Alger-Sullivan Lumber Co. v. Union Trust Co.

96 So. 436, 209 Ala. 432, 1923 Ala. LEXIS 491
CourtSupreme Court of Alabama
DecidedMay 10, 1923
Docket3 Div. 588.
StatusPublished
Cited by3 cases

This text of 96 So. 436 (Alger-Sullivan Lumber Co. v. Union Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alger-Sullivan Lumber Co. v. Union Trust Co., 96 So. 436, 209 Ala. 432, 1923 Ala. LEXIS 491 (Ala. 1923).

Opinion

MILLER, J.

This is a suit by bill in equity brought by Alger-Sullivan Lumber Company, a corporation, against the Union Trust Company, a corporation, and others, and is here-for review by this court on second appeal. Alger-Sullivan Lbr. Co. v. Union Trust Co. 207 Ala. 138, 92 South. 254. The former appeal was from a decree sustaining demurrers-to the bill of complaint, and the decree of the lower court was reversed, and the cause remanded. Upon the second trial of the cause the bill was amended, demurrers of defendants -to it were sustained, and from that decree this appeal is prosecuted.

The facts of the original bill are fully stated in the opinion of the court on former-appeal, and it is not necessary for us to repeat them here.

This court on former appeal held there was equity in the bill. All of the defendants are nonresidents, residing in different states. The bill seeks a set-off or recoupment by complainant of compensation due it by contract with defendants for total failure of title and defects in title to land sold it as against the balance of a mortgage debt duo defendants by complainant for purchase money on land growing out of this contract. This alone is sufficient to give the bill equity. Mackintosh v. Stewart, 181 Ala. 328, 61 South. 956. The bill also avers the amount due complainant under the breach of the contract, and avers an amount is due defendants under the mortgage growing out of the contract, and seeks an accounting, cancellation of the mortgage, and injunction to prevent its foreclosure. This gives the bill equity. Whitley & Trimble v. Dunham Lbr. Co., 89 Ala. 493, 7 South. 810. As said by this court on former appeal:

“In the case stated — and such the case is, though complainant misconceives the proper measure of damages — complainant may maintain its hill to establish a set-off, to recover compensation for defects in the title delivered to it, at the same time retaining such title as it has received. Manning v. Carter, 192 Ala. 307, 68 South. 909.”

*434 There is equity in the bill of complaint as amended.

The defendants, except Union Trust Company, contracted in writing to sell and convey, and they did sell and convey, to complainant 45,700 acres of land for $2,000,000, part cash, balance secured by mortgage to the Union Trust Company, payable in bonds of $1,000 each; 150 of the bonds payable annually on the 1st of August of each year from 1913 to August 1, 1922, both inclusive.

In construing this contract and these conveyances and covenants on former appeal, this court held, in substance and effect, that the grantors covenanted that they had and conveyed a good and perfect unincumbered title in fee simple to all the lands contracted to be sold and conveyed to the complainant; that they agreed, if at. any time the complainant would call on them by written notice addressed and delivered or mailed to the president of the First National Bank of La-peer, Mich., to perfect the title to any part of these lands, then they would proceed to perfect the title, either by obtaining quitclaim conveyances or by appropriate judicial proceedings against all adverse claimants; and they further agreed, if they failed thereafter within a reasonable time to so perfect said title to any part of the said lands, then they would refund to complainant, or complainant could fecover of them for each acre of land the title to which shall have wholly failed $43.76 and interest if the timber had not been removed from it, and $5 and interest if the timber had been removed; but for partial failure of title, such as incumbrances or defects less than total failure of Lúe, the complainant could retain the imperfect title and recover .damages “for the diminished value of the title conveyed on account of the incumbrance or defect averred.” Under the covenant and contract $43.76 was the purchase 'price value of the land per acre, including the timber, $5 was the purchase price value of the land per acre without the timber, and the difference between $43.76 and $5 would represent the purchase price value per acre of the timber.

The court held the bill in the -instant case is in substance an action for the recovery of purchase money under the contract for the lands per acre the title to which wholly failed, and which after notice the grantors had failed within a reasonable time to" perfect. The court held the bill in this respect was insufficient, as the complainant failed to offer to reconvey to the grantors these lands which it so held by the conveyance and contract.

The bill was amended to meet this defect in part, and offered to reconvey to the grantors the land described in section 7. The complainant seeks by section 7a to recover the a'greed purchase price for the land described therein on account of defects in whole and in part in the title, which have not been perfected; but it does not offer to reconvey the land to the grantors in which the title wholly failed. It should have done so after the opinion nf this court on former appeal. However, in the amendment the complainant offers to do equity in all respects as it may be required by the terms of the decree df the court, which cures that defect; and the court on final hearing, if complainant is entitled to relief, can protect the grantors by requiring complainant to reconvey that land to them before making them pay it the a'greed purchase price value per acre. Royal v. Goss, 154 Ala. 117, 45 South. 281.

The bill shows that the grantors in the conveyance agreed in writing to convey and sell it a good and perfect unincumbered title in fee simple to the land. The bill further shows they also agreed in writing, if at any time the complainant would call on them by written notice delivered or mailed to the president of the named bank to perfect tne title to any part of these lands, they would proceed to do so. The bill avers that in March, 1913, it (complainant) made a written demand, which was mailed or delivered to the 'president of the bank named, advising that the titles to' certain lands, describing them, were defective, some in whole and some in part, pointing out the defects in the title to the land, and the grantors have failed to perfect the title to the land by obtaining quitclaim conveyances or by appropriate judicial proceedings as the contract provided.

This written demand to perfect the title to the named lands was made in May, 1913, and the bill of complaint was filed September 27, 1920. Was that a reasonable time for the grantors to perfect the title to the lands .named, from May, 1913, to September 27, 1920? The contract provided, after the written demand was delivered, the grantors would have a reasonable time to so perfect the title before they could be required to pay the agreed purchase price value per acre. What is a reasonable time is sometimes a question of fact, and then again it is a question of law. When it depends upon undisputed admitted facts, it is a question of law. Here the facts are averred in the bill, and the demurrers admit the facts. This makes it a question of law, and we hold under the averments of the bill that from May 19, 1918, to September 27, 1920, was more than reasonable time for the grantors to perfect the title to these lands by obtaining quitclaim conveyances or by appropriate judicial proceedings against all adverse claimants. Cotton v. Cotton, 75 Ala. 345; Erswell v. Ford, 205 Ala. 494, headnotes 4, 5, 88 South. 429.

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Related

Mid-State Homes, Incorporated v. Ponds
251 So. 2d 376 (Court of Civil Appeals of Alabama, 1971)
Wolff v. Woodruff
61 So. 2d 69 (Supreme Court of Alabama, 1952)
Alger-Sullivan Lumber Co. v. Union Trust Co.
118 So. 760 (Supreme Court of Alabama, 1928)

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Bluebook (online)
96 So. 436, 209 Ala. 432, 1923 Ala. LEXIS 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alger-sullivan-lumber-co-v-union-trust-co-ala-1923.