Tisdale v. Gunter

109 S.W.2d 1267, 194 Ark. 930, 1937 Ark. LEXIS 253
CourtSupreme Court of Arkansas
DecidedNovember 8, 1937
Docket4-4783
StatusPublished
Cited by6 cases

This text of 109 S.W.2d 1267 (Tisdale v. Gunter) 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
Tisdale v. Gunter, 109 S.W.2d 1267, 194 Ark. 930, 1937 Ark. LEXIS 253 (Ark. 1937).

Opinion

Smith, J.

Mrs. Grace Gunter was awarded- a decree of divorce from her husband December 24, 1930. By the decree she was given one-third of her husband’s personalty absolutely, and one-third of his real estate for life. The personal property was sold and the proceeds divided in accordance with the terms of the decree. Pending the division of the real estate, Charles Myers was appointed receiver with directions to collect the rents on Gunter’s property. He was appointed receiver November 10, 1930, and continued to serve in that capacity until February 9, 1932. Commissioners were appointed to make partition of the lands owned 'by Gunter, but it does not appear when the partition was made, and the receivership continued after the partition had been made.

The receiver made several reports of his collections. These showed the rents collected on the lands assigned to Mrs. Gunter. They were for small amounts, the largest being for $77. The reports also showed rents collected on Mr. Gunter’s lands. These reports were all approved, and disbursing orders were made, which directed Myers to pay the rents to Mrs. Gunter which had been collected on her lands. The receiver was directed to pay the costs incident to the receivership out of Mr. Gunter’s rents, and also to pay certain sums to Mrs. Gunter’s attorney out of Mr. Gunter’s rents. It is undisputed that Mrs. Gunter received the gross sum of all the rents collected on her lands. None of these reports disclosed to the court that Mrs. Gunter’s lands had been sold for the nonpayment of the taxes due thereon.

The two lots of land here in question, which are not all of the lands assigned to Mrs. Gunter, were sold for the nonpayment of the 1929 general taxes, and upon the expiration of the period of redemption, not having been redeemed, were duly certified to the state. The special taxes due Sebastian Bridge District for the years 1931 and 1932 became delinquent, and on November 18, 1932, a decree of the chancery court was rendered directing the sale thereof to enforce the demand. The lots were sold pursuant to this decree on December 24, 1932, to Myers, who had previously been discharged as receiver. After the expiration of the period of redemption, Myers received, on May 23, 1935, a deed from the commissioner who had made the sale. On August 18, 1932,. which was slightly over six months after the discharge of Myers as receiver, he purchased the lots here in litigation from the state and received a deed executed by the state land commissioner of that date. On November 19, 1935, Myers sold the lots to John Tisdale for the consideration of $240.

On July 1, 1936, Mrs. Gunter filed this suit against both .Myers and Tisdale, praying “that the defendants be made constructive trustees,” and that the deeds to Myers and from him to Tisdale .be canceled and that title to said lots he confirmed in her. for life, free from any claim of said parties.

Before, the trial of the cause both Tisdale and his ypfe died and the cause was revived against their children as their heirs-at-law. The relief prayed was granted, without requiring Mrs. Gunter to pay the taxes for the nonpayment of which the lots had been sold, and from that decree is this appeal.

The record before us contains the court proceedings in the divorce case and the report of the commissioners making partition and the reports of Myers as receiver and the orders of court directing’ the disbursement of the rents collected. Myers was the only witness who testified in the case, and, as has been said, Tisdale died before the submission of the case.

Myers testified that he was a newcomer in Fort Smith and knew nothing of the bridge taxes until after his discharge as receiver, but that he did know of the delinquency for the 1929 general taxes. He testified that he spoke to Mrs. Gunter about these taxes on several occasions and suggested that they be paid, but Mrs. Gun-ter would not consent. He also discussed the matter with the attorney representing Mrs. Gunter, “and he told me it was all under mortgage, and he told me to get as much, money as I could for her.” The attorney referred to had examined Myers as a witness and did not deny the truth of this statement, nor did he ask any questions calculated to contradict it. Myers stated that he did not pay the general taxes, of which he had knowledge, because Mrs. Gunter said she required the money for her living expenses and to pay the taxes on the property where she lived, which she was trying to save.

The lots here in question had been appraised at $800, and were sold to Tisdale for $240, but there was an incum-brance on them,' the amount of which was not disclosed. Myers testified that he tried without success to sell the property for $300, and that he negotiated for six months with Tisdale before selling to him for less. Tisdale estimated the value of the property at $300, but figured it might cost him as much as $100 to defend an attack on the validity of the title, as it was based upon a tax sale. It may be said, in this connection, that, while the complaint alleged the invalidity of the tax sale, no attempt was made to establish that fact. It stands, therefore, as presumptively valid. Now, while it is undisputed that Tisdale knew the title proposed to be conveyed was based upon- a tax sale, and was conveyed by a quitclaim deed, there appears to be no other fact or circumstance in the record to put him upon inquiry as to the validity of Myers ’ title.

We abstract all the testimony tending to impute knowledge to Tisdale of the existence of a trust or to put him on notice of any defect in the title. The sale under the decree foreclosing the lien for the bridge improvement district tax occurred December 24, 1932, and Myers was the purchaser. He had then been discharged as receiver, and testified that he had no knowledge prior to his discharge of the delinquency for the improvement taxes or that there were such taxes. Upon the expiration of the period of redemption from this sale, Myers received a deed from the commissioner based thereon dated May 23, 1935, and on November 19, 1935, he executed to Tisdale a second deed, this latter being a warranty deed. Myers’ control of the property had ceased upon his discharge as receiver in February, 1932. No abstract of the title was asked or furnished when the quitclaim deed was executed and delivered. This suit was filed July 1, 1936, and Tisdale died August 30, 1936. An answer was filed by Mrs. Tisdale alleging’ that her husband was an innocent purchaser, but she, too, died before the submission of the cause.

Myers told Tisdale that he had only a .tax title and endeavored, without success, for six months, to induce Tisdale to pay $300 for a deed. He turned his deeds over to Tisdale. Myers being asked if Tisdale knew he, Myers, had defrauded Mrs. Gunter, answered that he had not defrauded her. Myers knew when he was appointed receiver that all the property had gone delinquent for the nonpayment of the general taxes and was under mortgage, but he testified that “I couldn’t have gotten money enough to pay all the taxes, and I couldn’t pick,out one certain piece and pay on it,” and he did not redeem any of the lands, because Mrs. Gunter demanded that the rents be paid her. It is undisputed that he paid her all the rents collected by him on the property assigned her by the commissioners upon the partition of Gunter’s estate.

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Bluebook (online)
109 S.W.2d 1267, 194 Ark. 930, 1937 Ark. LEXIS 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tisdale-v-gunter-ark-1937.