Ex Parte Wallace Wallace Chemical Oil

417 So. 2d 940, 1982 Ala. LEXIS 3094
CourtSupreme Court of Alabama
DecidedApril 16, 1982
Docket80-797
StatusPublished
Cited by4 cases

This text of 417 So. 2d 940 (Ex Parte Wallace Wallace Chemical Oil) 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
Ex Parte Wallace Wallace Chemical Oil, 417 So. 2d 940, 1982 Ala. LEXIS 3094 (Ala. 1982).

Opinion

PER CURIAM.

On August 14, 1981, an application for writ of prohibition, or in the alternative, writ of mandamus to the Honorable James A. Avary, Circuit Judge of Macon County, Alabama, was filed in this Court. In its [941]*941application, Wallace & Wallace Chemical and Oil Company (Wallace) would have the Honorable James A. Avary (Court) desist from asserting jurisdiction over its property and be required to vacate and annul an order of July 21, 1981, and the lis pendens recorded pursuant thereto. On March 5, 1982, we denied relief, without opinion, to the petitioner. Ala., 416 So.2d 1017.

On March 19, 1982, petitioner filed an application for rehearing wherein it was pointed out, for the first time, that on December 10,1981, the Circuit Court of Macon County entered a decree in the severed portion of Segrest v. Gregg, et al., and failed to grant any relief against Wallace, but left the lis pendens untouched. Wallace claims that it is in a dilemma. It says it cannot appeal because it is not a party in the proceedings below and we have denied mandamus. The Court counters by saying that Wallace can get all the relief it is entitled to after the trial on the cross-claim in the remaining severed portion of the Segrest v. Gregg, et al. case. At this juncture, we believe that the Court’s response that Wallace can have all the relief it is entitled to on its cross-claim begs the question. The cross-claim should never have been required in the first place. We are constrained to grant Wallace’s petition.

A clear understanding of the facts in this case is crucial. In the early 1970’s, Wallace began negotiations with the City of Tuskegee, Alabama (the City), to acquire the Old Sharpe Airbase property, consisting of about 2,000 acres, to construct an oil refinery. On May 24, 1974, as a result of its efforts, Wallace was able to persuade the Industrial Development Board of the City of Tuskegee (Development Board) to give Wallace an option to buy the airbase property for the refinery project at a price of $150.00 an acre. Allegedly, the true market value of the property was approximately $750.00 an acre. The City intended the low price to be an inducement for Wallace to locate an industrial project in the Tuskegee area. The option signed by Wallace and the Development Board contained a provision that if the property was not used for industrial purposes, or if Wallace did not expend $25,000,000.00 toward the construction of a refinery, the property would revert to the Development Board.

In August 1979, Wallace indicated to the Development Board that it could not obtain the necessary financing to construct a refinery with the restrictions contained in the option. It documented its claim with letters from engineers, designers, and financiers.

On September 10, 1979, the Development Board deeded the property subject to the option to Wallace for the sum of $282,-963.75. Wallace paid the Development Board this amount. The deed of the Development Board to Wallace contained none of the restrictions Wallace’s engineers, designers and financiers had complained about. Included in the conveyance was property formerly owned by Nora Segrest and Henry Claude Segrest.

On September 13,1979, the Segrests filed suit against the City (Segrest, et al. v. Gregg, et al), claiming that neither the City nor its Development Board had authority to convey property which they had deeded to the City on June 6, 1961, because the deed conveying said property to Adometic Research Center, Inc., a Corp. (Adometic) contained a reverter clause. This clause provided in substance that in the event Adometic did not use the property for business activities directly related to the work of Adometic, the grantors would have the right to purchase said property at the best price Adometic was offered by a bona fide offeror. Adometic did not use the property for the purposes conveyed, but conveyed it to the City of Tuskegee in 1968 and the Segrests contend that said deed conveyed the property subject to the reservation in them as above described. The total amount of land involved in this litigation was 461.37 acres and (to purchase the property) the Segrests tendered a certificate of deposit in the amount of $69,250.50.

Although we do not have the entire record in this case, the facts agreed upon in the pleadings filed by counsel in this court lead us to the conclusion that we have suffi[942]*942cient agreed upon facts to reach a decision on what we consider the controlling issue. After the Segrest litigation was filed, Wallace was added as a defendant merely because it held the record title to what was once property held by the Segrests. The Development Board was also added as a defendant. The parties all agree that at no stage of the litigation have the Segrests attempted to make a claim to any of the property owned by Wallace other than the 461.37 acres they deeded to Adometic in 1961.

The only possible involvement of Wallace’s other lands in the Segrest litigation arises from a cross-claim filed by Wallace on September 22, 1980, and the answer thereto, filed by the Development Board and the City on the same date. A careful reading of the cross-claim and answer would indicate that this cross-claim sought to draw into issue the validity of the Board’s conveyance of property to Wallace on September 10, 1979. We say this because of the language in paragraph six of the cross-claim:

A justiciable controversy exists between Wallace on the one hand and the Board and the City on the other hand arising out of our [sic] relating to the conveyances described in Paragraphs 4 and 5 above as to the validity of said conveyances and/or the limitations, if any, upon the right of Wallace to use and develop said real estate subject to the rights, if any, of the plaintiffs as asserted in the complaint as amended.

These deeds conveyed to Wallace property other than the Segrests’.

But consider what provoked the filing of this cross-claim. The Court in its answer said it “.. . did not go on a ‘witch hunt’ to stir up this issue; the validity of the Wallace deed leaped from the pleadings and exhibits in the Segrest case .. . [it] could not be ignored with the transaction and parties already before the court.”

In its answer it went on further to say:

There are substantial issues involved in this matter, involving 2,000 acres of industrial property which is an irreplaceable asset for the City of Tuskegee and its citizens. There exists a very real possibility that that asset may be irretrievably lost, and Respondent is merely trying to minimize the possibility of such a loss.

The Court in its answer admits that the cross-claim was not the creature of Wallace, the City, or the Development Board. In the court’s answer it said:

[T]he Court instructed the defendants in the Segrest suit (the Development Board and Wallace) to file a cross-claim, putting in issue the legality of deed from the Development Board to Wallace. After several conferences with attorneys for the parties, it was agreed in substance that an existing land-use plan by Llewel-yn & Davies would be judicially imposed on the Airbase property, and that Wallace and subsequent owners would be bound by the land-use plan unless excused therefrom by the Court upon a showing of special need. (Emphasis supplied.)

The Court said in its answer that its approach to the problem was dictated because of several things, one among which was:

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Related

State Department of Revenue v. Wyatt Oil Co.
886 So. 2d 817 (Court of Civil Appeals of Alabama, 2003)
Foy v. Foy
447 So. 2d 158 (Supreme Court of Alabama, 1984)
City of Tuskegee v. Segrest
429 So. 2d 922 (Supreme Court of Alabama, 1983)

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Bluebook (online)
417 So. 2d 940, 1982 Ala. LEXIS 3094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-wallace-wallace-chemical-oil-ala-1982.