Moore v. Shipp

81 So. 2d 352, 262 Ala. 664, 1955 Ala. LEXIS 542
CourtSupreme Court of Alabama
DecidedJune 16, 1955
Docket4 Div. 755
StatusPublished
Cited by5 cases

This text of 81 So. 2d 352 (Moore v. Shipp) 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
Moore v. Shipp, 81 So. 2d 352, 262 Ala. 664, 1955 Ala. LEXIS 542 (Ala. 1955).

Opinion

LAWSON, Justice.

This is an appeal from a final decree of the circuit court of Russell County, in equity.

We will undertake to relate the events which led up to this litigation. We hope they are stated correctly, but we cannot be sure because the record before us fails to portray a clear picture of those events.

In the early part of 1939 John D. Burkes, a resident of Phenix City, Russell County, Alabama, became interested in the purchase of some land which was owned by William M. Shipp, which land was situate in or near Phenix City -and which, for the purposes of this opinion, we will treat as consisting of two adjoining tracts, Tract A containing sixteen acres and Tract B containing four acres. Burkes was interested in the purchase of Tract A.

Apparently after some negotiations it was agreed between Burkes and Shipp that the latter would sell Tract A to the former for the sum of $3,800. Apparently Shipp demanded cash, and Burkes being without funds made arrangements to acquire the purchase money from two sources, the Jefferson Standard Life Insurance Company, of Greensboro, North Carolina, and Mrs. Irene M. Peed, of Butler, Georgia.

[665]*665The record shows that on May 8, 1939, although there had been no conveyance from Shipp to Burkes as of that time, the latter signed a mortgage purporting to convey Tracts A and B to the Jefferson Standard Life Insurance Company, hereinafter sometimes referred to as Jefferson, to secure an indebtedness of $2,500, together with interest, which indebtedness was evidenced by a promissory note of the same date. Actually there is nothing in the description used in this mortgage indicating that the land therein conveyed was considered as being divided into two tracts.

We understand the record to show that the mortgage which was signed by Burkes on May 8, 1939, was not delivered until May 20, 1939, when the loan which Burkes obtained from Jefferson was closed and on which day the following other events transpired :

1. Shipp signed and delivered to Burkes a warranty deed conveying Tracts A and B for a recited consideration of $3,800.

2. Burkes executed and delivered to Shipp a deed to Tract B. This deed from Burkes to Shipp contained the following provision: “It is expressly understood and agreed that this deed is given subject to that certain mortgage executed by John D. Burkes and wife, Leona Burkes to Jefferson Standard Life Insurance Company on the 8th day of May, 1939.”

3. Burkes executed and delivered to Mrs. Irene M. Peed a mortgage conveying Tract A, along with other real estate, but not including Tract B, which mortgage was given to secure the payment of an indebtedness amounting to $1,400, together with interest. The mortgage to Mrs. Peed as to Tract A was made subject to the Jefferson mortgage.

Thereafter, on January 2, 1940, the mortgage given by Burkes to Mrs. Peed was foreclosed and at the foreclosure sale Theo J. McGee became the purchaser and a foreclosure deed was executed to him by the auctioneer under the power contained in the mortgage.

On June 2, 1942, William E. Shipp by quitclaim deed conveyed any interest he might have in Tract A to I. E. Moore for a recited consideration of $5. As far as we can determine, Shipp had no interest, legal or equitable, in Tract A.

On June 4, 1942, McGee deeded Tract A to I. E. Moore. The deed from McGee to Moore reads in pertinent part as follows:

“ * * * That for and in consideration of Ten Dollars ($10.00) Dollars (sic) and other good and valuable consideration, to the undersigned Grantors, Theo J. McGee, and his wife, Alma T. McGee, in hand paid by I. E. Moore, the receipt whereof is hereby acknowledged by us, the said Theo J. McGee and wife, Alma T. McGee, do grant, bargain, sell and convey to the said I. E. Moore, -the following described real estate, to wit: Jjí >{i 3)

Following the description in the said deed from McGee to Moore appears the following language:

“The above described property is conveyed subject to that certain mortgage executed by John D. Burkes and wife, Leona W. Burkes, to Jefferson Standard Life Insurance Company of Greensboro, N. C., on the 8th day of May, 1939, to secure an indebtedness of $2500.00, which mortgage is recorded in the office of the Judge of Probate of Russell County, Alabama, in Phenix City, Alabama, in Mortgage Record 24, at page 223, which indebtedness, or the balance thereof, is assumed by I. E. Moore, and which indebtedness, or the balance thereof, I. E. Moore agrees to pay off and fully discharge subject to the terms and conditions set forth and contained in said mortgage and note, notes (sic) evidencing said indebtedness.” (Emphasis supplied.)

On June 22, 1949, Jefferson assigned and transferred to A. C. Moore, a brother of I. E. Moore, the note and mortgage which [666]*666Burkes signed on May 8, 1939. The mortgage, as heretofore shown, covered Tracts A and B.

Thereafter, on July 12, 1949, A. C. Moore, for a recited consideration of $10 signed and delivered a quitclaim deed to his brother, I. E. Moore, covering all the right, title and interest which he acquired in Tract A as assignee and transferee of the Jefferson mortgage, that is, the mortgage which bears date of May 8, 1939.

In the early part of June, 1950, A. C. Moore, as assignee of the Jefferson mortgage and of the indebtedness secured thereby, gave notice by publication that Tract B would be sold at foreclosure sale on July 7, 1950, for the purpose of satisfying the entire outstanding indebtedness secured by the Jefferson mortgage.

Within a week or two after the publication of the notice of the mortgage foreclosure sale, the original bill in this case was filed by William M. Shipp against A. C. Moore and I. E. Moore. Among other things, the bill prayed for injunctive relief, temporary and permanent, as to the foreclosure sale advertised for July 7, 1950. After notice and hearing, the trial court ordered and the register issued an injunction restraining respondents from foreclosing the Jefferson mortgage “where the same affects the property of the said William M. Shipp, described as follows,” etc., until the further orders of the court. The land described in the writ of injunction was that which we have designated Tract B. There was no effort made to discharge or dissolve the temporary injunction :and it was not attacked in any other manner and we are not concerned here with the' action of the trial court in that regard.

The original bill referred to the transactions to which we have alluded in the opening paragraphs of this opinion and alleged, among other things, that the sum of $1,037.50 remained unpaid on the debt secured by the mortgage executed by Burkes to Jefferson at the time that mortgage was assigned and transferred to A. C. Moore; that on May 20, 1939, Burkes- and wife agreed to hold Shipp “free from, the indebtedness due” by Burkes to Jefferson, which indebtedness was secured by Tract B as well as Tract A; -that the respondents I. E. Moore and A. C. Moore are so related that the court “may inquire into and require them on account of such relationship to state unto the court any transactions wherein any trust or agreement is made affecting the interests of third persons”; that the respondent A. C. Moore, in conjunction with or at the instance of the respondent I. E.

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Bluebook (online)
81 So. 2d 352, 262 Ala. 664, 1955 Ala. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-shipp-ala-1955.