Stokes v. Humphries

• Decision Date: 15 February 1922
• Docket Number: (No. 2516.)
• Citation: 111 S.E. 36,152 Ga. 621
• Parties: STOKES et al. v. HUMPHRIES et al.
• Court: Georgia Supreme Court

152 Ga. 621

111 S.E. 36

STOKES et al.

v.HUMPHRIES et al.

(No. 2516.)

Supreme Court of Georgia.

Feb. 15, 1922.

(Syllabus by the Court.)

Error from Superior Court, Twiggs County; J. L. Kent, Judge.

Suit by W. C. Stokes and others against C. C. Humphries and others. Judgment for defendants on demurrer, and plaintiffs bring error. Affirmed.

The essential facts alleged in the petition brought by Stokes against Humphries and Waters are as follows: Stokes held an option on a tract of land belonging to the Napiers for $30,000. Stokes found a party willing to pay $3S, 000 for the land, and was about to consummate a sale to him whereby he would realize a profit of some $8,000, when Humphries advised him that the land with its valuable timber was worth much more than that amount; that the timber alone was worth $45,000 above the cost of cutting, sawing and marketing. Stokes knew Humphries to be a man of wide experience in the sawmill and lumber business. Humphries proposed to Stokes to finance the proposition, offering to put in the money necessary to purchase the land from the Napiers. The Napiers were willing to accept $28,500, $10,000 to be in cash and the balance in two annual payments of $9,250 each. Humphries proposed to make the first cash payment, and to put in active charge of cutting and sawing the timber one Waters, who was an expert sawmill man; that the three, Stokes, Humphries, and Waters would own each a one-third interest in the land; Humphries to reimburse himself for all sums paid to the Napiers from the sale of lumber obtained from the land; when fully reimbursed for such payments, the land would then belong jointly to Stokes, Humphries, and Waters. Humphries advanced the cash payment of $10,000 to the Napiers; whereupon the latter executed their warranty deed to Stokes. Stokes executed two promissory notes for $9,250 each in favor of the Napiers, for the balance of the purchase price of the land, payable on October 4, 1920, and October 4, 1921, respectively. To secure the payment of these notes Stokes executed his deed to the land, conveying the same to the Napiers. Humphries then advising Stokes that the proper thing to do was for Stokes to execute a deed to him for the land, this was done, Stokes at the same time executing his promissory note to Humphries for $9,250, and expecting to receive from Humphries a paper embodying the agreement and understanding of the parties. Whereupon Humphries procured a named lawyer, in whom petitioner had the utmost confidence, to draw the necessary paper, petitioner also having great confidence in Humphries, and believing that, on account of their partnership and confidential relations, Humphries would correctly inform the attorney who was to draw the paper as to the trade. The paper thus drawn and executed by Humphries was a bond for title, in which Humphries obligated himself to convey to Stokes a one-third undivided interest in the land upon the payment by Stokes of the two outstanding promissory notes given to the Napiers for $9,250 each, and the note given by Stokes to Humphries for $9,250. Stokes received from Humphries this bond for title, but did not read the same, supposing that it was a paper so drawn as to speak the agreement and understanding of the parties, to wit, that Humphries and Waters would begin promptly (this was in the fall of 1919) to place sawmills upon the land and proceed to convert the timber into lumber and sell the same, which at that time was very valuable, and, when a sufficient quantity was sold to reimburse Humphries, not only for the cost of cutting, sawing, and marketing the same, but to pay off all indebtedness against the land, Humphries would then convey to petitioner a one-third undivided...