Markland v. Merchants' & Farmers' Bank

289 S.W. 773, 172 Ark. 587, 1927 Ark. LEXIS 24
CourtSupreme Court of Arkansas
DecidedJanuary 17, 1927
StatusPublished

This text of 289 S.W. 773 (Markland v. Merchants' & Farmers' Bank) 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
Markland v. Merchants' & Farmers' Bank, 289 S.W. 773, 172 Ark. 587, 1927 Ark. LEXIS 24 (Ark. 1927).

Opinion

Humphreys, J.

Appellee instituted this suit in the Second Division of the Union County Chancery Court against F. M. Cates and one of the appellants, William Markland, to foreclose an alleged vendor’s lien for $256.25, with 10 per cent, per annum from April 15,1920, against a house standing on lot 4, block 2, Bast Junction City, Arkansas, and for rents in the sum of $150 for the use of same. The suit was based upon the following note and the indorsement of same before maturity to appellee by the payee therein: •

“$256.25 Junction City, Ark. Jan. 15,1920.
“Ninety (90) days after date, we, or either of us, promise to pay to H. A. Dowdy, or order, two hundred fifty-six and 25/100 dollars. Payable to the Merchants’ & Farmers’ Bank, Junction 'City, Arkansas, for value received, negotiable and payable without defalcation or discount, and bearing interest at the rate of ten per cent, per annum from maturity until paid, and if the interest. be not paid annually, to become as principal and bear same rate of interest. The drawer and indorser severally waive presentation, protest and nonpayment of this note. Secured by a vendor’s lien'on a house in lot 4, block 2, East Junction City, Ark. If this note has to be "collected by an attorney I agree to pay ten per cent, attorney’s fees.
“F. M.. Cates.
“Due 4-14-20. No. 6699.
Indorsement on back: “H. A. Dowdy, without recourse.”

It was alleged in the complaint that the lot was-owned by Frank McQuillan, who leased it to J. C. Moore on May 29,1913; that, pursuant to authority contained in the lease, J. C. Moore moved the house referred to in the note onto the lot; that, under the terms of the lease, he, or his assigns, had the right to remove the house; that, on March 1, 1924, appellant, William Markland, without right, title or authority, took possession of said house and retained the possession thereof without payment of rent to appellee. The appellant, William Markland, filed an answer, denying the' material allegations in the complaint.

No service was had upon-F. M. Cates, and he did not enter his appearance.

The heirs of Frank McQuillan, deceased, filed an intervention, adopting the answer of William Markland. In addition they set out the lease made by .their father to J. C. Moore, which is as follows:

“This contract entered into between Frank McQuillan, as party of the first part, and J. C. Moore, as the party of the second part. Party, of the first part hereby agrees to lease to party of the second part a certain tract of land described as follows : Lot 4, block 2, in East Junction City, Ark. This lot being 60-feet running east and west and 100 feet running north and south, and located between lots 3 and 5.
“Party of the second part hereby agrees to improve said lot and pay as rent for said lease the sum of two dollars per month, monthly payments, for a period of five years. It is further agreed that party of the second part has the option to extend this lease for as long a period at the above stipulated price.
“It is further agreed between the parties of the first part and second part that whatever improvement that party of the second part may place upon said lot shall remain the property of the said J. C. Moore, or to whom he may sell lease, they having the. right to move improvement when above contract has been complied with, if party of the first part, Frank McQuillan, does not see fit to buy same, at an agreed price.
“It is further agreed that party of the first part pay taxes on lot and party of the second part pay taxes on improvement placed on lot.
“It is further agreed that, when rent shall be 90 days past due and does not pay upon demand upon him, that this contract shall be null and void, and party of the first part may order premises vacated, and party of the second part has no further claim or protection under this contract. ’ ’

They also alleged that, at the expiration of the lease, appellee retained possession of the house and collected rents thereon from third parties to the amount of $175, for which they pray judgment against said appellee.

Appellee filed an answer, denying the allegations of the intervention, and, in addition, alleged tjiat the lease contract was extended until June 1, 1923; that, before the expiration of said lease, J. C. Moore sold, transferred and assigned it and the improvements erected and constructed on said lot to the Citizens’ Bank of Junction City, Arkansas; that the Citizens’ Bank sold and transferred the same to H. A. Dowdy; that Dowdy sold and transferred the same to F. M. Cates; that Cates executed and delivered the note referred to above to Dowdy, and that Dowdy transferred the note to appellee before maturity for a valuable consideration.

The cause was submitted to the court upon the pleadings and testimony adduced by the respective parties, which resulted in a decree dismissing appellee’s complaint for the want of equity, and the cross-complaint and intervention of appellants for the same reason, from which both appellants and appellee have prosecuted appeals to this court.

The record reflects, according to the undisputed testimony, that the interveners are the owners, by inheritance, of said lot; that J. C. Moore leased the lot from their father for a term of five years, at $2 per month, with the privilege of renewal, for the purpose of constructing the improvements thereon, with an option to the lessee or his assignees to remove same at the expiration of the lease; that, pursuant to the terms of the lease, J. 0. Moore moved the building .in question onto the lot, and that he and his assignees retained the possession of the house, but failed to remove same at the expiration of the lease, or at the expiration of the alleged extension thereof; that the only claim that appellee has to the house arises out of the assignment of the $256.25 note assigned to it before maturity, without recourse, by H. A. Dowdy, the payee in the note; that this note was executed to H. A. Dowdy by F. M. Cates in payment of the house; that Dowdy had bought the house from the Citizens ’ Bank of Junction City, who had- theretofore purchased same from J. C. Moore, the original lessee; that the following indorsement appears upon the original lease heretofore set out in this opinion:

“ September 1,1913.
“For value received I hereby transfer all my rights to the within lease and all improvements thereon to the Citizens’ Bank, Junction City, Ark. J. C. Moore.
“Feb. 3, 1919.
“This lease is extended until June 1, 1923.
“William Markland, “Agent for McQuillan estate.”

That William Markland moved into the house between the first of January and last of February, 1924; that, at the time he moved in, the house was occupied by Mr. Batie, a subtenant of R. E.

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

Related

Peay v. Feild
30 Ark. 600 (Supreme Court of Arkansas, 1875)
Roberts v. Jacks
31 Ark. 597 (Supreme Court of Arkansas, 1876)
Roach v. Johnson
74 S.W. 299 (Supreme Court of Arkansas, 1903)
Howell v. Crawford
89 S.W. 1046 (Supreme Court of Arkansas, 1905)

Cite This Page — Counsel Stack

Bluebook (online)
289 S.W. 773, 172 Ark. 587, 1927 Ark. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markland-v-merchants-farmers-bank-ark-1927.