Union Oil Co. v. Norton-Morgan Commercial Co.

202 P. 1077, 23 Ariz. 236, 1922 Ariz. LEXIS 124
CourtArizona Supreme Court
DecidedJanuary 4, 1922
DocketCivil No. 1878
StatusPublished
Cited by28 cases

This text of 202 P. 1077 (Union Oil Co. v. Norton-Morgan Commercial Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Oil Co. v. Norton-Morgan Commercial Co., 202 P. 1077, 23 Ariz. 236, 1922 Ariz. LEXIS 124 (Ark. 1922).

Opinion

ROSS, C. J.

This is an action to quiet title to 4.02 acres of land, a part of the E. % of the S. E. 14 °£ section 36, township 2 north, range 2 east, Maricopa county, Arizona, brought by the Union Oil Company against the Norton-Morgan Commercial Company, Michael Ohl, James Scow, and Katherine Comstock. Comstock defaulted, and Michael Ohl filed a disclaimer, and the plaintiff had judgment quieting its title as against these two defendants. Defendant Scow confesses that the court erred in holding that he had a lien upon plaintiff’s premises, and judgment must be reversed as to him. This leaves the contestants here the Union Oil Company, plaintiff, against the Norton-Morgan Commercial Company, defendant. The facts are stipulated, and those material to a decision of the case are as follows:

[238]*238July 14, 1917, one A. Starkweather, being theretofore the lessee thereof from the state, entered into a contract with the state land department to purchase from the state the said E. % of the S. E. % of section 36, and received from the state land department certificate of purchase No. 1222 in terms as provided in section 62 of the Land Code (2d Sp. Sess., 2d Leg., p. 37). Thereafter, on November 15, 1917, Stark-weather secured, as his contract with the state required him to do, a water right in the Salt Liver project. On December 20, 1917, Starkweather filed a homestead declaration on said subdivision, in which he stated the value of same as $13,670.10, being the aggregate he had promised to pay for land and water, and that he had made a payment on account of the purchase price of the land in the sum of $335.10. The defendants, Norton-Morgan Commercial Company, and Ohl, having theretofore obtained judgment foreclosing attachment liens on said subdivision against Starkweather in the superior court of Maricopa county, on February 28, 1918, caused said judgments to be docketed in the office of the clerk of the court. Thereafter, on December 18, 1918, Starkweather assigned his certificate No. 1222 with the approval of the state land department to A. E. Sherid, his son-in-law, and Lila Sherid, his daughter, for the recited consideration of $4,000. On June 2, 1919, and by virtue of an order of sale issued on the Ohl judgment and levied on said premises, the same was offered for sale and sold to Norton-Morgan Commercial Company for $1,386.16, to whom the sheriff thereupon delivered a certificate of sale. That thereafter, on July 5, 1919, the Sherids assigned to the Union Oil Company, plaintiff, with the consent of the state land department, a right to 4.02 acres from their certificate for the consideration of $4,000, with the understanding that patent should issue directly to the Union Oil Company, [239]*239which was done before the institution of this suit by the said company. It was also found that Stark-weather and wife had, before assigning his contract of purchase, and before judgments were docketed or declaration of homestead filed, given mortgages upon the E. % of the S. E. % of section 36 in the sum of $5,716.

The court’s conclusions of law were that by reason of execution sale of said premises under the Ohl judgment, at which the Norton-Morgan Commercial Company was the purchaser, the said purchaser became subrogated to the rights of said Ohl, and has a valid and subsisting lien against said 4.02 acres in the amount of the Ohl judgment, to wit, $1,386.16; that said Norton-Morgan Commercial Company, on account of its own judgment for $975.42, has a valid and subsisting lien against 4.02 acres.

The court- decreed, first, “that the defendant, Norton-Morgan Commercial Company, as purchaser at the execution sale in the case of Michael Ohl v. A. Starkweather, has a valid and subsisting lien in the sum of $1,386.16” on said 4.02 acres; second, “that the hi orton-Morgan Commercial Company, under its attachment and judgment lien in the cause of Norton-Morgan Commercial Company v. A. Starkweather has a valid and subsisting lien against the above-described property” in the sum of $975.42. The plaintiff has appealed from said judgment.

It is the contention of plaintiff that it obtained a good title, free from all liens and encumbrances, to the 4.02 acres bought of the state when the latter issued to it a patent therefor. If the transaction had been between the plaintiff and the state only, without the intervention of Starkweather and his assignees, the Sherids, this contention would be right. While the patent was issued directly to plaintiff, still the record incontestibly shows that it was all done with [240]*240direct relation, to the original contract of sale with Starkweather, and that whatever rights the Sherids or plaintiff had or obtained in said premises, were secured through and by virtue of the Starkweather contract. So if defendants secured liens by attachment or judgment upon premises while the contract to purchase stood in Starkweather’s name, those taking under Starkweather would take, subject to such liens.

We think, also, contrary to plaintiff’s contention, that the Starkweather interest in premises under his contract, unless exempt by reason of his homestead claim, was subject to attachment, execution, and forced sale and to judgment lien. From an examination of the law, sections 59-69, Land Code, it will be seen that the state recognizes that the contract purchaser has secured valuable property .rights — rights that are inheritable and assignable. Our statute (paragraph 1363, Civ. Code) makes all property, real, personal, and mixed, liable to execution. Subdivision 5, paragraph 5552, Civil Code, defines any inheritable interest in land as real property. The Land Code makes the interest of the contract purchaser inheritable and assignable. Sections 63 and 69. Speaking of a right somewhat similar, to wit, the right of the locator of a mining claim, the Supreme Court of the United States, in Bradford v. Morrison, 212 U. S. 389, 53 L. Ed. 654, 29 Sup. Ct. Rep. 349 (see, also, Rose’s U. S. Notes), quoting from Forbes v. Gracey, 94 U. S. 762, 24 L. Ed. 313, said:

“This claim may be sold, transferred, mortgaged, and inherited, without infringing the title of the United States.”

Paragraph 3633, Civil Code, makes docketed judgments liens on all real property of judgment debtors except homesteads.

It is also contended by the plaintiff that to permit the interest of Starkweather to be encumbered by [241]*241judgment or other liens would defeat the prohibition of the Constitution of the state of Arizona found in section 3 of article 10, which reads as follows:

“No mortgage or other encumbrance of the said [state] lands, or any part thereof shall be valid in favor of any person or for any purpose or. under any circumstances whatsoever.”

We agree with defendant that this provision is a limitation upon the power of the state to mortgage or encumber its lands, and not a limitation upon the power of the contract purchaser from the state to mortgage or encumber his interest in such lands. Enabling Act, section 28, confirming former grants to the territory and making others to the state, declares that state lands shall be held in trust by the state for.

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Bluebook (online)
202 P. 1077, 23 Ariz. 236, 1922 Ariz. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-oil-co-v-norton-morgan-commercial-co-ariz-1922.