Owen v. Union Central Life Insurance Co.

88 S.W.2d 1002, 191 Ark. 1014, 1935 Ark. LEXIS 410
CourtSupreme Court of Arkansas
DecidedDecember 23, 1935
Docket4-4073
StatusPublished
Cited by3 cases

This text of 88 S.W.2d 1002 (Owen v. Union Central Life Insurance Co.) 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
Owen v. Union Central Life Insurance Co., 88 S.W.2d 1002, 191 Ark. 1014, 1935 Ark. LEXIS 410 (Ark. 1935).

Opinion

Humphreys, J.

Á petition was filed by appellants in the chancery court of Crittenden County within two years from the date of a foreclosure decree in said court, wherein appellee Union Central Life Insurance Company' was plaintiff, and appellants were defendants, having-been constructively served in the foreclosure proceeding.

In the petition it was alleged that appellants were served constructively as though nonresidents; whereas they were citizens of the State of Arkansas and should have been personally served with summons. And also alleged that the purpose of serving them constructively was a part of a conspiracy to foreclose the mortgage without their knowing anything about it, so that they might purchase it at the foreclosure sale for an inadequate consideration, and also alleged that, in furtherance of such conspiracy, they advertised the lands under an erroneous description and sold it at a different place than that specified in the decree and notice, and had purchased it at a grossly inadequate price, having induced prospective purchasers not to attend the sale. And also that, although appellees had promised to give appellants an opportunity to buy the property back, the Union Central Life Insurance Company, the purchaser at the sale, pursuant to the conspiracy entered into between it, Oliver and others, conveyed 580 acres, constituting Owen’s home place, to Mrs. A. *W. Oliver.

Appellees filed separate answers to the petition for a new trial denying the material allegations contained in the petition.

The cause was heard upon the pleadings and evidence introduced by appellees, resulting in a dismissal of appellants’ petition, from which is this appeal.

A summary of the facts revealed by the evidence is, in substance, as follows:

In February, 1929, the Union Central'Life Insurance Company loaned A. B. Owen $21,000, evidenced by a series of amortized notes, twenty in number, -the first being for $905.90, and the remaining for $1,095.88 each, payable November 1, 1929, and annually thereafter, said notes covering both principal and interest and secured by a trust deed on some six hundred thirty-three and one-third acres situated partly in St. Francis County and mainly in Crittenden County, Arkansas. The mortgage contained an accelerating clause in case of default in the payment of any note at maturity. In 1931, Owen, defaulted upon the indebtedness and also failed to pay the general and special taxes. At that time he was indebted to F. G-. Barton Cotton Company in a large amoiint secured by a second mortgage upon the lands, The second mortgagee, wishing to save the second mortgage if possible, but also as agent for Owen, began negotiations with the Union Central. These continued throughout 1932, both before and after the foreclosure suit was instituted. At no time did Mr. Frank Barton, who conducted these negotiations for the F. G. Barton Cotton Company, offer to pay the Union Central Life Insurance Company the total amount of the delinquencies. Mr. Barton made an offer in the spring of 1932 to pay a portion of the delinquencies, which was refused; and later, conditions becoming gradually worse during 1932, the insurance company, through its representative, Mr. Richmond, agreed to accept the proposition previously refused, but the condition of Owen’s crop and general conditions at the time were such that Mr. Barton refused to renew the offer but, ou the other hand, made an offer of a less amount, or counter-proposition, which was refused. Mr. Barton communicated to Owen the result and failure of these negotiations. On July 15, 1932, the Union Central Life Insurance Company filed its foreclosure suit, showing that at that time Owen was delinquent in the sum of $3,905.88, due November 1, 1931, and in addition had failed to pay the levee, drainage, road and State and county taxes, which were past due and delinquent, and that there was due the insurance company, exclusive of taxes, the sum of $19,883.09 with interest from November 1, 1931. On October 17,1932, the chancellor entered a decree of foreclosure for $21,175.19, the amount of the indebtedness with interest to that date exclusive of taxes. Two or three days before the decree of foreclosure was rendered, A. B. Owen received information of the pendency of the suit and employed A. H. Murray, a regularly practicing attorney, to represent him in this suit, and Murray was present in court when the decree of foreclosure was requested and when it was rendered, and had an opportunity to examine the decree and was furnished with a copy, but did not ask for time within which to answer or make any defense and made no objection to the entry of the decree. Owen and Murray were not able to get any one willing to put up the necessary money to stop the foreclosure, although efforts were made with Ralph May, Shannon Brothers, Eugene Woods, and others in addition to the second mortgagee. The notice of the commissioner’s sale was published pursuant to the decree of foreclosure. A slight misdescription of one of the calls of the land was made in the notice. The commissioner’s report of sale was filed, showing that the property was sold, at the time and place designated in the decree, for $19,885 to the mortgagee, the Union Central Life Insurance Company. The sale was approved and confirmed by the chancellor in the presence of Owen’s attorney on December 20, 1932. No objection was made by said attorney to the sale or confirmation thereof. The court ordered the commissioner to execute a deed to said lands described in the mortgage to the Union Central Life Insurance Company, which was done, and which deed was subsequently approved by the chancellor and duly recorded. Owen testified that he went to the place of the sale on the advertised date thereof and received information that the sale had been made in the clerk’s office, instead of being made publicly at the courthouse door, and that for some reason Eugene Woods, who had promised to buy it in for him, did not appear and do so. The Union Central Life Insurance Company conveyed most of the land to Mrs. A. W. Oliver. A. W. Oliver purchased forty acres of the land from Len Turley, who acquired title thereto under a tax deed. The Union Central Life Insurance Company conveyed the balance of the land to W. B. Bhodes. Thereafter, appellants surrendered possession of the lands purchased by Mrs. A. W. Oliver to her, who immediately made improvements thereon, and who has continued to reside thereon and improve same. In 1930 A. B. Owen bought a home in Memphis, and moved his wife and children to that city and visited them week-ends. The children attended school, and his wife became a registered voter in Memphis. He continued to maintain a home in Memphis for them until May or June, 1933, at which time the residence was sold under mortgage. He was maintaining a home in Memphis when the Crittenden County property involved in this suit was foreclosed. At no time, either before or after the foreclosure of these lands, did A. B. Owen or any one for Mm ever tender in money the amount of the delinquencies, or the total indebtedness to the Union Central Life Insurance Company, but made propositions to get up money to pay part of the delinquencies by way of compromise and settlement. The most that Owen claims is that, if he had been given more time, he had friends who would have helped him if the delinquencies did not figure up more than they were willing to advance for him.

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Bluebook (online)
88 S.W.2d 1002, 191 Ark. 1014, 1935 Ark. LEXIS 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-v-union-central-life-insurance-co-ark-1935.