Terry v. Rosell

32 Ark. 478
CourtSupreme Court of Arkansas
DecidedNovember 15, 1877
StatusPublished
Cited by14 cases

This text of 32 Ark. 478 (Terry v. Rosell) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terry v. Rosell, 32 Ark. 478 (Ark. 1877).

Opinion

■Turner, J.:

This is a bill in equity, tiled in the Pulaski Chancery Court, by George E. Rosell against Francis A. Terry, Cradock R. 'Vaughan and Evelina Vaughan, his wife. The material facts of the cause as set forth in the bill, are: That early in the year 1868, the defendant, Cradock R. Vaughan, by parol, bargained and sold to the plaintiff, Rosell, the fractional part of section nine, township one, range eleven Avest, containing ninety-six acres of land, more or less, situate in the County of Pulaski, State of Arkansas. That in pursuance of said sale the plaintiff paid to the defendant, Cradoek R. Vaughan, the sum of $2000, as part of the purchase money, and in the fall and winter of that year entered upon the said land by and with the consent of the defendant Vaughan, and in pursuance of the sale, made valuable improvements thereon, having built and repaired fences and erected cabins on the land, in order that it might be prepared for cultivation and ready for the accommodation of laborers in time for making a crop thereon for the year 1869. That in the month of December, 1868, or early in January, 1869, the nlaintiff moved from certain lands which he had previously rented from the defendant Terry, and .in pursuance of the said parol conveyance entered upon and took possession of said first inentioned tract of land and made a crop thereon in the year 1869; that in the latter part of that year he paid to the defendant Vaughan the sum of eight hundred and eighty dollars, the balance due of purchase money for said tract of land. That after repeated promises previously made, the defendant Vaughan, on the 13th of April, 1873, executed and delivered to the plaintiff a warranty deed in fee simple to the said land, in pursuance ■of the original parol sale, the- defendant Evelina, wife of the defendant Vaughan, joining in said deed and relinquishing her dower in the land previously conveyed. That the plaintiff continued in the possession of the land during the year 1869, and up to and after the 16th of February, 1870, during which time, and prior to the last mentioned sale, he continued to carry on and add to the improvements previously commenced by him, amounting in value to at least $1000, which- was accomplished by the labor, industry and personal attention and presence of the plaintiff’ on the land.

That on the 16th of February, 1870, while the plaintiff was still in possession of the land, the defendant Vaughan executed 'a conveyance by way of mortgage, to the defendant Terry for certain lands, including as a part of the lands so mortgaged the identical tract of land first mentioned. That said mortgage was given, as alleged, to secure the payment of $4000. That the mortgage of the said ninety-six acres of land by the defendant Vaughan to his co-defendant Terry, was without right and a fraud upon the plaintiff’s right in the premises, which was known to the defendant Terry at the time the mortgage was executed. That said mortgage is now an incumbrance on the land, and serves to embarrass, cloud and obscure the plaintiff’s title, and that he is unable, as he alleges, to dispose of the land as he could do if said incumbrance did not exist.

That the supposed debt secured by said motgage bears interest at the rate of 24 percent, per annum from the 16th of February, until the 1st of January, 1871, and if not then paid a penalty of 12 per cent, per annum in addition thereto, was to be imposed upon the defendant Vaughan, and secured by the mortgage. That plaintiff had no notice thereof, and no actual notice of the execution of the mortgage until after his deed to the premises hiad been executed, delivered and recorded. That the defendant Vaughan made payments on the debt secured by said mortgage, and it ought to be now greatly reduced, but plaintiff is advised that the defendant Terry has applied the sums so paid to the liquidation of the interest and penalty before mentioned, leaving the original debt and incumbrances on saiu land, which the plaintiff alleges is a fraud upon his rights. That the other lands covered by the mortgage are sufficient to secure. the balance of the debt due. But that if the exorbitant rate of interest aforesaid is secured by the mortgage, and constitutes an encumbrance on the land, the debt will in a short time grow to such an amount that the plaintiff will be wholly unprotected in his rights.

That on the 23d day of March, 1874, the defendant filed his bill in this court to foreclose the equity of redemption of the said Vaughan in all the lands covered by said mortgage, and that the plaintiff was made a party defendant thereto. That the plaintiff proposed to the defendant Terry, that he would not file his answer or cross-bill if the said Terry would agree, that in taking his decree, and in the sale of the said lands thereunder, he would resort to other lands embraced in the mortgage before going upon those first mentioned. That the defendant Terry assented thereto. That afterwards, in the month of January, 1875, -while plaintiff was resting under said agreement, the said defendant Terry, without notice to the plaintiff, attempted to enter upon the lands owned and possessed by the plaintiff as aforesaid, and is claiming- possession of the same under the mortgage, and is disturbing and embarrassing the plaintiff’s tenants, -who are in possession of said lands under the plaintiff. That the bill filed by defendant Terry was on his own motion dismissed, on the -day of February, 1875, without prejudice.

The bill concludes with a pr'ayer :

I. That the mortgage be cancelled and declared void in so far as the tract of land purchased by plaintiff as therein set forth, is concerned, and that the defendant Ten-y be perpetually enjoined from setting up any right thereunder, or holding the same as a cloud upon the plaintiff’s title.

Or II. That the defendant Terry be required to render an account of the amount lawfully due and an incumbrance upon the said land, under his aforesaid mortgage, and that he be required to foreclose his mortgage, and have resort first to the other lands described therein before touching the lands purchased as aforesaid 'bv plaintiff.

III. That the defendant, Terry, be restrained from interfering in any manner, with plaintiff’s possession of said land until this suit is determined.

IV. And for all other relief that to the court may seem meet and proper.

The plaintiff exhibited with his bill the mortgage from Vaughan to Terry, and the deed of conveyance from Vaughan to plaintiff, and made them a part thereof.

The defendant, Francis A. Terry, demurred to the plaintiff’s bill and assigned the following causes of demurrer :

I. To so much of the plaintiff s bill as seeks to have the said defendant’s mortgage cancelled and declared void as to the lands claimed by said plaintiff in his said bill, and to enjoin the said defendant forever from setting up any right thereunder, or holding the same as a cloud upon said plaintiffs title, the defendant demurs, and for cause shows:

First — That the facts set up in said bill in support of said prayer, disclose a good cause of action at law, and the said plaintiff fails to allege or show any reason why he is not in a situation to establish his alleged right to a prior conveyance to the land claimed in his bill by an action at law, before resorting to equity, to have said defendant’s mortgage cancelled and declared void.

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Bluebook (online)
32 Ark. 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terry-v-rosell-ark-1877.