Nelson v. Forbes & Sons

261 S.W. 910, 164 Ark. 460, 1924 Ark. LEXIS 397
CourtSupreme Court of Arkansas
DecidedMay 26, 1924
StatusPublished
Cited by8 cases

This text of 261 S.W. 910 (Nelson v. Forbes & Sons) 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
Nelson v. Forbes & Sons, 261 S.W. 910, 164 Ark. 460, 1924 Ark. LEXIS 397 (Ark. 1924).

Opinion

Smith, J.

Appellant Nelson brought this action against appellees Forbes & Sons to recover twelve bales of cotton which had been mortgaged to him in the State of Oklahoma by W. M. Bromley. The cotton was brought into this State and sold to appellees at ITackett, Arkansas, by Z. R. Smith, to whom it had been turned over by Bromley in payment of an alleged rent note.

Smith had contracted1 to sell Bromley the land ou which the cotton was grown, and on November 11, 1919, executed a deed to Bromley for the recited consideration of $7,500 cash in hand paid. This deed was not then delivered, but was placed in escrow until Bromley could raise a cash payment which was required. Before the delivery of the deed Smith rented the land to Bromley for a thousand dollars for the year 1920, and took a note for that amount, dated January 27, 1920, and due November 15 of that year. It was understood, however, when the deed was delivered, that the thousand dollars, when paid, should be treated as a payment of purchase money.

Bromley entered, into possession of the land and cultivated it for the year 1920, and the twelve bales of cotton involved in this litigation were a part of the crop grown that year.- All the cotton was sold by Bromley except the twelve bales, which were not sold because the price was not satisfactory, and the cotton was stored in a barn at Bromley’s house.

The mortgage from Bromley to Nelson was dated August 2,1921, and one of the disputed questions of fact in the case is whether the cotton so stored had been delivered to Smith prior to the execution and delivery of the mortgage, and the conflict in the testimony makes a question for the jury whether there had been a delivery to Smith prior to August 5, the date the mortgage was filed. Had that been done, this, of course, would be decisive of the case, as the title to the cotton would have passed to Smith upon its delivery to him. It is insisted, however, that the testimony shows that no delivery of the cotton to Smith had ever been made until after the execution of the mortgage, and that Bromley was in possession of it for himself, holding.it to be sold when the market price advanced.

Finally, in January, 1922, Smith took the cotton out of Oklahoma and sold it to appellees in this State. This was after the mortgage had been executed, and the suit was brought to recover the cotton under the mortgage.

When Will Forbes, one of the appellees, was on the stand the court permitted counsel 'for appellees, over appellant’s objection, to ask him if he knew of the mortgage when he bought the cotton, and he answered that he did not. This was an improper question, but we think no prejudice could have resulted from the action of the court in permitting it to be asked. The witness answered that he knew nothing of the mortgage, and there was no attempt to charge him with notice, but the instructions did not submit this question, and, under the instructions given, the jury could not have regarded the question as of any importance.

Appellant asked an instruction numbered 1 which presented his theory of the ease. It reads as follows: “If you find, by a preponderance of the evidence in this case, that 'Smith sold the land to Bromley and conveyed the title to same, and that, after doing so, Bromley grew the cotton on the land and then mortgaged the cotton to the plaintiff to secure an indebtedness which he, Bromley, owed to the plaintiff, and the plaintiff had his mortgage recorded in LeFlore County, and that the cotton, at the time of the execution of the mortgage, wa's in LeFlore County, Oklahoma, and that thereafter Bromley disposed of the cotton to Smith, or that Smith removed it from LeFlore County, Oklahoma, to Sebastian County, Arkansas, and the indebtedness secured by the mortgage is yet unpaid, then the plaintiff is entitled to the possession of the cotton, and your verdict should be for him.”

The court did not give the instruction as asked, but gave it after adding- the following proviso: “Unless you further find that Smith reserved the rent, and that the bales of cotton in controversy were turned over to Smith as rent, then and in that event defendant Forbes would take a title free from the mortgage of plaintiff Nelson, and you should find for defendant Forbes. ”

In the case of F. E. Creelman Lumber Co. v. Lesh, 73 Ark. 16, this court said: “In Hall v. Pillow this court held that the lien of a mortgage in another ‘State was not displaced by the wrongful removal of the property from that State to this. 31 Ark. 32. The authorities generally hold that a chattel mortgage, good according to the laws of the place where the mortgage is executed and recorded and the property is then situated, will be good, by comity, in any State to which the property may be afterward removed by the mortgagor, unless there is some statute in such State to the contrary; This, too, as against an innocent purchaser for value from the mortgagor. In some cases it is said the rule obtains, even though the property may have been removed with the consent of the mortgagee. Sheppard v. Hynes, 104 Fed. Rep. 449; Alferitz v. Ingalls, 83 Fed. Rep. 964, and authorities cited in both cases. See also authorities cited at p. 1061, Pingrey,. Chattel Mortg'., § 435; Jones, Chat. Mort. § 260.”

It was proper therefore for the court to instruct the jury that, if the mortgage was valid under the laws of Oklahoma, and had been properly recorded, it would be enforced in this State, even as against an innocent purchaser for value; but the instruction ignored the contention of the defendants that the cotton had been delivered to Smith before the mortgage was executed, which, as. we have said, is one of the questions of fact that cannot be treated as undisputed.

¥e think, however, that the modification of the instruction was erroneous. The undisputed evidence shows that, after the rent note was taken, the deed was delivered. Thereupon the character of Bromley’s possession was changed from that of tenant to purchaser, and the relation of landlord and tenant ceased, and there could thereafter be no lien for rent. The deed contained no reservation of the rents, and we said in the case of Barfield Mercantile Co. v. Connery, 150 Ark. 428: “It is well settled1 that a deed conveying the title to land in fee simple carries with it the right to collect the rents, and, ‘unless the deed reserves the right in the grantor to collect and use the rents, these pass as a necessary incident with the land to the grantee.’ Gibbons v. Dillingham, 10 Ark. 9; Latham v. First National Bank of Ft. Smith, 92 Ark. 315; Gailey v. Ricketts, 123 Ark. 18. Where the deed is absolute on its face and contains no reservation of the rents, proof of an oral reservation is not admissible. Gibbons v. Dillingham, supra; Hardage v. Durrett, 110 Ark. 63; Broderick v. McRae Box Co., 138 Ark. 215.” And this is true although the conveyance is to a tenant in possession who entered under a contract to pay rent. Barfield Mercantile Co. v. Connery, supra.

In the case just quoted from we recognize the fact that an agreement to pay rent for the year in which the conveyance was made might-be shown as a part of the consideration for the deed, and that the admission of oral proof of such an agreement would not offend against any of the established rules of evidence; but the testimony here shows no such agreement.

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Bluebook (online)
261 S.W. 910, 164 Ark. 460, 1924 Ark. LEXIS 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-forbes-sons-ark-1924.