Wallace v. Johnson

234 S.W.2d 49, 217 Ark. 878, 1950 Ark. LEXIS 520
CourtSupreme Court of Arkansas
DecidedNovember 13, 1950
Docket4-9281
StatusPublished
Cited by4 cases

This text of 234 S.W.2d 49 (Wallace v. Johnson) 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
Wallace v. Johnson, 234 S.W.2d 49, 217 Ark. 878, 1950 Ark. LEXIS 520 (Ark. 1950).

Opinion

G-rifeiN Smith, Chief Justice.

Land carved from 960 acres near Monette, in the Eastern District of Craighead County, was described in an executory contract, and some of it forms the subject-matter of this controversy.

Activities resulting in the Chancery suit had their inception in efforts of Dr. W. E. Yount, equitable owner of the parent tract, to clear his indebtedness and salvage something from this valuable holding. He employed C. M. Boydstun, of Jonesboro, as agent, and H. M. Cooley, of the same city, as lawyer-agent, to deal with the lands. Dr. Yount, a dentist, residing at Cape Girardeau, Mo., found personal supervision of the property to be impracticable.

In December, 1929, Dr. Yount agreed to sell W. B. Wallace and Everett Wallace two tracts, one containing 80 acres and the other 20. There is evidence that the described area actually contained 101 acres, 43 of which were cleared and contained a house and barn. Dr. Yount, realizing the difficulty he would have in removing legal encumbrances from the land, accepted a down payment of $100 and consented that the next payment ($1,775, representing a fourth of the balance on the basis of $75 per acre) should be made when he could show a merchantable title. The method provided for payment of the remaining three-fourths (less the $100 that went with the contract) is not important here; nor are we concerned with sales contracts made in 1929 by Dr. Yount with other parties, and with his later contracts.

There is testimony that the land is quite valuable now —worth, perhaps, $150 per acre. Some witnesses thought that $30 per acre would represent actual values in 192.9, and that the contract price of $75 was extremely high.

Due to depressed conditions following 1929, W. B. and Everett Wallace were willing to negotiate with Dr. Yount on a basis differing from the written contract, although it is possible.that they could have stood-on the strict letter of their agreement that the second payment was not due until an abstract had been supplied and that title to the property be merchantable.

They elected, however, to accept Dr. Yount’s suggestion, made through the agent Boydstun, that for 1930 and 1931 a fourth of the cotton and a third of other crops would be delivered to Dr. Yount, proceeds to be applied to the payment of taxes and insurance. If, after making these payments, a balance remained, it would be applied on the purchase price.

The Sturdivant Bank of Cape Girardeau held an eleven thousand dollar second mortgage on Dr. Yount’s lands, and the Doctor owed considerable interest on this mortgage. C. A. Yandivort was the bank’s president. In September, 1931, Yount deeded the entire property to Vandivort, who acted as trustee for the bank. In 1933 Dr. Yount filed voluntary bankruptcy proceedings, and there was an adjudication in 1934. If sums paid by contract purchasers of the Craighead County lands were thought by the buyers to be due them from Dr. Yount, they failed to file claims.

As president of the bank Yandivort designated Boydstun to collect rents.

Appellant claims that Vandivort, while inspecting the properties late in 1931, agreed with W. B. Wallace to accept payments on the basis of a third and fourth, as Dr. Yount had, until it was possible to procure a deed. On the first of January, 1932, Boydstun and W. B. Wallace executed a supplemental contract relating to “about 83 acres of cleared land” wherein Vandivort was mentioned as owner and Wallace as lessee. The arrangement called for payments based on a third and fourth. The contract, signed “C. A. Vandivort, by C. M. Boyd-stun, agent,” bound Wallace to deliver possession of the property at termination of the contract- — the crop year of 1932. There was, however, this paragraph: “ [W. B. Wallace] has a contract of purchase with W. E. Yount, which has been purchased by C. A. Vandivort, (giving the date) and it is agreed . . . that if said contract . . . ' remains in . . . force, then all1 rentals on the lands described in said contract paid under [this supplemental agreement] shall be credited on the indebtedness or amount due thereunder, leaving- the balance due as called for in said contract. ’ ’

Boydstun testified that W. B. Wallace told him in .1930 that he had a contract with Dr. Yount, and if “they” were able to pay for the land, that 40-acre tract was to go to Everett Wallace and the remaining 60 acres to A. J. and B. A. Wallace. The only agreement Boydstun had with Vandivort covered renting, farm supervision, and related matters, but in January of 1932 he had no right to bind Vandivort on a contract of sale or to conduct such negotiations. Inferences to be drawn from this testimony are that personal knowledge regarding Dr. Yount’s contract of 1929 and Boydstun’s information that Vandivort had succeeded Yount as proprietor prompted Boydstun’s reference to the old contract when the supplement was executed. Boydstun did not inform Vandivort of the content or send his principal a copy, although on cross-examination such assurance of failure was somewhat weakened. Vandivort testified that he did not know of this provision, hence could not ratify it. Furthermore, Boydstun insisted that he exhibited to all of the tenants his letter of limited authority, and told [Wallace] that the contract [relating, presumptively, to the sale] was absolutely worthless without Vandivort’s approval, “and that the burden of getting that was on him. ’ ’

Through various methods of payment and compromise with creditors Vandivort acquired all outstanding claims to the 960 acres, completing payments in 1935 or 1936. The Sturdivant Bank failed in 1932 and its affairs were administered by the Missouri Commissioner of Finance who in turn executed a deed to Yandivort personally. In December, 1942, Vandivort and his wife conveyed to their seven children for a recited consideration of $1 and love and affection.

W. B. Wallace died in 1945, survived by his widow, and by the appellant Everett, and five other children. The widow died in 1949 after this litigation was begun.

The original action by Yandivort’s grantees was forcible entry and detainer, but with other pleadings it became apparent that the justiciable question would be whether the Wallace group could prevail upon their assertions of equitable rights, hence the cause was properly transferred to Chancery, and of course it was not tried on the initial allegation.

Though not conceded by express words, undisputed proof shows that the only cash payment made by any of the Wallaces was the initial $100, although they contend that crop values in excess of the agreed third and fourth, less taxes, insurance, etc., would on a master’s accounting sheet disclose complete liquidation of the purchase price. Abandonment, with citations to specific acts indicating that the Wallaces did not intend to carry out their contract after the depression began late in 1929, and laches, were pleaded.

Touching upon the extent of Boydstun’s authority, counsel for appellant asked his client: “Did you ever have a conversation with Mr. Yandivort about the land: about Mr. Boydstun’s authority?” A. “Yes, sir. [Mr. Yandivort] said he might not get “down [to Craighead County] very often, and for us to talk with ‘Uncle Charlie’ — that’s what he called Mr. Boydstun. ” Q. “And Mr.

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Bluebook (online)
234 S.W.2d 49, 217 Ark. 878, 1950 Ark. LEXIS 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-johnson-ark-1950.