Thompson v. Menefee

6 Tenn. App. 118, 1927 Tenn. App. LEXIS 123
CourtCourt of Appeals of Tennessee
DecidedJuly 28, 1927
StatusPublished
Cited by9 cases

This text of 6 Tenn. App. 118 (Thompson v. Menefee) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Menefee, 6 Tenn. App. 118, 1927 Tenn. App. LEXIS 123 (Tenn. Ct. App. 1927).

Opinion

CROWNOYER, J.

This suit, as finally developed by the pleading, is one for the recovery of damages for breach of contract, a compromise agreement, dated March 1, 1922, in which it was undertaken to settle and adjust numerous suits and controversies then pending, and all differences between the parties to this. suit.

The parties had dealt extensively with each other and had made many trade and conveyances of farming land, town lots, live stock, farm implements, and personalty, out of which had grown much litigation, and at the date of the compromise agreement there were in the courts of Alabama and Tennessee four suits involving property of considerable value.

The original bill in this cause was filed for a specific performance of another contract, and was later amended so as to sue for damages for breach of a warranty of title of some live stock conveyed by A. B. Menefee, but after’ the compromise agreement Thompson, filed an amended and supplemental bill against W. A. Menefee and A. B. Menefee seeking damages for breach of said compromise agreement in that they had' failed to convey any of the property as contracted. The defendants denied any breach of the contract, and filed a cross-bill seeking a specific performance of the contract. At the hearing the Chancellor dismissed complainant’s suit, except as to the value of one lot, and sustained the cross-bill.

The facts and the transactions necessary to be here noticed, are, that A. B. Menefee, the son of W. A. Menefee, on October, 22, 1918, traded certain live stock, horses, mules, cattle and farming implements, valued at $10, 525, free from encumbrances, all located on a farm in Marengo county, Alabama, to one B. B\ Poole for eiglffy-six town lots, to be selected out of Moore’s Subdivision in the City of Nashville, Tennessee, subject to a mortgage or vendor’s lien of $1050. Poole shortly thereafter sold the live stock and implements to complainant Thompson, and a controversy arose between Thompson and A. B. Menefee as to whether certain property was'included in the conveyance, so in order to settle the matter, Thompson traded two lots in Belmont Heights, in Nashville to A. B. Menefee for one Angus bull and three or four cows. It later developed that A. B. Menefee had previously mortgaged all these and other cattle to the New Orleans Cattle Loan Company for more than $26,000, and that company had- later replevined these cattle from Thompson in the *120 circuit court of Marengo county, Alabama, and had disposed of them to other parties. However that replevin suit was later decided in favor of Thompson as will be hereinafter explained.

W. A. Menefee, after the cattle trade, obtained the title to said eighty-six Nashville lots, and on December 13, 1918 entered into a contract with Thompson, in which he agreed to convey said lots, to be selected out of the Moore Subdivision, to Thompson in consideration that Thompson release thirty-nine head of said cattle upon which the New Orleans Cattle Loan Company held said mortgages, which he failed to do, and Thompson filed the original bill in this cause for a specific performance. Defendant "W. A. Menefee filed a demurrer and answer to said bill, in which he relied on the statute of frauds. Thereupon Thompson filed an amended bill in which he made A. B. Menefee and others defendants, and alleged that W. A. Menefee had obtained title to the said eighty-six lots and other lots, making 186 lots in the Moore Subdivision, and had agreed to convey said eighty-six lots, to be selected by Thompson, in consideration of the release of title to said thirty-nine cattle, and that all of said cattle, horses, mirles, and stallion, of the value of $8925, had been replevined by the New Orleans Cattle Loan Company and disposed of by said company. Pie alleged fraud and conspiracy on the part of the Menefees, and prayed for damages, and attached Menefee’s property located in Tennessee. This suit was pending, in this- condition, when the compromise agreement was executed on March 1, 1922, and will be further referred to in this opinion.

A. B. Menefee owned a valuable farm of 1777 acres in Marengo county, Alabama, known as “Alfalfa Meadows,” upon which he, on April 20, 1918 obtained a loan of $35,000 from the John Hancock Life Insurance Company and had executed a mortgage to mature on October 1, 1923, but 'the mortgage provided that in default of pajunent of interest annually the whole should become due and payable.

On October 23, 1918 A. B. Menefee sold and conveyed 516 acres of this farm to B. F. Poole in consideration of certain property situated in the town of Murfreesboro, Tennessee, and the assumption of $21,000 of said mortgage to the insurance company. Poole soon thereafter sold said 516 acres to Thompson, who also assumed the $21,000 of said mortgage.

On October 26, 1918 A. B. Menefee sold and conveyed 682 acres of said farm to W. J. Cathey, who assumed $7,000 of said insurance company mortgage.

On October 28, 1918 A. B. Menefee sold and conveyed 581 acres of said farm to Roth-Kirtland Realty Company, of Nashville, and it assumed $7,000 of said insurance company mortgage, and it later conveyed this tract to W. S. Little, who likewise assumed the $7000 of said mortgage.

A. B. Menefee covenanted with the grantees to have the said in *121 surance company mortgage apportioned to tlie respective grantees and released accordingly, but the insurance company refused to apportion and release its security; hence A. B. Menefee on October 28, 1918, executed a mortgage on the 166 lots in the Moore. Subdivision, which he then owned, to A. C. Miller, trustee, to secure the apportionment and release of the 581 acres sold to Rotli-Kirtland Realty Company of the remainder of the insurance company mortgage above the $7,000 assumed.

The grantees defaulted in the payment of the interest to the insurance company and Thompson was forced to pay all the interest and taxes on the whole.

In December, 1919, W. A. Menefee purchased the $35,000 mortgage from the insurance company, and attempted to foreclose by declaring the whole mortgage due upon default of payment of interest, and through his attorney, .Henry McDaniel, he advertised the farm of 1777 acres for sale, whereupon Thompson filed a bill in equity in the Federal court for the Southern District of Alabama, at Mobile, to enjoin the sale, alleging that he had tendered the interest on the whole mortgage to the insurance company before maturity, which had been declined by the insurance company as it had' disposed of the mortgage to other parties; that he had made diligent search and inquiry but had been unable to ascertain who owned the mortgage until after the interest had matured, and that W. A. Menefee had concealed the fact of his purchase of the said mortgage until after the interest installment had matured for the fraudulent purpose of foreclosing the mortgage so as to deprive him of his property. And, among other things, he prayed for an injunction, and that the mortgage be apportioned as covenanted by A. B. Menefee. The court required Thompson to pay the interest on the whole mortgage and enjoined the sale. That suit was pending- when said compromise agreement was made.

In the meantime, A. B.

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Bluebook (online)
6 Tenn. App. 118, 1927 Tenn. App. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-menefee-tennctapp-1927.