Thomason v. Burkett

265 So. 2d 112, 288 Ala. 689, 1972 Ala. LEXIS 1289
CourtSupreme Court of Alabama
DecidedJune 29, 1972
Docket3 Div. 495
StatusPublished

This text of 265 So. 2d 112 (Thomason v. Burkett) 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
Thomason v. Burkett, 265 So. 2d 112, 288 Ala. 689, 1972 Ala. LEXIS 1289 (Ala. 1972).

Opinion

HEFLIN, Chief Justice.

This case, originally assigned to another member of this court, was reassigned to the writer on May 4, 1972.

Appellee-complainant Morris A. Burkett, as the Receiver of the National Capitol Life Insurance Company (who may herein be referred to as Receiver), brought suit in equity against a number of respondents, including the appellants Raymond Thomason, Sr., Raymond Thomason, Jr. and Monty D. Thomason, individually and doing business as Thomason Partnership and as Thomason Enterprises (who may hereinafter be referred to as Thomasons), alleging a fraudulent conversion of company assets. The bill of complaint sought an accounting and a return of the assets. The Thomasons and the Receiver entered into a written settlement agreement which was signed by their lawyers and presented to the court below. The lower court on October 6, 1970, approved the settlement and entered a consent decree which incorporated the terms of the settlement agreement [692]*692providing, among other things, that the Thomasons should pay the Receiver the sum of $120,000.00 in four (4) installments and transfer their interest in American Reserve Life Insurance Company to the Receiver.

On February 4, 1971, the Thomasons filed a hill of review seeking to have the consent decree set aside and the return of the first installment, i. e., $35,000.00, paid under that decree. The bill of review averred the Thomasons understood they would have the permission, assistance and cooperation of the Receiver in seeking and securing contributions of money from Daniel T. Sorrells, Thomas Porter West, Edward W. Fish, James Dillinger and Syd Osterhout (who had been connected with the defunct insurance company); that there had not been a meeting of the minds between the Thomasons and the Receiver in this aspect since the Receiver did not understand that the continued freedom of the Thomasons to seek contributions from the above-named individuals was a condition of the Thomasons’ agreement to pay the second installment; that the Thomasons had no funds available to pay the second installment and had no means of securing money other than from contributions from the above-named individuals, which the Receiver knew; that the Thomasons had been injured through the failure of the parties to have a meeting of the minds in this aspect because they had made the first installment payment and had further transferred their interest in the American Reserve Life Insurance Company to the Receiver; and that because of the failure to have a meeting of the minds of the parties in this regard and the alleged resulting injury, the settlement agreement and consent decree were null and void.

The lower court sustained demurrers filed by the Receiver-appellee. The Thomasons amended their bill of complaint four times. Each time the demurrers were sustained to the amended bill of complaint. The Receiver, after filing his demurrers to the bill of review, as last amended, moved to strike the bill.

The trial court in its final decree stated, among other things, the following:

“The Court has considered the bill of review as amended, the motion to strike and the demurrer thereto. This Court has sustained demurrers to the original bill of review filed herein and three amendments thereto. In sustaining the Complainant’s demurrers to the bill of review as amended for the third time, this Court in its decree of April 29, 1971, allowed the Respondents to file further pleadings if they so desired within ten days from the date of said decree. On May 10, 1971, the Respondents filed the bill of review as amended for the fourth time, and this Court is of the opinion and finds that the said amended bill of review contains substantially the same allegations as in the third amended bill of review and contains no substantial or material new allegations which show an equitable right in the Respondents. This Court is of the opinion and finds that the said demurrers are well taken and should be sustained and the said motion to strike is due to be granted.
“NOW, THEREFORE, it is CONSIDERED, ORDERED, ADJUDGED AND DECREED that the said demurrers to the said amended bill of review be and the same are hereby sustained and that the motion to strike is granted, It is further ORDERED, ADJUDGED AND DECREED that the bill of review as last amended be and the same is hereby dismissed with prejudice and all costs incurred herein be and they are hereby taxed against Respondents, for all of which let execution issue.
“DONE this 12th day of May, 1971.”

