and stated to said Mariner that your orator was informed that said lot was advertised for sale on the said eleventh day of August, 1853, but that your orator had not seen the notice of the same. The said Mariner thereupon replied to your orator that he had not then the money to lend to your orator, and assigned as the reason why he had not, that he had then recently been paying up the interest due upon lots of his own that were advertised to be sold by the same notice, and for the same cause as the lot of your orator. Your orator replied, that then he, your orator, must look elsewhere for the money, as the term for redemption was nearly out; and the said Mariner then told your orator that there was no hurry, as the sale of said lot did not take place until the 29th day of August, 1853; to which your orator replied that he had understood the sale had been published for the 11th day of August, but had not seen the notice; and the said Mariner replied to your orator, that he, the said Mariner, bad so understood bimself, but tbat be bad sent out to Madison to pay some of tbe interest due upon lots of bis own advertised to be sold at tbe same time as your orator’s, and bad learned from there that the sale of said lots would not take place until tbe said 29tb day of August, 1853, and tbat be bad a letter from bis agent in Madison to tbat effect, and tbat there could be no mistake about it; and to which your orator replied, if tbat be tbe case, there is time enough to attend to tbe matter hereafter. And your orator further states, tbat tbe foregoing is all tbe information be bad of tbe time when tbe said lot of land was advertised by tbe proper officer to be sold as aforesaid for tbe cause aforesaid; and tbat your orator fully believed tbe statements and representations of tbe said Mariner, so made as aforesaid to your orator, as to tbe time of said sale of said lot; and tbat tbe same was not to be sold until tbe said 29th day of August, 1853 ; and tbat such statements and representations of tbe said Mariner, so made as aforesaid, were tbe sole and only reason why your orator did not pay tbe interest, damages and costs due upon said lot on or before tbe said 11th day of. August, 1853, before tbe same was sold for tbe non-payment of tbe interest thereon as aforesaid. And your orator further shows and states, tbat under tbe. belief aforesaid, be did not pay said amount due upon said lot as aforesaid, on tbe said 11th day of August, 1853; and tbe first intimation your orator received to tbe contrary of such statement as aforesaid of tbe said Mariner, was on tbe evening of tbe said 11th day of August, or tbe day following, your orator is not certain which, the said Mariner informed your orator tbat tbe said lot of land bad been sold on the said 11th day of August, 1853, and that be, tbe said Mariner, bad become tbe purchaser on such sale; tbat tbe said lot of land bad been bid in for him by bis agent at Madison, on tbe sale thereof.
“ And your orator further states, tbat be is informed and believes, that the said lot of land was so sold as aforesaid to tbe said Mariner for tbe sum of $816.50, tbat being tbe highest sum bid therefor, though your orator expressly states, tbat in his belief the said lot was worth at tbe time a much larger sum, and was then, and still is, fast increasing in value, and that on such sale the said Mariner paid the sum of $80.50, and the further sum of $19.99 of interest on the whole sum unpaid up to January 1st, 1854, and took and received from the commissioners of the said school and university lands, or other proper person or persons, a duplicate certificate of the purchase and sale of said lot of land, and conditioned to pay the sum of $786, with interest thereon, in ten years from the date thereof, said interest being payable at the rate of seven per cent, annually in advance on the first day of January in each year, or within thirty days thereafter; and your orator is informed and believes, that the said Mariner has paid the interest due upon said lot on said last-mentioned certificate for the first of January, A. X). 1854. And your orator further states, that since the said sale of said lot of land, and the purchase thereof by the said Mariner, as hereinbefore stated, your orator has applied to the said Mariner to assign to your orator the said certificate so held by him as aforesaid, and has offered to said Mariner if he would do so to pay him the amount of money he had paid on said lot and purchase by him as aforesaid, and the interest money paid by him since said sale and purchase, and interest on the same at the highest legal rate, if he would so assign said article to your orator; which request of your orator the said Mariner refused, and still refuses to comply with; and your orator is still ready to pay to said Mariner the said sums of money so paid by him as aforesaid, with interest as aforesaid, and hereby offers to bring the said sum into court for the purposes aforesaid, on his assigning rto your orator the said certificate so held by him as aforesaid free and clear from all other incumbrances upon or arising out of said lot of land, by, through or under the said Ephraim Mariner.
“ And your orator fuither states that he has been informed, believes and charges, that at the time of making the statements and representations by the said Mariner to your orator, as herein-before stated, in reference to the time when said lot of land would be sold as aforesaid, and for some time previous thereto, he, the said Ephraim Mariner, knew that the said lot' of land was advertised as aforesaid for sale, and that your orator was the owner of the certificate of sale so as aforesaid issued on the said 15th day of June, 1850, and tbat said Mariner bad before that time employed an agent, in Madison, to attend tbe sale and bid off said lot of land for bim, tbe said Mariner, and bad directed tbe said agent bow mucb to bid for bim upon said lot on tbe sale thereof, and to a mucb larger amount than was bid upon said sale; all of wbicb facts tbe said Mariner concealed from your orator while pretending to your orator tbat be bad not tbe money desired by your orator from bim, for tbe purpose hereinbefore stated, and while pretending and representing to your orator tbat said sale would not take place on tbe said 11th clay of August, 1858, as hereinbefore stated. And your orator ftirtber shows tbat since the said 15th day of June, 1850, tbe track of a railroad has been located over a part of said lot of land, and as your orator believes by tbe company known as tbe Milwaukee, Pond du Lac and Green Bay Eailroad Company, and since tbe said 11th day of August, 1853, the damages to said lot have been estimated at tbe sum of $240, or thereabout, and tbat negotiations for the settlement of tbe damages to said lot have been bad between tbe said Mariner and agent or agents of said company, and tbat some assignment of said certificate of sale of said lot bas been made by said Mariner to said company, but the terms and conditions thereof are unknown to your orator; tbat by some arrangement the said railroad company has become consolidated with or in tbe La Crosse and Milwaukee Eailroad Company, wbicb company, as your orator bas been informed, bas become tbe owner of said road passing over said lot, and liable to pay tbe damages to said lot thereby, but tbat no final settlement or payment of damages bas been made by said company or either of them, and that on tbe 5th day of April, 1854, your orator served upon tbe president of said last-mentioned railroad a notice in writing, forbidding said company settling with or.paying said Mariner, or bis assignees, anything for tbe damages to said lot as aforesaid, and of your orator’s claim to tbe certificate held by said Mariner, and tbat your orator claimed an interest therein.
“ And your orator further shows tbat be bas been informed, and believes tbat said Mariner bas threatened to .¡assign said cer tificate of sale to some other person in order to put it beyond tbe reach of your orator, through the medium of this court, or otherwise; but your orator expressly charges that the said Mariner had said certificate of sale in his possession on the second or third day of June, 1854; and your orator submits that the statements and misrepresentations of the said Mariner to your orator in reference to the time of sale of said lot as hereinbefore detailed, in connection with the previous arrangements to purchase, and subsequent purchase of said lot of land, were calculated and intended to deceive, and did deceive your orator, and that the said Mariner, by reason of said purchase of said lot in the manner aforesaid, only acquired an equitable interest therein to the extent of the advances in money made by him as aforesaid, and interest thereon so paid by him as aforesaid; and your orator further states that said Mariner has made no improvements on said lot since the said llth day of August, 1858.
