Corley v. Vizard

84 So. 299, 203 Ala. 564, 1919 Ala. LEXIS 65
CourtSupreme Court of Alabama
DecidedNovember 27, 1919
Docket5 Div. 721.
StatusPublished
Cited by32 cases

This text of 84 So. 299 (Corley v. Vizard) 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
Corley v. Vizard, 84 So. 299, 203 Ala. 564, 1919 Ala. LEXIS 65 (Ala. 1919).

Opinion

THOMAS, J.

The purport of the bill is that complainant was to reserve in the deed to respondents mineral interests in the lands conveyed, which interest was excepted from the sale by a prior or contemporaneous verbal agreement. It is without dispute that the interests so conveyed were purposely inserted in the deeds by agreement of the parties to this suit. Complainant insists that such interests were included in the deeds in reliance upon the agreement of respondents’ agent, to the effect that respondent would re-convey to him such reserved interests. This agreement being prior to, or contemporaneous with, the execution and delivery of the conveyances, the effect of the insistence now made is to permit complainant to show by parol evidence that the several deeds and covenants therein were purposely made to embrace and extend to lands not actually sold and that the quantum of estate conveyed and warranted be varied by parol evidence.

[1-3] Well-recognized exceptions to the general rule forbidding written instruments to be varied by parol are (by virtue of the statute) that contracts for loans may be shown to be usurious (Lewis v. Hickman, 200 Ala. 672, 77 South. 46; Bates v. Crowell, 122 Ala. 611, 25 South. 217); that the true consideration of the instrument and the date of execution and- delivery may be shown (Formby v. Williams, 81 South. 682, 687 1 ); and that a deed in form may be shown to be a security for debt. The application of the rule to this last exception has not been entirely uniform. For example: The earliest case involved a bill of sale to slaves, unaccompanied by a stipulation as to reconveyance, and the admissibility of parol evidence was affirmed without qualification. Such testimony was admitted to convert the instrument into a mortgage, by proving that the parties intended it to operate only as security, in Hudson v. Isbell, 5 Stew. & P. 67, 75. In English v. Lane, 1 Port. 328, 352, 353, the court said:

“Where there has been a breach of trust, or a fraud committed by setting up a conveyance as an absolute sale, in violation of a parol agreement, expressed and understood between the parties at the same time, that it should operate only as a mortgage, it will be sustained as a mortgage; and this, notwithstanding the answer positively deny the parol agreement, provided it be sufficiently proved, and the mortgagor or vendor has not participated in the fraudulent intent.”

By a later case, the admissibility of parol evidence to show whether a contract in writing is a mortgage or conditional sale, the same containing a written stipulation as to reconveyance, was asserted without qualification. Eiland, Adm’r, v. Radford, 7 Ala. 724, 726, 42 Am. Dec. 610. Later the position was taken that the unrestricted doctrine may not be applied in equity to a conditional sale. McKinstry v. Conly, 12 Ala. 678; Freeman v. Baldwin, 13 Ala. 246.