The appellants Thomasons assign as error the sustaining of the demurrers to the bill of review and each amended bill and the granting of the motion to strike.

In considering this appeal this court must first determine whether or not the bill [693]*693of review contained equity which determination necessarily involves the extent to which a consent decree may be set aside by a bill of review since a demurrer is the proper method of testing the sufficiency of a bill of review. Nesbitt v. Hagan, 265 Ala. 213, 216-217, 90 So.2d 217. One of the inquiries involved in this determination must be directed to the following: Where a consent decree calls for the unconditional payment of money in installments, can a party have the consent decree set aside because there was a failure to have a meeting of the minds as to where the money would come from?

This court has long adhered to the principle of law as set forth in Adler v. Van Kirk Land & Construction Co., 114 Ala. 551, 561, 21 So. 490, 493:

“In the absence of fraud in its procurement, and between parties sui juris, who are competent to make the consent, not standing in confidential relations to each other, a judgment or decree of a court having jurisdiction of the subject-matter, rendered by consent of parties, though without any ascertainment by the court of the truth of the facts averred, is, according to the great weight of American authority, as binding and conclusive between the parties and their privies as if the suit had been an adversary one, and the conclusions embodied in the decree had been rendered itpon controverted issues of fact and a due consideration thereof by the court. Freem. Judgm. § 330; 2 Black on Judgm. § 705; Gifford v. Thorn, 9 N.J.Eq. (1 Stock.) [702], 722; French v. Shotwcll, 5 Johns.Ch. 568; Walsh v. Walsh, 116 Mass. [377] 383; Dunman v. Hartwell, 60 Am.Dec. 177; Nashville, etc., R. Co. v. U. S., 113 U.S. 261, 5 S.Ct. 460 [28 L. Ed. 97] ; Curry v. Peebles, 83 Ala. [225] 228, 3 So. 622; Rogers v. [Prattville] Manufacturing Co. No. 1, 81 Ala. 483, 1 So. 643; Patillo v. Taylor, 83 Ala. [230] 233, 3 So. 558. (Emphasis supplied).
“The fact that the decree in the foreclosure suit was rendered by consent of parties does not, therefore, detract from its dignity, or lessen its conclusiveness, as an adjudication between the parties. Not only is such its effect, but the consent is a waiver of error, precluding a review of the decree upon appeal, and, as a general rule, upon a bill of review. Thompson v. Maxwell, 95 U.S. 391 [24 .L.Ed. 481] ; Nashville, etc., R. Co. v. U. S., 113 U.S. 266, 5 S.Ct. 460 [28 L.Ed. 97]; 2 Dan.Ch.Pl. & Prac. (5th Am. Ed.) p. 1576; Dunman v. Hartwell, 60 Am.Dec. 176; Curry v. Peebles, 83 Ala. 227, 3 So. 622.”

Again in Nixon v. Nixon, 245 Ala.

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Related

Thompson v. Maxwell
95 U.S. 391 (Supreme Court, 1877)
Maner v. Maner
189 So. 2d 336 (Supreme Court of Alabama, 1966)
Butler v. Olshan
191 So. 2d 7 (Supreme Court of Alabama, 1966)
Cogburn v. Callier
104 So. 328 (Supreme Court of Alabama, 1925)
Barrow v. Lindsey
159 So. 232 (Supreme Court of Alabama, 1935)
Nixon v. Nixon
15 So. 2d 561 (Supreme Court of Alabama, 1943)
Rogers v. Prattville Manf'g Co. No. 1
81 Ala. 483 (Supreme Court of Alabama, 1886)
Curry v. Peebles
83 Ala. 225 (Supreme Court of Alabama, 1887)
Adler v. Van Kirk Land & Construction Co.
114 Ala. 551 (Supreme Court of Alabama, 1896)
Nesbitt v. Hagan
90 So. 2d 217 (Supreme Court of Alabama, 1956)
Johnston v. Duke
241 So. 2d 839 (Supreme Court of Alabama, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
265 So. 2d 112, 288 Ala. 689, 1972 Ala. LEXIS 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomason-v-burkett-ala-1972.