Roberson v. Matthews

• Decision Date: 27 January 1931
• Docket Number: 50.
• Citation: 156 S.E. 496,200 N.C. 241
• Parties: ROBERSON v. MATTHEWS et al. MATTHEWS v. ROBERSON et al.
• Court: North Carolina Supreme Court

156 S.E. 496

200 N.C. 241

ROBERSON v. MATTHEWS et al.

MATTHEWS v. ROBERSON et al.

No. 50.

Supreme Court of North Carolina

January 27, 1931

Appeal from Superior Court, Martin County; Moore, Special Judge.

Suit by C. Arthur Roberson against N. D. Matthews and the North Carolina Joint Stock Land Bank, and cross-suit by N. D Matthews against C. Arthur Roberson and another. From the judgment, parties on both sides appeal.

Reversed and remanded.

The evidence tended to show that prior to August 2, 1901, J. W H. Coburn owned certain land in Martin county. On August 2 1901, Coburn and wife executed a deed of trust on approximately 112 acres of land to B. R. Jenkins, trustee for L. E. Ricks, to secure the payment of a note of $500, payable January 1, 1902. Thereafter, on January 29, 1923, J. W. H. Coburn and wife executed and delivered to the First National Trust Company, trustee for the North Carolina Joint Stock Land Bank, a deed of trust to secure a note for $6,600 held by said land bank. This deed of trust covered 212.4 acres of land and included the 112 acres above referred to, covered by the Jenkins deed of trust. Default was made in the payment of the land bank note, and said land was duly sold and a deed was made by the First National Trust Company, trustee, to the North Carolina Joint Stock Land Bank for said 212.4 acres of land. Said deed was dated April 20, 1927, and recorded May 16, 1927. Subsequently the North Carolina Joint Stock Land Bank sold the property to N. D. Matthews by deed dated September 29, 1927. On November 15, 1927, Jenkins, trustee in the first deed of trust, dated 1901, advertised for sale under said deed of trust the 112-acre tract, and a deed was made by B. R. Jenkins, trustee, to C. Arthur Roberson. This deed from Jenkins, trustee, recites that the land was sold on December 21, 1927, and Roberson became the last and highest bidder for the same at the price of $300.

Hence, we have this situation: Matthews claims 212.4 acres of land by virtue of deed from the North Carolina Joint Stock Land Bank, and Roberson claims 112 acres of the same land by virtue of deed from Jenkins, trustee, to him. Matthews was in possession of the land, and on January 8, 1929, Roberson instituted a suit against Matthews and the Joint Stock Land Bank, alleging that he was the owner of 112 acres of the land, and that Matthews was in the wrongful possession thereof. On January 23, 1929, Matthews and the North Carolina Joint Stock Land Bank instituted suit against Roberson and Jenkins, trustee, alleging that the purported sale of the land by Jenkins, trustee, under power contained in the deed of trust of 1901, was irregular and void in that the purchase price paid by Roberson was grossly inadequate, and that in fact Roberson was acting as agent for Jenkins, trustee, at the time of the sale. The evidence produced at the trial tended to show that the note given by Coburn to Ricks in 1901 was sold by Ricks to Jenkins, trustee, in said deed of trust, and that Jenkins held the note and received payments thereon from time to time made by the mortgagor. The note was a sealed instrument and the last payment was made on October 13, 1922. On November 12, 1927, Jenkins, trustee, owner and holder of the note, transferred the same to C. Arthur Roberson, the plaintiff in the first suit. Three days thereafter, to wit, on November 15, 1927, Jenkins, trustee, proceeded to advertise the land under the deed of trust of 1901. Matthews and the land bank were notified of the sale. There was also evidence tending to show that the land in controversy was worth from $2,500 to $4,000.

Roberson, the plaintiff in the first suit, was related by marriage to Jenkins, the trustee. Roberson testified: "In his old age he got me to look after some of his business affairs for him. Mr. Jenkins' financial condition was pretty good. *** I saw an attorney at the time the note was transferred. We saw attorneys in regard to that. I did not especially want the note. The proposition of transfer was made to help Mr. Jenkins straighten out his business. I do not remember our attorney telling us it would be necessary to get the note in the hands of someone else before Mr. Jenkins could advertise and sell. Mr. Jenkins was getting old and was not able to straighten it out-- disabled to look after it. *** The transfer was made just to help him straighten out his business--to help him settle up his affairs." Roberson further testified that he paid $490 to Jenkins for the note. It seems that Jenkins died pending the litigation because Roberson testified that he did not pay cash to Jenkins but gave him a note. He testified further: "The note I gave him was found among his papers and came into my hands marked already paid as far as I can tell."

There was also evidence that Coburn, the mortgagor, sold 38 acres of the land covered by the deed of trust of 1901 to one Vanorthwick. The Vanorthwick deed was dated January 5, 1920. Another tract of said land, containing about 22 acres, was sold by Coburn to one Roebuck. Roberson released the Vanorthwick tract by a quitclaim deed upon the payment of a certain amount on the note.

The following issues were submitted to the jury:

1. "Is the note made by J. W. H. Coburn to L. A. Ricks, held by C. Arthur Roberson, barred by the ten year statute of limitations?"

2. "Is said note and deed of trust securing same, being the deed of trust recorded in Book CCC, page 580, conclusively presumed to have been paid so far as N. D. Matthews' lands are concerned by virtue of C. S. § 2594 (5)?"

3. "Did C. Arthur Roberson, in releasing lands of Vanorthwick release all other land embraced in deed of...