Hadley v. Platte Valley Cattle Co.

10 N.W.2d 249, 143 Neb. 482, 1943 Neb. LEXIS 96
CourtNebraska Supreme Court
DecidedJune 11, 1943
DocketNo. 31552
StatusPublished
Cited by5 cases

This text of 10 N.W.2d 249 (Hadley v. Platte Valley Cattle Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hadley v. Platte Valley Cattle Co., 10 N.W.2d 249, 143 Neb. 482, 1943 Neb. LEXIS 96 (Neb. 1943).

Opinion

Yeager, J.

The action here was originally instituted by Orley J. Hadley, plaintiff, against Platte Valley Cattle Company, a corporation, and others, whose names are not here required, and section 4, township 14, range 28, west of the 6th P. M., in Lincoln county, Nebraska, defendants, for the purpose of foreclosing tax liens on the section of land described. The petition was filed on February 9, 1940.

A decree of foreclosure, in accordance with the prayer of the petition and in usual form, was entered on March 21, 1940. In the decree there was an accounting of the amount due plaintiff, and one of the defendants and a cross-petitioner, C. H. W'ilmerding, Trustee, was decreed to have title to the real estate. No question is raised as to the regularity and propriety of the foreclosure proceedings.

On April 27, 1940, which was during the term of court the decree was entered, Birdie Friend, who may be termed an unknown defendant, served with process by publication, and who was denominated in the district court a cross-petitioner and here as appellee, filed an application to set aside the decree on the ground that she was the fee simple owner of the real estate and so that she might contest the claimed title of Wilmerding. On the same date she filed an answer and cross-petition which described and declared her claim. On May 1, 1940, her application was granted and the decree was vacated and set aside. On April 16, 1942, an amended [484]*484and supplemental answer and cross-petition was filed by Birdie Friend. On May 2, 1942, defendants Noel Cover and E. J. McAdams filed appropriate responsive pleadings to' those of Birdie Friend which were denominated answer to cross-petition and reply to answer of Birdie Friend. E. J. McAdams was successor-trustee to C. H. Wilmerding. No other parties appeared in the proceedings.

On July 27, 1942, after trial, decree was entered which, to the extent necessary to be set forth here, foreclosed the tax lien of plaintiff, quieted title in Birdie Friend subject to her rights under the decree of foreclosure of tax liens and subject to the right of Noel Cover or E. J. McAdams to pay $5,086.45 with interest at 6 per cent, from the date of the decree, which amount was necessary to satisfy the tax lien of plaintiff and to pay the balance due on a contract of sale which Birdie Friend held as assignee and fee simple title holder from the Platte Valley Cattle Company. From this decree Noel Cover and E. J. McAdams have appealed and in their appeal contend that Birdie Friend has no interest in this land but that E. J. McAdams through Noel Cover has title thereto by adverse possession and by purchase.

For the purpose of determining the issues in the case it becomes necessary to trace various transactions involving this real estate from a date when title to it was indisputably in the Platte Valley Cattle Company. We start with May 9, 1917. On this date the Platte Valley Cattle Company by written contract agreed to sell the real estate to one Edward L. Jones for $3,200. Payments on the contract brought the balance of the purchase price down to $2,300 in May, 1922. No further payments have ever been made on the contract. The contract was duly recorded April 8, 1918, and required that the purchaser pay the taxes. On February 11, 1918, Edward L. Jones assigned the contract to James G. Deets. This contract was also recorded on April 8, 1918. On August 12, 1918, James G. Deets assigned the contract to Noel Cover. This assignment was recorded August '30, 1918. On November 18, 1938, Noel Cover gave C. H. Wilmerding, Trustee of Armour & Company, a deed to the land to se[485]*485cure indebtedness to Armour & Company. Cover remained continuously in possession thereafter according to his testimony.

On June 21, 1920, the Platte Valley Cattle Company, as vendor, assigned the contract to Birdie Friend. On the same day it conveyed title to her by warranty deed. This deed was recorded on June 5, 1941. Prior to the date of the recording of this deed the name of Birdie Friend did not appear in the chain of title to this land.

In the assignment of contract of purchase from Jones to Deets the Platte Valley Cattle Company was named as the vendor in the contract. In the assignment from Deets to Cover the Platte Valley Cattle Company was mentioned in the following words: “First party agrees to place in escrow in the Maxwell State Bank, Maxwell, Nebraska, an assignment from Platte Valley Cattle Co., to Noel Cover, second party, to be taken up when said deed is taken up.”

The contract from the Platte Valley Cattle Company and the one under which, by assignment, Noel Cover went into possession, contains the following provision: “In case the said party of the second part shall refuse, neglect or fail to pay said purchase money and interest as above stated and agreed, he shall forfeit any and all rights in and to said real estate acquired under and by virtue of this agreement, and shall henceforth be deemed mere tenants at will under the said party of the first part and be liable to be proceeded against under the provisions of an Act regulating proceedings in cases of forcible entry and detainer, and the acts amending the same. And any payments that shall have been made, shall become forfeited to the party of the first part, as stipulated damages for the nonperformance of this contract.”

From this state of the record it appears that if Noel Cover, or his grantee, is to prevail he must do so by proof of adverse possession against the Platte Valley Cattle Company, the record holder of title to June, 1941, or Birdie Friend, the fee simple title owner by deed which was not recorded until June, 1941.

[486]*486That the contract was in default from May 9, 1922, is not disputed. By the terms of the contract, from that date Noel Cover became a tenant at will of the title holder of the land and the assignee of the vendor’s interest in the contract, Birdie Friend. This is true since a purchaser of real estate acquires only the title which his grantor had at the time of the sale unless .he purchased the property on the basis of an apparent ownership upon which he was justified in relying. First Nat. Bank of Plattsmouth v. Gibson, 60 Neb. 767, 84 N. W. 259; Holladay v. Rich, 93 Neb. 491, 140 N. W. 794; Hylton v. Krueger, 134 Neb. 66, 277 N. W. 792.

No such right is apparent here. The apparent title was in the Platte Valley Cattle Cofnpany and no claim is even made that any one was entitled to conveyance of title on account of performance of the contract of sale to Jones. The most that Noel Cover claims is that he fully performed his agreement with Deets, his assignor.

Before Noel Cover had the right to claim title by adverse possession against Birdie Friend, he having been in possession under a contract of purchase, it was necessary for him to prove that he had surrendered possession, or by some unequivocal act notified his vendor or the vendor’s assignee that he no longer held possession, under the contract of purchase and that he thereafter for ten years held the land adversely. Schields v. Horbach, 49 Neb. 262, 68 N. W. 524; Perkins v. Potts, 52 Neb. 110, 71 N. W. 1017; Ross v. McManigal, 61 Neb. 90, 84 N. W. 610; Reed v. Wellman, 110 Neb. 166, 193 N. W. 261; Gramann v. Beatty, 134 Neb. 568, 279 N. W. 204; Kennedy v. Gottschalk, 138 Neb. 842, 295 N. W. 813.

The evidence wholly fails to satisfy these essential requirements.

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Bluebook (online)
10 N.W.2d 249, 143 Neb. 482, 1943 Neb. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hadley-v-platte-valley-cattle-co-neb-1943.