Scottish American Mortgage Co. v. Butler

54 So. 666, 99 Miss. 56
CourtMississippi Supreme Court
DecidedOctober 15, 1910
StatusPublished
Cited by13 cases

This text of 54 So. 666 (Scottish American Mortgage Co. v. Butler) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scottish American Mortgage Co. v. Butler, 54 So. 666, 99 Miss. 56 (Mich. 1910).

Opinion

Anderson, J.,

delivered the opinion of the court.

This is a bill by the appellant, Scottish American Mortgage Company, Limited, against the appellees, Ralph P. Butler et al., to enjoin an ejectment suit pending in the •circuit court of Franklin county, brought by appellees •against appellant for the lands in- controversy in this [62]*62cause. A demurrer was interposed to the hill and overruled in. the court below, from which decree an appeal was granted to this court. The question raised by the demurrer was whether the chancery court had jurisdiction. The jurisdiction of the chancery court was by this court upheld. The case as here then will be found reported under the style of Ralph P. Butler et al. v. Scottish American Mortgage Company, 90 Miss. 215, 46 South. 829. On being remanded, the bill was answered by appellees, testimony was taken and the cause heard on bill, answer and proofs, and a decree rendered from which this appeal is prosecuted.

The bill sets out substantially these facts: That the appellant is a corporation under the laws of Great Britain, domiciled in Edinburgh,' Scotland. That on April 26, 1888, Nathan Bunckley, ancestor of appellees, owned the land in controversy, and borrowed from appellant the sum of five thousand dollars, for the payment of which he executed his promissory notes and a deed of trust on the lands involved to secure the same to A. S. Caldwell as trustee. That said indebtedness fell due, and Nathan Bunckley made default in payment thereof, and, the trustee named in the deed of trust failing to execute the trust, one Boscoe Stinson was by John M. Judah, attorney in fact for appellant, appointed substituted trustee, who in accordance with the provisions of the trust deed advertised and sold the lands therein conveyed on December 30, 1892, which were purchased by said John M. Judah as trustee for appellant, to whom, as such trustee, a conveyance was duly executed by such substituted trustee on January 6, 1898. That from the date of appellant’s purchase on January 6, 1898, to the time of bringing of said ejectment suit by appellees on April 7, 1907, appellant had been in the open, notorious, ádverse possession of said lands under its said deed of purchase, cláiming title thereto against the world. That appellant got a good title to said lands by' said foreclos[63]*63ure sale and its deed from the substituted trustee. That appellant has a good title to said lands by adverse possession. That appellees have no title because held out of possession for more than ten years. That, if appellant is mistaken in its claim of title by virtue of said foreclosure sale, and also its claim of title by adverse possession, then it is a mortgagee in possession and entitled to enforce a lien against the lands for the payment of its indebtedness, taxes, etc.

The answer denies many of the material allegations of the bill, and sets up that the foreclosure sale under which appellant claims title was’ void,- because the substituted trustee making it had no right to act as such on account of having been substituted by an attorney in fact for the appellant in violation of the terms in the deed of trust, and that appellant is a non-resident alien corporation, and therefore incápable of acquiring title to land by adverse possession. A decree was rendered declaring that appellant had no title to the lands, either by virtue of its purchase at the substituted trustee’s sale or by adverse possession, but that it was a mortgagee in possession and entitled to have the lands charged with a lien for the payment of its mortgage indebtedness, taxes, etc., the appellees to be credited with the rents and profits, and directing an accounting to be taken by a master to ascertain the amount due appellant, and decreeing that the injunction against the ejectment suit be made perpetual. The provision in the deed of trust for the appointment of a substituted trustee is in this language: “In case of refusal, neglect, or incompetency to act as said trustee, or his absence from the state, or his decease, then said party of the third part (appellant) or any holder of said note or notes or their legal representatives can at any time they desire, appoint a trustee in place of the said party of the second part, or any succeeding trustee,” etc. The fact is Stinson, the substituted trustee, was appointed by John M. Judah,, [64]*64attorney in fact for appellant. The court’s finding of fact in the decree in reference to the adverse possession of appellant is in this language: ‘ ‘ That the complainant (appellant) is not entitled to the relief it seeks based upon the adverse possession of the' premises in controversy, because that while it is shown to the satisfaction of the court that it, the said complainant, has been in the uninterrupted, undisputed, open, notorious, and continuous adverse possession of the premises in controversy for a period of more than ten years next before file filing of the ejectment suit by the defendants (appellees) in this cause-, yet the court adjudges in this regard that the complainant, being a non-resident alien corporation, cannot acquire title by adverse possession, and •cannot therefore set up the statute of limitations of ten years. ’ ’

The questions involved in this case are as follows: (1) "Whether the appellant got a good title to the land in controversy by its purchase and deed under the foreclosure sale by the substituted trustee.. (2) "Whether appellant. had been for at least ten years next before the institution of the ejectment suit by the appellees in the actual adverse possession of the land, claiming for that time to be the owner thereof. (3) Whether, if appellant had such possession, so claiming title, its absence from the state prevented the bar of the statute in its favor. (4) Whether appellant, being a non-resident alien corporation, could hold the lands adversely to appellees so as to thereby bar them of their right of recovery. c We will consider these propositions in the order set out.

(1) The power conferred by the deed of trust in this case to substitute a trustee is in substantially the same language as that in the deed of trust under consideration in the case of Allen v. Alliance Trust Company, 84 Miss. 319, 36 South. 285. It was held in that case that the •attorney, in fact, of the beneficiary could not appoint ■a’ substituted trustee. Under the authority of that de[65]*65cisión, the substitution of Stinson, by the attorney in fact for appellant, was void, the sale by such substituted trustee was likewise void, and appellant therefore got no title by virtue of its purchase at such sale and conveyance by the substituted trustee.

(2) The finding of the chancellor that the appellant had been in the actual adverse possession of the lands, claiming title thereto and receiving the rents from the date of its purchase at the foreclosure sale in 1893 to the time of the institution of the ejectment suit by the appellees,in 1907, will not be disturbed; in fact, there is little testimony to the contrary.

(3) The appellant has always been a non-resident alien corporation. It has never become domesticated in this state.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dorotea Zaldivar v. De Tenorio v. H. E. McGowan
510 F.2d 92 (Fifth Circuit, 1975)
De Tenorio v. McGowan
364 F. Supp. 1051 (S.D. Mississippi, 1973)
Gaddis & McLaurin, Inc. v. Nichols
105 So. 2d 459 (Mississippi Supreme Court, 1958)
Cassidy v. Central Lumber Co.
68 So. 2d 286 (Mississippi Supreme Court, 1953)
United States Fidelity & Guaranty Co. v. Ransom
5 So. 2d 238 (Mississippi Supreme Court, 1941)
Taylor v. San Antonio Joint Stock Land Bank
101 S.W.2d 868 (Court of Appeals of Texas, 1936)
Dillon v. Elmore
198 N.E. 128 (Illinois Supreme Court, 1935)
Dillon v. Elmore
276 Ill. App. 548 (Appellate Court of Illinois, 1934)
Holcomb v. Nettleton
35 S.W.2d 745 (Court of Appeals of Texas, 1931)
R. E. L. McCaskill Co. v. Dekle
102 So. 252 (Supreme Court of Florida, 1924)
Osceola Fertilizer Co. v. Beville
98 So. 354 (Supreme Court of Florida, 1923)
State ex rel. Brown v. Scottish American Mortgage Co.
71 So. 291 (Mississippi Supreme Court, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
54 So. 666, 99 Miss. 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scottish-american-mortgage-co-v-butler-miss-1910.