Owen v. McGehee

61 Ala. 440
CourtSupreme Court of Alabama
DecidedDecember 15, 1878
StatusPublished
Cited by25 cases

This text of 61 Ala. 440 (Owen v. McGehee) 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
Owen v. McGehee, 61 Ala. 440 (Ala. 1878).

Opinion

BBJCKELL, C. J.

These are cross-appeals from a decree rendered by the court of chancery, in a cause wherein the appellant, Owen, was complainant in the original bill, and defendant in a cross-bill filed by the appellee, Mc-Gehee.

The purpose of the original bill is to compel contribution from McGehee, for the relief of Owen, who has discharged more of a common obligation than he was bound in equity and conscience to discharge, theréby benefitting McGehee. The facts as shown by the pleadings and proof are, that in December, 1859, the personal representatives of Haley Hutchinson, under an order of the court of probate of Lowndes county, exposed to public sale, a large tract of land, containing more than fourteen hundred acres. Owen, McGehee, Watts, and Harrison, each desired to purchase parts of the lands, of unequal quantities, neither desiring to purchase the entire tract. On the day of, and at the place of sale, it was agreed that Owen should in his own name bid off the entire tract, and the others would join him in the note for the purchase-money. Each one was to take the part and quantity of the lands he wished, and was to pay a corresponding part [442]*442of tbe purchase-money. The lands were bid off by Owen, at the aggregate sum of 35,459 66-100 dollars, being 25 25-100 dollars per acre, and the note of himself, McGehee, Watts and Harrison, was given payable to the administrators on the first day of January, 1861, with interest from the first day of January, 1860. Owen was by the administrators reported to the court of probate as the purchaser, and tbe sale to him confirmed by the court. Immediately Owen entered into possession of 434 27-100 acres of the land, the part and quantity he desired to purchase. McGehee took possession of 568 45-100 acres, the part and quantity he wished. Watts of 240, 36-100 acres, and Harrison of 160, 75-100 acres. Some time after the sale, and after each party had taken possession of the lands he desired to purchase, in the spring of 1869, a dispute arose between McGehee and Owen, as to the amount of the purchase-money each should pay. McGehee insisted his part of the lands was less valuable than the parts of the others, and that the agreement was that the lands were to be valued, and each should pay according to the relative value of his lands as compared to the whole. The result of this dispute was that on the 27th of July, 1860, Watts verbally, and without any new consideration, agreed that for his part of the lands he would pay five dollars per acre more than the price per acre at which Owen bid off the lands ; and Owen and McGehee agreed in writing, that Watts’ part of the land being valued at this increased price, two persons-whom they nominated, should make valuation of their parts-of the land, and determine the amount of the purchase-money McGehee should pay. This agreement was left in the possession of Watts and was never executed — the valuation was not made by the persons named — from what cause does not appear. At some other time, but when, it does not appeal’, another agreement in writing was entered into by Owen, McGehee and Harrison, by which it was agreed that appraisers, whom they selected, should value their respective parts of the land, and that each one should pay of the purchase-money according to the valuation. These appraisers determined each one should pay the purchase-money of the parts of the lands he had taken. On the seventh day of May, 1862, Owen paid on the note for the purchase-money of the lands $6,500; on the 19th June, 1862, $13,500; on the 31st March, 1865, $5,041 61-100, making in the aggregate, $25,041 61-100. On the 20th December, 1862, Mc-Gehee paid on the note, $10,000, and on the 11th of June, 1863, the further sum of $900, leaving a balance due on the [443]*443note of $8,859 72-100 on that day. The note by assignment of the administrators of Hutchinson passed into the possession of administrators of one Shepherd, and one Slater subsequently became possessed thereof. McGehee having advised with counsel, having some doubt as to whether he could safely deal with Slater as the owner of the note, and being advised that he could, entered into negotiations by which he obtained the note, paying three thousand dollars in cash, stock of a railroad company, of the nominal value of fifteen hundred dollars. This note he has not paid; but judgment thereon has been obtained, execution returned no property found, and he is now insolvent. The amount due on the original note for the purchase-money of the lands, on the first of June, 1856, when McGehee by this transaction obtained it was §9,733 24-100. At this time Owen was also negotiating with Slater for the note. There is a conflict in his testimony and that of McGehee, as to -whether he refused to join the latter in taking up the note. McGehee was subsequently involved in litigation with one Sutherlin, who claimed some right or interest in the note, as to the validity of the transaction with Slater; and he and Owen were both involved in litigation with the heirs of Hutchinson, as to the validity of the title to the lands. In this litigation, however, they were successful.

Watts and Harrison each failed to pay any part of the purchase-money of the lands, and in 1867, surrendered to Owen the parts of the lands they had taken, whereby as between himself and McGehee, Owen became bound for their parts of the purchase-money. The questions at issue, between the parties, are, first, whether Owen shall account for Watts’ part of the lands, at the increased price he agreed to pay, or only at the same rate per acre at which the whole lands were originally purchased ; and, second, whether Mc-Gehee can claim the whole amount due on the original note, when he obtained it from Slater; or only the amount he paid in money, and the actual value of the railroad stock ; third, whether the note for fifteen hundred dollars given by him to-Slater, which is unpaid, shall as between Owen and himself, be computed a payment.

The chancellor directed a reference to the register to state-an account between the parties, on each hypothesis, and a report was made to which each party filed exceptions. Pending these exceptions, the parties agreed that the register should report, and he did report, that assuming McGehee was entitled to a credit for the balance due on the original [444]*444note for the purchase-money of the lands, on the first day of June, 1866, when he acquired it from Slater, Owen would stand indebted to him on that day $670 54-100, and computing interest to the day of the agreement and report, May 7th, 1877, it would be $1,257 19-100. On the hypothesis that McGehee was entitled to a credit only for the cash paid, the actual value of the railroad stock, and his note for fifteen hundred dollars as cash, he would then be indebted to Owen in the sum of $2,248 51-100 on June first, 1866, and computing interest up to May seventh, 1877, $4,215 72-100.

The chancellor was of opinion, that under all the facts of the case, Owen had too long delayed his claim for contribution, and the right to participate in the benefits of the transaction by which McGehee obtained the original note from Slater, and rendered a decree dismissing the original and the cross-bill. The original bill was filed on November 17th, 1875. The litigation with the heirs of Hutchinson was not then finally determined. Each party has appealed and assigned errors.

There is no evidence that there was any inequality in the values of the several parcels of the tract of land, further than may arise from the difference in quantity.

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Bluebook (online)
61 Ala. 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-v-mcgehee-ala-1878.