Thomas v. Holden

• Decision Date: 11 February 1915
• Docket Number: 705
• Citation: 191 Ala. 142,67 So. 992
• Parties: THOMAS et al. v. HOLDEN.
• Court: Alabama Supreme Court

67 So. 992

191 Ala. 142

THOMAS et al. v. HOLDEN.

No. 705

Supreme Court of Alabama

February 11, 1915

Appeal from Chancery Court, De Kalb County; W.H. Simpson Chancellor.

Suit by Janie Thomas and others against J.C. Holden. From a decree sustaining a demurrer to the bill, complainants appeal. Affirmed.

J.N Quinones, of San Juan, P.R., for appellants.

Davis &amp Baker, of Ft. Payne, for appellee.

THOMAS J.

The appellants, the children of J.W. Thomas and Janie Thomas, and J. W. Thomas suing by his next friend, Janie Thomas, filed a bill in the chancery court seeking to cancel a mortgage and the notes secured thereby, of date October 4, 1910, and a deed of date February 14, 1911, executed by J.W. Thomas and his wife, Janie Thomas, conveying to appellee, J.C. Holden, the lands described therein. The second paragraph alleges:

"That at and before the time of making said mortgage and the said deed (Exhibits A and B), said J.W. Thomas was insane and did not have sufficient mind to understand the business he was engaged in when executing said papers, and that since the execution of said papers he has been adjudged insane and is now confined in the insane asylum of this state at Tuscaloosa, Ala."

Several grounds of demurrer were interposed in the court below. The decree of the chancellor held that the third, fourth, fifth, sixth, and seventh grounds were well taken, and which ruling is assigned as error. The grounds of demurrer held to be good are as follows:

(3) The bill fails to allege a lack of good faith on the part of the respondent in the transaction set up. (4) The bill fails to allege the absence of a valuable consideration for the conveyance sought to be canceled. (5) The bill fails to allege that the respondent had notice of the alleged insanity of the complainant, J.W. Thomas, at the time of the transaction. (6) There is no offer to do equity on the part of the complainants. (7) The complainants pray that the purchase-money notes and the mortgage be canceled, but do not offer to pay the purchase price nor to reconvey the land to the respondent.

An act approved March 2, 1901 (Local Laws 1900-01, p. 1943), "To better protect bona fide purchasers of real estate from insane persons, without notice of such insanity," incorporated in the Code of 1907 as sections 3347 and 3348, is as follows:

(3347) "Conveyance by an Insane Person; Effect of.--Whenever any person shall in good faith, and for a valuable consideration, purchase real estate from an insane person without notice of such insanity, such contract and conveyance shall not be void, but such insane person may recover from the vendee or those claiming under him, the difference between the market value of such real estate at the time of the sale and the price paid therefor, with interest thereon, and shall have a lien on such real estate to secure the same, and the purchasers from such vendee, without notice of the insanity of the original vendor, shall be protected in like manner and have the benefits of this section."

(3348) "Contracts of Insane Person Void.--Except as provided in the preceding section, all contracts of an insane person are void, but he and his estate shall be liable for necessaries furnished him which may be recovered upon the same proof and upon the same conditions as if furnished to an infant."

The notes and the mortgage securing the same, together with the deed sought to be canceled, were executed after the passage of this act, and are governed by its terms. Mitchell v Baldwin, 154 Ala. 346, 45 So. 715; Code 1907, §§ 3347, 3348. It will be noted that the cases of Mitchell v. Baldwin, supra, Galloway, Trustee, v. Hendon, 131 Ala. 280, 31 So. 603, Wilkinson v. Wilkinson, 129 Ala, 279, 30 So. 578, and Dougherty v. Powe, 127 Ala. 577, 30 So. 524, were...