Fairhope Single Tax Corporation v. Mitchell

235 So. 2d 829, 285 Ala. 689, 1970 Ala. LEXIS 1099
CourtSupreme Court of Alabama
DecidedMay 15, 1970
Docket1 Div. 554
StatusPublished
Cited by2 cases

This text of 235 So. 2d 829 (Fairhope Single Tax Corporation v. Mitchell) 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
Fairhope Single Tax Corporation v. Mitchell, 235 So. 2d 829, 285 Ala. 689, 1970 Ala. LEXIS 1099 (Ala. 1970).

Opinion

PER CURIAM.

This appeal is by the property owner and lessor, Fairhope Single Tax Colony, from an order of the Circuit Court of Baldwin County in the disbursement of funds paid into court following a condemnation proceeding.

An application dated February 1, 1958, by George J. Mitchell to owner culminated in the lease of subject property, known as the Old Casino property, located on Mobile Bay, for a term of ninety-nine years from date.

This lease and agreement, insofar as its terms are germane to this appeal, provides substantially as follows:

1. That the lessee shall pay to the lessor in semi-annual installments “the annual rental value of said land exclusive of his improvements thereon, to be determined by the said Corporation (appellant) through its Executive Council or Board of Directors, under its avowed principle of so fixing the rentals of its lands as to equalize the varying advantage of location and natural qualities of different tracts and convert into the treasury of the Corporation for the common benefit of its lessees, all values attaching to such lands, exclusive of improvements thereon. * * * ” (Par. Added) ;

2. That the appellant would pay all taxes on the land and would credit on the rent due any taxes paid by the lessee on the improvements and personal property located on the land;

3. That the lessor agreed that no part of the rents paid by the lessee would be appropriated as dividends to its members or any other person, but that all rents would be administered as a trust fund for the equal benefit of those leasing its lands;

[691]*6914. That all lessees would be treated equally whether they were members of the corporation or not;

5. That time was of the essence of the lease and agreement, and all rents not paid within ninety days would be subject to interest at 8% per annum; that the lessor would have a lien on all improvements to secure the payment of rent or any other indebtedness by the lessee to the lessor; that the lessor would be authorized to sell the improvements for the satisfaction of any rent over six months in arrears; and that the sale of the improvements under legal process would work a forfeiture of all rights under the lease;

6. That in the event of dissolution of the corporation and a division of its assets among its members, the lessee, if a member, would be entitled to have the land which he leased included in his portion under certain conditions; and if not a member, could acquire title to the land by paying to the corporation its actual value exclusive of improvements;

7. That the lessor reserved the right to resume possession for public purposes only on payment of the appraised value of the improvements; and

8. That the lessee was prohibited from assigning the lease except to persons acceptable to the lessor.

The application states in substance that the lessee understands the purpose of the Single Tax Corporation to be to prevent anyone profiting from the holding of its land, other than by bona fide use of the same. It provides for the procedures to be had in the event of a disagreement as to the application of those principles in the event of a transfer by the lessee and recognizes that the corporation shall have preserved to it all value due to demand for the land exclusive of improvements; and the applicant pledges that he will not oppose the full application of the principles set forth in the Constitution of the corporation.

The condemnation proceeding was filed •in the probate court by the City of Fair-hope, a municipal corporation, and proceeded routinely to judgment with an award by the commissioners 'of $24,750. Lessees (appellees here) appealed to the circuit court requesting a jury trial. This resulted in an award for $25,000 which was paid into court.

Thereafter appellant, lessor, filed a claim for the entire amount, asserting that the lease, at the time of the filing of the application to condemn and at the time of the taking, was “void and of no force and effect in that the Respondents George J. Mitchell and Barbara Valias Mitchell had defaulted in the payment of rents due under the terms and provisions of said lease.”

The lessees filed a pleading entitled Answer and Claim. Here the contention regarding nonpayment of rent and forfeiture of the lease was denied. The claim was here asserted for the entire $25,000 based upon construction that under the terms of the lease the owner (appellant) held title to the property as a trustee for the benefit of lessees.

The court, without a jury, heard the evidence and on May 14, 1968, decided the issues as follows:

“FINAL JUDGMENT:

“This cause coming on to be heard upon the claim of Fairhope Single Tax Corporation, and the claim of George J. Mitchell and Barbara Valias Mitchell, and the testimony of the witnesses heard ore tenus in open Court, and the Court having considered the same, it is, therefore, ORDERED, ADJUDGED AND DECREED by the Court as follows:

“1. That the said George J. Mitchell and Barbara Valias Mitchell, shall have and recover the sum of FIFTEEN THOUSAND DOLLARS ($15,000.00) as compensation for their leasehold interest and for the value of the improvements situated thereon.

“2. That the said Fairhope Single Tax Corporation shall have and recover the sum [692]*692•of TEN THOUSAND DOLLARS ($10,-'000.00) as and for its interest in said lands.

“3. That the remaining costs of these proceedings be prorated between Fairhope Single Tax Corporation and the said George J. Mitchell and Barbara Valias Mitchell on the basis of their recovery in this cause, being two-thirds to be paid by George J. Mitchell and Barbara Valias Mitchell, and one-third to be paid by Fair-hope Single Tax Corporation.

“DATED at Bay Minette, Alabama,
this 14th day of May, 1968.
“/s/ Telfair J. Mashburn Circuit Judge
“Filed: 5/14/68
“Alice J. Duck, Clerk”

Appellant here makes two assignments of error. The first charges error in that part •of the final judgment awarding tenants $15,000 “as compensation for their leasehold interest and for the value of the improvement situated thereon.”

The second assignment was the award of $10,000 to appellant for its interest in the lands.

We first consider the motion of appellees to dismiss the appeal. The contention is made that the transcript was not timely filed in this court. We do not agree. The certificate of the official court reporter filing the transcript of the testimony is dated November 14, 1968. Sixty days would therefore expire on January 13, 1969. The thirty-day extension order signed by the trial judge would expire on February 12, 1969. The transcript was filed with the clerk of this court on February 3, 1969, and was therefore timely filed.

The motion to dismiss is overruled.

Appellant corporation was organized under the authority of Title 10, Article 9, § 168, 1958 Recompiled Code of Alabama. Its legality was upheld by this court in Fairhope Single Tax Corporation v. Melville, 193 Ala. 289, 69 So. 466.

Apparently, all of the leases contained uniform provisions for payment of the annual rental value of said land exclusive of improvements thereon.

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Related

Dothard v. Cook
333 So. 2d 573 (Court of Civil Appeals of Alabama, 1975)
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266 So. 2d 286 (Supreme Court of Alabama, 1972)

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Bluebook (online)
235 So. 2d 829, 285 Ala. 689, 1970 Ala. LEXIS 1099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairhope-single-tax-corporation-v-mitchell-ala-1970.