Hester v. First Nat. Bank of Russellville

186 So. 717, 237 Ala. 307, 1939 Ala. LEXIS 179
CourtSupreme Court of Alabama
DecidedFebruary 16, 1939
Docket8 Div. 963.
StatusPublished
Cited by14 cases

This text of 186 So. 717 (Hester v. First Nat. Bank of Russellville) 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
Hester v. First Nat. Bank of Russellville, 186 So. 717, 237 Ala. 307, 1939 Ala. LEXIS 179 (Ala. 1939).

Opinion

FOSTER, Justice.

The bill in this case was filed in equity by appellee for the reformation of a mortgage executed on November 21, 1931, by J. F. Swinney and wife to H. H. Hamilton, so that the forty acres intended to be included should be described as in range 12, west, instead of range 13 west, as set out in the mortgage. It alleges a transfer of the mortgage by Hamilton to appellee, and that appellants claim the land under Swinney, and in subordination to the mortgage. Demurrer to the bill was overruled.

Appellants then filed answer alleging that they claim under a tax sale made to one Fletcher Reid on July 5, 1932, on which a deed wras executed by the probate judge on August 20, 1934, under an assessment made to J. F. Swinney as of October 1, 1930, and also that on March 16, 1931, Swinney sold the land to Moreland. So that'the answer alleged that Swinney was the owner on October 1, 1930, but was not the owner on November 21, 1931, when the mortgage which appellee claims was made, and that appellants’ tax title anteceded the More-land sale, and that the mortgage conferred no rights though there might have been a misdescription in it, and that appellee has no right to redeem.

The bill sought to redeem if it be found that appellants had a valid tax title. The testimony does not appear to have been taken before the trial judge. The court reformed the mortgage, expressing the opinion that the tax sale was invalid for the failure to serve notice on the taxpayer; that no notice was given appellant as mortgagee under section 3-109,-Code, so as to limit the time in which redemption must be made by it as such, and that appellants had notice that appellee held a mortgage on the land; that appellants failed to furnish- appellee with a statement of the amount, required to redeem- after timely application, and are therefore taxable with, the costs., The de *310 cree then ordered the mortgage foreclosed in default of paying the debt ascertained, and out of the proceeds decreed payment of the costs and expenses of the sale: then to repay the amount of the taxes paid by appellants and the purchaser at tax sale for the amount due on-that account.

' Swinney and Hamilton were parties but have made no active defense. The Hesters who claim under the purchase at tax $8(16 are appellants. Moreland was not made a party.

There was ample proof of the mistake in the description of the land in the mortgage.

The court does not decree that the tax sale is void, though he expresses the opinion that it is, but holds that whether so or not appellee, the complainant in the trial court, has a right to redeem the land, or that the Hesters are entitled to a lien for their charges, and makes provision for it. The decree makes no reference to the More-land deed. If that deed is valid, complainant has no standing so far as the Hesters are concerned.

If the tax sale was regular and legal the purchaser received a goo.d title, subject to the right of redemption within two years (changed now to three years, — Gen. Acts 1933, p. 74) by the owner, his heirs or personal representatives or by any mortgagee or purchaser of any part of the land, or by any person having an interest in it; and if the mortgagee seeks to redeem and his mortgage is recorded, in addition to the two years, above named, he shall have one year from the date of written notice to him from the purchaser. Section 3109, Code. The change to three years does not affect this transaction.

No such notice was given the mortgagee, and his mortgage was recorded, but as recorded it incorrectly described the land. But notwithstanding such error the court found that the Hesters had notice that it was intended to cover the land in question. See Alabama Mineral Land Co. v. McFry, 236 Ala. 632, 184 So. 192.

That section (3109) of the Code, of course, contemplates a mortgage effectual as such, not just a scrap of paper on which such a form of instrument appears. The mortgagor must have such interest as will pass by the instrument in order that the relation may be created. If the mortgagor has effectually sold and conveyed that interest and has none left in him when the mortgage is made, the mortgagee, obtains no interest in ■ the land which will entitle him to redeem from a valid tax sale. But if the tax sale was invalid, all that the purchaser has is a right to be reimbursed by one who has a right to redeem for such amounts as the law allows under section 3101 or 3102, Code.

J. F. Swinney was in jail when he executed the mortgage and in the penitentiary when the tax sale occurred. His father bought it from the tax sale purchaser, and he and his wife and J. F. Swinney and wife sold and conveyed it to the Hesters in April 1935. The Swinneys had remained in possession in their own right until then, when they yielded possession to Hester who has continuously had possession since then, and did have when this suit was begun. So that they were and are in possession under color of title, though their real title is dependent upon a tax sale.

If that tax sale is good, this appellee has no right to redeem, if the Moreland deed is a valid conveyance. But in litigation between persons ‘not parties to the deed, who assert rights independent of it, they may contradict its terms and show that it is invalid for that the land included was not so intended. Ex parte St. Paul Fire & Marine Ins. Co., 236 Ala. 543, 184 So. 267.

It would hot be necessary as between them first to resort to equity to have the mistake corrected. And in litigation between them in equity, as here, where the deed between other parties is material, one of them may allege and prove its invalidity.

No such question was raised in Stringer v. Kelly, 212 Ala. 565, 103 So. 650, where one was seeking to redeem under sections 10140 and 10141, Code, asserting a secondary right without making a superior claimant a party, -upon allegations that the superior claimant had lost such right.

When proof is made of that fact and otherwise the right to redeem exists, it may be decreed, and if the superior claimant has not lost his right, his controversy is then with the party who had been allowed to-redeem.

So here, when complainant shows without dispute, admitted by Moreland as a witness, that the deed to Moreland included that here in- controversy by mistake of both parties, he shows that it is not in his way to exercise the right. But if thereby the right is perfected and exercised by complainant and Moreland wishes to assert the effect of his deed, his controversy is with *311 complainant and not the Hesters. The outstanding' apparent right in Moreland does not otherwise affect the rights of complainant.

The equity of this bill is not to redeem from a tax sale, nor to quiet title. It is to reform and foreclose a mortgage. So that the mortgagor is a proper party even though he has conveyed his equity. And the mortgagee, though he has assigned the mortgage, is a necessary party unless his assignment conveyed the legal title, and is a proper party if it did. Langley v. Andrews, 132 Ala. 147, 31 So. 469; Pratt City Savs. Bank v. Merchants’ Bank & Trust Co., 228 Ala. 251, 153 So. 185; Prout v. Hoge, 57 Ala. 28; Harwell v. Lehman, Durr & Co., 72 Ala. 344.

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Bluebook (online)
186 So. 717, 237 Ala. 307, 1939 Ala. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hester-v-first-nat-bank-of-russellville-ala-1939.