Hales v. Roper

378 So. 2d 225, 1979 Ala. LEXIS 3206
CourtSupreme Court of Alabama
DecidedNovember 30, 1979
Docket78-706
StatusPublished
Cited by1 cases

This text of 378 So. 2d 225 (Hales v. Roper) 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
Hales v. Roper, 378 So. 2d 225, 1979 Ala. LEXIS 3206 (Ala. 1979).

Opinion

SHORES, Justice.

This is an appeal from an order of the trial court dated January 24, 1979, refusing to set aside a sale of certain properties theretofore ordered sold by the court. The appellants offered no testimony in support of their motion to set aside the sale.

From the record before us, the trial court could have found, and did find, based upon a stipulation entered into between the parties to this litigation, all of whom were represented by counsel, that Hales and Roper were partners in a strip mining venture under which they borrowed large sums of money to purchase land. Title to the land was taken in Hales’ name, but both Hales and Roper were signatories to notes securing loans for the purchase price. After a time, the parties entered into an agreement whereby Roper agreed to sell and Hales agreed to buy Roper’s interest in the properties. The agreement is as follows:

“STATE OF ALABAMA I

I AGREEMENT TO SELL

COUNTY OF DeKALB I MINERAL INTEREST

“THIS AGREEMENT, made and entered into on this the 24 day of January, 1976, by and be-between JOHN ROPER and wife, MADELINE ROPER, hereinafter called Sellers, and PHILIP HALES, hereinafter called Buyer.

“WITNESSETH:

“That for and in consideration of the sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS, and the assumption of certain obligations, the Sellers herewith sell to PHILIP HALES the mineral interests and items appearing on Exhibit ‘A’, which is attached hereto and made a part hereof.

“It is herewith covenanted and agreed that as part of the consideration of this agreement, PHILIP HALES will indemnify and hold harmless JOHN ROPER and wife, MADELINE ROPER, from any and all liability which they may incur as the result of their execution of that certain mortgage and note to Central Bank, N. A., in the amount of FOUR HUNDRED TWENTY-FIVE THOUSAND DOLLARS, dated February 23, 1975, commonly referred to as the mortgage on the Austin property.

[226]*226“PHILIP HALES will indemnify and hold harmless JOHN ROPER and wife, MADELINE ROPER, from any and all liability as the result of their execution of Note No. 24300 to the Sand Mountain Bank, Boaz, Alabama, dated January 11, 1975, with an original indebtedness of ONE HUNDRED THIRTY-SIX THOUSAND DOLLARS.

“PHILIP HALES will indemnify and hold harmless JOHN ROPER and wife, MADELINE ROPER, from any and all liability as the result of that certain note executed by them to the Sand Mountain Bank, Boaz, Alabama, which said note being note no. 26266, dated June 20,1975, for an original amount of SEVENTY-EIGHT THOUSAND SEVEN HUNDRED FIFTY DOLLARS.

“It is understood and agreed between the buyer and sellers that PHILIP HALES will pay down, or has paid down, to the Sellers the sum of TWENTY-FIVE THOUSAND DOLLARS. The Balance of ONE HUNDRED THOUSAND DOLLARS shall be paid to the Sellers at the rate of THREE THOUSAND DOLLARS, per month, for twelve months, beginning January 1, 1976, with the balance being due and payable January 1, 1977. There •is no interest charged by the Sellers to the Buyer and the Buyer may prepay at any time, any amount of the indebtedness, without penalty or interest.

“In conjunction with this agreement, certain other instruments have been executed by the parties. These instruments have been attached hereto and made a part hereof by reference.

“EXECUTED at Fort Payne, Alabama on this the 24 day of Jan, 1976.

“Seller:

/s/ Madeline Roper Madeline Roper

/s/ John H. Roper John Roper

Buyer:

/s/ Philip Hales Philip Hales”

When Hales defaulted on the note, Roper brought this action on the note and alternatively asked for a sale for division of the various parcels of land. When the case was called for trial, the parties, through their attorneys, entered into the following stipulation:

“DECEMBER 12, 1977

STIPULATION

“MR. SCRUGGS:

“Show that the parties by their respective attorneys appeared in open court today and entered the following agreement of facts:

“(1) John Roper is the owner of an undivided one-half interest in and to the surface of the three tracts of land referred to in the deposition.

“(2) John Roper is the owner of an undivided 15% interest in the mineral rights of the ‘eleven forties.’

“(3) The parties make the following agreement in open court: Phillip Hales will give to John Roper a first purchase money mortgage on the surface interest of the three tracts of land referred to in number one.

“(4) The court impresses an equitable lien on the 15% mineral interest of the ‘eleven forties’; said equitable lien to inure to the benefit of the Plaintiff, and stand as additional security for the first purchase money mortgage above.

“(5) The Defendant will pay to the Plaintiff, this date, the sum of five thousand dollars ($5,000.00). The Defendant will pay to the Plaintiff an additional five thousand dollars ($5,000.00) on the 2nd day of January, 1978.

“(6) Within thirty days (30) of the date of this order, the attorney for the Plaintiff will prepare a deed of statutory warranty, deeding the surface interests and the mineral interests to the Defendant, and the Defendant will execute the note and first purchase money mortgage simultaneously.

“(7) The deed presently in possession of the Court will be held by the Court, pending the performance of the agreement herein made today.

[227]*227“(8) The Plaintiffs claim of a sale for division is held in abeyance, pending further orders of the Court, and with the Defendant being given the right to plead further as to the question of the sale for division, insofar as it relates to the 15% mineral interest.

“(9) The gross indebtedness of the Defendant to the Plaintiff will be the sum of eighty-seven thousand, five hundred dollars ($87,500.00), inclusive of attorneys’ fees, but bearing interest at the rate of 8% per an-num, and being payable in twelve (12) consecutive monthly installments, the first regular installment of which is due the 12th day of February, 1978.

“If this settlement order is entered by the Court, then the whole case is over except for one item, that is, that the Plaintiff, Roper, has not dismissed his bill to sell it for division. The reason he hasn’t is the following: Phillip is going to give John Roper a mortgage. If Mr. Phillip Hales doesn’t pay the mortgage, then, Mr. Roper can ask the Court to sell the property for division between the tenants in common, or foreclose his mortgage. That is, advertise it for sale at the courthouse. That is still left open, but it cannot be exercised, that is, Roper cannot sell for division unless Phillip fails to pay. If PhilHp pays the mortgage he owns everything that Roper had in the case. If he doesn’t, then the Court has to sell the property for sale for division, divide it between Roper and Hales, or there could be a foreclosure of the mortgage, which would be a sale of the property at the courthouse. However, insofar as anything in this case might affect Mr. Hales’ right to sue any other party, except Mr. Roper or his wife, that is preserved unto Mr. Hales. He cannot lose any rights.

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Related

Phillips v. Knight
559 So. 2d 564 (Supreme Court of Alabama, 1990)

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Bluebook (online)
378 So. 2d 225, 1979 Ala. LEXIS 3206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hales-v-roper-ala-1979.