Fletcher v. First Nat. Bank of Opelika

• Decision Date: 21 January 1943
• Docket Number: 5 Div. 367.
• Parties: FLETCHER v. FIRST NAT. BANK OF OPELIKA et al.
• Court: Alabama Supreme Court

11 So.2d 854

244 Ala. 98

FLETCHER v. FIRST NAT. BANK OF OPELIKA et al.

5 Div. 367.

Supreme Court of Alabama

January 21, 1943

Rehearing Denied Feb. 25, 1943.

O.S. Lewis and Lewis & Lewis, all of Dothan, for appellant.

Duke & Duke and Denson & Denson, all of Opelika, for appellees.

LIVINGSTON, Justice.

The appellant, John Milford Fletcher, filed his bill of complaint, being in the nature of a bill of review, in the Circuit Court of Chambers County, in Equity, seeking to set aside a decree of that court rendered on June 21, 1924, in the suit of George Clower, as trustee in bankruptcy of the estate of W.Z. Fletcher, a bankrupt, against John Milford Fletcher, the appellant, or, in the alternative, have the court make and enter a decree declaring the First National Bank of Opelika trustee ex maleficio of the property described in the bill, and which was purchased by said bank at the trustee sale had after the recovery of said property by virtue of the decree rendered in the creditors' suit. George Clower, individually and as trustee in bankruptcy of the estate of W.Z. Fletcher, a bankrupt, and the First National Bank of Opelika, a corporation, were made parties respondent.

Demurrers of the First National Bank of Opelika were sustained, hence this appeal.

The entire record in the case of George Clower, as trustee versus John Milford Fletcher is attached to and made a part of the bill of complaint in this cause.

The bill in the Clower, trustee, suit, hereinafter called the creditors' suit, alleges in substance that prior to and during the year 1915, W.Z. Fletcher and John M. Fletcher (father and uncle of appellant) each owned and had title to an undivided one-half interest in and to nine hundred and fifty-five acres of farm lands in Chambers County (the lands here involved); that John M. Fletcher died during the year 1915, leaving surviving his widow, Mary Claud Fletcher, and five children, Zebud Fletcher, Walter J. Fletcher, Thomas Lee Fletcher, Catherine Fletcher and Mary Claud Fletcher; that Zebud Fletcher died prior to the first day of January, 1918 leaving no lineal descendants, and at the time of his death he was unmarried. That on January 17, 1918, W.Z. Fletcher purchased from Catherine Fletcher her interest in the lands here involved, but that said interest was conveyed to Clara T. Fletcher, wife of W.Z. Fletcher, although W.Z. Fletcher paid the purchase price therefor; that on March 13, 1918 W.Z. Fletcher purchased from Mary Claud Fletcher, the widow of John M. Fletcher, her interest in the lands here involved and from Mary Claud Fletcher, guardian of the estate of Walter J. Fletcher, Thomas Lee Fletcher and Mary Claud Fletcher, minors, the interest of said minors in the lands here involved, but that all of said interests were conveyed to Clara T. Fletcher, wife of W.Z. Fletcher, although W.Z. Fletcher paid the purchase price therefor.

The bill further alleges that Clara T. Fletcher died during the month of June, 1918, leaving surviving W.Z. Fletcher, her husband, and one minor child, John Milford Fletcher (complainant in the court below and appellant here); that the deeds from Mary Claud Fletcher and Mary Claud Fletcher, guardian of the estate of her three minor children, to Clara T. Fletcher, were filed for record in the office of the judge of probate of Chambers County, Alabama, by W.Z. Fletcher on March 6, 1922; that on March 6, 1922, W.Z. Fletcher filed for record in the office of the judge of probate of Chambers County, Alabama, a deed bearing date of March 13, 1918, purporting to convey to Clara T. Fletcher, his wife, the undivided one-half interest of W.Z. Fletcher in and to the lands involved for a recited consideration of $1,000, but the bill further alleges that the conveyance was entirely voluntary and without consideration; that on March 6, 1922, W.Z. Fletcher delivered to the judge of probate of Chambers County for record a deed bearing date of January 26, 1922, purporting to convey the life estate of W.Z. Fletcher in and to the lands involved to John Milford Fletcher, his minor son, for a recited consideration of $10.00 and love and affection, but the bill alleges that said conveyance was voluntary and without consideration, and was fraudulent and void as to creditors. That on March 6, 1922, W.Z. Fletcher delivered to the judge of probate of Chambers County for record a deed bearing date of February 4, 1922, purporting to convey all of the right, title and interest of W.Z. Fletcher in and to the lands involved to John Milford Fletcher, his minor son, for a recited consideration of $5, but it is alleged that said conveyance was voluntary and without consideration, and fraudulent and void as to creditors.