“ And your orator makes the said La Crosse and Milwaukee Railroad Company a defendant for the purpose onljr of preventing the payment of the damages to said lot by reason of the use of a part thereof by it as before stated, to the said Mariner or any other person, and requires it to answer only as to the matters hereinbefore stated in regard to the serviee of notice on them, and the consolidation of the said railroads, and the present condition thereof in regard to the damage to said lot.
“ And your orator prays that the said Ephraim Mariner may upon his corporal oath, full, true and perfect answer make to all and singular the matters and things hereinbefore stated as fully and perfectly as though he were specially interrogated thereto, and that he be decreed to assign over and deliver to your orator the said certificate of sale of said lot of land so received and held by him as aforesaid, free and clear from all in-cumbrances made or arising out of or from said lot since the said llth day of August, 1858, on your orator’s paying to him the amount paid out by him for the purchase of said lot, and interest since paid by him, with interest on the same, and for such further, or for such other and further relief in the premises as may be agreeable to equity, and that in the meantime an injuno tion may be issued against tbe said Ephraim Mariner to restrain Mm from selling, assigning, or incumbering said certificate of sale so held by him as aforesaid, and from collecting or receiving any money or other valuable thing from any person or body corporate, for or on account of the damages to said lot by reason of said railroad track passing over the same, and said railroad company from paying any damages in their behalf; said inj unction to be issued in the usual form under the seal of this court, with the usual penalty ; and that a subpoena may also be issued directed to the said Ephraim Mariner and La Crosse and Milwaukee Railroad Company, commanding them by a certain day and penalty to be and appear in this honorable court to make answer to all and singular the premises, and to stand to and abide such order and decree as this honorable court may make thereon, &c.”
The defendant Mariner answered:
“ This defendant further answering, says, that he is informed, and believes, that the interest due on said lot, according to the terms of the said certificate, was in arrear, and that said lot was advertised for sale, as in: said bill of complaint' set forth, but whether said complainant ever saw such advertisement, this defendant cannot state.
“ This defendant further answering, states, that on or about the 8th day of June, 1853, this defendant was at Madison, and while there, was informed that the delinquent school and university lands were advertised for sale, and that such sale would take place on the 1st day of August next, thereafter; that this defendant then employed an agent at Madison to attend such sale, and bid for him upon such lands; that this defendant returned from Madison about the 20th of June, and shortly after his return met said complainant in the street, and had a conversation with him concerning said lot, in which the complainant said that he knew that said lot was advertised for sale, and that he meant to redeem it if he could get the money to do so; and then and there asked this defendant to loan him the necessary funds to redeem said lot, to which the defendant replied, that he had no money to lend, that he should have to borrow the money to pay some in terest for himself; that afterwards, and about the Sd day qf August, this defendant had another conversation with the said complainant, in which he told said complainant that he had sent the money to pay his interest, but that .he need not have been in so great a hurry, for he had a letter from his correspondent at Madison, saying that said sale would not take place till the 19th, and that he thought that the letter was reliable; that he should depend upon it, but did not say that there could be no doubt but that said sale should take place on the 19th.
“ This defendant further answering, admits, that on or about the 11th day of August, 1853, the said lot was bid off for him by his agent, for the price mentioned in said bill, together with costs of sale, which was all that the said lot was worth at that time, and that he still holds the certificate of the commissioners of the school and university lands therefor.
“ This defendant further answering, denies, that he did not, by reason of the promises, acquire an interest in said lands, except as a trustee of said Smith; the statements made by this defendant to said Smith were made in casual conversations; they were the best information that this defendant possessed, and. when he made them he stated his authority and his means of information; they were made concerning a matter of which the complainant had equal facilities for knowing.
“ This defendant further answering, denies, that fox a long time previous to such sale, he had known that such sale would, take place on the 11th of August, but insists that the only person from whom he ever heard that such sale would take place on the 11th day of August, was the complainant; that this defendant supposed, up to the 30th day of July, and until after he had sent the money to pay his own interest, that such sale would take place on the first day of August.
“ This defendant further answering, admits, that he always told the said complainant that he had not the money to loan the said complainant, to redeem said lot; and he further says, that when said lot was bid off for him he had to borrow the money to pay for it.
“ This defendant further answering, admits, that some time in tbe month of May last, the said complainant did ask this defendant, that if he, complainant, should pay to defendant the money he had paid on said lot, and interest thereon, if this defendant would assign said certificate to the said complainant, and that this defendant refused to do so, but denies that the said complainant ever offered him the money; this defendant further says, that immediately after this defendant had learned that said«*lot was bid off to him, he went to the complainant and informed him if he had been misled by the statement of this defendant, and would pay the draught which the agent of the defendant had drawn to pay for said certificate, when the same should become due and payable, that this defendant would immediately assign said certificate to said complainant, to do which the said complainant wholly neglected and refused.
“ This defendant further says, that said lot, and all property around the city of Milwaukee, has, since that time, greatly increased in value, and that this defendant was, and is unwilling to purchase and hold real estate for the benefit of the said complainant, or any other person.
“ This defendant further answering upon information and belief, denies that the only reason for the failure of the said complainant to redeem said lot was the statements of this defendant, but insists that the want of the necessary funds had something to do with such failure. J
“ This defendant further answering, denies that he has threatened to sell said lot, or his interest therein, but has always insisted that he meant to hold the same unless some person would give him considerably more than it was worth, and he does still insist on holding the said lot as well against the said complainant as any other person.
“ This defendant further answering, denies that the said railroad company has any interest in said premises whatsoever.
“ This defendant therefore prays that the injunction heretofore allowed in this cause be dissolved, and that he be dismissed hence with his reasonable costs, &c.”
Exceptions were taken to the answer of Mariner, and thereupon a further answer Was put in, in substance as follows:
“ The further answer of Ephraim Mariner, defendant, to the bill of complaint of Albert Smith, complainant, against Ephraim Mariner, and the La Crosse and Milwaukee Eailroad Company.
“ This defendant further answering, says that he had not on the 4th day of August, 1853, seen any advertisement of fixing the time of the sale of said lot 18 on the 11th day of August, 1853, nor has he ever seen any such advertisement; that the only knowledge he had of such sale was from hearsay, and that this defendant had not been informed that such sale would take place on the 11th day of August, until so informed by the complainant on or about the 4th of August, 1853; and he further says, that he did not know, and did not believe, that such sale would take place on the 11th day of August, until after thé said 11th day of August, and until he was informed that such sale had taken place.
“ And this complainant further says, that he did not know that the said complainant was the owner of said certificate except from report, but supposed he was.
