Reynolds v. Morton

534 So. 2d 1052, 1988 Ala. LEXIS 582, 1988 WL 127168
CourtSupreme Court of Alabama
DecidedSeptember 30, 1988
Docket86-1287, 86-1505
StatusPublished
Cited by1 cases

This text of 534 So. 2d 1052 (Reynolds v. Morton) 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
Reynolds v. Morton, 534 So. 2d 1052, 1988 Ala. LEXIS 582, 1988 WL 127168 (Ala. 1988).

Opinion

ALMON, Justice.

These appeals arise from an action filed pro se by John Reynolds, Jr., concerning the foreclosure on a mortgage he executed in purchasing a house from Frances Weber Birnbaum, Herbert Birnbaum, Alice Bolick, and Robert Bolick. In addition to the claims he filed against the Birnbaums and the Bolicks, Reynolds filed claims against their attorney, James B. Morton, regarding his handling of the foreclosure proceedings. After lengthy proceedings, including a petition for writ of mandamus filed in and granted by this Court, Ex parte Reynolds, 447 So.2d 701 (Ala.1984), the trial court entered judgments in favor of all the defendants.

Without specifying at this stage of the opinion the claims alleged or the issues raised by Reynolds, we note generally that at various times he filed claims for redemption, breach of contract, fraud, and other alleged causes of action. We shall give a chronological statement of the facts and [1054]*1054proceedings, after which a statement of the issues will be more comprehensible.

Reynolds bought the house, which Mrs. Birnbaum and Mrs. Bolick had inherited from their mother, on November 17, 1980. He executed a mortgage to Mrs. Birnbaum and Mrs. Bolick securing a promissory note providing for monthly payments of interest and payment of the $43,000 principal on May 15,1981. Reynolds intended to repair, refurbish, and sell the house, and he worked on it during the six-month duration of the mortgage. He did not make the April interest payment, however, and he could not pay the principal when it came due. He requested an extension of the mortgage, but the sellers refused.

Reynolds went to California on April 16, 1981, to obtain financing to avoid a fore-° closure. He stated in his deposition that he had called Morton on April 15, to tell him he was leaving for California. He recited that conversation as including the following exchange: “I asked that he notify me of any foreclosure sale advertisement, stating the date, location, and time. And he agreed to do that, said he would mail all notices of a foreclosure sale to me at 1304 42nd Street West, Birmingham.”

On April 30, 1981, Morton sent a letter on behalf of the sellers notifying Reynolds that the sellers would begin foreclosure proceedings if the balance due on the mortgage note was not paid within ten days. Reynolds’s father received the letter at the 42nd Street address, telephoned Reynolds, and read the letter to him. Reynolds telephoned Morton on May 4 to confirm that he had received the letter. At his deposition, Reynolds stated that, in that May 4 conversation, he again asked Morton to send copies of any notices of foreclosure to Morton’s Birmingham address and that Morton “reaffirmed his promise” to do so. Reynolds stated that he told Morton that he was still seeking permanent financing and that he would notify Morton of any decisions he made. His deposition continues:

“Near the end of that conversation I stated that I might have to reconvey it, but I did not discuss or propose recon-veyance.
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“But I did not discuss a proposed reconveyance as an option to which I was committing myself, as Mr. Morton claims.
“At the end of that conversation Mr. Morton said to me, ‘Now you realize that if you were to reconvey, that you would automatically forfeit your redemption?’
“And my reply to that statement that forfeiture would be automatic with re-conveyance was only an acknowledgement of his premise, if in fact it was true. But I found out it was not true.
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“The next day I went to the law library at USC in Los Angeles and there I found that one can convey property, subject to redemption, just as if it had been foreclosed by power of the sale in the mortgage.
“Q. Well, what was your next action in that regard?
“A. Following that discovery that I could legally convey property in lieu of foreclosure, subject to right of redemption, I wrote to the Defendant on May 9, 1981.”

The May 9 letter from Reynolds to Morton reads:

“Enclosed is a letter that I would like to have signed by Mrs. Herbert Birn-baum and Mrs. Alice Bolick before transferring title back to them. It is a statement of their agreement to file a Satisfaction of Mortgage with no further obligation on my part.
“As soon as I receive the signed agreement, I will forward the deed.”

Included with the letter was a document entitled “Agreement to File Satisfaction of Mortgage,” setting forth an agreement by the sellers to record a satisfaction of the mortgage upon receipt of a warranty deed from Reynolds. This document as included in the record contains Mrs. Birnbaum’s signature, dated May 18, 1981, and Mrs. Bol-ick’s signature, dated May 21, 1981. On May 28, Morton returned this document with the signatures to Reynolds, together with a deed prepared by Morton that included the following clause: “This deed is [1055]*1055not a deed in lieu of foreclosure but is made in return for actual consideration and constitutes a waiver of below grantor’s one year right of redemption.” Reynolds did not sign that deed and had no further communication with Morton or the sellers through June, July, and August 1981.

On July 11, 18, and 25, 1981, the sellers published notice of a foreclosure sale to be held on August 5; on August 8, they published notice that the sale had been continued to August 14, and the sale was held on that date. Mrs. Birnbaum and Mrs. Bolick bought the property at the sale for $49,-573.89.

Morton sent the following letter, dated August 19, 1981, but postmarked August 27, to Reynolds both at the house he had bought and at his Birmingham address:

“It became necessary for us to foreclose on the mortgage in favor of Ms. Birnbaum and her sister this past Friday, August 14, 1981.
“This letter is to notify you that unless immediate possession is delivered of the premises within 10 days of receipt of this letter, you will forfeit your right of redemption to the property.”

Reynolds’s brother read the letter to him over the telephone on Saturday, August 29.

On Monday, August 31, Reynolds telephoned Morton to discuss the deadline for delivery of possession.1 At the time, Reynolds did not know that the letter was postmarked August 27, but assumed that it had been received on August 21, two days after the date on the face of the letter. Morton allegedly told him that August 31 was the last day for delivery of possession. Reynolds told Morton that he would arrange for his brother to take the key to the house that night, unlock the door, leave the key inside, and immediately telephone the Birn-baums, who lived nearby. According to Reynolds, Morton agreed to this arrangement. Earlier on the 31st, Reynolds had telephoned an attorney who had a key to the house and asked him to deliver the key. The attorney had said that he could not deliver the key that day, but had agreed to telephone Mr. Birnbaum and tell him that the key could be picked up at the attorney’s office. According to Reynolds, when the attorney telephoned Mr. Birnbaum, he insisted that the key be delivered that day, so the attorney took it to him about noon.

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Cite This Page — Counsel Stack

Bluebook (online)
534 So. 2d 1052, 1988 Ala. LEXIS 582, 1988 WL 127168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-v-morton-ala-1988.