Wilsford Et Ux. v. Johnson

105 So. 736, 141 Miss. 739, 1925 Miss. LEXIS 190
CourtMississippi Supreme Court
DecidedOctober 26, 1925
DocketNo. 25120.
StatusPublished

This text of 105 So. 736 (Wilsford Et Ux. v. Johnson) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilsford Et Ux. v. Johnson, 105 So. 736, 141 Miss. 739, 1925 Miss. LEXIS 190 (Mich. 1925).

Opinion

Cook, J.,

delivered the opinion of the court.

The appellants, T. F. Wilsford and wife, executed a deed of trust on certain real and personal property to secure an indebtedness of twenty-three thousand seven hundred two dollars and forty-four cents due to the appellee J. N. Johnson; this deed of trust being subordinate to a prior mortgage indebtedness of fifteen thousand dollars. Thereafter the appellants negotiated a loan of thirty thousand dollars from the Union Central *749 Life Insurance Company, and in order to consummate this loan it became necessary to pay oft the prior mortgage indebtedness of fifteen thousand dollars, and- to have the appellee J. N. Johnson waive the lien of the deed of trust in his favor. -To effectuate this there was paid, out of the proceeds of this thirty thousand dollar loan, the prior mortgage indebtedness, and also the sum of thirteen thousand dollars to the appellee J. N. Johnson upon the execution by him of a waiver whereby the priority of his deed of trust was subordinated to the one executed by appellants to said insurance company. In connection with this transaction, the appellant T. F. Wilsford and the appellee J. N. Johnson entered into a written agreement extending the payment of the balance of the indebtedness due Johnson by Wilsford. This agreement, after fixing the time and terms of these payments, further recited that — “As the consideration for the extension of the payment of the balance due as described in and secured by said deed of trust, the second party agrees that in addition to the lien in the said deed of trust, he, as the owner of said premises, will, when requested so to do, deliver to the first party a paramount and first chattel deed of trust, conveying in trust all of the crops, stock, and personal property on the above described premises for the year 1924, securing the amounts due for that year; and will, when requested so to do, execute a first and paramount deed'of trust conveying in trust the crops, stock, and personal property on said premises, or used in making said crop for the year 1925 to secure the amounts above mentioned to be paid in 1925.

“It is further understood and agreed that the second party, during the year 1924 and 1925 agrees to work said premises in his own name.”

Thereafter the appellant Wilsford failed and refused to execute the chattel deed of trust referred to in this extension agreement, and thereupon the appellee John *750 son, conceiving that said agreement had been violated by Wilsford, repudiated said agreement, and, after the indebtedness matured under the terms of the original note, he caused the trustee named in the deed of trust to advertise the land and property covered thereby. After the advertisement and before the day fixed for the sale of this property, the appellants rénted the same to one N. L. Wise for five thousand dollars to be paid out of the proceeds of the crop grown on said land for the year 1924, and thereupon filed this bill of complaint seeking to restrain the foreclosure of the deed of trust on the theory that, by virtue of the terms of said extension agreement, nothing was due.

The appellees answered the bill averring, in substance, that the extension agreement was conditioned upon Wilsford ’s compliance with the obligations thereof, viz.: The execution when requested of a paramount chattel mortgage as additional security for the payment of the balance due; that the extension agreement was abrogated by Wilsford’s failure and refusal to perform the vital covenants on his part, after having’ been given a reasonable opportunity of so doing, and consequently, he was not entitled to the extension and the entire indebtedness was past due when the proprty was advertised for sale.. They also made their answer a cross-bill containing, among others, the following averments:

“•Tour cross-complainant would further show that if the cross-defendants had not enjoined them from foreclosing said deed of trust, J. N. Johnson would either have received his indebtedness due by them or would himself have become the successful bidder and owner of said property and would thereby have become entitled to the rents, issues, and profits from said lands for the year 1924. Tour cr'oss-complainants would further show that under the terms of said extension agreement that cross-defendants had obligated themselves to work said land in the name of T. F. Wilsford and to execute a para *751 mount and first chattel deed of trust on the 1924 crops on said lands and on all personal property thereon to secure the amounts due to J. N. Johnson on December 10, 1923, as aforesaid, but that prior to the advertisement of said land and prior to the injunction and the date of the foreclosure sale, cross-defendants had attempted to lease said lands to others and prior to the injunction and date of foreclosure sale had actually leased said land to N. L. Wise for five thousand dollars for the year 1925, thereby breaching their contract; that they had also, when notice was given to execute the deed of trust called for in said contract, declined, refused, and failed to execute the same, thereby further breaching their contract; that if said foreclosure had been made and J. N. Johnson had become the purchaser thereat, he would have been entitled to the rent or if the cross-defendants had carried out their contract as agreed, he would have been entitled to security on the said rents.

“Cross-complainants would further show that they are advised and believe and so state and charge that the cross-defendants are about to transfer, and assign said rent note for five thousand dollars to other parties for the purpose of defeating the rights of the said J. N. Johnson and if said transfer is made, irreparable harm and injury will be caused your cross-complainant, and unless this court will enjoin and restrain the said cross-defendants from negotiating, selling, transferring, or assigning said rent note, and any other rent notes which they or either of them named may have heretofore or hereafter received, for the year 1924, rent on said lands, and unless they and each of them are further restrained and enjoined from transferring, selling, or assigning to others.the rent which they might receive for the use of said lands during the year 1924, irreparable harm and injury will be caused your cross-complainant J. N. Johnson.”

*752 The prayer of the cross-hill, in substance, is that the complainants, as cross-defendants, be enjoined from selling, negotiating, transferring, or assigning any note or lease contract for the rent of said land for the year 1924, and also from assigning the five thousand dollar rent note for that year executed by N. L. Wise; that the proceeds of any rent -which the cross-defendants may receive, or be entitled to receive, be impounded as security for the indebtedness which the cross-defendants owed the cross-complainant J. N. Johnson, and that they be required to pay the same into court pending the final termination of the cause.; that the injunction theretofore granted restraining the sale under the deed of trust be dissolved and damages awarded for the wrongful issuance of said injunction; that the court, by proper decree, impress an equitable lien on the 1924 crop to be produced on said land, to secure the payment to the said J. N.

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Related

Brooks v. Kelly
63 Miss. 616 (Mississippi Supreme Court, 1886)
Williams v. Bank of Commerce
71 Miss. 858 (Mississippi Supreme Court, 1894)

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Bluebook (online)
105 So. 736, 141 Miss. 739, 1925 Miss. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilsford-et-ux-v-johnson-miss-1925.