“ And this defendant further answering, says that he did on the 29th day of July, A. D. 1853, write to Madison, and direct his agent, Mr. Elisha Burdick, to attend such sale, and bid for him on said lot 13, among other lots then to be sold, and told him to bid as high as $135 per acre on said tract. And this defendant at the same time informed his said agent that such sale would take place on the next Monday after the said 29th day of July, to wit: on the first Monday of August, and did not inform him that it would take place at any other time. And this defendant further says that he is informed, and believes, that his said agent did not know that said sale was to take place on the said 11th day of August, until some time during the said 11th day of August, and after the sale had actually commenced, and a part of the lands advertised had been sold, and then learned it by accident.
“ And this defendant further answering, says whether he did or did not inform the said complainant that he had employed an agent to attend and bid for him at such sale, he cannot set forth with certainty, but he admits that he did not tell him that he had instructed such agent to bid on this particular lot; and he further insists that be was under no obligation to inform the said complainant as to bis intentions in tbis respect.
11 And tbis defendant further answering, says that be never did pretend to said complainant to know at what time said lands were advertised to be sold, nor did be ever tell said complainant that be bad any advertisement of the time of such sale, but al-wa)s informed him that be bad not seen any such advertisement, and that be did not know, except from hearsay, of the time of such sale, and at the same time told the said complainant from whom be derived bis information. And tbis defendant further says that the information which be gave said complainant was the best that this defendant could give. And when tbis defendant gave such information be believed it to be true. And tbis defendant insists that if the said complainant chose to rely on hearsay, instead of resorting to the advertisement for the time of siicb sale, that it is not the fault of tbis defendant. And tbis defendant further answering, denies that the said complainant bad the right, under the laws of tbis state, to redeem the said lot after it bad become forfeited, and after it bad been advertised; and insists that said lot was, on the publication of such advertisement, subject to private entry in the same manner that any of the unsold school lands of tbis state are.
“ And tbis defendant prays the same benefit and advantage &om bis answer in tbis behalf, as if be bad demurred specially to said bill.”
A general replication was filed by the complainant, and upon the issue thus made, testimony was taken by the respective parties, the material and substantive portions whereof are as follows:
To sustain the allegations of the bill, the complainant produced, as a witness, D. Gr. Power, who testified that “ be was a land agent in the city of Milwaukee, and bad been.so engaged some four or five years; that he was acquainted with the parties and the premises in dispute, according to the description set forth in the bill of complaint; that be has bad a conversation with defendant, Mariner, about the said lot of land; that said conversation occurred about one year ago, and that said conversation was substantially as follows : Mariner asked witness the value of the lot; to which he replied, giving his opinion of the value of the land, and remarked to Mariner that it was owned by complainant, to which Mariner stated that he (Mariner), through mistake, informed the complainant that the said lot would not be sold until a certain time, and that in the meantime the lot had been sold, and he had bid it off, but that he did not want to take any advantage of Mr. Smith; in the same conversation Mariner told witness that the land had -been sold for the non-payment of interest; that said conversation was had over a year ago; that he is unable to state positively when it was, at any rate it was shortly after the sale; not longer than a month after the sale; it may .have been the very day after the sale, a week after, or two weeks after, cannot tell.”
Also, F. J. Blair testified that “ he was in Madison in 1858, in the month of August, when said'lot was sold; it was bid off by Mr. Burdick; that he informed witness that he bid it off for Mariner ; had a conversation with Mariner about the purchase of said lot after witness returned from Madison, which was about two days after the sale; the conversation was as follows: Witness informed Mr. Mariner that the lot had been bid off for him, and Mariner said he had informed Mr. Smith that the sale of said lot was to be a week or two weeks later; that M. 'expressed regret that it happened so, and that Mr. Smith neglected attending to redeeming it on account of the information Mariner gave him of the time it was to be sold; and that Mariner further said that he would let Mr. Smith have it at the bid he made for it, if Mr. Smith wanted it; witness further says he bid on the lot at the time of sale; that he understood from Mariner at said conversation that he (M.) was mistaken himself of the time of the sale; said conversation happened near Luddington’s corners; has no recollection of any others being present at the time of said conversation ; that at that time witness supposed from what Mariner said, it was the first he (M.) had heard of the sale; he said he supposed Mr. Smith was misled as to the time of the sale from what Mariner had told him (Smith); that witness is positive that Mariner said he had informed Smith that the sale would take place at a later day, and is not positive whether Mariner told bim tbat Burdick bad written to bim (M.) wben tbe sale would be, or whether be (Mariner) bad written to Burdick wben tbe sale would be, and bow much to bid, but tbat it is witness’s impression tbat Mariner said be bad written to Burdick tbat tbe sale was to be at a later day, and for B..to attend tbe sale and bid in said lot; witness bid two or three times on said lot; tbat it is the impression of witness that tbe lot was bid off for more than was due on it, and stated to Mariner tbat it was bid off for all tbat it was worth, and be (M.) said be thought it was bid off for less than its worth; and witness said at tbe time be would not take tbe lot at tbe bid.”
“ If you bad known complainant was not aware of tbe sale of the lot, and desired to keep it, would you have taken tbe lot for bim ?” (Objected to.) Witness says, “ be thinks be would.”
It was also proved on tbe part of tbe complainant, tbat tbe land was worth $300 or $400 per acre.
On tbe part of tbe defendant testimony was taken as to tbe value of tbe land, placing it at considerably less value per acre.
At-tbe March term, 1855, tbe cause came on to be beard upon tbe bill, answer, replication and proofs, wben tbe court below dismissed tbe bill, with costs, from which decree tbe complainant appealed.
Ira C. Paine, and Byron Paine, for tbe appellant.
1. Tbe appellant is entitled to relief on tbe ground tbat tbe defendant Mariner, by misrepresenting to bim tbe time of sale, and then taking advantage of tbe misrepresentation to buy in tbe land himself, committed a fraud upon tbe appellant. 2 Kent's Com., Part 5, Lee. 39, 482 ; Taylor vs. Ashton, 11 M. & W. 401; Farnham vs. Broolcs, 9 Pick. 212; Strong vs. Cation, 1 Wis. Rep. 471; 11 Vesey, 623 ; Smith vs. Richards, 13 Peters' Rep. 26-36 ; East vs. Mathews, 1 A. K. Marsh., 192 ; 8 Howard, 183; 3 Ship-ley Rep. 332 ; Adams' Equity, 176; 1 Story on Equity, 196-2Q0 ; Scott vs. Meritt, 1 Ves. 2 ; 1 Jacobs & Walker, 94; Middleton vs. Middleton, 11 Ves. 620; 10 Terger, 206; id. 94; 3 Swanston R. 408, note.
