Jemison & Co. v. Ensey

154 So. 553, 228 Ala. 599, 1934 Ala. LEXIS 43
CourtSupreme Court of Alabama
DecidedMarch 29, 1934
Docket6 Div. 250.
StatusPublished

This text of 154 So. 553 (Jemison & Co. v. Ensey) 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
Jemison & Co. v. Ensey, 154 So. 553, 228 Ala. 599, 1934 Ala. LEXIS 43 (Ala. 1934).

Opinion

BOÜLDIN, Justice.

The cause of action is tersely stated in the complaint as follows:

“Plaintiff claims of defendant Five Thousand ($5,000.00) Dollars as damages for the breach of a verbal contract entered into by plaintiff with defendant heretofore to-wit: September 1927, by which defendant agreed with plaintiff to complete and finish, as a tum-key job, within a reasonable time, a certain brick bungalow which plaintiff was negotiating with one S. B. Johnston to buy and which was at the time unfinished and which brick bungalow was upon Lot 222, according to Hollywood Land Company’s Survey, situated in Hollywood, now in the town of Home-wood, Jefferson County, Alabama.
“Plaintiff avers that plaintiff had declined to complete or carry out the purchase of said lot with said unfinished bungalow on same, and defendant agreed to finish same as aforesaid upon consideration that plaintiff would complete said trade and pay to it certain money, to-wit: Fifteen Hundred ($1500.00) Dollars, and also quit-claim to it certain strip of five feet in part of said Lot No. 222.
“Plaintiff avers that although he, the plaintiff, complied with all the terms of said contract upon his part, the defendant has failed to finish said bungalow as aforesaid.”

Then follows alleged damages. Pleas were in short by consent.

The main question raised on this appeal is the identity of the party making the contract to complete the residence for the plaintiff.

The question is raised by the affirmative charge refused to defendant, and on motion for new trial directed to the weight of the evidence.

Plaintiff claims his contract was made with Jemison & Company, Inc., while defendant claims it was made with Jemison Mortgage & Trust Company.

These are separate corporate entities, and the cause was submitted to the jury on the theory that one or the other, and not both, was bound by fhe contract.

Without dispute the contract was made with A. B. Tanner, who was at the time vice president of both corporations. Assuming, for the present, his authority to act for either in making such contract, we may say in short the evidence is in conflict as to which corporation he was acting for, and the affirmative charge was properly refused.

We deem it proper, however, to present as briefly as may be the picture disclosed by the record as affecting the sufficiency of the evidence to support the finding of the jury, and the authority of Mr. Tanner to bind Jemison & Company.

There were several affiliated corporations doing business in the same offices in the Jemison Building- in Birmingham.

The letterhead in use was this:

“THE JEMISON COMPANIES
“JEMISON & COMPANY, INC. - JEMISON REALTY COMPANY, INC.
“Mortgage Loans Real Estate and Rentals.
“JEMISON MORTGAGE AND TRUST COMPANY
“Investment Bankers “BIRMINGHAM, ALA.”

Names of officers were listed on the margin, among them, A. B. Tanner, vice president and treasurer.

The board of directors and officers of Jemison & Company and of Jemison Mortgage & Trust Company were the same 'men.

This lot 222 in Hollywood was owned in the first instance by Mrs. Ramona M. Cree-don. She and her husband, J. F. Oreedon,. *601 had entered upon rather an extensive business, buying, building, and selling residence property in the Birmingham area.

Jemison & Company had made mortgage loans to them in large amounts, among them a first mortgage on this lot for $9,800. While the residence was still uncompleted, the Creedons sold the property to S. B. Johnston, who gave a second long term installment mortgage of $2,200. The Creedons were to complete the residence. Thereafter, the plaintiff, Ensey, negotiated with Johnston for the property, and before closing the deal the Creedons executed a deed of trust to Jemison Mortgage & Trust Company. The occasion and general purpose of the trust are shown in the opening paragraphs of the trust deed as follows:

“The owner has over a period of months been i>urchasing parcels of real estate and •contracting thereon residences and other structures for sale. The contracting work .and work of construction in connection therewith has been done by the owner’s husband, J. F. Creedon, as agent for the owner, with full power and authority from the owner to •said J. F. Creedon to act for and in her behalf in any and all matter-s pertaining to said business.
“At the present time the owner is largely indebted for bills for materials purchased for use in the construction of said houses, and in the construction of houses for third parties by the owner as contractor acting by and through her said agent, J. F. Creedon, and her indebtedness on this account has become so intensive that she is under some difficulty in carrying to completion some of the houses under construction, and her title and the title' of the mortgagees who have advanced money to the owner on mortgage liens against the owner’s property is in danger •of impairment by the filing of materialmen’s liens against all or some part of the structures so built or under construction. Said indebtedness has been variously incurred in the name of the owner, of said J. F. Creedon, and of Creedon and Meadows.
“The owner desires to secure the best possible result in the completion and sale of the said structures with a view to payment in full of all materialmen’s claims and all claims of any creditors of the owner and proper protection of said mortgagees and of the owner in her equity in the property, and to that end desires the Trustee to make and hold the property herein described as Trustee under the terms and provisions hereof.”

The deed conveyed to the trustee many lots and parcels of land shown in schedule No. 1, and personal assets in schedule No. 2.

Lot 222 was not listed in the lands conveyed. It had been sold to Johnston. But the second mortgage from Johnston to the Creedons was included in the personalty schedule; and a schedule of mortgage liens to be protected by the trust included the Jemison & Company mortgage for $9,800.

Touching- the completion of buildings, the trust deed provided: “The Trustee shall to the extent to which the Trustee may be able complete the construction of all structures now in course of construction on any of the property herein described.” And: “The Trustee may to any extent that it may deem desirable employe such parties at such compensation and upon and under such conditions as it may see fit to assure the completion of the construction of all of said structures, and of any other structures which the Trustee may determine to build hereunder.”

Plaintiff, according to his evidence, being advised that Jemison & Company was now; the party to complete the building he was negotiating for, was referred to Mr. Tanner as the man to do business with.

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154 So. 553, 228 Ala. 599, 1934 Ala. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jemison-co-v-ensey-ala-1934.