Virginia-carolina Joint Stock Land Bank.,v,watt Et Al.

• Court: North Carolina Supreme Court
• Writing for the Court: BROGDEN, Justice
• Citation: Virginia-carolina Joint Stock Land Bank.,v,watt Et Al., 207 N.C. 577, 178 S.E. 228 (N.C. 1935)
• Decision Date: 28 January 1935
• Docket Number: No. 394.,394.
• Parties: VIRGINIA-CAROLINA JOINT STOCK LAND BANK. v WATT et al.

207 N.C. 577

178 S.E. 228

VIRGINIA-CAROLINA JOINT STOCK LAND BANK.vWATT et al.

No. 394.

Supreme Court of North Carolina.

Jan. 28, 1935.

Appeal from Superior Court, Iredell County; Harding, Judge.

Action by the Virginia-Carolina Joint Stock Land Bank against W. A. Watt and another, in which the Fourth Creek Drainage District and another were made parties on the original defendant's motion. From the judgment rendered, plaintiff appeals.

Affirmed.

The rights of the parties were submitted to the trial judge upon an agreed statement of facts and a contract between the parties made a part thereof. The chronology of facts is substantially as follows:

(1) The Fourth creek drainage district was properly and legally organized by a final judgment on May 15, 1911, and the drainage work was completed prior to January 22, 1915; 75.7 acres of the land in controversy lies within the boundaries of the district.

(2) On January 1, 1913, bonds were issued by the district in the sum of $25,000. These bonds were placed as collateral to a note given by the district for money borrowed from the First National Bank, which said note was renewed from time to time, and as assessments were collected the principal was reduced.

(3) That Dr. W. W. Wilhelmn owned the land in controversy, and on February 28, 1917, duly paid the sum of $1,896.96 to the proper officers of the drainage district "which represented this particular land's full and complete proportionate part of the indebtedness, including the expense and cost of the Fourth District Drainage District."

(4) The plaintiff, land bank, for the sum of $4,800, and in pursuance of such agreement, executed and delivered to said defendants a deed with full covenants and warranties, conveying said property. In examining the title to the property, counsel for Watt and Patterson discovered that a portion of the land, to wit, 75.7 acres, ' lay within the boundaries of the drainage district, and that the People's Loan & Savings Bank had secured judgment against said district amounting to $7,248.66, which judgment was duly docketed. The amount of the judgment represented the balance due on the bond issue hereinbefore mentioned.

(5) The original assessment was made against the land within the district about 1915, and no further assessment has been made or levied against the property for any purpose and "that all assessments which have ever been levied or made against this property * * * due and payable to the Fourth Creek Drainage District for the payment of cost and expense of improvements have been fully paid and satisfied."

(6) Watt and Patterson refused to accept the deed, and the parties entered into a written contract. This contract was made on the 28th day of October, 1933, by and between Watt and Patterson and the Virginia-Carolina Joint Stock Land Bank. This instrument recites the judgment of the People's Loan & Savings Bank against the drainage district, and further that "the parties of the first part (Watt and Patterson) contend that the lands hereinbefore mentioned are located within the boundaries of said district and are liable for certain assessments which should be made to provide for payment of the indebtedness of said district and the said Virginia-Carolina Joint Stock Land Bank contends that the said land is not within the boundaries of said district and is not liable for any assessment or for the indebtedness of any drainage district"

It was further recited that the land bank had deposited the sum of $559.68 with the clerk of the superior court upon the following conditions:

(a) "The Land Bank * * * shall within CO days * * * institute legal action for the purpose of having determined whether there is any liability against the land hereinbefore referred to on account of any drainage assessment or indebtedness due by the Fourth Creek Drainage, if there is such a district in existence."

(b) "That the Clerk * * * after the determination of liability of the * * * Land Bank under the warranties contained in its deed * * * on account of any liability, if such exists, shall, if it is finally judicially determined that the said land...