Murphree v. Cook

822 So. 2d 1092, 2002 WL 524603
CourtCourt of Appeals of Mississippi
DecidedApril 9, 2002
Docket1999-CA-01854-COA
StatusPublished
Cited by6 cases

This text of 822 So. 2d 1092 (Murphree v. Cook) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphree v. Cook, 822 So. 2d 1092, 2002 WL 524603 (Mich. Ct. App. 2002).

Opinion

822 So.2d 1092 (2002)

Jason MURPHREE, Appellant,
v.
Helen COOK, Appellee.

No. 1999-CA-01854-COA.

Court of Appeals of Mississippi.

April 9, 2002.
Certiorari Denied July 25, 2002.

*1094 B. Sean Akins, Ripley, attorney for appellant.

Richard Joseph Babb, Ripley, attorney for appellee.

EN BANC.

ON MOTION FOR REHEARING

McMILLIN, C.J., for the court.

¶ 1. The motion for rehearing is denied. The original opinion of this Court is withdrawn and the following opinion is substituted therefor.

¶ 2. This case comes before the Court as an appeal from a judgment in a real estate partition action filed in the Chancery Court of Marshall County by the appellant, Jason Murphree. Murphree sought to partition by sale a tract of commercial property, record title to which was vested in Murphree and Helen Cook as tenants in common. The Bank of Holly Springs was an additional defendant, solely because it was a necessary party as the holder of a deed of trust on the property securing a purchase money loan on the tract made to Murphree and Cook.

¶ 3. The chancellor, rather than partitioning the property as prayed for by Murphree, determined what the chancellor felt to be the fair value of Murphree's half interest in the property through a rather complex calculation, and ordered that Murphree convey his interest in the property to Cook upon receipt of the payment of that sum. Murphree has appealed that decision, alleging that it exceeded the authority of the chancellor under these circumstances.

¶ 4. Cook contended at the trial level that Murphree was not entitled to partition because he had contractually agreed to convey his interest in the property to Cook a number of years earlier and had simply failed to complete the formalities of the conveyance through a mutual oversight. However, apparently now satisfied with the terms of the chancellor's judgment, *1095 Cook has not cross-appealed to advance that same proposition before this Court. Rather, she seeks only to have the chancellor's judgment affirmed in its present form.

¶ 5. This Court finds that the chancellor manifestly abused his discretion in attempting to fashion a unique remedy to sever the cotenancy that he apparently found to be more equitable under the circumstances than a partition but which ignored the statutes of this State defining the only lawful method available to accomplish that purpose. We, therefore, conclude that the matter must be reversed and remanded for further proceedings consistent with this opinion.

I.

Facts

¶ 6. Certain essential facts of this case are beyond dispute. In practically every remaining instance where no concrete proof exists, the parties offer markedly contrasting versions of the facts.

¶ 7. These facts are not in dispute. Murphree and Cook borrowed $85,000 from the Bank of Holly Springs on June 29, 1993, on a joint note and used the loan proceeds to purchase the assets of a business known as Hoover Distributing. The purchase included the real property which is the subject of this suit and a certain limited amount of equipment useful in the business operation. Title to the real property was conveyed to Murphree and Cook as tenants in common. The real property had, prior to purchase, been used exclusively in the operation of Hoover Distributing and continued to be used in the same manner after the transaction was consummated. Murphree and Cook secured the repayment of the $85,000 loan by a deed of trust on this real property. The parties did not enter into a formal written agreement as to their intentions in purchasing the property, and, at trial, they gave sharply contrasting accounts of what their intentions were.

¶ 8. Cook testified that the parties had purchased these assets, including specifically the real estate, to acquire the existing business of Hoover Distributing and operate it as a partnership under the trade name of Cook Oil Company. However, Cook contended, after only a month of operation, the parties decided to end their partnership and, as a result, entered into a dissolution agreement styled "Notice of Dissolution" dated July 27, 1993, under the terms of which Cook assumed all partnership liabilities and was, in turn, entitled to receive all partnership assets. No specifics were provided as to what constituted the assets of the partnership. The agreement was entered into evidence as an exhibit and its authenticity is not in dispute. According to Cook, the dissolution agreement's mention of the word "assets" was intended to specifically include the real property. She said that it was a mere oversight that Murphree did not contemporaneously execute a deed formally conveying his fractional interest in the property to her, but that by virtue of the dissolution agreement, he remained obligated to do so without further consideration.

¶ 9. Murphree, on the other hand, disputes the fact that he and Cook ever entered into a partnership to operate the business bought from Hoover Distributing. Rather, he contends that he intended only to purchase a half interest in the real property as an investment and that he had done so primarily as an accommodation to Cook since she did not have the necessary credit to arrange for the necessary financing to purchase the property. According to Murphree, the plan had been that, at some time in the future when Cook was on *1096 a firmer financial foundation, she would buy out Murphree's interest in the property at an agreeable price that would give him a satisfactory return on his investment. He claims that the dissolution agreement's true purpose was to dissolve certain business partnership interests then existing between him and Cook's husband, Thomas Wayne Cook. He testified that Cook insisted on inserting the references to possible partnerships with her in the agreement and that he did not object because he knew that such partnerships did not exist so that any such references would be meaningless and, thus, harmless surplusage in the agreement.

¶ 10. The parties do not dispute that Cook was in complete control of the property from shortly after the date of purchase until January 30, 1997, when Murphree filed this partition action to sever their tenancy in common. There is no dispute Cook used the property solely to advance the purposes of the business bought from Hoover Distributing. It is also not disputed that Cook has maintained the property, made all loan payments due to the Bank of Holly Springs, paid the taxes on the property, and made a number of improvements to the property at her sole expense. Cook contends that this demonstrates conclusively that the parties intended for her to have exclusive ownership of the property under the relevant provisions of the dissolution agreement. Murphree, on the other hand, testified that, since Cook had exclusive possession of the property, he would have been entitled to rent on his half interest and that he considered Cook's payments for taxes, maintenance, and improvements as having been made in lieu of rent.

II.

The Chancellor's Decision

¶ 11. The chancellor found as a matter of fact that the parties had intended to and did, in fact, enter into a partnership to operate the business acquired from Hoover Distributing under the trade name of Cook Oil Company, but that the partnership had been dissolved by mutual agreement on July 27, 1993, as evidenced by the dissolution agreement. However, the chancellor found as fact that the term "assets of said businesses" as used in the agreement was not intended to cover the real property held by the parties as tenants in common.

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Bluebook (online)
822 So. 2d 1092, 2002 WL 524603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphree-v-cook-missctapp-2002.