Gibbs v. Ewing

113 So. 730, 94 Fla. 236, 1927 Fla. LEXIS 713
CourtSupreme Court of Florida
DecidedJuly 14, 1927
StatusPublished
Cited by6 cases

This text of 113 So. 730 (Gibbs v. Ewing) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibbs v. Ewing, 113 So. 730, 94 Fla. 236, 1927 Fla. LEXIS 713 (Fla. 1927).

Opinion

Brown, J.

This matter is before us on an appeal, and a motion to dismiss snch appeal from an order made by the chancellor in the court below denying the motion of appellants to vacate and set aside a former order of the court ordering the sale of certain lands and a subsequent order confirming the sale of said lands and to cancel the deed to the purchaser at said sale. The order for the sale of the land was made on October 8, 1923, and the order of confirmation on November 5, 1923. The motion to vacate and set aside such orders was not made until April 16, 1926, about two and a half years after the making of the orders attached. The movants, appellants here, were and are residents of the State of Illinois.

It appears from the motion to vacate that in December, 1914, the Florida Citrus Groves Company, a corporation, conveyed to H. L. Ewing, Trustee, approximately four hundred and seventy (470) acres of land, which included fifty (50) acres of well developed citrus groves land upon which 'there had been set out a grapefruit grove. The balance of the land was practically wild and unimproved. Ewing as trustee was to hold the land in trust for the creditors of the Florida Citrus Groves Company. This deed did not set out the terms of the trust. Later, in the same month, the Florida Citrus Groves Company made another deed to H. L. Ewing, Trustee, to the fifty acres set out in grapefruit, setting forth the terms of the trust, which was for *240 the security of the holders of certain certificates issued and to be issued under the terms of said deed. The Florida Citrus Groves Company thereafter became indebted to Bills, Ewing and Nehf, private bankers, of which bank said H. L. Ewing, Trustee, was president. This firm by incorporation, afterward became the Melbourne State Bank.

In May, 1916, Ewing as Trustee and the Melbourne State Bank filed a bill against the Florida Citrus Groves Company and these appellants and others for the interpretation of Ewing’s responsibilities as Trustee under the deed of December 5, 1914, and to declare the Melbourne State Bank a preferred creditor of the Florida Citrus Groves Company, and to settle priorities between creditors and preferred stock holders, and for the sale of the entire 470 acres. The bill alleged that the defendant corporation had agreed that the indebtedness to the Bank was a preferred claim and entitled to priority. The appellants employed as their solocitor Rufus M. Robbins, who associated with him Jones & Jones. They demurred to the bill. No action was taken on the demurrer. An amended bill was filed without notice in April, 1917. During the course of this litigation the fifty acres of grapefruit grove land was sold, but the four hundred and twenty acres of wild land was not included. Nothing further seems to have been done in this ease after the sale of the fifty acres, and the isssues were never made up nor any testimony taken. After the suit had remained dormant for a long time, some six years, H. L. Ewing, on August 7, 1923, filed in said suit an application to sell the remaining four hundred and twenty acres of land, alleging that by reason of deterioration of improvements on the land, the accrued taxes for which the land had been sold, the costs and the “undisputed prior claims” would more than consume the value of the property, and “that the question in dispute would be matters of no concern.” The motion was sworn to by Ewing *241 but no testimony appears to have been taken. The record shows an affidavit by Ethel F. Taylor, presumably stenographer for complainant’s counsel, that notice of the hearing of said motion had been mailed to Jones & Jones at Orlando and to Rufus M. Robbins at West Palm Beach. Appellants alleged in their motion to vacate that Rufus M. Robbins notified solicitor for complainants that he was no longer in the case and could not accept service for appellants, and that Jones & Jones, who were associated with Robbins, never received any notice whatever. The application was granted, a master appointed, the land ordered sold in October, 1923, and the sale confirmed as above set forth. Nothing further seems to have been done in the case until the motion to set aside these orders and to cancel the master’s deed, was filed as above stated in April, 1926, some two and a half years later. Appellants, Gibbs, Waldron, Gray and Russell, who filed the motion to vacate and set aside said order, were defendants in the original suit. They allege in their motion that the sale of this land was made without notice to them, and that it was not advertised for the length of time required by the order of the court, being advertised for twenty-six days instead of four weeks; that the land was sold for a grossly inadequate price ($500.00) to one M. W. Busey, who was acting as agent for H. L. Ewing and Melbourne State Bank; that in procuring said sale, Ewing had acted fraudulently, alleging in the application that the property was deteriorating in value, when as a matter of.fact it was increasing in value; that the sale was made subject to certain outstanding tax deeds and sales purchased by Ewing and his associates and agents, so as to preclude anyone except the Melbourne State Bank or its agents from bidding upon the same, and was bought in by one M. W. Biisey for $500.00, subject to said tax sales; that the land was worth at least $25,000.00 at that time; *242 that in purchasing Busey was acting for and allowing his name to be used for the use and benefit of the complainants, Ewing and the Bank; that if the sale had been honestly conducted, the property would have sold for a sum sufficient to pay appellants and all the other creditors of said corporation in full whereas the sale was fraudulently made by the Trustee in such a way as to profit him and his bank, who received large sums of money when said property was sold, at the expense of the other creditors for whom he was holding the property in trust; that the Bank was not in fact a preferred creditor; that Ewing as trustee was estopped from setting up himself or his Bank as a preferred creditor.

After the motion to vacate was filed, one Glenn Henley filed his motion to be allowed to intervene in the cause, for the purpose of resisting the motion to vacate, which he objected to as being insufficient on its face, and alleged that he had acquired the lands by a conveyance from M. W. Busey, the purchaser at the master’s sale, and that he had been in possession of the lands since 1923, without any notice or knowledge of appellant’s claims, and had constructed valuable and permanent improvements thereon to the extént of $6000.00 or more, and had entered into various contracts to sell and convey to divers persons parcels of said lands, which were valid and outstanding obligations; that at the date of the execution of the master’s deed to Busey, the market value of the lands was about $3000.00, which was substantially the amount of the purchase price, $500.00, and the outstanding tax claims against the lands which Busey assumed, amounting to about $2500.00; that since his purchase of the lapds they had greatly increased in value. The petition for intervention also alleged that the appellants here had actual knowledge and constructive notice of petitioner’s acquirement of title from Busey, and prayed that certain judgment held by the *243 appellants be decreed to be subordinate to petitioner’s right and title.

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Cite This Page — Counsel Stack

Bluebook (online)
113 So. 730, 94 Fla. 236, 1927 Fla. LEXIS 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibbs-v-ewing-fla-1927.