Jim Walter Corporation v. Rush

189 So. 2d 129, 279 Ala. 611, 1966 Ala. LEXIS 1085
CourtSupreme Court of Alabama
DecidedJuly 14, 1966
Docket1 Div. 248
StatusPublished
Cited by1 cases

This text of 189 So. 2d 129 (Jim Walter Corporation v. Rush) 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
Jim Walter Corporation v. Rush, 189 So. 2d 129, 279 Ala. 611, 1966 Ala. LEXIS 1085 (Ala. 1966).

Opinion

COLEMAN, Justice.

Plaintiff appeals from judgment for defendant in statutory action in the nature of ejectment to recover one acre of land.

To the complaint in code form, defendant pleaded the general issue. Under that plea, defendant may give in evidence the same matters which may be given in evidence under such plea in an action of ejectment. § 941, Title 7, Code 1940.

The principal question on this appeal is whether certain evidence offered by defendant was admitted without error.

[613]*613Under date of May 11, 1960, defendant and her husband executed to plaintiff a mortgage on the land in suit. The mortgage was given to secure payment of a monthly installment note due from defendant and her husband to the plaintiff. The note was given by defendant and her husband in consideration of the erection of a house on the land by plaintiff.

On January 21, 1963, plaintiff foreclosed the mortgage under the power therein contained and became the purchaser at the foreclosure sale. Foreclosure was had after default in payment of the mortgage debt. Defendant’s husband died prior to foreclosure of the mortgage. Monthly payments were made on the mortgage up until the husband’s death and two payments were made after his death.

The defense made by defendant is that plaintiff’s representative, with whom defendant and her husband negotiated the loan,'represented to defendant and her husband that the mortgage debt was insured so that if either defendant or her husband died the debt would be paid in full, that such representation was false, and, therefore, defendant was relieved from the obligation to pay the mortgage debt, wherefore plaintiff was not entitled to foreclose the mortgage and is not entitled to recover the land in this action.

At the outset, we note that defendant did not request the affirmative charge, either with or without hypothesis.

Plaintiff introduced into evidence four instruments of writing, to wit:

1. Mortgage of the land in suit from defendant’s husband and defendant to plaintiff.

2. , Assignment of the mortgage by plaintiff to Mid-State Homes, Inc.

3. Assignment of the mortgage by Mid-State Homes, Inc., back to plaintiff.

4. Foreclosure deed executed by the auctioneer purporting to convey the land to plaintiff as purchaser at foreclosure of the mortgage under the power of sale therein set out.

After introducing the four instruments, plaintiff rested. At this time, there -had been no proof of prior possession or any possession at all by plaintiff; and there had been no proof that plaintiff’s grantors, defendant or her husband, had ever been in possession of the land.

In order to discharge its burden to show, at least prima facie, a right to recover, it was necessary that plaintiff show a regular chain of title back to some grant- or in possession or to the United States. Florence Building & Investment Association v. Schall, 107 Ala. 531, 18 So. 108; Henry v. Brannan, 149 Ala. 323, 42 So. 995; The Trial of an Action in Ejectment, Robert T. Milner, 3 Ala.Law No. 2, page 155, April 1942.

Plaintiff rested before it proved a. prima facie case, but defendant then proceeded .to offer evidence to prove that the mortgage was void because of the fraud -allegedly practiced by plaintiff’s agent who represented plaintiff in the negotiations leading up to and culminating in the execution of the mortgage by defendant’s husband and defendant. The case was tried on the theory that plaintiff is entitled to recover unless the mortgage is to be avoided for the alleged fraud of plaintiff’s agent; but that if plaintiff’s agent was guilty of the fraud then plaintiff was not entitled to recover; and that it was for the jury to say whether plaintiff’s agent was guilty of fraud or not.

Plaintiff objected to admission of the testimony which showed that plaintiff’s agent represented that insurance would be provided on the life of the mortgagors whereby the mortgage debt would be p.aid in event either one of them died. Plaintiff’s objections were overruled and plaintiff asserts that these rulings were error because, in ejectment, defendant cannot impeach the consideration of the mortgage nor show the original absence or subse[614]*614quent failure of consideration to avoid the mortgage.

Defendant replies that in ejectment, defendant may introduce any evidence which will bar plaintiff’s right to recover, and, that if the mortgage was procured by fraud, the mortgage has no existence in a court of law or equity and does not convey the legal title to plaintiff, wherefore plaintiff cannt recover.

Plaintiff replies that fraud not going to the execution of the mortgage, as by misreading it or misrepresenting its contents, or the like, is not available to nullify the mortgage in defense of ejectment in a court of law; and that any relief for fraud in the inducement which caused defendant and her husband to execute the mortgage must be sought by defendant in equity.

The question for decision comes to this: In an action of ejectment, is defendant permitted to show as a defense that in obtaining the conveyance under which plaintiff claims title, plaintiff was guilty of fraud in the inducement as distinguished from fraud in the execution or procurement of the conveyance.

In Morris v. Harvey, 4 Ala. 300, in an action of detinue for a slave, plaintiff contended that his deed to defendant, under which defendant claimed, was void for fraud in the execution, or, if not fraudulent, the deed was not supported by adequate consideration. This court said that plaintiff was shown to be illiterate, but it was certain that the deed was drawn at his request and in conformity to his wishes as previously expressed, and that there was nothing in the case “to warrant the inference of fraud in the execution of the deed, and therefore it cannot be impeached, however inconsistent the acts of the grantee may have been to the trust, if any existed.” The court further said, as to the inadequacy or want of consideration, “ * * * the current of decision is uniform to show that this is not the subject of inquiry at law.”

In Kelly v. Mobile Building and Loan Association, 64 Ala. 501, in ejectment by a mortgagee, the defendant objected to the admission of the mortgage on the ground that it showed on its face that the transaction was usurious. The trial court overruled defendant’s objections and this court affirmed, saying, that, in ejectment, there can be “ * * * no inquiry into the consideration of the debt, or of its validity.— Doe v. Roll, 7 Ham.Ohio, 401.” This court said further:

“ * * * A court of equity, in which each party can be compelled to do equity, is the appropriate forum for the consideration of all other questions, than fraud in the execution of the conveyance. — Morris v. Harvey, 4 Ala. 300.” (64 Ala. at page 503.)

In Doe v. Roll, supra, a mortgagee sued the mortgagor in ejectment. The mortgagor offered testimony that the mortgages were given to secure payment of one thousand dollars, in consideration of mortgagee’s agreeing not to prosecute the son of mortgagor for theft. Mortgagor contended that the mortgages were founded on an illegal consideration and, for that reason, the court should not permit plaintiff to recover. Although the court had refused to grant a new trial to mortgagee, after defendant had recovered a verdict in a statutory scire facias proceeding based on the mortgage, Raguet v.

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Related

Ex parte Jim Walter Corp.
207 So. 2d 648 (Supreme Court of Alabama, 1968)

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Bluebook (online)
189 So. 2d 129, 279 Ala. 611, 1966 Ala. LEXIS 1085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-walter-corporation-v-rush-ala-1966.