Even if Mariner did not know that bis representation as to tbe time of sale, was not true when be made it, then it was a mutual mistake, and the appellant is entitled to relief on that ground. But it is submitted that even in that case, the subsequent attempt, in pursuance of a previous design, to take advantage of the mistake, by obtaining the land for himself, knowing the complainant’s rights, however it may be regarded by the creed of speculators, amounts to little less than actual fraud, according to the standard of courts of equity. 1 Story on Equity, 202 ; Notes 5 and 6, and cases cited; see also pages 883 — 386 ; also page 421 and cases cited in note 3d; Roosevelt vs. Fulton, 2 Cow. 124; Pearson vs. Morgan, 3 Broke Ch. Cases, 388; McFarran vs. Taylor, 3 Gran. 270 ; 3 Ark. Rep. 386 ; Bacon vs. Brownson et al., 7 John. C. Rep. 194, 202; Lewis vs. Lemore, 10 Yerger, 121, 206; Wheelan vs. Wheelan, 3 Cow. 537-576.
2. Considering the question as it is presented' by the act for the sale of the school lands alone, there is great reason for holding that the court should grant the relief prayed. •
1st. The object of the forfeiture was to secure the payment of the unpaid purchase money. And this, unless there be ’some special reason to the contrary, brings the case within the well settled principle applicable to all cases of penalties and forfeitures intended to secure the payment of money only, against which equity always relieves on compensation, holding interest to be a compensation. Leading Cases in Equity, Yol. II, Part■ 2d, 458-462, 470 and cases cited; 2 Story on Eq. 552.
2d. Here the forfeiture is created by law, and it is said equity will not relieve against such a forfeiture. But this doctrine does not rest upon principle. And the only authorities on which it is based, are the cases of Peachy vs. The Duke of Somerset (l Sira. 447), and Keating vs. Sparrow (1 Ball. & B. 367, cited in Leading Cases in Equity, Yol. II, Part 2, 450 and 467).
The first of these cases, rightly considered, does not sustain th^ doctrine, and the second rests upon the first.
3d. The true rule upon this subject would seem to be, that it is not within the jnovince of a court of equity to relieve against a forfeiture imposed by statute, where such relief will defeat the clear intent and object of the statute, on the ground that such intent and object are inequitable, thereby substantially repealing tbe law. But where the forfeiture is imposed by law, merely as collateral to the accomplishment of some other object, and relief can be granted without defeating such other object, there the same reasoning, applicable to forfeitures in contracts applies, and relief should be granted.
The true criterion should be not whether the forfeiture was created by law or by contract, but whether relief can be granted consistently with the accomplishment of the purpose of the law or contract, as the case may be. reasoning Vol. II, Part 2, Leading Cases in Eq., page 471.
4th. This rule would be in accordance with the frequent definition of equity, that it “ mitigates the rigor of the law.” See Story's Com. on Equity, Vol. I, p. 4, 10, 11, 12, 13, 17, 18. It comes within the definition of Sir Joseph Jekyll, on pages 15 and 16, which Judge Story cites with approbation, while he contends some are too liberal.
5th. Even if the cases of Peachy vs. Somerset, and Keating vs. Sparrow, are decisions against this position, if they do not rest upon principle, do they settle the question so as to bind this court ? It is believed not; but that from the very origin and nature of the system of equity, precedent cannot be of such binding force as in law. And that if it be admitted that only one or two decisions-have been made upon a question, and that they are wrong, the court may disregard them, and establish what it may believe to be the true rule. See St. Germain's definition, cited 1st Story's Com. 11. And Judge Story, although he contends against the liberality of some other writers, yet admits that equity may extend itself into untrodden fields, and that “ it possesses an expansive power to meet new exigencies.” Vol. I¡ page 60.
6th. In cases where public policy requires it, the courts have refused relief even against forfeitures created by the parties. As in the case of companies incorporated to carry on some public enterprise. 2 Leading Cases in Eq., part 2, 466. But that reason does not exist here, for relief is only asked on the payment of the highest interest, which is offered by the bill, and this ac complishes tbe very purpose of tbe school law, wbicb is that tbe school fund may be drawing interest. Story's Eg. Jut. § 58.
7th. Even if tbe court should refuse to relieve against these forfeitures, in ordinary cases, it should relieve in this case. For in those cases where relief is generally refused, if there are any particular equitable circumstances that the court can lay hold of to justify it, it is granted. As where the forfeiture was caused by some fault of the party seeking to take advantage of it. See Peachy vs. Somerset, cited above. And here, although the forfeiture of the complainant’s right was not caused by any fact of the defendant, yet the complainant was prevented by the misrepresentation. (and fraud as it is claimed) of the defendant from protecting himself as he might have done under the law, and the defendant then took advantage of the misrepresentation, whether made by mistake or otherwise, to get the land himself And this, as between these parties, places it on the same footing as though the forfeiture had been caused by some fault of the defendant, and he was seeking to take advantage of it. Bogan & Walher, 1 Wis. 527; Bouv. Law D. title “ SaleSugden on Yendors, 67, 211, 60 bottom paging ; Webster vs. Hobin, 7 Grancky 399 ; Williams on Beal Property, 59.
3. But whatever doubt the court might have about relieving against a forfeiture in law, it is believed that the following point places the complainant’s right to relief beyond doubt. That is, that by the controlling force of section 8, article 10, of the Constitution of this state, he is entitled to be regarded as a mortgagor, having all the rights of a mortgagor, and among them the equity of redemption.
1st. This section provides that provision shall be made by law for the sale of the school lands. Chapter 54 of the Revised Statutes makes such provision, and so far agrees with the constitution. But the constitution further provides that “when any portion of such lands shall be sold, and the purchase money shall not be paid at the time of the sale, the commissioners shall take security by mortgage, upon the land sold, for the sum remaining unpaid, with seven per cent, interest thereon, payable annually at the office of the treasurer.” The statute en tirely disregards tbis provision of the constitution, and enacts that when the purchase money is not paid at the time of the sale, the commissioners shall give the purchaser a certificate giving him only a quasi interest in the land, liable to be forfeited and lost on the slightest default, the statute giving the commissioners the power on such default, to re-enter, take possession of, and resell the land.
The conflict between the act and the constitution is palpable. The latter clearly intends and provides that on the sale the title shall be conveyed to the purchaser, and if the purchase money be not all paid down, he shall give back a mortgage for the amount unpaid. The provision is positive that the commissioners “ shall take security by mortgage ” for the amount not paid at the sale, which necessarily implies a prior or contemporaneous conveyance of the fee to the purchaser.' The commissioners are “ authorized to execute conveyances to purchasers, and to discharge mortgages taken as security when the sum due thereon shall have been paid.” These provisions point with irresistible certainty to a conveyance of the fee to the purchaser at the time of the sale, and the taking back of'a mortgage as the security of the state for the amount unpaid.
The statute adopts an entirely different security. Section 19 provides that the title or fee shall remain in the state till patents are issued, and that no patents shall issue except on full payment of the purchase money and interest.
This entirely dispenses with those provisions of the constitution in relation to security by mortgage, making them inoperative and void.
