Jones v. McLauchlin

299 So. 2d 723, 293 Ala. 31, 1974 Ala. LEXIS 916
CourtSupreme Court of Alabama
DecidedAugust 29, 1974
DocketSC 426
StatusPublished
Cited by2 cases

This text of 299 So. 2d 723 (Jones v. McLauchlin) 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
Jones v. McLauchlin, 299 So. 2d 723, 293 Ala. 31, 1974 Ala. LEXIS 916 (Ala. 1974).

Opinion

HARWOOD, Justice.

On 10 April 1958, Emma B. McDaniel and her husband James Marlin McDaniel, leased to the Pure Oil Company a parcel of land referred to in this record as the Pure Oil Truck Stop. The lease was for ten years at a rental of $26,116.80, payable [33]*33in monthly installments of $217.64 per month.

On that same day, and apparently contemporaneously, the Pure Oil Company sub-leased (re-leased) the Pure Oil Truck Stop property, and all improvements to be constructed thereon to the McDaniels for a ten year term beginning 10 April 1968, for a term rental of $26,116.80, payable in monthly installments of $217.64 per month.

At this same time, the McDaniels executed a mortgage to the Pure Oil Company covering the Pure Oil Truck Stop property. The mortgage secured the sub-lease, or re-lease, and provided that if: “ * * * any and all sums of money to be paid by the Mortgagors to the Mortgagee as provided for in the sub-lease agreement, [be paid] * * * then this mortgage shall be null and void * * *

We think it obvious that the mortgage on the Pure Oil Truck Stop was executed to secure not only the indebtedness due under the mortgage, but also to secure the indebtedness due under the sub-lease.

Emma B. McDaniel died on 17 September 1966, some eight years after the execution of the above documents.

It is to be necessarily inferred from the record and briefs of counsel, though not clearly shown from the record, that in due course after the death of Emma B. McDaniel, J. D. Blackman and Jack E. Black-man became co-administrators of her estate, and entered upon their duties as such administrators.

Thereafter, Frances B. Jones offered for probate a will purporting to be the last will and testament of Emma B. McDaniel. Under this will, a certain parcel of land referred to in the proceedings below as the Pure Oil Truck Stop was devised to Frances B. Jones. This parcel is located in Dale County and is some six acres in extent.

Upon the presentation of the Will for probate, a contest was filed as to that portion devising the truck stop to Frances B. Jones. A jury decided the issues in favor of the contestants. The judgment entered pursuant to this verdict was appealed to this court, and on 13 November 1969, this court reversed said judgment because of the giving of an erroneous charge requested by the contestants. See Jones v. Blackman et al., 284 Ala. 684, 228 So.2d 1.

Pending the above appeal, and during the time the Blackmans were administrators, the Pure Oil Company initiated steps looking toward the foreclosure of its above mentioned mortgage. The Blackmans, as administrators, thereupon worked out an arrangement with the Bank of Ozark whereby the bank would acquire the Pure Oil mortgage. The bank purchased the mortgage on 17 January 1969 for the sum of $13,602.68, and foreclosure proceedings were abated.

After acquiring additional funds for the estate by the sale of other lands belonging to the estate, the administrators purchased the mortgage from the Bank of Ozark for the sum of $13,942.90, thus preserving the equity in the Pure Oil Truck Stop as an asset of the estate. All of this was done under an order duly issued by the court on 10 May 1969. This order also provided that the administrators hold said mortgage as an asset of the estate pending the outcome of the appeal of the judgment entered in the will contest, and provided further that in the event such appeal be decided in favor of Frances B. Jones, then the administrators should require that she be liable for the mortgage indebtedness. Frances B. Jones had notice of the proceedings leading to the order of 10 May 1969, was present and represented by counsel at such proceedings, and filed no objections to the sale or the purchase of the mortgage.

Subsequent to this order of 10 May 1969, a second trial of the contest of the will of Emma B. McDaniel was had, and in this second trial the issues were decided in favor of the validity of the will. No appeal [34]*34was perfected from the judgment entered in this second trial.

Thereupon the Blackmans had a final settlement and accounting of their administration, and apparently were discharged as administrators. At this hearing and settlement, the Blackmans presented a full statement of their accounts as administrators which had been prepared by Mr. Sidney H. Walker, a certified public accountant. Listed in such statement as an asset of the estate was the Pure Oil Company mortgage showing an obligation of $13,942.90 then due under such mortgage. Frances B. Jones and her counsel were present at such settlement hearing and filed no objections thereto.

Following the final settlement of the Blackmans, P. B. McLauchlin became administrator cum testamento annexo of the last will and testament of Emma B. McDaniel.

On 14 September 1971, McLauchlin, as such administrator, filed a “Petition for Instructions” with the court below.

The petition sets out that no payment of any portion of the Pure Oil Company mortgage indebtedness had been made by Frances B. Jones, and that the mortgage was in default and subject to foreclosure. McLauchlin asked for instructions as to whether the mortgage should be foreclosed, and if so, should Frances B. Jones be given a period of time in which to pay the mortgage indebtedness, and further, what rate of interest should the mortgage indebtedness bear.

This petition was set for hearing and Frances B. Jones was given notice thereof.

After a hearing on this petition, the court entered an order adjudging that $13,942.90 was the balance due and owing on the mortgage; that the mortgage should be foreclosed; that Frances B. Jones be allowed 90 days to pay off the indebtedness in full; and that the mortgage indebtedness should bear interest at the rate of six per cent per annum. This order was entered on 19 November 1971.

On 10 February 1972, Frances B. Jones filed what is captioned a “Petition for an Amended Decree.” The first paragraph of this petition asserts the decree of 19 November 1971 requiring Frances B. Jones to pay $13,942.90, in effect required a payment by her on “a mortgage made by a previous administrator of the Estate of Emma B. McDaniel, deceased, upon properties of the estate” which were a legacy to Frances B. Jones.

Such statement misapprehends the undisputed factual situation. No mortgage was ever made on the Pure Oil Truck Stop property by an administrator but was made by Emma B. McDaniel and her husband. This mortgage was later acquired by the estate of Emma B. McDaniel in an effort to protect the Pure Oil Truck Stop property as an asset of the estate. This of course would redound to the benefit of the heirs or to the devisee of the property. Frances B. Jones being the devisee, this action was particularly beneficial to her after the paragraph devising the truck stop property to her was upheld in the second trial of the contest of the will.

The remaining stating part of this petition in effect questions the correctness of the court in its findings in the decree of 19 November 1971. This despite the fact that Frances B. Jones had been present at the final settlement of the Blackmans as administrators when the amount due on the mortgage was fixed after due hearing, and no objections were filed by her to this determination.

The petition prays the court to amend its decree of 19 November 1971 and find that Frances B.

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

Related

In Re Estate of Hudson
887 So. 2d 923 (Court of Civil Appeals of Alabama, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
299 So. 2d 723, 293 Ala. 31, 1974 Ala. LEXIS 916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-mclauchlin-ala-1974.