Lord v. Shultz

211 N.W. 210, 115 Neb. 33, 62 A.L.R. 489, 1926 Neb. LEXIS 133
CourtNebraska Supreme Court
DecidedNovember 19, 1926
DocketNo. 25409
StatusPublished
Cited by5 cases

This text of 211 N.W. 210 (Lord v. Shultz) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lord v. Shultz, 211 N.W. 210, 115 Neb. 33, 62 A.L.R. 489, 1926 Neb. LEXIS 133 (Neb. 1926).

Opinion

Eberly, J.

This is an action in the district court for Douglas county, Nebraska, for the specific performance of a valid, written contract for the sale of the following real estate: The south half of the northeast quarter, the north half of the southeast quarter, the southwest quarter of the southeast quarter, and the. southwest quarter of section 6, township 18 north, range 5 east of the 6th P. M. Plaintiff prevailed. From a decree in his favor, defendants appeal.

By agreement of the parties, the case is here presented in the form of a case stated under rule 14 (94 Neb. XIII) of this court. The question presented by the record for determination is whether a title to real estate, concededly otherwise good and merchantable, is to any extent or any degree impaired or invalidated by the following facts which appear as part of the record in the case.

On October 2, 1922, John Arthur, then owner in fee simple, mortgaged 200 acres of above land situated in east half of said section to- the Thompson Realty Company, a foreign corporation, to secure the sum of $21,000 then due and payable from the mortgagor to the mortgagee. On November 21, 1923, pursuant to an agreement of settlement between John Arthur and the Thompson Realty Company, the 360 acres of land above described, including the 200 acres mortgaged, and the southwest quarter of the section, not described in the mortgage, were by deed of general warranty conveyed to the Thompson Realty Company in full satisfaction of the indebtedness of John Arthur, the mortgagor and grantor of the deed, and a release of the mortgage was contemporaneously executed and delivered and recorded by the Thompson Realty Company. On November 10, 1924, the title thus received by the Thompson Realty Company purports to have been conveyed by a deed of general warranty (and also by correction deed of later date) to the plaintiff herein.

At the time of the above transactions the Thompson Realty Company was a corporation duly organized under the laws of North Dakota, in 1903, and authorized and em[35]*35powered by that state to do a general real estate and loan business, with its principal office located at Cando, North. Dakota. It also appears that on March 25, 1926, John v Arthur duly executed and delivered to plaintiff a quitclaim deed quitclaiming to plaintiff all right, title, and interest of the grantor in and to the premises first herein described. So far as the record discloses, no action to enforce an es-cheat has been commenced by the state. These transfers to and from the Thompson Realty Company are a part of plaintiff’s chain of title upon which he relies to establish a good and merchantable title to said real estate, and the question for decision in this case is whether or not plaintiff, on the facts above set forth, has a “good and merchantable title” to the land.

The questions presented are not free from difficulty. The provisions of our statutes, relating to the matter, seem to be the following:

“Aliens and corporations not incorporated under the laws of the state of Nebraska are hereby prohibited from acquiring title to or taking or holding any land, or real estate, or any leasehold interest extending for a period for more than five years, or any other greater interest less than fee in any land, or real estate in this state by descent, devise, purchase or otherwise, only as hereinafter provided.” Comp. St. 1922, sec. 5687.
“This article shall not, nor shall anything in the statutes of Nebraska, prevent the holders, whether aliens or corporations not organized under the laws of the state of Nebraska, of liens upon real estate or any interest therein, whether heretofore or hereafter acquired, from holding or taking valid title to the real estate subject to such liens, nor shall it prevent any such alien or corporation from enforcing any lien or judgment for any debt or liability now existing, or which may hereafter be created, nor from becoming a purchaser at any sale made for the purpose of collecting or enforcing the collection of such debt or judgment: Provided, however, all lands so acquired shall be sold within ten years after the title thereto shall be per[36]*36fected in such alien or foreign corporation, and in default of such sale within such time, such real estate shall revert and escheat to the state of Nebraska, as provided in this article.” Comp. St. 1922, sec. 5690.
“Foreign corporations shall have the right to receive, take, purchase and hold, by mortgage or otherwise, any securities and liens executed, given or transferred or so intended to represent or secure loans upon or purchase-money of lands or other property situate or being in this state, and to sell, assign, transfer, and to sue upon, foreclose or otherwise enforce the same heretofore or hereafter acquired.” Comp. St. 1922, sec. 641.

In a case between devisee and heir involving the effect of statutes, this court construed the provisions of sections 5687, 5690, Comp. St. 1922, and held: “Under section 6273, Rev. St. 1913, corporations not incorporated under the law of the state of Nebraska are prohibited from taking or holding lands in this state in trust for the use and benefit of another. The power to raise the question of the right of the corporation to take the property is not confined to the state, but the question may be raised by the heir or next of kin in an action to quiet title.” Gould v. Board of Home Missions, 102 Neb. 526. From this determination, Letton and Hamer, JJ., dissented. In this connection we assume, but do not decide, that the clause in the statutes in force, at the time this decision was made, “and it shall be the duty of the county attorney in the counties where such lands are situated to enforce forfeitures of all such lands as provided by this article,” relates to land acquired by corporations organized under the laws of other states as well as by land acquired by aliens, and for the purposes of this case it will also be assumed that specific performance of a contract will not be enforced at the instance of the vendor who fails to tender a “good and merchantable title” to all the lands. But, even on the basis above indicated, is the doctrine in Gould v. Board of Home Missions, supra, controlling in the present case?

[37]*37The case cited, it is to be remembered, involves a will and arose between heirs of the deceased and his devisee. In the instant case the grantor, for a valuable consideration received from the grantee, executed a deed of general warranty which, in terms, conveys the fee simple title now questioned.

This conclusion challenges our attention to Kennett v. Kidd, 87 Kan. 652. In this case the supreme court of Kansas say: “Counsel for the defendant cite Investment Co. v. Trust Co., 65 Kan. 50, holding that under the alien land act the state was the only party who could insist upon a forfeiture, but a different question was there involved and the decision is not applicable.” It may be said in passing that the Kansas statute in force when Investment Co. v. Trust Co., supra, was decided resembled very much our present alien act, and, in fact, some of its provisions were identical.. This act (Laws 1891, ch. 3, sec. 1) expressly provides : “That a nonresident alien, * * * or corporation incorporated Under the laws of any foreign country, shall not be capable of acquiring title to or taking or holding any lands or real estate in this state .by descent, devise, purchase or otherwise,” except (the fact in the case of Investment Co. v. Trust Co., supra,

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Bluebook (online)
211 N.W. 210, 115 Neb. 33, 62 A.L.R. 489, 1926 Neb. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lord-v-shultz-neb-1926.