Nat'l Bank of Commerce of Kan. City v. Lefferdink
| Decision Date | 15 May 1923 |
| Docket Number | No. 22394.,22394. |
| Parties | NATIONAL BANK OF COMMERCE OF KANSAS CITY v. LEFFERDINK ET AL. |
| Court | Nebraska Supreme Court |
Eiseley v. Spooner, 23 Neb. 470, 36 N. W. 659, 8 Am. St. Rep. 128.
A grain buyer who knowingly receives from a tenant the landlord's share of crop rent must at his peril pay the proceeds to the person entitled thereto, and, where the former owner has transferred the title to the land, and the conveyance has been made a matter of public record, the crop being immature at that time, payment to the former owner will not discharge the purchaser of the grain from liability to account to the real owner for such proceeds.
H. J. L., the owner in fee of a tract of real estate in this state, conveyed the same by warranty deed to a foreign corporation. In a proceeding to recover rent which they had received after such conveyance, F. E. L., claiming as assignee of H. J. L., and B., acting for him, assert that the title had never passed from H. J. L., for the reason that the grantee corporation was incompetent to take title to real estate in this state. Held, that H. J. L., would be estopped to question the competency of his grantee to take title for that reason, and that F. E. L. and B., being in privity with him, are likewise estopped.
Appeal from District Court, Lancaster County; Morning, Judge.
Suit by the National Bank of Commerce of Kansas City against Henry J. Lefferdink and others and Bert Bunnell. From a judgment for plaintiff, defendant Bunnell appeals. Affirmed.Doyle & Halligan, of Lincoln, for appellant.
Hainer & Flansburg and Hall, Cline & Williams, all of Lincoln, for appellee.
The controversy in this appeal is not between the original parties to the suit, which was for the foreclosure of certain mortgages. It is concerned with the right to the rents accruing in the year 1919 upon the 480 acres of land affected by the decree. During the crop season of 1919 the land was occupied by tenants under leases providing for a share of the crops as rent, Henry J. Lefferdink, the owner of the fee title, being the lessor. This action was begun June 24, 1919. On March 25, 1919, Henry J. Lefferdink conveyed the land in pursuance to a contract made in February, 1919, to the Bankers' Land, Cattle & Development Company, an Arizona corporation. This deed was filed for record in April, 1919. In July, 1919, the Arizona corporation conveyed the legal title to the land to the First Trust Company of Lincoln, Neb. The trust company executed an agreement to collect the rents from the land and apply the proceeds upon the incumbrances involved in this litigation. This deed was filed for record July 21, 1919. About August 1, 1919, one of the tenants delivered the landlord's share of his wheat crop to one Bert Bunnell, a grain dealer of Denton, who purchased the same, and on September 9, 1919, paid the proceeds to T. J. Doyle, as the agent or attorney of Frank E. Lefferdink, who claimed it under assignment, or power of attorney, for Henry J. Lefferdink.
A decree of foreclosure was rendered on November 18, 1919. The court found that the proceeds of sale of the property would probably be insufficient to pay the liens adjudged to exist, appointed George W. Holmes receiver, and directed him to control the land and rent the premises, also to collect the rents for 1919. Afterwards Frank E. Lefferdink filed a petition in the case, making all parties in interest parties to the proceeding, except Bunnell, and praying the court to determine the right to the rent for 1919. Answers were filed. In the answer of the receiver he alleged that he had the right to the crops, and asked that Bunnell be made a party. The court ordered this to be done, but he was not served with summons in time to appear when the matter was set for hearing. Frank E. Lefferdink claimed the rent upon two grounds: First, an oral assignment made in November, 1918, when Henry J. Lefferdink, upon borrowing money from a bank of which Frank E. Lefferdink was then cashier, and in February, 1919, upon borrowing from Frank individually, told Frank to apply the rent from this land upon the debts; second, upon a power of attorney executed to him by the Arizona corporation authorizing him to collect the rents. On May 21, 1920, a hearing was had. The court found that Frank E. Lefferdink had no right, title or interest in the rents, and the receiver was directed to collect the rents for the year 1919 and apply the proceeds in accordance with the further orders of the court. It was also found that one of the tenants has paid to Bert Bunnell, of Denton, rents which should have been paid to the receiver. He was directed to collect the remainder of the rents for the year 1919, including the sums...
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