Spencer v. West Alabama Properties, Inc.

564 So. 2d 425, 1990 Ala. LEXIS 394, 1990 WL 90468
CourtSupreme Court of Alabama
DecidedMay 4, 1990
Docket89-183
StatusPublished
Cited by3 cases

This text of 564 So. 2d 425 (Spencer v. West Alabama Properties, Inc.) 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
Spencer v. West Alabama Properties, Inc., 564 So. 2d 425, 1990 Ala. LEXIS 394, 1990 WL 90468 (Ala. 1990).

Opinion

JONES, Justice.

Beverly Spencer, the defendant below, appeals from a judgment for the plaintiff in an action for redemption of property. Because we hold that the check, tendered within the one-year statutory redemption period, constituted “payment,” even though the check was “honored” by the drawee bank two days after the redemption period expired, we affirm.

The facts of this case are undisputed. On October 29, 1985, West Alabama Properties, Inc. (“West Alabama”), purchased the land in question from James P. Campbell for $40,000. West Alabama paid Campbell $10,000 and executed a promissory note for the balance; it secured payment of the note by executing a mortgage covering the land. On May 12, 1986, Campbell foreclosed on the mortgage and purchased the property at public auction for $32,-133.24. On November 26, 1986, Campbell and his wife conveyed the property to Beverly Spencer. On May 11, 1987, West Alabama filed a complaint initiating the present redemption action against Campbell and Spencer, and tendered with the complaint a personal check in the amount of $35,361.08, alleged by West Alabama to be the amount necessary to redeem the property. The funds tendered by West Alabama were put in an interest-bearing account by order of the circuit court. On May 14,1987, two days after the expiration of the statutory redemption period, the tendered check was honored by the Bank of Moundville. The trial court allowed redemption.

The issue presented is whether West Alabama’s corporate check, tendered with the complaint for redemption, constituted “payment” under Ala.Code 1975, §§ 6-5-235, -238. The appellant argues that the check was not cash or its equivalent and was therefore insufficient to qualify as the statutorily required payment of [427]*427the purchase money. And, insisting that a corporate check is not sufficient “payment,” Spencer further argues that, because West Alabama failed to demand, pursuant to § 6-5-234, a written statement of the debt and all lawful charges claimed by her, there exists no excuse for its failure to pay into court the “monies” owed. Therefore, Spencer says, West Alabama failed to comply with the redemption statutes, § 6-5-230 et seq., and the court erred in allowing redemption. We disagree with this “black and white” reading of §§ 6-5-235 and 6-5-238, and conclude that West Alabama did make proper payment into court.

Section 6-5-235 reads:

“Anyone entitled and desiring to redeem real estate under the provisions of this article must also pay or tender to the purchaser or his vendee the purchase money, with interest at the rate of 10 percent per annum thereon, and all other lawful charges, with legal interest, which are:
“(1) Permanent improvements as prescribed in section 6-5-244.
“(2) Taxes paid or assessed.
“(3) Any other valid lien or incum-brance paid or owned by such purchaser or his vendee, or any mortgagee of the purchaser, to the extent of the amount necessary to redeem.
“(4) If the redemption is made from a person who at the time of redemption owned the debt for which the property was sold, he must also pay any balance due on the debt, with interest thereon to date.
“(5) A mortgagee of the purchaser, or his assignee of record, is considered a vendee of the purchaser, and a party redeeming must pay all mortgages made by the purchaser or his vendee on the land to the extent of the amount required to redeem the property. If there is any balance in excess of the indebtedness secured by the mortgages made by the purchaser or his vendee, the same must be paid to the purchaser.
“(6) The purchaser shall be entitled to all rents paid or accrued to date of the redemption, and the rents must be prorated to such date. The purchaser or his vendee and his tenants shall have the right to harvest and gather the crops grown by them on the place for the year in which the redemption is made, but must pay a reasonable rent for the lands for the proportion of the current year to which such redemptioner may be entitled.”

Because the word “payment,” as used in this section, is not entirely clear, it should be construed so that neither party is unfairly advantaged. We agree with West Alabama’s contention that these Code sections are remedial in nature. We must, therefore, give them a liberal interpretation so as to effectuate their objectives. Ex parte Burks, 487 So.2d 905 (Ala.1985). The purpose of the redemption statutes is to allow a defaulting purchaser, with certain restrictions, the opportunity to redeem property that has been lost by foreclosure. Indeed, statutory rights of redemption are intended to “rescue” from “sacrifice” the property of a debtor. See Memorial Shrines, Inc. v. McConnell, 270 Ala. 266, 117 So.2d 684 (1960); and Kelley v. Hurt, 217 Ala. 694, 117 So. 411 (1928).

Looking, then, to the purpose of the statute, we recognize that such a strict interpretation of “payment” as that suggested by Spencer would serve only to defeat the legislative intent behind the statute. As the Court has observed:

“ ‘The inartificial manner in which many of our statutes are framed, the inaptness of expressions frequently used, and the want of perspicuity and precision not un-frequently met with, often require the court to look less at the letter or words of the statute, than at the context, the subject-matter, the consequences and effects, and the reason and spirit of the law, in endeavoring to arrive at the will of the law giver.’ ”

Alabama State Board of Health ex rel. Baxley v. Chambers County, 335 So.2d 653, 656 (Ala.1976), quoting Thompson v. State, 20 Ala. 54, 62 (1852). To hold that West Alabama had not met the mandates of § 6-5-238 would be, under the totality [428]*428of these circumstances, contrary to the “will of the law giver.”

Spencer emphasizes the fact that West Alabama failed to demand a statement of the debt and lawful charges, and argues that it made a “conscious decision to merely file an eleventh hour lawsuit in an attempt to redeem.” The provisions of § 6-5-234 are clearly permissive:

“Anyone desiring and entitled to redeem may make written demand of the purchaser or his vendee for a statement in writing of the debt and all lawful charges claimed by him, and such purchaser or vendee shall, within 10 days after such written demand, furnish such person making the demand with a written itemized statement of the debt and all lawful charges claimed by him; and failing so to do, he shall forfeit all claims or right to compensation for improvements, and the party so entitled to redeem may, on the expiration of the 10 days, file his complaint without a tender to enforce his rights under this article.”

(Emphasis added.)

West Alabama made a good faith effort to pay the amounts due ($32,133.24 purchase money; $3,213.32 to satisfy the statutory 10%; and $14.52 in taxes assessed against the property) and offered to do equity and to pay additional amounts as the court deemed necessary. Pursuant to § 6-5-238, the court took jurisdiction over the matter upon West Alabama’s filing of the complaint, and it properly allowed redemption.

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Bluebook (online)
564 So. 2d 425, 1990 Ala. LEXIS 394, 1990 WL 90468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spencer-v-west-alabama-properties-inc-ala-1990.