2d. There is no room for dispute as to when the sale takes place. That, both by the constitution and the statute, both in law and fact, is, when the land is offered by the commissioners and bid off by the purchaser. Section 10 of the act provides that not less than ten nor more than seventy-five per cent, of the purchase money shall be paid “ at the time of the sale,” and the balance at any time in ten years '•from such sale,” &c.So throughout the act, and in the certificates themselves, the sale is treated as taking place at the time when the land is bid off by tbe purchaser, or applied for and tbe application assented to by tbe commissioners.
Tbe only question between tbe statute and tbe constitution is as to tbe time wben tbe conveyance should be made, and tbe kind of security to be taken for tbe unpaid • purchase money. And on these points tbe conflict between tbe two seems too obvious for argument.
Bd. If there be such conflict, tbe constitution must prevail. And tbe question then arises, what effect this will have on tbe sales of tbe school lands ? To say that tbe whole proceedings were void, aud no rights acquired under them, would be harsh and rigorous in tbe extreme, contrary to law, and not to be imagined in equity. But tbe remedial, beneficent power and nature of a court of equity may be here signally illustrated and made manifest'. This is an instance where tbe maxim that equity will regard that as done whiek ought to have been done, applies with peculiar force. Acting upon this maxim, deciding that sales were made wben these certificates were given, and that instead of these, conveyances should have been made to tbe purchasers, and mortgages taken back to tbe state, tbe court will consider this as done, and give the parties tbe same rights they would have if it bad been done. Then tbe complainant stands in tbe position of a mortgagor, with an equity of redemption not foreclosed against him, and having offered full compensation, according as tbe court may order, is entitled to relief.
If any reasons of policy should be urged against this position, it would be a sufficient answer fcr say that tbe constitution is so written. And if tbe court cannot say that “ a law has determined hardly,” can it say that tbe constitution has determined unwisely ? But there are no such reasons. Tbe provisions of tbe constitution are as wise as they are just. They have regard to tbe rights of tbe purchaser as well as to those of the state ; and by having regard to bis rights they bold out greater inducements to men to become purchasers. Tbe provisions of tbe constitution are just, equal and beneficent, protecting both parties without injury to either. Tbe provisions of tbe statute are harsh, rigorous and inexorable, shutting down with an iron and impass able gate upon tbe purchaser on the least default, leaving him liable to lose all bis rights by a slight delay, or a temporary inability or misfortune. Leaving the constitution out of view, the spirit of equity would beget an equity of redemption against the provisions of this act. But here the court finds its favorite child, which it has begotten and to which it gave its own name and cherished against the fierce assaults of its enemies, and which it sent forth as a redeeming angel to temper justice with mercy, adopted by the constitution itself. Is there room, then, for hesitation? It would seem not, but that the court, hastening plant itself upon the solid ground of the constitution, will say that the purchasers of the school lands shall not be cut off suddenly and forever by a slight delay, a temporary misfortune, or the tricks of designing speculators, but that they shall be protected against this evil by the benign influence of the equity of redemption.
E. Mariner,-,]?. jo. appellee,
submitted the following points and authorities :
To entitle the defendant to relief in this action, the misrepresentation must be fraudulent. Pasley vs. Freeman, 8 Term, 51 ■ 2 Smith's Leading Oases, 132 ; Ward vs. Oenter, 3 John. 271, 280;’ Young & Otis vs. Oovill, 8 John. 23; Allen vs. Addington, 7 Wen. 10. '
It must be concerning something in regard to which one party places a known trust or confidence in the other. Laidlaw vs. Organdí Wheaton, 178 ; Evans vs. Bicknell, 6 Yes. 173 ; 1 Story's Equity, § 197.
And concerning something which is peculiarly within the knowledge of the party making the misrepresentation. 1 StoryTs Eq. § 200 a ; Baley vs. Merrill, Oro. Jac. 386.
Must be of facts and certain. Pasley vs. Freeman, 3 Term, 51; Starr et al. vs. Bennett, 5 Hill, 303; Salmon & Bebee vs. Sherwood, 2 Day, 128; Scott vs. Hanson, 1 Simons, 13; Trover vs. Newcomb, 3 Merivale, 703.
And the party must be misled by them. Scott vs. Lara, Peake N. P. R. 226, referred to in 7 Wend. 20.
The facts constituting the fraud must he clearly proven. 1 Story’s Bq. § 190.
The gravamen of the charge in the bill is fraud, failing in the proof of which, the complainant cannot be permitted to assume a new ground of complaint, as mistake, accident or the like.

Opinion:
By the Court,
Oole, J.
The testimony taken upon the hearing of this cause does not materially vary the case as it stands upon bill, answer and replication. It, therefore, becomes necessary, for a proper understanding of the charge of fraud and mistake, which are relied upon as grounds of relief in this case, to look at the principal allegations of complainant's bill, containing that charge, and such parts of the answer of the defendant, Mariner, as are responsive thereto.
The bill was filed in the Circuit Court of Milwaukee county, on the 8th of June, among other matters, stating in substance, that on the 15th of June, 1850, at a sale of school and university lands in the county of Milwaukee, in accordance with the provisions of chapter 24, Revised Statutes, Clinton Walworth became and was the purchaser of lot No. 18, in the southeast quarter of section 16, town 7, north of range 22 east, containing seven and 19-100 acres, for the sum of $539.97, of which he paid at the time of purchase $54.97 of the purchase money, and $18.38 for interest upon the balance unpaid up to January 1, 1851, taking from the commissioners a duplicate certificate, bearing date upon that day, in which the purchase of the lot, at the time, and for the amount and for the payment of the sum aforesaid, were recited and admitted, and in which said certificate it was provided that if the said Walworth, his heirs or assigns, should within ten years, pay the balance of the purchase money, interest annually in advance, at the rate of 7 per cent., and the taxes properly assessed thereon; that then said Walworth, his heirs or assigns, should be entitled to a patent for the said lot; and that the certificate also provided that in case of default in the payment of the balance of the purchase money when due, or of tbe interest and taxes as aforsesaid, that then tbe commissioners might take possession of, and resell tbe said lot.
And further, that tbe certificate was properly assigned by Walworth to complainant on tbe 24th day of June, 1850, and that be took possession of tbe lot; also, that be paid the interest in advance for tbe year 1851, but neglected to pay tbe interest due for 1852 and 1853 ; that after default, and at any time before a re-sale of tbe lot by tbe commissioners, he bad a right to redeem by paying 'the interest due, with 5 per cent, upon tbe purchase money, and all costs occasioned by tbe delay, and revive the said certificate thereby in its full original force.
That in tbe latter part of July, 1858, be was informed that tbe lot was advertised for sale on tbe 11th of August, 1853, for tbe non-payment of tbe interest, but that be bad never seen tbe notice of sale; and that on the 4th of August previous to tbe sale he applied to tbe defendant, Mariner, for a loan of money to enable him to pay tbe interest, damages and costs, and revive bis contract, stating to Mariner that be was informed the lot was advertised for sale on tbe 11th of August.
