Smith v. Pope

197 So. 2d 767, 280 Ala. 662, 1967 Ala. LEXIS 850
CourtSupreme Court of Alabama
DecidedApril 6, 1967
Docket8 Div. 227
StatusPublished
Cited by7 cases

This text of 197 So. 2d 767 (Smith v. Pope) 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
Smith v. Pope, 197 So. 2d 767, 280 Ala. 662, 1967 Ala. LEXIS 850 (Ala. 1967).

Opinion

PER CURIAM.

Appellee, Millie Pope, executrix and trustee, filed her original and amended bill of complaint in the circuit court of Madison County, in equity, seeking a declaratory decree anent her duties as the fiduciary under the last will and testament of Wesley Morris, who died on January 10, 1965. She made respondents some minor children of the testator, and also appellant and one Norman Earley.

Each of the latter two made his answer a cross-bill and prayed specific performance of his contract with complainant, Millie Pope, with respect to a small area of land in Madison County. Appellee, Millie Pope, had entered into a written contract, on separate dates, with each of said cross-complainants whereby she agreed to sell to each of them and each agreed to buy, for a specified consideration, the same tract or lot of land.

The trial court granted relief to Norman Earley and decreed inter alia specific performance of his contract with Millie Pope. An assignment of error by appellant complains that the court was in error in decreeing specific performance of the Earley contract, and denying Smith specific performance of his contract with respect to .the lot.

The pleadings and evidence present issues which we conclude are as follows:

One Wesley Morris, who was the brother of Millie Pope, complainant and appellee, and the father of the several minor respondents (neither of whom has filed a brief on this appeal) entered into a written (and unrecorded) contract with George S. Butler whereby they inscribed their agreement for the sale by Morris and the purchase by Butler of the same lot of land which was the subject of the agreements between Millie Pope, appellee, and Norman Earley, appellee.

It is not necessary for us to determine whether the agreement between Wesley Morris and George S. Butler was an option to purchase or one to purchase and sell. The distinction between such contracts is recognized by this court in the case of McGuire v. Andre, 259 Ala. 109, 65 So.2d 185(5, 6). Suffice it to say, that this contract was dated December 31, 1964, and expired on or before March 30, 1965, unless extended. It contained a provision: “If title is not clear an additional 90 days will be allowed for buyer to clear .the title and cost not to exceed $150.00 at sellers (sic) expense, if not then cleared earnest money will be refunded and option cancelled.” The contract was never consummated. It has a bearing on the instant case as will hereafter appear.

The executrix and trustee (Millie Pope), purporting to act under authority of the will of Wesley Morris, entered into a written agreement, on April 27, 1965, with appellant, Wilson D. Smith, Jr., whereby, for a consideration of $20,000.00, she agreed to sell and appellant agreed to buy the real estate that, as we have noted, was the subject of the contract between Wesley Morris and George S. Butler. There is a provision in the Smith contract: “This contract is contingent upon seller being able to convey good and merchantible title free and clear of all liens and incumbrance. Seller will take all reasonable steps to perfect and cure title in event warranty deed *665 cannot be provided.” There was no expiration date within which the transaction was to be closed or the obligation to be performed. .The .Smith contract was forthwith filed in the probate office of Madison ■County where the real, estate was situated. Such filing constituted notice of its contents. Title 47, § 95, Code of .1940.

Thereafter, on May 18, 1965, the fiduciary, Millie Pope, pressed by circumstances which she thought justifiable, entered into .a written contract with Norman Earley, whereby- she agreed to sell and Earley agreed to purchase, for a consideration of $20,600.00, the same real estate that was the subject of the Smith contract and of the Butler contract which her brother made, as we have already noted. It likewise was duly filed for record in the probate ■office of Madison County.

- As we view the record Millie Pope was •present in the office of appellant’s attorney with appellant, and there they discussed ■performance of the contract with appellant. This was on or about May 3, 1965. The trustee wanted to close the contract with Smith immediately. Smith hesitated to •close without some disposition of the agreement between Wesley Morris and Butler, and also disposition of an existing judgment ■against Wesley Morris for $34.00. He ■offered to close if the trustee would agree to retention of $2500.00 of the purchase money, such retained money to be placed in escrow pending clearance of title. The trustee wanted immediate payment of the entire purchase price without any reservation, except possibly money for payment of the judgment.

Being dissatisfied with the progress of the transaction between her and Smith, the trustee proceeded thereafter, on May 18, 1965, to enter into a contract of sale with appellee, Norman Earley. Is seems that the purported urgency to close without further delay arose out of the trustee’s desire and sense of duty to provide a comfortable abode for the minor children whose •care- and custody were committed to her. .under the will.

. It further.' appears from uncontradicted evidence that appellant Smith, before the execution of the Earley contract, was informed by Butler that he had invoked the 90-day extension in his contract with Morris (deceased) and would insist on performance should certain conditions with reference to the title be met. Butler had been advised by his attorney that there was an impediment of title. Butler testified that he mailed appellee, Pope, at her address in Birmingham, written notice of such action; likewise, his attorney testified that he prepared the notice that Butler testified he mailed. Pope denied knowledge of the notice. This extra ninety days extended the contract until, to-wit: June 30, 1965. The original bill in this case for declaratory judgment was filed on July 21, 1965.

As we have noted above, the trustee contends that she tendered performance on her part when she was in the law office with appellant Smith and his attorney on May 3, 1965. The trial court made a finding of fact that tender was made.

We think the trial court’s finding of tender was in error. The contract of sale between Morris and Butler, of which Smith had notice, was outstanding. It is true that the first ninety days of the life of the contract had expired when the conference in the law office was held, but the additional ninety days allowed under the contract had not. This contract apparently was binding on the executrix Pope and the heirs of Morris. It was in the nature of an incumbrance on the lot here involved. 91 C.J.S, Vendor & Purchaser § 4, at page 836; Detwiler v. Capone, 357 Pa. 495, 55 A.2d 380(4). We here observe that the executrix Pope had notice of the Butler contract when she was in the office, but denied notice of its extension.

While it may be true, as appellee Earley here contends, but we do not decide,that the $34.00 judgment could have been satisfied out of the proceeds of the sale price of. the land, and thus removed as an. impediment .or encumbrance, to which pro *666 cedure reference was made in Eaton v. Sadler, 215 Ala. 161, 110 So. 10(9). However, there remained the extended contract of sale between Morris and Butler that prevented lawful tender on the part of appellee Pope.

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Bluebook (online)
197 So. 2d 767, 280 Ala. 662, 1967 Ala. LEXIS 850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-pope-ala-1967.