Durham v. Ellis

157 So. 2d 185
CourtDistrict Court of Appeal of Florida
DecidedOctober 18, 1963
DocketNo. 3502
StatusPublished
Cited by2 cases

This text of 157 So. 2d 185 (Durham v. Ellis) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durham v. Ellis, 157 So. 2d 185 (Fla. Ct. App. 1963).

Opinion

SMITH, Chief Judge.

The plaintiff-appellant, Esther M. Durham (also known as Esther M. Ellis) brought suit in chancery to foreclose a purchase money note and mortgage and for an accounting and other relief. She appeals from an adverse final decree entered after hearings on the merits.

In 1945, the appellant (sometimes hereinafter referred to as Esther) was married to the appellee, John S. Ellis (sometimes hereinafter referred to as John). In 1952, John acquired title to a certain parcel of land situated in Okeechobee County. In 1955, this property was purchased by one A. T. Ellis, who executed and delivered to John and Esther a note and mortgage securing the balance of the purchase price in the principal sum of $24,999.96, payable at the rate of $1,666.66 or more per year, with interest at the rate of 3½ per cent per year from date. According to John, he was unaware at the time of the transaction that the note and mortgage were executed to him and his wife. The first note payment was due on May 17, 1956, and the subsequent installments were to be made on or about May 17 of each year. In April of 1956, A. T. Ellis sold the property to Wallace Stevens, who assumed the aforesaid note and mortgage. Wallace Stevens made the 1956, 1957 and 1958 note payments as they fell due. These payments were made by checks payable to “J. S. and Esther M. Ellis.”

In February of 1959, Esther instituted suit for separate maintenance against John. After John answered and counterclaimed for a divorce, Esther amended her complaint to pray for a divorce. While the divorce suit was pending, the 1959 note payment became due. In order to pay this installment, Wallace Stevens executed and delivered his check (payable to “J. S. Ellis and Esther M. Ellis”) to the Okeechobee County Bank for transmittal to John and Esther. This was done upon the advice of T. W. Conely, Jr., attorney for both John and the Bank. This 1959 check was not cashed.

On April 12, 1960, the chancellor entered a final decree of divorce in favor of John. On the question of alimony for Esther, there had been testimony by John to the effect that except for the home place owned jointly by John and Esther, John’s only asset was the balance remaining unpaid on the aforesaid purchase money note and mortgage, which balance was “around $18,-000.00.” The chancellor awarded Esther [187]*187'$6,000.00 as lump sum alimony. A notice •of appeal from the final decree in the divorce case was filed, but the appeal was dismissed on joint stipulation of counsel for the respective parties.

In April of 1960, Wallace Stevens issued a check, payable to John alone, to •cover not only the 1960 installment hut also the previous year’s installment (the 1959 ■check having never been cashed). Wallace Stevens made the 1961 installment by a •check payable to the Clerk of the Circuit ■Court because he heard of the impending litigation of the instant cause between John and Esther. According to Esther, she has received none of the proceeds from the 1958, 1959, 1960 and 1961 installment payments on the note.

On June 1, 1961, Esther filed her complaint in the instant proceedings, seeking to foreclose the purchase money note and mortgage in which she claimed one-half interest. She requested an accounting of the monies allegedly due her under the note and mortgage. As a second cause of action, Esther sought damages for wrongful, fraudulent deprivation of such monies due her, plus interest, costs and attorney’s fees. Named as defendants were John S. Ellis, A. T. Ellis, Wallace Stevens and his wife, Okeechobee County Bank, and T. W. Conely, Jr.

An answer was filed by all the defendants (except A. T. Ellis, against whom a decree pro confesso was entered), and John S. Ellis filed a “counterclaim” against the plaintiff and A. T. Ellis, seeking to reform the note and mortgage by making them payable to himself alone instead of to Esther and himself jointly as husband and wife. After Esther answered the counterclaim, the cause came on for hearing before the same judge who heard and determined the divorce case.

On April 12, 1960, after hearing and considering the testimony and proofs, the chancellor entered his final decree. Foreclosure of the purchase money note and mortgage was denied, the court finding that all installments had been promptly paid or tendered, and that such payments are now in escrow with the Bank, or in the Registry of the Court, or had been received by John. The court found against the plaintiff on her claim that the defendants had fraudulently deprived her of her share of the proceeds of the purchase money note and mortgage, and accordingly denied the relief prayed for on that claim. The counterclaim for reformation was also denied. The chancellor found that the purchase money note and mortgage is owned by John and Esther as tenants in common. On the matter of accounting, the chancellor made reference to the proceedings in the divorce case:

“ * * * In determining what lump sum alimony award should be made to the wife, in view of the wife’s allegations in her complaint, the husband’s testimony concerning the ownership of said purchase money note and mortgage, no testimony being presented by the wife in opposition thereto, and counsel for neither party making any contrary assertion at final hearing, the Court considered the $18,000.00 remaining unpaid on said purchase money note and mortgage as an asset of the husband in its entirety and entered a final decree in the divorce suit * * * requiring the husband to pay $6,000.00 as a lump sum alimony award to the wife. * * *
******
“The Court, through its inclusion of the $18,000.00 remaining unpaid on said purchase money note and mortgage as an asset of the husband in its entirety, in its consideration of the case and in its determination of a fair and equitable lump sum alimony award, has inadvertently, as a matter of law, brought an unjust enrichment to the wife, for had it been drawn to the Court’s attention prior to the entry of the final decree in the divorce suit that, as a matter of law, the husband [188]*188and wife, after entry of the final decree, would own such note and mortgage as tenants in common, the Court would have denied alimony completely * * *.
* ⅝ ⅝ * Jfc ⅜
“Upon consideration, it is
“ORDERED, ADJUDGED AND DECREED That:
“1. The purchase money note and mortgage * * * is owned by the plaintiff, Esther M. Durham, also known as Esther M. Ellis, and the defendant, J. S. Ellis, also known as John Sollie Ellis, as tenants in common, each owning an undivided one-half interest therein, and the plaintiff is entitled to receive one-half of the balance remaining unpaid on said note and mortgage as of April 12, 1960, less $6,000.00, representing the lump sum alimony award in such amount the plaintiff received from John Sollie Ellis through the final decree in the divorce suit, and the defendant, J. S. Ellis, is entitled to receive the other one-half of the remaining unpaid balance on said note and mortgage as of said date, plus the $6,000.00 to be withheld from the plaintiff’s one-half thereof.
“2. The defendant, Okeechobee County Bank, is directed to pay all sums which it holds in escrow to be applied upon the payment of said note and mortgage into the Registry of the above entitled Court by paying same to Haynes E.

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Bluebook (online)
157 So. 2d 185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durham-v-ellis-fladistctapp-1963.