Edmunds v. Chandler

127 S.E.2d 73, 203 Va. 772, 1962 Va. LEXIS 218
CourtSupreme Court of Virginia
DecidedAugust 31, 1962
DocketRecord No. 5449
StatusPublished
Cited by7 cases

This text of 127 S.E.2d 73 (Edmunds v. Chandler) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edmunds v. Chandler, 127 S.E.2d 73, 203 Va. 772, 1962 Va. LEXIS 218 (Va. 1962).

Opinion

Snead, J.,

delivered the opinion of the court.

This appeal resulted from the entry of two decrees. In the first decree, dated August 3, 1961, the chancellor determined, among other things, that two option and lease agreements between Hattie Lee Chandler, owner of the premises, and Paul C. Edmunds, Sr., lessee, were null and void for the reason that Miss Chandler lacked mental capacity to execute the agreements and bind herself, and that since Edmunds, appellant, acted throughout the negotiations in good faith he was entitled to be placed in statu quo. The second decree, dated September 25, 1961, denied the prayer of Edmunds’ petition for a rehearing.

On March 13, 1961, Sam E. Chandler, committee of Hattie Lee Chandler, filed his bill of complaint against Paul C. Edmunds, Sr., Louise B. Edmunds, his wife, and W. E. Graham & Sons Division of Vulcan Materials Company, hereinafter called Graham. The bill prayed for the rescission of two option and lease agreements for quarrying purposes, dated March 17 and September 1, 1960, entered into between Miss Chandler, owner of a 77.92-acre farm, and Edmunds, lessee. The relief sought was upon the ground that Miss Chandler was not mentally capable of entering into a valid and binding contract on the dates of the execution of the two agreements, and upon the additional ground that Edmunds failed to disclose to Miss Chandler facts known to him and unknown to her which, because of the relationship between them, he was duty bound to disclose. The bill further prayed that the quarrying operations of Graham, which company had subleased the property from Edmunds on a royalty basis of 5 cents per ton, be not disturbed during the pendency of the litigation, but that all royalties which might accrue to Edmunds under the sublease be paid into court until the controversy was decided.

Graham, in its answer filed to the bill, stated, inter alia, that the prayer of the bill did not appear to contemplate affecting any of its rights and asked to be dismissed. In a separate answer, Edmunds denied the incapacity of Miss Chandler and also the charges made against him. The answer of Mrs. Edmunds is not in the record before us. The decree indicates that such was filed, and appellant says in his brief that it stated she was made a party defendant solely because she had executed the sublease of the option and lease agreements along with her husband.

[774]*774The evidence was heard ore tenus and it disclosed these facts:

For several years a rock quarry with rock suitable for highway construction purposes had been sought in Halifax county by interested persons to supply the needs for anticipated extensive road construction in the vicinity. Edmunds, who was not a quarry operator, and two large competing quarry companies, Graham, and Superior Stone Company, were searching for such stone. Edmunds, a resident of the county, had been working in close association with officers of Graham for some time in an effort to secure the rock for Graham. Edmunds was informed that there was rock in the creek bed on Miss Chandler’s farm. After having been shown it by W. A. Chandler, father of Hattie Lee Chandler, Edmunds returned at a later date and discussed with him, his wife Nancy and Miss Chandler the possibility of securing an option to lease the farm for quarrying purposes and terms were agreed upon. Edmunds returned to the farm on March 17, 1960, with a prepared option and lease agreement dated the same day. While there he learned that the property was owned by Chandler’s daughter, Hattie Lee Chandler, instead of Chandler, and the agreement was then changed to conform and was executed. According to Edmunds, he read the agreement to the Chandlers before it was signed. Miss Chandler, who was age 44, willingly signed the document by an “X” mark, witnessed by her father and Herbert Owen. Her mother was also present during the transaction. As agreed to, the contract was left with an officer of a local bank, who was a notary public, before whom Miss Chandler appeared on March 25 and acknowledged her signature.

This agreement, for a consideration of $25, gave Edmunds, among other things, an option to lease the farm for quarrying purposes before April 2, 1961, for a period of 10 years for the sum of $2,000 with an option for an additional 10 year term for a like sum. At this time no one knew the potentialities of the rock.

In the latter part of August, a report on a core test of the rock was favorable, and Graham, sublessee of Edmunds, desired an enlarged option for a total of 40 years, in terms of 10 years each. Whereupon, Edmunds prepared another option and lease agreement, dated September 1, 1960. It provided for the payment of $25 for the option, $2,000 for the first 10 year term, and an option for three additional 10 year terms for $2,000 each. The contract further provided for the additional payment of $100 for each year rock was quarried. Edmunds took the new agreement to the Chandler farm and there discussed with Miss Chandler, her father and mother its [775]*775purpose. The evidence was conflicting as to what was said at the time. In any event, it was executed by Miss Chandler by making an “X” mark, witnessed by her parents. She later acknowledged her signature before the same notary that had taken her acknowledgment to the first agreement.

Further tests showed that the rock on the Chandler farm was grade A. The adjoining farm, owned by C. B. Glascock, had the same strata of rock with less overburden. Graham secured an option to lease it for 5 years without right of renewal. Edmunds, who had subleased his rights to Graham under the Chandler agreements, declined to grant Superior Stone Company an option on his dairy farm because of his close association with Graham.

On November 3, Edmunds notified Miss Chandler by letter that he was exercising the option and enclosed his check payable to her for $2,000, and Graham began operations on the Chandler farm instead of the Glascock farm. At the time of the trial results of the operations exceeded expectations. On November 25, Edmunds mailed his check for $100 for the first year’s operations. These checks were not cashed and were subsequently deposited with the court, along with $50, representing the two $25 payments made for the options, when this suit was commenced.

In December Miss Chandler was examined by Dr. Merritt Foster, a psychiatrist in Richmond. As a result of his findings, the complainant, Sam E. Chandler, was appointed and qualified as committee of Hattie Lee Chandler, his sister, on February 2, 1961. This suit followed.

The record shows that when Miss Chandler was 5 years old, she fell from a fence and injured her head. Thereafter she did not mature mentally. She was not capable of completing the first year in school. She cannot read, write or sign her name.

She worked in a cotton mill in the vicinity for a period of eight years and saved her earnings to purchase a home for herself. She and her mother negotiated for the purchase of the farm in 1947. Miss Chandler bought it for $6,400, and $3,250 of the purchase money was borrowed by her from a local bank. The deed of trust securing the loan was prepared by an attorney-officer of the bank and Miss Chandler signed it by mark. Between 1952 and 1959 she, with the assistance of her mother, sold and conveyed three lots from the farm to separate purchasers and also executed two right of way agreements to the Virginia Electric and Power Company.

Edmunds did not know Miss Chandler prior to his visit to the [776]

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Bluebook (online)
127 S.E.2d 73, 203 Va. 772, 1962 Va. LEXIS 218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edmunds-v-chandler-va-1962.