Jones-Lowe Co. v. Southern Land Co.

• Decision Date: 06 March 2009
• Docket Number: 1071575.
• Citation: 18 So.3d 362
• Parties: JONES-LOWE COMPANY et al. v. SOUTHERN LAND AND EXPLORATION COMPANY, INC.
• Court: Alabama Supreme Court

18 So.3d 362

JONES-LOWE COMPANY et al. v. SOUTHERN LAND AND EXPLORATION COMPANY, INC.

1071575.

Supreme Court of Alabama.

March 6, 2009.

Roderic G. Steakley and Matthew B. Reeves of Sirote & Permutt, P.C., Huntsville;

and Jack Livingston, Scottsboro, for appellants.

E. Allen Dodd, Jr., of Scruggs, Dodd & Dodd, Attorneys, P.A., Fort Payne, for appellee.

WOODALL, Justice.

Jones-Lowe Company, a general partnership composed of Raymond B. Jones, Peter L. Lowe, and others; G.W. Jones & Sons, a former partnership composed of Raymond B. Jones and Carl T. Jones, deceased; Peter L. Lowe; and Raymond B. Jones (all collectively referred to hereinafter as "Jones-Lowe")¹ appeal from a summary judgment for Southern Land and Exploration Company, Inc. ("SOLEXCO"), in SOLEXCO's action against Jones-Lowe to quiet title to mineral rights in real estate located in DeKalb County ("the property"). We reverse and remand.

I. Factual and Procedural Background

This property dispute involves several complex chains of title that allegedly diverged from a common source late in the 19th century. Most recently, in 1958, the interest of A.F. Kralik Point Realty Company was purchased by the State Land Commissioner ("the Commissioner") at a tax sale resulting from unpaid ad valorem taxes. On October 26, 1966, G.W. Jones & Sons purchased the State's interest in the property, which was defined in the deed from the Commissioner as "mineral rights only." Through a series of transactions, Jones-Lowe Company eventually acquired that interest. Jones-Lowe Company or its predecessors have paid taxes on the mineral interests in the property since 1966.

Ten years later, on June 23, 1976, the Commissioner executed a deed purporting to sell "the minerals and mineral interests" in the property to SOLEXCO. SOLEXCO has also paid taxes on the mineral interests in the property since 1976.

On July 3, 2007, SOLEXCO commenced this action to quiet title to the mineral rights. Jones-Lowe answered the complaint and filed a counterclaim, seeking a judgment quieting title in Jones-Lowe Company. On January 17, 2008, SOLEXCO filed a single document, namely, a motion for a summary judgment. The "Statement of Material Undisputed Facts" section of that motion contained, in pertinent part, the following averments, hereinafter referred to collectively as "the motion averments":

"6. [SOLEXCO] acquired title to the minerals and mineral interests in the said property from the State of Alabama by deed from the [Commissioner] of June 23, 1976, Deed Book 255, Page 276, Judge of Probate, DeKalb County, Alabama.

"7. The chain of title into [SOLEXCO] is as follows:

                  "(a)   Instrument:       Entries
                         Grantor:          USA
                         Grantee:          Certificate Holders
                         Date:             Unknown
                         Recorded:         Tract Book
                  "(b)   Instrument:       112 Deeds
                         Grantor:          Certificate Holders
                         Grantee:          O.T. Holmes
                         Date:             1887-1888
                         Recorded:         Deed Book S, Pages 141-349
                  "(c)   Instrument:       Warranty Deed
                         Grantor:          Owen T. Holmes and Wife
                         Grantee:          Noble Smithson
                         Date:             2-8-1890
                         Recorded:         Deed Book X, Page 110
                         Conveyed:         `all bituminous
                         anthracite and other coals, petroleum
                         natural gas, and other products of coal
                         and petroleum and also all iron, iron ores
                

                         and other metal ores and minerals of
                         every kind and description'
                  "(d)   Instrument:       Warranty Deed
                         Grantor:          Noble Smithson and Wife
                         Grantee:          Joseph A. Jacobs
                         Date:             2-27-1890
                         Recorded:         Deed Book X, Page 120
                         Interest
                         Conveyed:         (same as conveyed in foregoing
                                           Instrument)
                  "(e)   Instrument:       Warranty Deed
                         Grantor:          Joseph A. Jacobs and wife
                         Grantee:          Alabama Coal & Iron, Inc
                         Date:             3-14-1890
                         Recorded:         Deed Book X, page 130
                         Interest
                         Conveyed:         (same as conveyed in foregoing
                                           Instrument)
                  "(f)   Instrument:       Tax Sale
                         Grantor:          Judge of Probate
                         Grantee:          State of Alabama
                         Date:             7-10-1922
                         Recorded:         Tax Sale Record J, Page
                                           216
                         Interest
                         Conveyed:         `Mineral Interest Only'
                  "(g)   Instrument:       Deed
                         Grantor:          State of Alabama, by
                                           [Commissioner]
                         Grantee:          Plaintiff (SOLEXCO)
                         Date:             6-23-1976
                         Recorded:         Deed Book 255, Page 276
                         Interest
                         Conveyed:         Mineral Interest Only
                

