Louisiana & Northwest Railroad v. McMorella

6 S.W.2d 315, 177 Ark. 19, 1928 Ark. LEXIS 105
CourtSupreme Court of Arkansas
DecidedApril 23, 1928
StatusPublished
Cited by1 cases

This text of 6 S.W.2d 315 (Louisiana & Northwest Railroad v. McMorella) 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
Louisiana & Northwest Railroad v. McMorella, 6 S.W.2d 315, 177 Ark. 19, 1928 Ark. LEXIS 105 (Ark. 1928).

Opinion

Smith, J.

E. R. Bernstein, as receiver of the Louisiana & Northwest Railroad Company, brought this suit in ejectment to recover the possession of the south half of the northeast quarter and the southeast quarter oif the southwest quarter of section 21, township 19 south, range 20 west, from Miss Bettie McMorella, and alleged title to the lands sued for under a deed from her to the plaintiff as receiver, dated February 15, 1921.

The defendant filed an answer, in which she admitted that, in conjunction with Gr. W. Hunter, she had executed a deed dated February 15, 1921, to the plaintiff, as receiver, which described the lands sued for, but she alleged that this deed had been executed as a result óf a mutual mistake in so far as the deed included the lands above described, as it was the purpose and intention of the parties, in the execution of this instrument, for the grantors therein to convey to the receiver of the railroad company only such lands as the grantors had title to as trustees for the use of the railroad company, and that the lands above described were not railroad lands, but were the individual lands of defendant, and had been included in the deed by mutual mistake. Other pleadings were filed by the parties which, amplified and denied these allegations.

Later the defendant filed an amendment to her answer, in which she alleged that, in 1922, she purchased the lands sued for at a sale for the 1921 taxes, and received tax deeds therefor after the expiration of the period of redemption. In a reply to this amended answer, the tax sale was alleged to be invalid for various reasons assigned, and the invalidity of the tax sale appears to be conceded.

Something of the history of the relationship between the defendant and the railroad company is set out in the opinion in the case of Louisiana, & N. W. R. R. Co. v. MoMorella, 170 Ark. 921, 282 S. W. 6; and it was'shown in the record now before us that the defendant had been employed as manager for a colony of Bulgarians which the railroad company had established, and, in this connection, both defendant and Gr. W. Hunter, her co-grantor in the deed upon which this suit is based, had acquired title, in their respective names, to certain lands- which they, in fact, held as trustees for the use of the railroad company. Gr. W. Hunter had been appointed receiver by the United States District Court at Shreveport, Louisiana, of the railroad company, and, after serving in that capacity for some time, had been succeeded by the plaintiff, E. R. Bernstein. This receivership was later settled and the receiver was discharged, and thereafter the railroad company continued the prosecution of this suit in its own name for its own use and benefit.

The title to the lands here in litigation was derived originally fronrone W. D. Wingfield, who made contracts to convey lands to various members of the 'Bulgarian colony. One of these contracts was to convey the lands here in litigation-to Oeorge Petcoff, who entered into the possession of the lands and made certain improvements thereon, but did not complete his payments.

On June 10,1917, Wingfield executed a deed to Gr. W. Hunter, which was apparently a conveyance to Hunter individually, but the testimony shows that the convey-anee was in fact to Hunter as trustee. This deed described the lands here sued for and other lands, all of which were, no doubt, intended to he used in connection with the development of the Bulgarian colony. But this deed expressly recited the existence of an outstanding undischarged agreement on the part of Wingfield to convey the lands here in litigation to George Petcoff upon the payment of certain notes, which were there particularly described, executed by Petcoff to Wingfield’s order. Similar contracts to convey other lands described in this deed were also there referred to, and the deed contained this paragraph:

“I have entered into contracts of sale for this land with the above-named parties with the terms of which said George W. Hunter is familiar; and this conveyance and warranty of title are subject to the claims of the said several parties; and, for and in consideration of this conveyance and the transfer of notes hereinbefore made, George W. Hunter agrees to carry out my contracts of sale of said lands with the above named parties when they pay off and satisfy the above mentioned claims which I am today transferring to said Hunter.”

Defendant testified that, for value, she acquired Pet-coff’s interest under his contract with Wingfield, referred to in the deed from Wingfield to Hunter, and, as an evidence of that fact, exhibited a deed, which had been duly recorded, from Petcoff and wife to her, dated March 12, 1919. She also testified that she discharged the payments due by Petcoff under his contract with Wingfield, which entitled her to a deed from Hunter, and, as. an evidence of that fact, she exhibited a deed, duly recorded, from Hunter to her, dated March 14, 1919.

Defendant paid the taxes in her own name for the years 1918, 1919 and 1920, but failed to pay the taxes for the year 1921, and purchased the lands at the sale for the taxes of that year in 1922, and in 1924 received the clerk’s tax deeds hereinbefore referred to.

The deeds from Wingfield to Hunter, and from Pet-coff to defendant, and from Hunter to defendant, above referred to, apparently placed the legal title to the lands in defendant, and she was the apparent holder of the legal title thereto when, on February 15, 1921, she and-Hunter executed the deed upon which this suit is based to Bernstein as receiver.

Defendant testified that she was not familiar with any of the lands by their legal descriptions, and knew each tract by the name of the Bulgarian who occupied it, and in this manner knew the lands in litigation as the Petcoff lands, but did not otherwise know their description. Her relation with the colony had terminated, and she knew that the receiver was. making a final settlement in the Federal court of his administration of the railroad company’s affairs, and her purpose in executing the deed to the receiver was to divest herself of all interest in any of the colony lands. Other lands were included in this deed in addition to the lands here in litigation. This deed contained the following recitals:

“The aforesaid lands, were purchased by the said George W. Hunter in his capacity as receiver of the Louisiana & Northwest Railroad Company and with the funds of the said receivership, and the same were transferred by him to the said Miss Elizabeth McMorella for the purpose of conducting a -colony thereon in connection with and for the benefit of the said Louisiana & Northwest Railroad -Company. In acquiring and transferring said lands, as hereinabove set forth, the said George W. Hunter and the said Miss Elizabeth McMorella acted as agents and representatives of the said Louisiana & Northwest Railroad Company, and it was understood and agreed between them that the title to said lands, would be héld in trust by each and'both of them for the aforesaid receivership. The said George W. Hunter and the said Miss Elizabeth McMorella declare that they have no right, title or interest, personally and individually, in and to said lands, and that, by reason of the facts aforesaid and on account of the resignation of the said George W. Hunter as receiver of the said Louisiana & Northwest Railroad Company, and the appointment of the said Ernest R.

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Bluebook (online)
6 S.W.2d 315, 177 Ark. 19, 1928 Ark. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-northwest-railroad-v-mcmorella-ark-1928.