M. C. Dixon Lumber Co., Inc. v. Mathison

Decision Date14 September 1972
Docket Number4 Div. 436
Citation289 Ala. 229,266 So.2d 841
PartiesM. C. DIXON LUMBER CO., Inc., a corporation, v. J. C. MATHISON.
CourtAlabama Supreme Court

Preston C. Clayton, Eufaula, for appellant.

Halstead, Whiddon & Woodham, Headland, for appellee.

PER CURIAM.

The M. C. Dixon Lumber Co., Inc., a Corporation, appellant and complainant below, hereinafter referred to as Dixon, filed its bill on March 28, 1964 against J. C. Mathison, appellee and respondent below, hereinafter referred to as Mathison, in the Circuit Court of Henry County, in Equity, seeking a decree settling and quieting the title to the SW 1/4 of the NW 1/4, Section 18, Township 8 North, Range 29 East, Henry County, Alabama, and calling upon Mathison to set forth any claim in the land that he may have. Dixon now prosecutes this appeal from an adverse final decree holding Mathison to be the owner of the fee simple title in the property except for an undivided oen-half interest in the minerals, and holding that Dixon has no claim or title to the property.

The trial court found, among other things, that prior to the filing of the suit Mathison had conveyed one-half of the mineral interest in the property to his brother; and this would appear to be the basis for the court declaring that one-half the mineral interest was not vested in Mathison at the time of the decree.

In its amended bill, dixon alleged in substance that it was in peaceable possession of the land and held the record title thereto by a deed from one Sam T. Jones. It also alleged a series of conveyances between it and Mathison from 1952 to 1956 relative to the subject property, together with other property, including two deeds in 1955 and one in 1956 executed by Dixon to Mathison, which deeds were not intended to convey any interest in the subject property to Mathison.

Mathison did not demur to the amended bill but filed an answer denying peaceable possession in Dixon but admitting the conveyances alleged, and claiming that the effect of the three deeds was to convey title to him. He also claimed title by adverse possession and a deed from one A. J. Palmer, and prayed the court to enter a decree settling title to the property.

The evidence in the case was taken before a commissioner and upon being reduced to writing was submitted to the court for final decree.

The evidence in the case is that on May 5 ,1952, Mathison executed a first mortgage to Dixon on 1380 acres of land in Henry County. The 1380 acres were listed by legal description in the mortgage and included the subject forty acres by description as follows: '* * * and the southwest quarter of northwest quarter of Section Eighteen (18), Township eight (8), Range twenty nine (29). Said lands being bought from A. J. Palmer.'

Each of the conveyances subsequently made between these parties, including the two deeds in 1955 and the one deed in 1956, used the identical description of the 1380 acres, including the subject property, as was used in this first mortgage.

The consideration of this mortgage was a loan of $8,000.00 without interest, evidenced by one promissory note in the amount of $8,000.00, bearing even date with the mortgage and payable in twenty years.

On May 5, 1952, as additional security for this loan, Mathison executed to Dixon a timber option. This was an option given to Dixon 'during the period of twenty (20) years from this date' upon the 1380 acres to cut all pine and hardwood which measured six inches in diameter and over, six inches above the ground 'at the time of cutting the same.' The option provided that if Dixon should exercise its privilege to cut the timber within the twenty-year period, the indebtedness of $8,000.00 should be cancelled. If the option were not exercised, the note became due and payable.

Mathison testified that he had nothing to do with the preparation of the first mortgage and timber option and that the first time he saw these documents was in Dixon's office on the date of the signing of the same.

On November 7, 1952, Dixon purchased by warranty deed from one Sam T. Jones several tracts of real estate in Henry County, including the subject property described by governmental subdivisions.

This deed noted that in a prior conveyance of this property in the chain of title the Federal Land Bank of New Orleans had reserved one-half interest in all minerals in the subject property, and that the present deed from Jones to Dixon was made subject to such prior reservation. This title in Dixon goes back to the Federal Government.

On December 28, 1953, Mathison, in consideration of an additional loan from Dixon of $3,500.00, executed a promissory note to Dixon payable on or before December 28, 1958 bearing interest at six percent per annum. He also executed on the same date a second mortgage on the 1380 acres as security for this loan. And on the same date as further security and '* * * in consideration of thirty five hundred ($3500) dollar loan this date made * * *' Mathison executed an option to Dixon to purchase the 1380 acres (less one-half interest in the minerals) at any time elected by Dixon but not sooner than five years from December 28, 1953, nor later than seven years from such date, for the sum of $8,500.00. The option to purchase further provided that if Dixon exercised its right to purchase and paid the sum of $8,500.00, Mathison would execute a full warranty deed conveying good, merchantable, fee simple title to the 1380 acres.

