Scott v. Mineral Development Co.

130 F. 497, 64 C.C.A. 659, 1904 U.S. App. LEXIS 4189
Court of Appeals for the Sixth Circuit·Decided May 12, 1904·No. No. 1,248·Published·Cited by 2 cases

Opinion

SEVERENS, Circuit Judge.

This is an action of ejectment brought by the Mineral Development Company to recover the possession of certain parcels of land in Eetcher county, Ky. The defendants John S. and Mary D. Wentz claim to own the lands, and Scott and Raleigh were their tenants in possession of some of them. The plaintiff founds its claim of title upon a patent made by the state February 28, 1874, to William H. Nickels for a tract consisting of 34,800 acres of land in said county on a survey made by him in 1873. The tract so patented was on February 3, 1882, conveyed by Nickels to Joseph B. Altemus and William D. Jones, who, on December 7, 1883, conveyed the same to Altemus, Benson, and McGeorge upon a trust expressed in a contemporaneous instrument for certain named beneficiaries. In consequence of the resignation and death of trustees and the transfer of interests of the beneficiaries, the trustees and the beneficiaries on July . 15, 1901, conveyed the tract to the plaintiff in this suit, a corporation organized under the laws of Virginia, and in exchange therefor the corporation issued its stock to the beneficiaries in the proportion of their respective interests and in an amount agreed upon. Claiming that these defendants were in possession of, and unlawfully withholding the possession of, parcels of the Nickels grant above mentioned, the plaintiff, on January 20, 1902, brought this suit.

The defendants pleaded to the jurisdiction that the conveyance to the plaintiff by the trustees, who had theretofore held title to the lands conveyed, was fraudulently made for the purpose of enabling the plaintiff to bring suit therefor in the United States court, which the trustees could not have done; it being further alleged that the cestuis que trust, by virtue of their stockholding interest, had resumed their relation to the property conveyed. They also filed an answer to the petition claiming title in John S. and Mary D. Wentz, and, further, that the defendants, and those under whom they claimed title, had been in adverse possession of the lands for more than' 15 years prior to the commencement of suit, and also that the conveyance to the plaintiff of the lands was made while they were adversely held by the defendants or their'grantors, and was therefore void for champerty. We take no notice of some preliminary pleadings, as they are not now material. Under the Practice Code of Kentucky the objection to the jurisdiction might properly have been incorporated in the answer. We so held in Roberts v. Langenbach, 119 Fed. 349, 56 C. C. A. 253. But, as the case was tried by a jury upon all the issues, the same consequences have resulted as if all the defenses had been joined in an answer. The jury, under the direction of the court, found that the plea to the jurisdiction was not sustained; that is to say, such is the effect of their verdict, although no separate verdict was taken on that issue, as should have been done in regular order. But in the result it is immaterial now that such practice was not pursued, and no question is raised upon it. We think [499] the court did not err in instructing the jury that the defense presented by the plea was not sustained. In support of it nothing was shown except the bare facts of the conveyance of the land to the plaintiff and the conditions of the transfer above recited. On those facts alone there would be no fair ground for the conclusion that the parties colluded to falsely create the appearance of jurisdictional facts, or that the legal effect of the transaction was such as to defeat the jurisdiction. But the trustees, who were called as witnesses, testified that the exigencies of the business to which the trust had relation suggested the transfer as a proper and advisable proceeding. We do not think that the facts are so nearly similar to those in the case of Lehigh Mining & Manufacturing Co. v. Kelly, 160 U. S. 328, 16 Sup. Ct. 307, 40 L. Ed. 444, to which reference is made, as to require a different conclusion from that which we have indicated.

The other issues concern the merits. Under the peremptory instruction of the court the jury rendered a verdict awarding -some of the lands in controversy to the plaintiff and some to the defendants. The correctness of this instruction is the matter we have to determine. The defendants complain that by error of the court they have been deprived of several parcels of the land to which they had valid title by adverse possession, or that in respect to one or more the plaintiff was precluded by the statute of the state concerning champerty. The foundation of the defense arising upon adverse possession is the Kentucky statute of limitations, which provides that “an action for the recovery of real property can only be brought within 15 years after the right to institute it first accrued to the plaintiff, or to the person through whom he claims.” Ky. St. 1903, § 2505. The right accrues when another person takes adverse possession of the owner’s lands. Of course, if the adverse possession is not maintained for the' period mentioned, the statute is inoperative, for it imports that there must be a continuous right of action during that period. Inasmuch as the Kentucky statute against champerty is involved in the controversy and will be referred to in the discussion of the effect of adverse possession, it is here quoted, as follows:

“All sales or conveyances, Including those, made under execution, of any lands, or the pretended right or title to the same, of which any other person, at the time of such sale, contract or conveyance, has. adverse possession, shall be null and void.” Ky. St. 1903, § 210.

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Scott v. Mineral Development Co., 130 F. 497, 64 C.C.A. 659, 1904 U.S. App. LEXIS 4189 (6th Cir. 1904).

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