"8. [SOLEXCO] also makes claim to the disputed acreage through the following chain of title: (a) Alabama Coal & Iron Co. December 7, 1926, deed to Cherokee Mining Co., Inc., Deed Book 60, Page 484; (b) Cherokee Mining Co., Inc., April 9, 1974, deed to J.S. Cullinan, II, and Craig F. Cullinan, Jr., Deed Book 246, Page 497; (c) J.S. Cullinan, II, April 25, 1975, deed to Sue Woodall Cullinan, Deed Book 250, Page 189; (d) Sue Woodall Cullinan, Joseph S. Cullinan, II, and Craig F. Cullinan, Jr., May 6, 1983, deed to plaintiff [SOLEXCO], Deed Book 287, Page 781-82; (e) Sue Woodall Cullinan and Craig F. Cullinan, Jr., May 16, 1983, deed to plaintiff [SOLEXCO], Deed [Book] 287, Page 783-85; and (f) Joseph S. Cullinan, II, and wife Sue Woodall Cullinan and Craig F. Cullinan, Jr., May 6, 1983, deed conveying mineral rights only to plaintiff [SOLEXCO], Deed [Book] 287, Page 777-80.

". . . .

"16. It is undisputed that [Jones-Lowe Company's] claimed title descends from a deed from Margaret Hall to a grantee named Rainer or Rayner in 1919. Ms. Hall attempted to convey to Rainer or Rayner all the mineral acreage owned by one O.T. Holmes as follows: `... Margaret Hall ... grant, bargain, sell and convey to [Rainer or Rayner] ... the mineral interests ... at any time owned by Owen T. Holmes ... [in the disputed real estate].'

"17. It is further undisputed that O.T. Holmes had conveyed his mineral interests in the disputed acreage by deed dated February 8, 1890, Deed Book X, page 110, prior to any conveyance to Margaret Hall.

"18. In short, [Jones-Lowe Company] claims title through the referenced deeds, including the deeds from the State of Alabama. However, the ultimate source of title into either source is Margaret Hall, who had no mineral interests to convey."

(Emphasis in original.) SOLEXCO did not support its motion with copies of any of the above-referenced instruments or with any other evidence.

Jones-Lowe filed a cross-motion for a summary judgment. SOLEXCO filed an opposition to the cross-motion, supported only by the affidavit of Woodrow Hobson, Jr., president of SOLEXCO. On July 8, 2008, the circuit court granted SOLEXCO's summary-judgment motion and denied Jones-Lowe's cross-motion. In so doing, the court stated, in pertinent part:

"[SOLEXCO] obtained a tax deed to `the minerals and mineral interests' in the subject lands from the [Commissioner] on June 23, 1976. The deed is recorded at Deed Book 255, Page 276, in the DeKalb County, Alabama, Probate Office. [SOLEXCO's] chain of title extends back to 1890, when Owen T. Holmes and wife conveyed the mineral interests in the subject lands to Noble Smithson. The State of Alabama obtained title to the mineral interests at a tax sale on July 10, 1922, when the owner at that time, Alabama Coal and Iron Company, became delinquent in the payment of taxes.

"[SOLEXCO] also makes claim to the mineral interests through a chain of title commencing with a conveyance from Alabama Coal & Iron Company in 1926 to Cherokee Mining Co., Inc., recorded at Deed Book 60, Page 484; Cherokee Mining Co., Inc., to J.S. Cullinan, II, and Craig F. Cullinan, Jr., on April 9, 1974, recorded at Deed Book 246, Page 497; J.S. Cullinan, II, to Sue Woodall Cullinan, on April 25, 1975, recorded at Deed Book 250, Page 189; Sue Woodall Cullinan, Joseph S. Cullinan, II, and Craig F. Cullinan, Jr., to plaintiff SOLEXCO, on May 6, 1983, recorded at Deed Book 287, Page 781; Sue Woodall Cullinan and Craig F. Cullinan, Jr., to plaintiff [SOLEXCO], on May 16, 1983, recorded at Deed Book 287, Page 783; Joseph S. Cullinan, II, and wife, Sue Woodall Cullinan, and Craig F. Cullinan, Jr., to plaintiff [SOLEXCO], on May 6, 1983, recorded at Deed Book 287, Page 777. (All recordings are in the DeKalb County, Alabama Probate Office.)

". . . .

"The interest claimed by [Jones-Lowe Company] descends from a deed executed by Margaret Hall in 1919 to a grantee named `Rainer' or `Rayner.' This deed sought to convey all mineral acreage `at any time owned by O.T. Holmes' in the subject lands. O.T. Holmes, however, had previously conveyed his interest in the subject minerals to Noble Smithson by deed dated February 8, 1890, recorded at Deed Box X, Page 110, DeKalb County Probate Office. It follows that Margaret Hall had no interest to convey when she executed the deed to Rainer/Rayner.

". . . .

"The rule of repose asserted by [Jones-Lowe], which serves as a bar to claims that are unasserted for twenty years cannot be used against one with valid record title by one who clearly does not have title. Oehmig v. Johnson, 638 So.2d 846 (Ala.1994). In this case, [SOLEXCO] has valid record title and Jones-Lowe [Company] does not.

"As to Jones-Lowe's claim that [SOLEXCO] had notice, actual or constructive, of the interest claimed by [Jones-Lowe Company] when [SOLEXCO] obtained its tax deed in 1976, the court finds that notice, without more, cannot make [SOLEXCO's] unbroken chain of record title dating back to 1890 inferior to [Jones-Lowe Company's] defective color of title emanating from a source who had no title to convey."

(Emphasis added.)

On appeal,...