Miller v. Taber

309 P.2d 110, 149 Cal. App. 2d 792, 1957 Cal. App. LEXIS 2101
CourtCalifornia Court of Appeal
DecidedApril 4, 1957
DocketCiv. No. 8930
StatusPublished

This text of 309 P.2d 110 (Miller v. Taber) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Taber, 309 P.2d 110, 149 Cal. App. 2d 792, 1957 Cal. App. LEXIS 2101 (Cal. Ct. App. 1957).

Opinion

VAN DYKE, P. J.

This is an appeal from a judgment declaring respondents to be the owners of all merchantable timber situate upon certain property owned by appellants. On and before November 17, 1950, the Fruit Growers Supply Company, a corporation, was the owner of approximately 10,000 acres of land located in Siskiyou County. Defendants entered into an agreement to purchase the land from the supply company for $20,142.10, payable $6,000 down and the balance in installments with 6 per cent interest on the unpaid balance. Appellants needed aid in financing the purchase and, accordingly, executed an agreement with W. D. Miller, now deceased, and his wife, Lottie M. Miller. In consideration of their advancing to him $6,000, they assigned to Miller and wife all right and title to the merchantable timber located on the property with the right to enter upon the land, to cut and remove the same. Respondents, whom we shall hereafter refer to as Miller, since W. D. Miller was the active participant for the spouses, not only paid the $6,000 which he had agreed to pay, $5,000 of which represented the price for the merchantable timber, but also paid the balance of the purchase price to the supply company, along with some accumulated interest and accruing taxes. After the down payment had been made, the supply company executed and placed in escrow a deed conveying the property to appellants, and simultaneously appellants executed and placed in escrow a deed purporting to convey the same property to Miller. When the full purchase price had been paid to the supply company, both deeds were placed of record. It is without dispute in the evidence that the deed from appellants to Miller was a mortgage to secure the repayment to Miller of funds advanced by him in the purchase of the property over and above the $5,000 he paid for the timber. By the terms of the agreement between appellants and Miller, no limitation of time was fixed as a period in which Miller must remove the timber. Appellants never repaid to Miller any of the funds which they were obligated to pay. In September of 1952, and after a part of the property had been logged by Miller, appellants represented to him that they desired a reconveyance of part of the property in order that they might negotiate an exchange with the federal government, whereby they would obtain lands then owned by the government and which had timber upon them. Accordingly, Miller did reconvey a considerable body of land by a deed which contained no reference to [794]*794Miller’s right to timber. Again, in December of 1952, and under similar circumstances, a second deed was executed by Miller which reconveyed another portion of the property to appellants, but this time the deed contained a reservation of timber growing upon section 19 and portions of section 24, part of the reconveyed property, but contained no such reservation as to other lands embraced within the deed. The reservation, however, gave the right to remove the timber on the said reserved portions at any time prior to December, 1953, and it is in the evidence that all timber on the portions so reserved was taken off by Miller within the time allowed. In July of 1953 Miller reconveyed the balance of the property to appellants by a deed which did reserve the timber upon the land, giving Miller until July 30, 1958, to remove it.

After receiving the last deed, appellants refused to allow Miller to remove any more timber or to go upon the land for that purpose, insisting that since the deeds, save for the reservations noted, were absolute, Miller had no interest in the timber; and, thereupon, this action was brought by Miller, since deceased, and his wife. The complaint referred to all of the instruments and written agreements hereinbefore referred to and recited the foregoing history of affairs between the parties. Miller asked that the deeds be reformed so as to exclude therefrom the merchantable timber growing upon the land therein described and to grant to Miller the right to go upon the land and cut and remove the trees. It was also asked that the respective rights and duties of the parties under the agreements and instruments executed between them be determined and declared. By a third cause of action a money judgment was asked.

Although there was conflict in the evidence as to some of the matters hereinbefore recited, we have stated them in accordance with the rule on appeal that the conflicts must be resolved in support of the judgment. The trial court decided that the contract between appellants and Miller was of such nature that thereby Miller purchased from appellants all the merchantable timber standing on the land they were buying from the supply company; that he paid for it at the time of the contract or shortly thereafter and pursuant thereto, and that appellants having sold the timber to Miller and having received the full purchase price, Miller became, as between the parties to the agreement, the owner of the timber, and remained so throughout the transactions with [795]*795appellants, The court also determined that when the full purchase price had been paid to the supply company, its deed to appellants was delivered to them, and their deed to Miller was delivered to him and that the latter deed constituted a mortgage only and conveyed no legal title to Miller, but created a lien upon appellants’ title to the land less the timber to secure the repayment to Miller of the sums he advanced for the purchase of the property less the $5,000, which was the price he paid for the timber. It thus appears that before receiving the mortgage deed Miller had bought and paid for the timber and had begun to harvest it. True, he had no formal conveyance from appellants, but it was competent for the court in this action to declare him, by virtue of the facts, to be the owner of the timber. There is no doubt that timber standing upon land can be conveyed before severance and be the subject of separate ownership. (Gibbs v. Peterson, 163 Cal. 758 [127 P. 62].) Therein, the Supreme Court quoted from 28 American and English Encyclopedia of Law, second edition, page 541, as follows :

“While there is much apparent conflict in the decision as to the proper construction of a contract for the sale of standing trees to be removed, it is well settled that such a sale may be absolute, and the agreement to remove within a specified or reasonable time merely a covenant, in which case the timber remains the property of the purchaser, although not removed within the specified time. . . . The question in each case is as to what is the contract between the parties.”

It is familiar law that a deed given to secure the repayment of money owed is a mortgage and conveys no title, serving merely to create a lien as though the instrument were a mortgage in form. As a corailary, a reconveyance, that is, a following deed which purports to convey title to the mortgagor, amounts to no more than a release of the lien. (Sunderland v. Griffith, 1 Labatt 197; Fletcher v. Morlock, 251 Mich. 96 [231 N.W. 59].) In the latter case, the court said:

“The conveyance to Hendryx and wife was a mortgage; this fact is so fully established that we will not discuss it further.
“Plaintiff’s title under her deed was perfect except for this mortgage. If the mortgage when paid had been discharged by proper writing of record, plaintiff’s title would have been free ... (41 C.J. 315 . . .) A reconveyance by [796]*796Hendryx and wife was not necessary to reinvest absolute title, but it was needed to clear record title. (41 C.J. 363.)

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Related

Gibbs v. Peterson
127 P. 62 (California Supreme Court, 1912)
Fletcher v. Morlock
231 N.W. 59 (Michigan Supreme Court, 1930)

Cite This Page — Counsel Stack

Bluebook (online)
309 P.2d 110, 149 Cal. App. 2d 792, 1957 Cal. App. LEXIS 2101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-taber-calctapp-1957.