It has been said that the distinction thus predicated between such classes of transactions has been abandoned in later cases in which the court, without expressly overruling or even referring to its previous decisions, has assumed that contracts which include stipulations as to reconveyance are within the scope of the unrestricted doctrine. Locke v. Palmer, 26 Ala. 312, 324; Brantley v. West, 27 Ala. 542, 552; West v. Hendrix, 28 Ala. *566 226; Pearson v. Seay, 38 Ala. 643, 646; McNeill v. Norsworthy, 39 Ala. 156, 160; Douglass v. Moody, 80 Ala. 61; Perdue v. Bell, 83 Ala. 396, 3 South. 698; Kramer v. Brown, 114 Ala. 612, 615, 21 South. 817; Rose v. Gandy, 137 Ala. 329, 332, 34 South. 239; Hubert v. Sistrunk, 53 South. 819. Cases in which that doctrine has been applied with reference to contracts in which no such stipulations were included are: Robinson v. Farrelly, 16 Ala. 472; Parish v. Gates, 29 Ala. 254, 261; Harris v. Miller, 30 Ala. 221, 224; Sewell v. Price’s Adm’r, 32 Ala. 97, 98; May v. May’s Adm’r, 33 Ala. 203, 205; Wells v. Morrow, 38 Ala. 125, 128; Turner v. Wilkinson, 72 Ala. 361, 365; Rapier v. Gulf City Paper Co., 77 Ala. 126; Glass v. Hieronymus Bros., 125 Ala. 140, 147, 28 South. 71, 82 Am. St. Rep. 225; Harper v. Hayes Co., 149 Ala. 174, 179, 43 South. 360; Harrison v. Maury, 157 Ala. 227, 229, 47 South. 724; Tribble v. Singleton, 158 Ala. 308, 310, 48 South. 481; Copenny y. Southern Realty Co., 174 Ala. 378, 56 South. 721; Sewell v. Buyck, 162 Ala. 496, 50 South. 127; Reeves v. Abercrombie, 108 Ala. 535, 19 South. 41; Lewis v. Hickman, supra; Sewell v. Holley, 189 Ala. 121, 66 South. 506. In the following cases where parol evidence was received in actions at law, this court did not advert to the question of its competency: Sewall v. Henry, 9 Ala. 24 (detinue by vendee in bill of sale to recover personal property after the expiration of the time allowed by statute for redemption of a mortgage); Hopkins v. Thompson, 2 Port. 433 (same action); Logwood v. Hussey, 60 Ala. 417 (action to recover personalty). But in the several cases in which the point has been discussed on the admissibility of parol evidence in actions at law, such evidence has been declared inadmissible. Shriner v. Meyer, 171 Ala. 112, 116, 55 South. 156, Ann. Cas. 1913A, 1103; Bragg v. Massie’s Adm’r, 38 Ala. 89, 106, 79 Am. Dec. 82; Jones v. Trawick’s Adm’r, 31 Ala. 253, 258; Hartshorn v. Williams, 31 Ala. 149. In Bates v. Crowell, supra (in equity, on demurrer), the bill was based upon the ground that parol evidence was not admissible in a court of law to vary an executory contract for sale of personal property, and it was held that the bill contained equity and demurrer properly overruled. For general authorities, see L. R. A. 1916B, 29 et seq.

It may be observed of this last exception that the ground on which a court of equity permits parol testimony to show a' conveyanee absolute on its face to be a mortgage, or was executed upon certain parol conditions or trusts, is that to deny such right on parol evidence would be a fraud to allow the grantee to hold the property discharged of the conditions or trusts, which, by his consent, would attach to the conveyance" and which he has agreed to fulfill, and in equity and good conscience should fulfill. Kennedy’s Heirs & Ex’rs v. Kennedy’s Heirs, 2 Ala. 571; Chapman v. Hughes, 14 Ala. 218; McKinstry v. Conly, supra; Sewell v. Price’s Adm’r, supra; Knaus v. Dreher, 84 Ala. 319, 4 South. 287; Richter v. Noll, 128 Ala. 198, 30 South. 740; Sewell v. Buyck, supra.

It may be of interest to observe that this doctrine was given expression by Lord Hardwicke in Baker v. Wind (1748) 1 Ves. Sr., 160. Parol evidence is admitted in such cases “on the ground that the court has power to rectify the instrument, and that it would be a fraud to insist on the absolute form of the instrument if it were only intended to be a security for money.” Mandell v. Thomas, 1 Q. B. 230.

We have been unable to find a case similar to that made by the instant bill. However, there are analogous decisions by our court. In Thompson, etc., Co. v. Glass, 136 Ala. 648, 654, 33 South. 811, an action of assumpsit, where promises to repair real property were made before the lease, not being independent of and collateral to the lqase, though a part of the bargain to rent, it was held that parol evidence thereof was not permissible to vary the written lease. In Burroughs v. Pate, 166 Ala. 223, 227, 51 South.

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Bluebook (online)
84 So. 299, 203 Ala. 564, 1919 Ala. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corley-v-vizard-ala-1919.