Jernigan, Bank Comm'n v. Daughtry

109 S.W.2d 126, 194 Ark. 623, 1937 Ark. LEXIS 208
CourtSupreme Court of Arkansas
DecidedOctober 11, 1937
Docket4-4742
StatusPublished
Cited by4 cases

This text of 109 S.W.2d 126 (Jernigan, Bank Comm'n v. Daughtry) 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
Jernigan, Bank Comm'n v. Daughtry, 109 S.W.2d 126, 194 Ark. 623, 1937 Ark. LEXIS 208 (Ark. 1937).

Opinion

Baker, J. R. V.

Daughtry brought this suit in ejectment to recover possession of 224.49 acres of land from the Bank Commissioner held as part of the assets of the American Exchange Trust Company, insolvent. William H. Eagle was the common source of title to this property. He transferred it by deed to his daughter, Martha M. Daughtry. The grant was “unto said Martha M. Daughtry and unto her bodily heirs forever.” This deed was executed on the 15th day of January, 1896. Thirty years later Mrs. Martha M. Daughtry and R. Y. Daughtry, one of her two sons, and his wife, Beatrice, executed a mortgage, or deed of trust conveying this tract of land, and other lands to H. D. Case, as trustee for J. B. Duncan Company. There was a covenant of warranty warranting their ownership in the following* language, “free from all lien obligations, of all incumbrances of every kind and character, free of any instruments of writing affecting our title, and we covenant to and with the said trustee, and also said beneficiary or legal representative, that we have- a perfect title to same.”

As indicating the intention of the.parties, the mortgage contained this expression, “224.49 acres of land, more or less, the entire interest of the said Martha M. Daughtry, whether for life or in fee simple, and the undivided one-half interest of the said R. Y. Daughtry and his wife, Beatrice Daughtry, in and to the same, lying in Lonoke county, Arkansas”; also a further expression: “Above 220.49 acres of land Mrs. M. M. Daughtry has life estate then her heirs R. Y. Daughtry and Will Daughtry will have full possession, according to deed.”

The amount owing at the time of foreclosure of the said mortgage, not in dispute at this time, was in excess of seven thousand, five hundred dollars, but that is immaterial as the questions involved here are not affected in any manner by the amount of the debt secured. There was a controversy as to the amount at one time, and this arose when suit was filed to foreclose the mortgage and receiver was appointed to take charge of certain personal property.

R. Y. Daughtry and his mother voluntarily entered their appearances and contested the right of the plaintiff to recover the amount sued for, and that question was determined by the decree of foreclosure, whereby other lands belonging to R. Y. Daughtry were condemned and sold, as well as other property belonging to his mother. The tract in controversy here was also condemned for sale by the same decree, sold and purchased by J. B. Duncan Company, who by mesne conveyances transferred and conveyed the lands as owner until it came into the possession, by deed, of the Bank Commissioner.

It is unnecessary to set forth these several conveyances as they are not in dispute, except as affected by the decision of the main issue.

R. Y. Daughtry claimed title to an undivided one-half interest in said land upon the death of his mother, as one of her two “bodily heirs” mentioned in the deed executed by his grandfather to his mother, the effect of which has been above set out. From a judgment of the circuit" court in favor of R. Y. Daughtry, permitting the recovery of the above described tract of land comes this appeal by the State Bank Commissioner.

R. Y. Daughtry, appellee, says that at the time of the execution of the above and foregoing mortgage, or deed of trust, he was the contingent remainderman, powerless to convey or transfer any interest in the contin-. gent remainder in the property, which came to him upon the death of his mother; that his attempt so to convey was ineffectual and the mortgage was void insofar as it purported a conveyance thereof. He insists that the only thing conveyed was the life estate of his mother.

To support his position in this regard he relies upon" the case of Deener v. Watkins, 191 Ark. 776, 87 S. W. (2d) 994.

(1) The appellant bank commissioner insists that the question now raised by the appellee was fully settled and adjudicated in the decree of foreclosure of the aforesaid mortgage; that Daughtry and his mother were then present in court, contesting claims asserted against them and that this matter, the validity of the mortgage covering this particular tract of land, was an issue therein, or at least might have been, and the adjudication in that case became conclusive upon all parties; and (2) that the conveyance made by R. Y. Daughtry in the foregoing mortgage, if not effectual when made, became so, by reason of his warranties and assertion of ownership with power and right to convey, to pass or transfer his after-acquired title, for the benefit of his grantee and privies; and (3) that the appellee had asserted title and ownership with full right to convey and, having transferred, or attempted to do so, contemporaneous with such assertions of right and power to transfer, and having secured moneys, goods, wares and merchandise of considerable value on account thereof, and having permitted foreclosure and sale of the property, he is now estopped to assert his former incapacity to convey, or the invalidity of his mortgage, and will not now be heard to impeach such conveyance.

The original files in the foreclosure case cannot be found. The decree and the conveyances hereinbefore mentioned are set out in the record. Other proof is set forth in an agreed statement of facts. There is, therefore, no disagreement about the facts and our discussion will be confined to the legal principles involved in the determination of the rights of' the parties. Preliminary to a discussion of the' several phases of the case above mentioned, we suggest that our construction' of the foregoing deed of trust or mortgage differs from the effect given to the said instrument by the appellee, who insists that in regard to this particular tract of land there was no attempt to convey more than the life estate belonging to Mrs. Daughtry, the mother of the appellee. We have already set forth above an extract from the mortgage, which indicated the intention of the parties, “the entire interest of Mrs. Martha M. Daughtry, whether for life or in fee simple, and the undivided one-half interest of the said B.' Y. Daughtry and his wife, Beatrice Daugh-try.” The parties themselves so explained their own act, and we do not find it within our power to say that when they added to said conveyance the declaration to the effect that “Mrs. Martha M. Daughtry has life estate and then her 'heirs, B. V. Daughtry and Will Daughtry, ■will have full possession, according to deed,” this was a a limitation upon the amount of land which B. Y. Daugh-try intended to convey. True, one might examine the record of the deed referred to, and determine therefrom that B. Y. Daughtry had only a contingent remainder in the property, but we do not think that it lies within his mouth at this time to assert that, although he had conveyed the one-half interest above, he was by the last quoted statement retracting and recanting and in effect advising the grantee, by this declaration, that he was powerless to transfer or convey. His description of the interest held by his mother, as set out in said conveyance, was not different from what it might have been, had he held a vested remainder instead of a contingent remainder in the same property.

(1) It is most strongly urged that in accordance with the principle announced in the case of Deener v. Watkins, supra, the mortgage was void in.

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109 S.W.2d 126, 194 Ark. 623, 1937 Ark. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jernigan-bank-commn-v-daughtry-ark-1937.