That Mariner declined accommodating him with tbe money, saying that be bad not got it to spare, and also saying that be bad understood that tbe sale bad been published for tbe 11th, and' bad sent money to pay interest due upon bis lots advertised to be sold at tbe same time as complainants; but that he^ need not be in a burry, as tbe sale of the lot would not take place until tbe 29th of August, as be bad learned from a letter sent to him by bis agent at Madison, which letter was to that effect, and that there could be no mistake about it.
Further, that the sale did take place on tbe 11th of August, at which time tbe lot was sold, and bid in by Mariner through bis agent at Madison ; and tbe complainant alleges that the only reason why be did not pay tbe interest, &c., before tbe 11th, was, that be fully believed tbe statements and representations of Mariner as to tbe time the sale would take place; and that tbe first intimation be received to tbe contrary of such statement was from Mariner, who informed him directly after the sale, that the lot bad been sold and bid off for him by bis agent.
The bill charges, that at tbe time of making these representations, in reference to the time of the sale, Mariner knew they were false, knew that complainant owned the certificate, knew when the sale would take place, and had employed an agent at Madison to attend the sale, and bid off the lot for himself, Mariner ; that these statements and representations, in connection with the previous arrangement for purchasing the lot, and the subsequent purchase, were calculated to deceive, and did deceive him, the complainant, and were a fraud upon his rights.
The bill prays for an answer, under oath, and that Mariner be decreed to assign over the certificate to the complainant upon being paid the amount of his disbursements and interest on the same.
Mariner answered, under oath, admitting the complainant had a claim to the lot set forth in the bill, and states that on or about the 8th of June, 1853, he was at Madison, and while there was informed that the delinquent school and university lands were advertised For sale, and that the sale would take place on the 1st day of August, next thereafter; that he then employed an agent to attend the sale, and bid for him upon such lands; that he returned to Milwaukee about the 20th of June, and shortly-after met the complainant in the street, and had a conversation with him concerning the lot in controversy; that complainant said he knew the lot was advertised for sale, and that he meant to redeem it if he could get the money to do so, and asked the defendant? to loan him the necessary funds for that purpose; to which request the defendant replied that he had no money to loan, and should have to borrow money to pay interest for himself, and that afterwards, and about the 3d day of August, the defendant had another conversation with the complainant, in which he told him that he had SGnt the money to pay his interest, but that he need not have been in so great a hurry, for he had a letter from his correspondent at Madison, -saying that the sale would not take place till the 19th, and that he thought that the letter was reliable, that he should depend upon it, but did not say there could be no doubt but the sale would take place on the 19tb. Mariner further says that these statements were made to the complainant in casual conversations; tliat it was the best information upon the matter he possessed, and that when he gave it he believed it to be true; also when he made these statements, he gave his authority and means of information ; and that they were made concerning a matter of which the complainant had equal facilities for knowing. He denies that he knew, previous to such sale, that it would take place on the 11th of August; insists that the only persons from whom he even heard that the sale would take place on that day was the complainant — and that he supposed, up to the 80th of July, and until after he had sent the money to pay his own interest, that it would take place upon the 1st of August.
In the allegations in the bill above set forth it will be seen that the complainant charges Mariner with telling what was false in reference to the time of sale, knowing himself when it would be, and that he made these statements with a fraudulent purpose, with the intention to induce him to act upon them, so that he might obtain an undue advantage over complainant by buying in the land for himself. If these allegations were sustained by the answer of Mariner, or established by the proofs, it would constitute a clear case of fraud. " For," says Justice Story (1 Eq. Jur., § 192), " where the paTty intentionally, or by design, misrepresents a material fact, or produces a false impression, in order to mislead another, or to entrap or cheat him, or to obtain an undue advantage of him; in every such case there is a positive fraud, in the truest sense of the terms; there is an evil act with an evil intent; dolum malum ad circumre niendum. To the same effect are the cases of Pasby vs. Truman (3 Durnf. and East, 23); Evans vs. Bicknell (6 Ves. 193); Taylor vs. Ashton (11 M. & W. 400).
But Mariner most distinctly and pointedly denies, in his answers, that when he had these conversations with the complainant, he knew the sale was advertised for the 11th of August, or would take place upon that day. On the contrary, he says that his impression, up to the 30th of July, had been, that it was advertised for the 1st of August; and that he had acted upon this presumption by remitting money to pay interest upon his own lots. He states he told the complainant he had received a letter from his agent at Madison, saying the sale would take place on the 19th of August; that he thought the letter was reliable; thus giving just such information as he possessed, the correctness of which he did not doubt. If Mariner had received a letter of this import, and we must presume he had, as his answer in this respect is uncontradicted, and we think this matter is strictly responsive to the bill, it was natural he should place confidence in its statements. This sale was to take place at Madison, where the writer of the letter lived, and the notice of sale was given in the newspaper published there. The writer therefore possessed superior means of information about the sale, and it is not surprising that Mariner trusted him. But it is made a matter of observation in the argument, and properly, too, that this letter was not produced upon the hearing, or its absence accounted for; and it is said this circumstance casts suspicion upon the truth of the answer. And so, to some extent, perhaps it does. Still we have said we considered this part of the answer as being responsive to the bill, and consequently by a familiar rule of practice, must stand until overcome by at least one witness, and strong corroborating circumstances.
Another circumstafice relied upon by the complainant to show a meditated fraud, is, that Mariner had employed an agent to bid upon this property, and that he concealed that fact from him. It will be admitted that Mariner had a perfect right to bid at this sale, as much so as any citizen. He says that he employed an agent for that purpose when at Madison, in June. Nor was he, in conscience and duty, bound to disclose this to the complainant ? Or will the concealment of that fact authorize us in inferring that it was done with a fraudulent motive ? There was no peculiar relation, no fiduciary character existing between the parties. And I think he might innocently withhold from the complainant the knowledge of his having employed an agent to bid upon the land.
Stress is laid upon another matter, that Mariner came to the complainant on the 3d of August, and communicated this wrong information as to the time of sale. But it does not very clearly appear whether the complainant applied to Mariner,' or whether the latter put himself in the way of the complainant and volunteered the information. Mariner says that the statements about the sale were made in casual conversations. There does not seem to have been any purpose or design to mislead, and in the absence of that most important ingredient of fraud, I think it quite immaterial whether Mariner sought him or not.
Again; it is said. to be wholly immaterial whether Mariner thus misrepresented a fact he knew to be false, or made an assertion about the sale not knowing it to be true ; for that the affirmation of what one does not know or believe to be true, is equally in morals and law as unj ustifiable as the affirmation of what is known to be positively false. And that even if the party innocently misrepresents a fact by mistake, it is equally conclusive ; for it operates as a surprise and imposition on the other party. 1 Story Eg. Jur., § 193. In answer to the first proposition it is sufficient to say, that Mariner swears he gave the complainant such information in regard to the sale as he possessed, giving his means and source of information, and believing it at the time to be true.
