Stevens v. Edwards

• Decision Date: 24 July 1940
• Docket Number: No. 9450.,9450.
• Citation: 112 F.2d 534
• Parties: STEVENS v. EDWARDS et al.
• Court: U.S. Court of Appeals — Fifth Circuit

112 F.2d 534 (1940)

STEVENS v. EDWARDS et al.

No. 9450.

Circuit Court of Appeals, Fifth Circuit.

June 13, 1940.

Rehearing Denied July 24, 1940.

Warren B. Parks and George P. Garrett, both of Orlando, Fla., for appellant.

Thomas B. Adams, of Jacksonville, Fla., for appellees Edwards.

Herbert S. Phillips, U. S. Atty., of Tampa, Fla. (John A. Rush, of Jacksonville, Fla., of counsel), for the United States.

Before SIBLEY, HOLMES, and McCORD, Circuit Judges.

McCORD, Circuit Judge.

The United States Government filed condemnation proceedings to acquire certain tracts of land in Brevard County, Florida, for use as a naval air base. Under the provisions of 40 U.S.C.A. § 258a a deposit of $1,942.50 was made in the registry of the court as the estimated fair compensation for Government Lot 4 in Section 35, Township 25 South, Range 37 East.

On October 31, 1939, the District Court entered judgment on the declaration of taking. Thereafter on January 15, 1940, Mrs. Clara M. Edwards filed her petition asking for distribution of the deposit. Mrs. Edwards claimed title to the land by virtue of a deed from Peninsula Land Company dated January 4, 1940. The petition asserted that Peninsula Land Company had been the lawful and rightful owner of the tract of land, and that a recorded deed to Edward E. Stevens dated February 12, 1937, was intended as security for a loan and that Stevens, in fact, had only a mortgage lien on the property. The petition further alleged that all of the loan had been repaid with the exception of $312, and the petitioner asserted her willingness for this balance to be paid to Stevens out of the government deposit.

Stevens filed a reply to the petition of Mrs. Edwards and claimed that he was the rightful owner of Government Lot 4 and, therefore, entitled to receive the entire deposit of $1,942.50. He also filed application asking that the deposit be paid over to him. After a hearing the court entered an order sustaining the contentions of Mrs. Edwards, and Stevens has appealed.

The facts as shown by the record and found by the court are these: On February 12, 1937, Peninsula Land Company owned Government Lot 4. A tax foreclosure suit by one Charles Reed was pending in the State court and had progressed almost to conclusion. The Peninsula Land Company was in financial distress and was in need of money to pay off these tax claims amounting to $1,565.31. Edward E. Stevens advanced the money to pay the tax claims and as security for the loan took a deed to the land belonging to the company. As a part of the same transaction Stevens gave Mrs. Clara M. Edwards an option to purchase the property of Peninsula along with other properties of Ocean Beach Improvement Company. The option called for payment, on or before November 1, 1937, of the sum of $3,900. This sum represented the total amount advanced by Stevens to clear up taxes in the suit against Peninsula and in a similar suit then pending against Ocean Beach Company, plus a bonus of $500 over and above the sums so advanced. It appears that the Peninsula and Ocean Beach properties were worth much in excess of the amounts advanced by Stevens.

The record further shows that Mrs. Edwards was the principal stockholder in both corporations at the time of these...