Virginia-Carolina Chemical Co. v. Floyd

125 S.E. 709, 159 Ga. 311, 1924 Ga. LEXIS 440
CourtSupreme Court of Georgia
DecidedOctober 18, 1924
DocketNos. 4443, 4444
StatusPublished
Cited by10 cases

This text of 125 S.E. 709 (Virginia-Carolina Chemical Co. v. Floyd) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia-Carolina Chemical Co. v. Floyd, 125 S.E. 709, 159 Ga. 311, 1924 Ga. LEXIS 440 (Ga. 1924).

Opinion

Beck, P. J.

We are of the. opinion that the sale and conveyance of the lands referred to in the first question, under the facts there recited, would operate to “.vest in the purchaser the title to growing and unmatured crops planted and cultivated on the lands in 1923, prior to the sale, by the grantor in the security deed in possession, the case being one where the title to such crops would have [313]*313so vested under the law as it existed before this act,” the act referred to being the act of the General Assembly approved August 21, 1922, entitled “An act to declare that growing crops shall be personalty,” etc. (Ga. L. 1922, p. 114). That law provides: (1) that from and after the passage of the act all crops, matured or unmatured, are declared to be personalty; (2) that mortgages or other liens or conveyances of crops, matured or unmatured, shall be attested and recorded as chattel mortgages and under the laws governing the same; (3) that levies on unmatured crops are forbidden. This is the substance of the entire act, omitting the repealing clause. We are of the opinion that to give any other construction to the act would render the same unconstitutional and void, on the ground that it impairs the obligation of a contract. It is not now necessary to construe the act in its entirety, and to say what it means, other than to say that it possibly may be given a construction that will not render it obnoxious to that clause of the constitution referred to. Under the contract referred to in the question we are now dealing with, the grantee in the security deed had a perfect contract right to sell the land on the 25th day of May, 1923. He exercised that right. The land was purchased at the sale held in conformity with the written authority given in the deed to the grantee. Up to that point the rights of no party to this contract had been violated or impaired. The purchaser at that sale also obtained a perfect right, and that was the right, upon the payment of the purchase-price, to enter upon the lands in question and to occupy every foot of them. Under the law as it stood before the act of August 21, 1922, the title to the growing crops passed, with the land when it was sold. That is the law, and it is assumed to have been the law in the question propounded. Could the legislature pass an act that would divest the purchaser at such a sale as that referred to of what he would have acquired under the sale before the passage of the act ? Or, in other words, would an act tending to divest him of that right impair the obligation of his contract? The grantee in the security deed had, under the law prior to the act of 1922, the right to effect the collection of his claim by the remedies provided in the deed itself executed to him by the grantor, and the title to certain property was vested in him under the deed. Upon that property he had the right to go to collect his debt. To collect that debt he [314]*314had to sell the land; and to make that sale effectual, the property had to be delivered and the right of entry given to the purchaser. If the grantor could hold on to the growing crop, then by necessary implication he had the right to enter upon the land to cultivate, gather, and remove it. If the lands were all cultivatable and planted in growing crops at the time of the sale, and if the construction insisted upon by the plaintiff in error should be given to the act of 1922, the owner of the crop would virtually remain in possession of the entire property for several months after the sale, that is, until the maturity of the crop. It seems to us that it does not require any argument to show that to so hold would impair the value and to a very material extent deprive the grantee in the security deed of the property which had been conveyed to him to secure his debt. In the case of Sparger v. Cumpton, 54 Ga. 355, it was said: “The true view is, that to pass any law, the object and effect of which is to lessen the means the law furnishes, at the date of a contract, for its enforcement, comes within the constitutional prohibition, because such a law impairs the right of the creditor, lessens the value of his debt, and releases the debtor to that extent from his obligation to pay, and thus impairs the obligation of the contract. The contract in this case is the debtor’s agreement to pay. The constitutional provision is, that this obligation shall not be impaired. The courts have held that materially to lessen the remedies lessens, weakens, and impairs this obligation. No court has ever held that the remedy can not be enlarged, since in no sense can that impair the obligation to pay.”

It is strongly urged in the written brief and argument of counsel for plaintiff in error, while conceding that if the act of 1922 had taken away any of the security contracted for in the security deed (for instance, any of the property then in existence covered by the security deed) it might be that the act would impair the obligation of the contract, that inasmuch as the act of 1922 applies only to property (that is, a crop) which was not in existence when this security deed was given, but was, on the contrary, a mere possibility, and inasmuch as the mere possibility could not be the subject-matter of a valid contract of sale or mortgage, the act referred to, as applied to crops planted after its passage, can not be said to impair the obligation of the valid contract embodied in the security deed; because, if the grantor in the security deed had [315]*315attempted to make the contract therein apply to future crops that were not even planted and not in existence, the contract would to that extent have been void. And moreover (to state further the contention of the plaintiff in error), the maker of the security deed was not bound, under the contract embodied in the security deed, to plant any crop; his planting the crops was not a certainty, or in contemplation of the contract, but a mere contingency which might or might not occur, and the obligation of a contract withiu the meaning of the constitution is 'a valid, subsisting obligation and not a contingent or speculative one; citing the case of Ochiltree v. Railroad Co., 21 Wall. 249 (22 L. ed. 546).

It may be true, ás contended in this argument, that crops to be planted in the future could not, at the time of the execution of the' security deed, have been mortgaged or conveyed; nevertheless, under the contract, the grantee in the security deed had the right to sell the land and all of its elements of value; and it was in the contemplation of the parties that whatever might be growing on the land at the time of the sale, constituting an element of value, Avould be sold if the land should be sold to enforce the claim. To allow the grantor of the deed to withhold the crops, and prevent the enjoyment of the lands covered by the deed, would be to destroy an element of value of the land conveyed. And if the act of 1922 attempts to put it into the power of a grantor in a deed like this to subtract a material element of value from the land, then it impairs the security taken by the creditor as embodied in the contract and impairs that contract. The right of the purchaser at the.sale to immediately enter and take possession of the land and all of its elements of value was as complete as his right to a deed of conveyance of the land itself. “Before maturity of crops they are appurtenant to the land, constitute a part thereof, and pass by and with the land. Before maturity the crops only constitute an element of value, and are not themselves distinct chattels.” Scolley v. Pollock, 65 Ga. 339.

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Cite This Page — Counsel Stack

Bluebook (online)
125 S.E. 709, 159 Ga. 311, 1924 Ga. LEXIS 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-carolina-chemical-co-v-floyd-ga-1924.