Yates v. Guest

416 So. 2d 973
CourtSupreme Court of Alabama
DecidedJune 4, 1982
Docket80-11, 80-43
StatusPublished
Cited by11 cases

This text of 416 So. 2d 973 (Yates v. Guest) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yates v. Guest, 416 So. 2d 973 (Ala. 1982).

Opinion

416 So.2d 973 (1982)

Joe L. YATES, Individually; Florene Yates, Individually
v.
Ira V. Wayne GUEST, as Executor of the Estate of Connie Gibson Guest.
Richard YATES
v.
Ira V. Wayne GUEST, as Executor of the Estate of Connie Gibson Guest.

80-11, 80-43.

Supreme Court of Alabama.

June 4, 1982.
Rehearing Denied July 9, 1982.

*974 Thomas M. Galloway and William H. Sisson of Collins, Galloway & Smith and Peter F. Burns of Morgan & Burns, Mobile, for appellants.

M. A. Marsal of Seale, Marsal & Seale and Robert H. Allen of Nettles, Cox & Barker, Mobile, for appellee.

PER CURIAM.

Appellee Ira V. Wayne Guest, as executor of the estate of Connie Gibson Guest, deceased, recovered a $200,000.00 judgment through a wrongful death suit against appellant Joe L. Yates. In order to collect the judgment Guest levied on and sold all of Yates's dump trucks, but the proceeds from the sale were insufficient to satisfy the judgment, leaving $150,000 of the judgment unsatisfied.

On January 21, 1977, approximately eight months after the judgment, Joe Yates and Florene Yates conveyed two parcels of land to their son, appellant Richard A. Yates, and Florene Yates. Joe Yates and his wife Florene had owned this land as tenants in common with rights of survivorship prior to the conveyance. The effect of the conveyance was to transfer Joe Yates's interest to his son Richard with Florene Yates's interest remaining the same. The two parcels of land contained dirt pits from which Joe Yates extracted dirt, soil, sand, clay, and minerals for sale.

Guest, as a judgment creditor of Joe Yates, filed suit seeking to set aside the conveyance of Joe and Florene Yates to Richard and Florene Yates as fraudulent in that the conveyance was made to avoid levy and sale by Guest. After a non-jury trial, the court entered a judgment in favor of Guest. The trial court found that there was no consideration for the conveyance and that it was made with an intent to hinder, defraud, or delay Guest in his collection of the judgment entered against Joe Yates. The trial court declared the conveyance void, ruled that the interest of Joe Yates is subject to execution and sale for satisfaction of the judgment obtained by Guest against Joe Yates, and ordered Richard Yates to account to Guest for the value of all dirt, sand, clay, soil, and minerals removed from the two parcels of real estate after the conveyance. The court retained jurisdiction pending the filing of an accounting by Richard Yates for the purpose of determining the correctness of the accounting and in order to enter a judgment in favor of Guest for the value of the dirt, sand, clay, soil, and minerals removed after the conveyance.

Separate notices of appeal were filed by Joe Yates, Florene Yates, and Richard A. Yates. The appeals were consolidated by this Court.

Initially appellants contend that the court erred in determining that the conveyance *975 of the dirt pits was fraudulent and due to be set aside. Recently, in J. C. Jacobs Banking Co. v. Campbell, 406 So.2d 834 (Ala.1981), this Court gave an extensive treatment of the necessary elements and burden of proof in an action seeking to set aside a conveyance as fraudulent pursuant to Code 1975, § 8-9-6. The principles of law enunciated in that opinion control our review of this case.

Under the authority of Campbell, particularly as it relates to setting aside a conveyance for actual fraud regardless of the adequacy of consideration given, we affirm that portion of the judgment which concludes that the conveyance of the two dirt pits was fraudulent as to Guest, and due to be set aside. Regarding the relief granted, we will further comment.

The judgment of the trial court did not attempt to define the property interest of Joe Yates which it declared subject to levy and sale under execution by Guest and on this point the parties sharply disagree. To obviate further litigation in this case, we will undertake to define that interest.

Guest maintains that he is entitled to proceed against an undivided one-half interest in each of the two dirt pits. Appellants, on the other hand, contend Guest may only reach a life estate in an undivided one-half interest in each of the properties, relying on the authority of Brown v. Andrews, 288 Ala. 111, 257 So.2d 356 (1972).

The facts in Brown[1] involved a conveyance by a husband and wife to a straw man, who in turn conveyed the property solely to the wife in a scheme to prevent a judgment creditor of the husband from reaching that property in satisfaction of the judgment. After declaring void, and setting aside, both conveyances as fraudulent and entering a money judgment against the husband, the trial court held that the husband and wife owned the property as joint tenants with rights of survivorship, according to the tenor of the deed by which they originally acquired title. In addition, the trial court impressed a lien upon the property against the husband's interest to secure the indebtedness for which the judgment was rendered.

On review of the issue pertaining to the property interest of the husband subject to levy and sale under execution, this Court modified the lower court's decree so as to set aside the conveyance of, and impress the lien upon, only an estate for the life of the husband in an undivided one-half interest in the property. See, Brown v. Andrews, 288 Ala. 111, 257 So.2d 356 (Ala.1972).

The rationale employed by the Court in Brown to reach this conclusion was largely premised on our earlier decision in Bernhard v. Bernhard, 278 Ala. 240, 177 So.2d 565 (1965). In Bernhard this Court held that language in a deed conveying property to grantees as joint tenants with rights of survivorship effectively created a tenancy in common with cross-contingent remainders in each of the tenants. The Court further held that the cross-contingent remainders were indestructible, except with the consent of both cotenants.

Adopting this analysis from Bernhard, the Court in Brown held that the husband never possessed an undivided one-half interest in the property in question but rather had a life estate in an undivided one-half interest with a contingent remainder.

The Court then observed that the statutory scheme for executions did not permit execution on contingent remainders. To this the Court added:

"It follows that since [the husband's] contingent remainder could not have been subject to levy and sale under an *976 execution, or subject to the judgment lien, the appellants were not injured by [the husband's] conveyance of this contingent remainder and, hence, cannot complain about its conveyance. Consequently, the only interest that was set aside and which is subject to levy and sale under execution, is the estate of [the husband] for his life in an undivided one-half of the property."

288 Ala. at 115, 257 So.2d 356.

In response to Yates's contention that Brown clearly controls our review of this case, the assertion could be made that Brown was implicitly overruled by Nunn v. Keith, 289 Ala. 518, 268 So.2d 792 (1972). In Nunn v. Keith, this Court expressly overruled the earlier decision of Bernhard that the language in a deed granting property to joint tenants with rights of survivorship creates a tenancy in common with indestructible cross-contingent remainders. Nunn v. Keith held, inter alia,

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416 So. 2d 973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yates-v-guest-ala-1982.