The bill further alleges that during the year 1918, W.Z. Fletcher was in possession of the lands here involved, and was extensively farming the same, claiming to own the same, and that said possession under claim of ownership continued until and subsequent to the time said deeds were recorded; that between the date of the purported conveyance of title to Clara T. Fletcher and the date of filing the deeds for record, W.Z. Fletcher obtained credit of more than $20,000 on the strength of his possession and asserted ownership of said lands. The bill further avers that W.Z. Fletcher was, on his voluntary petition, adjudged a bankrupt on November 13, 1923.

The creditors' bill prayed that the conveyances to Clara T. Fletcher and to John Milford Fletcher be declared fraudulent and void as to the creditors of W.Z. Fletcher, and that the lands be subjected to the payment of W.Z. Fletcher's debts. The relief prayed for was granted by decree of the Circuit Court of Chambers County dated June 21, 1924. This decree appellant in this suit seeks to set aside, or, in the alternative, have the court declare the First National Bank of Opelika, who purchased the lands involved at the trustee sale, trustee ex maleficio for appellant.

The relief sought in the present suit is rested upon the theory of fraud in the procurement or concoction of the decree of June 21, 1924.

In substance, the bill now under consideration alleges that at the time the creditors' bill was filed against appellant, he was a minor eleven years of age; that summons was issued on said creditors' bill and served on W.Z. Fletcher, father and guardian of appellant; that no guardian ad litem was appointed to defend for appellant; that the said W.Z. Fletcher, as appellant's general guardian, answered said creditors' bill. The bill further alleges that the First National Bank of Opelika entered into an agreement with W.Z. Fletcher, the father and guardian of appellant, to permit and allow the setting aside of the several deeds, copies of which were attached to and made a part of the creditors' bill, and hereinabove referred to, by not representing appellant's interest in said suit; and that as a part of said agreement, the bank agreed to buy the property described in said bill in the event said deeds were set aside and said property sold, and would reconvey the same to the said W.Z. Fletcher upon his securing his indebtedness to the said bank, agreeing to allow him credit on said indebtedness of all dividends declared by the bankrupt court on the claims filed therein against the estate of W.Z. Fletcher by said bank and the three other creditors named in the creditors' bill, and the further credit of any amount over $1,250 allowed as attorneys' fee for representing the trustee; that the bank in said agreement promised to and did advance W.Z. Fletcher money and other things of value to enable said W.Z. Fletcher to enjoy the use and benefit of said lands for the year 1924, without accounting for rents and profits therefor. The bill further alleges that in pursuance of said agreement, W.Z. Fletcher, appellant's father and guardian, filed an answer to the creditors' bill, which, while purporting to answer said bill for appellant, was in truth and in fact the answer of the said W.Z. Fletcher, and in no wise represented appellant's interest in said suit: All of which matters are alleged to have constituted a fraud on the court and appellant in the procurement of the decree of the court sought to be set aside. The bill further alleges that appellant had a good defense to said creditors' suit, in that, a portion of said lands was the homestead of the said W.Z. Fletcher, not greater in area than one hundred and sixty acres, and less in value than $2,000, over and above liens thereon, at the time of the conveyances to Clara T. Fletcher, wife of W.Z. Fletcher and mother of appellant, and which was not subject to the debts of W.Z. Fletcher; and further that said creditors' bill and the evidence introduced in support thereof wholly failed to allege or show any fraud on the part of Clara T. Fletcher. That at the time credit was extended to W.Z. Fletcher, title to an undivided one-half interest in the lands involved was shown by the records of the office of the judge of probate of Chambers County to be in John Milford Fletcher.

The bill further alleges that, in furtherance of said fraudulent scheme, W.Z. Fletcher interceded with and prevented prospective purchasers from becoming bidders for said property at the trustee's sale, and that said bank became the purchaser thereof at and for the sum of $12,000, and thereafter deeded same to W.Z. Fletcher, who, in turn executed and delivered to said bank a mortgage on said lands to secure the sum of $22,589.57; that all of said matters and things were kept from him by his father and guardian; that he had no knowledge of being respondent in the creditors' suit until the month of October 1940, and that being wholly without knowledge of the matters and things herein complained of, appellant had no occasion to make...