And upon the point of mutual mistake, it must be borne in mind, that this was a public sale, that notice of the time it would take place, had to be by law, and was actually given in a newspaper published at Madison ; that the means of information as to the sale were open to both parties; that Mariner had no control over the sale or over the commissioners, under whose directions it was to be made; and further, Mariner had not been employed professionally or otherwise to ascertain when the sale would take place. Neither were the complainant and Mariner holding the relation of contracting parties. Had they been upon a treaty for any contract, and had Mariner made a false representation upon the subject of the contract innocently, without any fraudulent motive, by which the complainant was misled, equity would grant relief and compel Mariner to make the representation good. To that effect are the cases of Buxton vs. Lister (3 Atk. 385); McFerson vs. Taylor et al. (3 Cranch, 270); Smith vs. Richards (13 Peters, 26); East vs. Mathews (2 A. K. Marsh. 192); Taylor vs. Fleet (1 Barb. Sup. Ct. R. 473); Lewis vs. McLemon (10 Yer. 206); Adams Eq. p. 176 et. seq., cited upon complainant's brief, and many others of tbe same import found in tbe boobs. Or bad not tbe means of information about tbe sale been equally open to tbe parties, and bad tbe complainant applied to Mariner, being a party immediately interested in tbe subject matter of inquiry, as in Pearson vs. Morgan (2 Bro. Ch. R. 305); Burrows vs. Lock (10 Ves. 472); or Bacon vs. Bronson (7 J. Ch. R. 193); and bad been misled, be would bave been entitled to relief. But sucb was not tbe case. These parties bave a casual conversation about a public sale, and tbe defendant states be is informed and believes it takes place several days after it does. At this sale tbe land is bid in for tbe defendant by an agent employed some weeks before. In consequence of this misinformation tbe complainant says be did not redeem bis land before sale. Suppose tbe land had not been bid in by Mariner, but by somebody else, could tbe complainant bave sustained an action at law for damages against Mariner, for misleading him as be did ? Tbe answer is obvious. He could not, unless be could show that be bad sustained damage, not by tbe mistake, but by tbe fraudulent design and deceit of the defendant. If be could not sustain his action at law for damages arising from this mistake, I am unable to see, bow, under tbe circumstances of this case, and tbe relation of tbe parties to tbe sale, subject matter, and each other, be can be relieved from tbe consequences of the mistake in a court of equity.
But tbe complainant places bis title to relief upon another ground. It is insisted that tbe object of tbe forfeiture provided for in tbe act, for tbe sale of tbe school lands, was to secure tbe payment of tbe unpaid purchase money, and that, therefore, this case falls within tbe principle applicable to all cases of penalties and forfeitures intended to secure the payment of money only. I am unable to accede to this proposition. Section 15, chapter 24, R. S., provides that in case of non-payment of principal or interest, when due, according to tbe terms of tbe certificate of sale, sucb certificate shall become void from tbe time of sucb failure, and tbe purchaser shall forfeit all right and interest in tbe land. Subsequent provisions authorize the commissioners to advertise and sell forfeited school lands. This is not a contract between parties, where compensation can be given for the breach of a condition, or for the non-payment of money when it fell due; but it is a case where, by express enactment, the right and interest of the purchaser in the land are to determine upon default in paying principal or interest as it becomes due. Now, is it competent for this court to relieve against such a forfeiture ? to say that the legal consequences expressly declared by the statute shall not ensue ? Can it say that where the law prescribes there shall be a forfeiture, there shall be none; and for instance here, say that the second sale shall be null and void; thus virtu ally repeal and nullify an act of the legislature ? I should require very clear and strong authority to show that courts had done this, before I would presume to go that length. But we have been referred to no case where a court has thus interfered to mitigate a forfeiture imposed by statute. The cases of Peachy vs. The Duke of Somerset (1 Str. R. 447); Keating vs. Sparrow (1 B. & Beat. 373, 374, also cited in Leading Cases in Eq., Vol. II part 2, p. 448), whatever they may determine, certainly give no countenance to this doctrine, but the contrary. And those cases are relied upon by Justice Story to sustain the very opposite doctrine, in see. 1326, Vol. If Kq. Jur. The expression of the legislative will is, in this case, most clear and explicit; shall it be defeated upon the ground and for the reason that the law is harsh and severe in its character ? Grant that the law is oppressive, inequitable, rigorous in its operation; that by its provisions the purchaser, on the least default, occasioned, perhaps, by a temporary inability to obtain money to pay what was due on the certificate, or by misfortune, was liable to lose all his rights under the sale; yet I cannot see that he can annul or disregard those provisions. I do not feel called upon at this time to attempt a vindication of this act of the legislature, and to show that it is not justly obnoxious to any such strictures. But I remark in passing, thabsection 16 enables the purchaser, at any time before a re-sale, to revive the original contract by paying the amount due with interest, and all costs occasioned by the delajr, and five per cent, damages on tbe purchase money. Besides tbe re-sale could not take place without -notice thereof being given in some newspaper. That was done in tbe present case, and it appears the re-sale did not take place until a year and a half after the first default was made. But it is not for us to pass upon the sound policy and wisdom of this law. Such considerations are properly addressed to the legislature, :which has power to repeal or amend it. We can only inquire whether the act as it now stands, is in conflict with any provision of the constitution of this state. And this brings us to the last, and most difficult and important point in the case.
And in entering upon the discussion of this point, I observe, that while I should feel it to be a very delicate and unpleasant duty to. declare an .act of the legislature unconstitutional,.particularly one like that under consideration, undér which, so many sales of real- estate have been made, and so many rights become vested, yet I should feel it to be a duty from which I could not shrink, in a case free from all rational doubt.. But if such a case were not presented, if I can give to the constitution and the law a reasonable interpretation, such an one as will permit the law to stand, I then feel it to be my imperative duty so to do, and declare the law valid. . And this is a rule as I understand of all courts, which will not, in a doubtful case, pronounce an act of the legislature to be contrary to the constitution.. 4 Whea. 625; Cow. 564. But to return to the question, is chapter 24, B. S., in those provisions relating to the sale of the school lands, in conflict with section 8, article 10, of the Constitution of this state ? The first two clauses of that section of the constitution are the only ones which have .any bearing upon the question and read as follows:
" Provision shall be made by law, for the sale of-all the school and university lands, after they shall have been appraised; and when any portion of such lands shall be sold, and the purchase money shall not be paid at the time of the sale, the commissioners shall take security by mortgage upon the land sold, for the sum remaining unpaid, with seven per cent, interest thereon, payable annually, at the office of the treasurer. The com missioners shall be authorized to execute a good and sufficient conveyance to all purchasers of such lands, and to discharge any mortgages taken as security, when the sum due thereon shall have been paid."