On the same date, December 28, 1953, as additional security and in further consideration of the $3,500.00 loan, Mathison conveyed by warranty deed to Dixon '* * * an undivided half interest in and to all oil, gas, bauxite and other minerals in, * * *' or under the 1380 acres.

This deed also conveyed '* * * the bonus, rentals and royalties which may be due or become due and payable for the interest hereby conveyed, together with all the rights and privileges necessary for the operation and development of said premises for oil, gas, bauxite, or other materials, and also the right to erect and maintain such improvements and equipment in and upon said lands for the purpose of removing said oil, gas, bauxite or other minerals therefrom.' The grantor warranted and agreed to defend the title to the lands described. The conveyance was for a period of five years from date, or until the option to purchase the land which was given on the same date should be exercised.

On June 14, 1948, Mathison purchased from one A. J. Palmer by warranty deed the following described real property situated in Henry County:

'The S 1/2 of the NW 1/4 and the SW 1/4 of the NE 1/4 of section 13, Township 8, Range 28, containing in all 120 acres, more less, and known as the Alford Malone Place, and being the same land conveyed to grantor herein, A. J. Palmer, by deed of S. R. Vann and wife Kate Vann dated December 16, 1919, * * *.'

It is to be noted that this deed described property in a section and range different from the section and range of the legal description of the subject property. The record does not disclose that this deed of June 14, 1948 was ever amended or corrected. The record of title of A. J. Palmer is not shown to come from the government or a source common with Dixon's title.

On April 4, 1955, Mathison filed an equity suit against Dixon in the Circuit Court of Henry County alleging that the two mortgages, timber option, option to purchase, and mineral deed were security for the two loans, and praying the court to fix the amount due on the loans and to allow Mathison to redeem the 1380 acres from the encumbrances of Dixon.

On August 16, 1955, the parties settled this suit by Mathison paying to Dixon the sum of $15,000.00 and Dixon executing a power of attorney to the probate judge to satisfy the two mortgages, which was subsequently done. As a part of this settlement agreement, Dixon executed on August 16, 1955 a cancellation and release as to the option to purchase, and he also executed on the same date as a part of the settlement two deeds prepared by the attorney for Mathison. It should be noted that as of the date of the execution of these two deeds, Dixon held the record title (less one-half the minerals) to the subject property.

One of the deeds of August 16, 1955, from Dixon to Mathison is, in part, as follows: 'Know all men by these presents, that M. C. Dixon Lumber Company, Incorporated, * * * for and in consideration of One Dollar and other good and valuable consideration, * * * does hereby grant, bargain, sell and convey unto the said J. C. Mathison all pine and hardwood timber of every kind and description suitable for sawmill and pulp wood purposes, or any other purpose which will measure six (6) inches in diameter and above, six (6) inches above the general level of the ground, standing, growing and being upon the real property described as follows: * * *.' The 1380 acres are then described.

The deed then continues:

'Also, for the hereinabove recited consideration * * * (the grantor) does hereby grant, bargain, sell and convey unto the said J. C. Mathison, all and singular the rights, privileges, option, interests, agreements covenants, duties and powers, together with the options, granted, conveyed, assigned and transferred to it by that certain conveyance executed to it by J. C. Mathison and Eudine Mathison, on May 5, 1952, * * * It being the intention and purpose of the said grantor to divest itself of everything conveyed to it by said conveyance and to invest in the said J. C. Mathison everything it received by virtue and under said conveyance, and that the options therein granted to it shall henceforth be null and void. (Emphasis added).

'To have and to hold unto the said J. C. Mathison, his heirs and assigns forever. And the said M. C. Dixon Lumber Company, * * * hereby warrants that it is the true and lawful owner of the property rights and privileges conveyed hereby; * * *.'

The conveyance of May 5, 1952 referred to in...

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  • Courtney v. Boykin
    • United States
    • Alabama Supreme Court
    • March 10, 1978
    ...is written in the alternative. Satisfaction of any one of the three alternatives satisfies the statute. M. C. Dixon Lumber Company, Inc. v. Mathison, 289 Ala. 229, 266 So.2d 841 (1972); and Powell v. Hopkins, 288 Ala. 466, 262 So.2d 289 In addition to fulfilling the requirements of one of t......
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    ...the Robersons all right, title, and interest possessed by AHM at the time of the execution of the deed. See M.C. Dixon Lumber Co. v. Mathison, 289 Ala. 229, 266 So.2d 841 (1972). The record shows that in their mortgage to the Harrises the Robersons warranted the title to the property that w......
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    ...any accretion allegedly acquired by adverse possession may have on the issue whether title was so acquired, see Dixon Lumber Co. v. Mathison, 289 Ala. 229, 266 So.2d 841 (1972); Machen v. Wilder, 283 Ala. 205, 215 So.2d 282 (1968); Haywood v. Hollingsworth, 255 Ala. 453, 51 So.2d 674 ...
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