Holt v. Manuel

54 S.W.2d 66, 186 Ark. 435, 1932 Ark. LEXIS 350
CourtSupreme Court of Arkansas
DecidedOctober 31, 1932
Docket4-2693
StatusPublished
Cited by6 cases

This text of 54 S.W.2d 66 (Holt v. Manuel) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holt v. Manuel, 54 S.W.2d 66, 186 Ark. 435, 1932 Ark. LEXIS 350 (Ark. 1932).

Opinion

Btjtleb, J.

On May 5, I960, Dr. Charles S. Holt entered into a contract with the duly authorized agent of the appellees for the purchase of a lot with the building situated thereon in the city of Fort Smith, for the sum of $35,000. The property was incumbered by a mortgage which the purchaser was to assume, the balance of the purchase price to be paid in cash with a deposit made at the time of the execution of the contract of $1,000' with Eugene Henderson, agent of the sellers, which sum was to be held by him until the consummation of the sale or to be returned if tbe sellers failed to carry out the contract. In the contract was the following stipulation: “Seller to furnish a warranty deed and abstract showing good merchantable title and property free of incumbrances except as above specified. Purchaser’s attorney shall have at least ten days in which to examine the title prior to closing.” The abstract of title was promptly furnished by the sellers, which was examined by the attorney of the purchaser within the ten days, who gave it as his opinion that the title was defective. After conferring with another attorney who advised that the opinion of the examining attorney should be accepted, the purchaser immediately notified the agent of the sellers that he would not take the property and complete the purchase. Suit was instituted by the sellers in the chancery court in order to remove the objections made by the attorney who examined the title. This suit proceeded to judgment, after which the attorney pronounced the title good, and, the purchaser still continuing to refuse to complete the purchase, an action was instituted against him for specific performance of his contract.

Several questions were raised in the court below which are argued here, but which we think it unnecessary to consider because it is our opinion that the title tendered by the sellers was a merchantable one, and that the decree for specific performance is correct, regardless of the grounds upon which the chancellor based his conclusion. There is a unanimity of opinion as to what constitutes a merchantable title, but courts having that question before them have given various definitions of what is deemed to be such. In all of these, however, in the final analysis a merchantable title is held to be one which imports such ownership as enables and insures to the owner the peaceable control and use of the property as against every one else. It imports something more than a title which might ultimately prove impervious to assault. This court has approved the following definition of a merchantable title: “A marketable title is one that is free from reasonable doubt. There is reasonable doubt when there is uncertainty as to some defects appearing in the course of its deduction, and the doubt must he such as affects the value of the land or that mil interfere with its sale. ” Griffith v. Maxwell, 63 Ark. 548, 39 S. W. 852. And in Fenner v. Reeher, 148 Ark. 553, 230 S. W. 581, we quoted with approval the following: “The court will never compel a purchaser to take a title where the point on which it depends is too doubtful to be settled without litigation, or where the purchase would expose him to the hazard of such proceedings; or, as it is usually expressed, it will not compel him to buy a lawsuit.” To the same effect is the holding of the court in a number of subse-craent cases which were approved and restated in Crow Creek Gravel & Sand Co. v. Dooley, 182 Ark. 1009, 33 S. W. (2d) 369.

There was a large estate embracing the parcel of land in controversy left in trust by the will of the ancestor to the appellees and others. Suit was instituted in the chancery court of Sebastian County for the purpose of terminating the trust and vesting the title freed from it in the devisees in the will and their descendants, and for partition. One of the original devisees, Edward T. Hurley, had died before the institution of the suit, leaving a widow, Mrs. Lena Hurley, and two children, Edward Thomas Hurley and Hilda Jean Hurley, both of whom were minors under the age of fourteen years at the time of the institution of the suit and the owners of an undivided interest in the estate, and who are still minors. In that suit a decree was rendered terminating the trust, decreeing partition, and appointing commissioners who allotted to the minors a certain portion of the estate and the lot in question to the appellees. The alleged defect in that title was because, as it is claimed, the minor heirs were not properly served with process in that case as appeared from an examination of the original papers and decree. The examining attorney, in his letter to the appellant disapproving the title, said: “The decree shown at sheet A-2 (referring to the abstract) recites that there was proper service of summons on these two minor defendants. Bnt, upon examining the return of service of said summons, I find that that recital is not correct. The sheriff’s return of service indorsed on the summons fails to show that the summons was served on the minors in the manner prescribed by the statute. The question raised may be a close question of law. But, in the absence of proper service on the minors, I do not think that the proceedings in said suit and the partition of the property pursuant to said proceedings are binding upon said minor defendants. ’ ’

The return upon which the attorney based his opinion is as follows:

"State of Arkansas,

"County of Sebastian.

"I have this 2d day of September, 1922, duly served the within summons by delivering a true copy thereof to each of the within named, C. L. Hurley, Annie Hurley, Harold Hurley, Mary Hurley Magruder, Edna Hurley, Mrs. Lena Hurley, widow of Edward T. Hurley, Hilda Jean Hurley and Thomas Edward Hurley, in the Fort Smith District.

"Blake Harper, Sheriff.

‘ ‘By A. J. Berry, Deputy. ’ ’

Indorsed: "Returned and filed this 12th day of September A. D., 1922.

"S. A. Lynch, Clerk.

"By Claude Hoffman, D. C.”

The important question in this case is this: Is the state of the record in the decree ordering partition, and which is a link in appellee’s chain of title, sufficient to create a reasonable doubt as to the sufficiency of the title ? It is not sufficient to create a reasonable doubt that the owner might be exposed merely to idle litigation, but it must be a reasonable apprehension that the purchaser-taking the title might be subjected to litigation of a substantial nature from which his title might be placed in jeopardy. In determining whether or not reasonable doubt exists, it appears to be the general rule that the opinion of an attorney that the title to property is bad is not sufficient to raise such a doubt, although., as in the instant case, the attorney may he one of admitted standing and ability. Such opinion that the title is invalid, if erroneous, will not justify the purchaser in receding from his contract. LeRoy v. Hornwood, 119 Ark. 418, 178 S. W. 427; Lone Rock Bank v. Pipkin, 169 Ark. 491, 276 S. W. 588; Tudor v. Bank of Lincoln, 184 Ark. 1110, 44 S. W. (2d) 1091; Montgomery v. Pacific Coast, etc., 94 Cal. 284, 29 Pac. 640, 28 Am. St. Rep. 122; Buchan v. G. A. L. Co., 180 Ia. 911, 164 N. W. 119, L. R. A. 1918 A., 84; Brackenridge v. Claridge, 91 Tex. 527, 44 S. W. 819, 43 L. R. A. 593.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vaughn v. Morris
671 S.W.2d 195 (Court of Appeals of Arkansas, 1984)
Baugh v. Johnson
641 S.W.2d 730 (Court of Appeals of Arkansas, 1982)
Union Investment Co. v. Hunt
59 S.W.2d 1039 (Supreme Court of Arkansas, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
54 S.W.2d 66, 186 Ark. 435, 1932 Ark. LEXIS 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holt-v-manuel-ark-1932.