What is the obvious meaning, scope and design of this provision ? It evidently contemplates that the school lands, or a part of them, at least, might be sold upon credit; that thel egis-lature, in the exercise of its discretion over them, looking to the situation of the country, the educational interests of the state, and the best method of enlarging the school fund, might thus determine and provide. But what is the nature and kind of the sale here spoken of, and which was contemplated by the constitution to take place ? In its popular and general sense, the word "sale" does not always convey the same precise meaning. We speak of a man's having made sale of his farm, when he has only made a contract to sell. In the above provision the word is used in a more restricted and technical sense. It is here used to denote a transaction, where the fee to the land sold passes out of the state, and becomes absolutely vested in the purchaser. That this is the nature of the sale here spoken of, is apparent from the Context. -For it provides, that when such a sale is made upori credit- — that is, a sale within the purview of its provisions — the commissioner shall take security by mortgage upon the lands sold, for the sum remaining unpaid. Now, the giving of a mortgage, in its general acceptation, implies the conveyance of the légal estate, as security for the payment of a debt. The sale then contemplated by the constitution, and intended to be regulated by it, was a sale, in the absolute sense of the term, where and by which the purchaser becomes completely vested with the legal title to the land sold. And when that took place, and the money was not all paid at the time, then the commissioners were to take security bj' way of mortgage. And why were they required to take a mortgage in such a case ? What was the object and end of the constitutional provision? What evils was it intended to prevent, what mischief to guard against? Was it designed to protect the purchaser of the school lands ? to guard his interests? to establish the mortgage relation between him and tli?. state, for tbe purpose of giving him the benefit of an equity of redemption? Or bad it an entirely other and different object in view ? Was not its main, its primary, its only object, the protection of the school fund? to guard that from being squandered and lost? to prevent the legislature from making any provision for the sale of the school lands upon credit, without having, at least, the land sold as security for the debt? Otherwise, the legislature might have provided for the sale of the lands upon credit, permitting personal security to be taken, or security upon lands where the title was doubtful, or of less value than those sold. Hence, this restriction upon the legislature and the commissioners, that when the lands should be sold upon credit, and the title pass out of the state, and become fully vested in the purchaser, a mortgage, by way of security, should be taken upon the lands sold. Such seems to be the meaning, scope and end of the constitutional provision. Does the statute violate it as thus interpreted ?
A material distinction will be at once noticed between the sale contemplated by the constitution, and the one which takes place under the provisions of the statute. For though by the statute the school lands are sold upon credit, and though the word " sale " frequently occurs in the statute, yet that word has a different signification in the statute from what it has in section 8, article 10. This is manifest from the connection in which it is used. The sale made under the statute is not attended with the same legal consequences as the one spoken of in the constitution. The fee to the land does not pass by it to the purchaser; it remains in the state. Section 19 says: " The title or fee of all school and university lands shall remain in the state until patents shall issue for the same, and no such patent shall issue except upon full payment of the purchase money and interest." By the sale mentioned in the constitution, the purchaser acquired, or would acquire, a perfect title to the lands — the right of possession and the right of property. He would be the substantial owner of the land, and might exercise the rights of an owner over it, providing, of course, he did not commit acts of waste. But I think the estate acquired by the certificate of sale is infe rior to that of a mortgagor. He bas tbe right to the possession for the purpose of cultivation and improvement. But this right is liable to be forfeited under the act, and by the very terms of the certificate, upon default in paying principal or'interest, or taxes, as they become due, or thirty days thereafter. Section 24 would likewise seem to limit and qualify this estate. See also section 106. But, however this may be, I think the nature of the sale provided for under the statute different from the one contemplated by the constitution, and to which the constitutional inhibition applies.
Furthermore, it seems to me that the main purpose, the great objects of the constitutional provision, are completely accomplished by the statute. If, as already observed, that object were the preservation of the school fund, holding the land as security for the sum due, that end is fully obtained. The state does now hold the lands as security until all is paid. The means of security proposed by the statute, are less expensive, equally safe, and in all respects for the state, more desirable than the giving of a conveyance and taking a mortgage. The situation of the purchaser might have been better, and his interests more secure, if upon the sale, the lands had been conveyed to him in fee, and a mortgage taken by the state. But the school fund, and the interests of the state, would not be as well protected as now; and should the law be declared unconstitutional for that reason ? Is it a good and solid objection to the validity of this law, that it proposes a method of disposing of the school lands, equally, if not more, efficacious and safe, and as fully accomplishing all the objects of the constitution as the method prescribed in that instrument? It will not be denied that 'in the absence of this constitutional inhibition, the legislature might have made any provision for the sale of the lands it had deemed proper, applying the proceeds to the purposes of the grant. Its power over them is now restricted, so that they cannot be sold upon credit, transferring the title, without taking mortgage security.
It would be fatal to the complainant's case to hold this act unconstitutional, and the sales under it null and void. He derives title from a sale under the act, and if that should fall, his rights wceuld fall with it. To escape this inevitable conclusion, be is forced to maintain that the law is not wholly unconstitutional, but is rather an act of imperfect.legislation; that the legislature having acted upon the subject matter and attempted to make provisions for the sale of these lands, but not having conformed in all respects to the requirements of the constitution, it is in the power of this court, and its duty, to supply the defect and effectuate the objects of the constitution. I have already stated that I conceive these objects more fully attained by the statute. But suppose I am wrong, it is not very intelligible to my mind how this , court can supply the defect. It possesses no legislative power. That is vested in the legislature. To the legislature also belongs the duty of making provision for the sale of the lands. If it has acted imperfectly, can the court interfere and make a law for it ? Can this court say, "true, the legislature has attempted to make provision for the sale of these lands, but has failed," or not made a suitable provision, and therefore I will make it ?" It is said to be analogous to a ease where equity aids a defective execution of a power in order to effectuate the intention of the parties. Courts of equity do this undoubtedly, so that the manifest intention and object of the parties may not be defeated by any blunder or mistake they have made. I do not think the analogy holds good, for the reasons already suggested. .But suppose it does, and that it is competent for. the court, not only to expound the law as it is, but to give it new scope and import, as it conceives it should have ; is the attitude of the complainant's case improved if we hold the sales under the act good, and- that the certificate of sale stands at once in place of a deed conveying the fee and a mortgage-for the purchase money ? If the certificate of sale is considered to be an equitable .mortgage, is there not upon the re-sale a statute foreclosure of the equity of redemption ? True, the statute says nothing about foreclosing an equity of redemption. The statute goes upon the idea that the certificate is rather a contract of sale, than an absolute sale and conveyance of the title: that the fee remains in the state until the patent issues. But by the re-sale it does most clearly profess to to cut off and bar all the rights and interest of the purchaser under the certificate, whatever those rights may be. If upon the re-sale the land brings more than sufficient to pay the amount due upon the certificate, interest, costs and five per cent, damages on the purchase money, the residue goes to the original purchaser. Sec. 17. The act also provides that he shall be paid for his improvements upon the land. Secs. 24, 30, 31, 45, 46. Rut it seems to me that all his rights, legal and equitable are barred and cut off under the act by the re-sale, so that in whatever light I view the case, it seems to me the decree of the court below in dismissing the complainant's bill, must be affirmed, with costs.