Jerome Hardwood Lumber Company v. Munsell

275 S.W. 709, 169 Ark. 201, 1925 Ark. LEXIS 473
CourtSupreme Court of Arkansas
DecidedApril 27, 1925
StatusPublished
Cited by1 cases

This text of 275 S.W. 709 (Jerome Hardwood Lumber Company v. Munsell) 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
Jerome Hardwood Lumber Company v. Munsell, 275 S.W. 709, 169 Ark. 201, 1925 Ark. LEXIS 473 (Ark. 1925).

Opinion

Smith, J.

Four separate suits were brought by appellees against appellant. The cases were consolidated for trial in the court below, and verdicts were separately returned in each case- for the plaintiff, and from' judgment pronounced thereon is this appeal. The cases are substantially identical, and a statement of the facts in one will sufficiently present the issues which we have found to be controlling of them all: The defendant, Jerome Hardwood Lumber Company, is a corporation organized under the laws of this State, and, on the 11th day of December, 1919, became the owñer of a large body of land in Chicot and Desha counties, by virtue of a general warranty deed executed to it by the Bliss-Cook Oak Company. Prior to the date of this deed the Bliss-Cook Oalu Company had sold -and conveyed to the Pioneer Pole & Shaft Company, a corporation under the laws of the State of Ohio, all of the standing hickory timber upon said lands. This timber deed gave the grantee named therein eight- years in which to remove said timber, with the right of ingress and egress for that purpose. This deed conveyed the hickory timber on 25,200 acres of land.

This deed to the Pioneer Pole & Shaft Company was not placed of record, but the defendant company was aware of its existence and its provisions. With such knowledge, the defendant company, on the 11th day of December, 1919, sold and conveyed to the Jacksoii-Vreeland Land Corporation, a corporation under the laws of the State of Missouri, all of the lands which the Bliss-Cook Oak Company had, by deed of the same date, conveyed to the defendant. The consideration for this deed was $15 per acre for the land, one-half of which was paid in cash, and the balance was evidenced by notes secured by a mortgage on the land. This deed was absolute in form, and there was no exception or reservation of the hickory timber, and the deed contained general covenants of warranty reading as follows: “And said Jerome Hardwood Lumber Company hereby covenants with said Jackson-Vreeland Land Corporation, its successors and assigns, that said Jerome Hardwood Lumber Company will forever warrant and defend the title to said lands against all claims and demands whatsoever, except taxes and assessments on said above described lands for tbe year 1919, which taxes and assessments for said year said second party assumes and agrees to pay.”

On the 31st day of December, 1919, the JacksonVreeland Land Corporation conveyed to the plaintiffs Munsell and Adkins four sections and a quarter-section of the land. This conveyance was a warranty deed with the usual covenants of warranty, except as to certain taxes and the mortgage in favor of the J eróme Hardwood Lumber Company, and contained no exception or reservation of the hickory timber.

It was alleged in the complaint, and testimony was offered to show, that, after the execution of this deed, the Pioneer Pole & Shaft Company cut and removed the hickory timber. Plaintiffs have sued the defendant, Jerome Hardwood Lumber Company, for the value of this timber, alleging that the sale of this timber constituted a breach of the covenant of warranty contained in the deed from the defendant, Jerome Hardwood Lumber Company, to the Jackson-Vreeland Land Corporation. The last-named company, which was the plaintiffs’ grantor, and which had conveyed to plaintiffs by warranty deed with the usual covenants of warranty, was not made a defendant.

The defendant, J eróme Hardwood Lumber Company, answered and set up a number of defenses, among others that plaintiffs had bought with full knowledge of the outstanding timber deed. This allegation was stricken from the complaint, and testimony offered by defendant to prove that allegation was excluded by the court.

The testimony shows that the Pioneer Pole & Shaft Company began, in 1917, immediately after the receipt of its timber deed from the Bliss-Cook Oak Company, to cut and remove the hickory timber, and three sawmills were set up to saw this timber. The testimony is conflicting as to when the Pioneer Pole & Shaft Company began cutting on plaintiff’s land, but the verdict of the jury is conclusive of the fact that this was done after plaintiffs had obtained their deed from the Jackson-Vreeland Land Corporation.

At all of the times hereinbefore mentioned all of the lands conveyed by defendant to the Jackson-Vreeland Land Corporation were wild cut-over timber lands. None of it was cleared, inclosed or cultivated, and there was no actual possession of any part of the land except that of the Pioneer Pole & Shaft Company.

It is first insisted by the defendant that, if there has been a breach of the covenant of warranty, that breach accrued immediately upon the execution of the deed by defendant and long before the subsequent conveyance •from defendant’s vendee, Jackson-Vreeland Land Corporation, and that, if any cause of action arose because of a, breach of warranty as against the defendant, it arose in and to the Jackson-Vreeland Land Corporation, and did not run with the land in the subsequent conveyances by the Jackson-Vreeland Land Corporation to the plaintiffs in the action.

Inasmuch as we have concluded that the defendant (appellant) is correct in this position, and that this is a complete defense to the suit of the plaintiffs, we do not consider the other questions raised on the appeal.

It may be further said that no contention is made that there is any defect in the title to any of the lands involved in this litigation. Appellees concede that they acquired a perfect title except only to-the hickory timber. This failure, they say, is a breach of the covenant of warranty, which runs with the land, and entitles them to maintain this suit on the covenant in the deed from defendant to their grantor.

We have concluded, however, that, under the undisputed testimony, the timber deed to the Pioneer Pole & Shaft Company was an outstanding incumbrance at the time the deed to Jackson-Vreeland Land Corporation was made, and that the covenant sued on was broken when made, and that the right to sue thereon did not run with the land.

It is to be borne in mind that tbe covenant of warranty alleged to have been broken is the warranty of the title to the hickory timber on the lands. There is no complaint that there was any failure of title in any other respect. There was no express warranty of the title to the hickory timber. There was a mere failure to reserve or to except this timber in the deed from the defendant, which did contain the covenant of warranty set out above.

It will also be borne in mind that the lands were wild and unoccupied, unless, indeed, the Pioneer Pole & Shaft Company had such possession of the land and timber as the timber deed to it from the Bliss-Cook Oak Company contemplated and granted.

It was alleged and was proved by appellees that this timber deed to the Pioneer Pole & Shaft Company was prior in time to the deed to appellees’ grantor. The existence of this timber deed constitutes the breach of the covenant on which plaintiffs predicate their respective causes of action. ■ ■ ;

We think this timber deed should be regarded as an incumbrance on the land. Many cases have discussed and defined the word incumbrance.

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Thompson v. Dildy
300 S.W.2d 270 (Supreme Court of Arkansas, 1957)

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Bluebook (online)
275 S.W. 709, 169 Ark. 201, 1925 Ark. LEXIS 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerome-hardwood-lumber-company-v-munsell-ark-1925.