Young v. Little's Unknown Heirs

• Decision Date: 01 December 1949
• Citation: Young v. Little's Unknown Heirs, 232 S.W.2d 614, 34 Tenn.App. 39 (Tenn. App. 1949)
• Parties: YOUNG et ux. v. LITTLE'S UNKNOWN HEIRS. LITTLETON v. YOUNG et al.
• Court: Tennessee Court of Appeals

Page 614

232 S.W.2d 614

34 Tenn.App. 39

YOUNG et ux. v. LITTLE'S UNKNOWN HEIRS.

LITTLETON v. YOUNG et al.

Court of Appeals of Tennessee, Eastern Section.

Dec. 1, 1949 Certiorari Denied by Supreme Court April 29, 1950.

Cassell & McDavid, Harriman, for complainants.

Stone & Qualls, Harriman, R. H. Ward, James F. Littleton, Kingston, D. O. Harris, Harriman, for defendants.

HOWARD, Judge.

Mrs. Margaret Byrd Little died intestate in Roane County, Tennessee, seized and possessed of three lots in the City of Harriman, Tennessee, upon which there was located a residence containing approximately seven rooms. The value of the three lots and residence was approximately $4,000.

A. F. Littleton was appointed and qualified as administrator of the estate of Margaret Little some time during the year 1930 and from that time on until 1943 the said Littleton, as administrator and agent for certain known heirs of Margaret Little, collected rents on the property and accounted to Emma Stephenson, a daughter of Margaret Little, for the proceeds of said rent collections until the death of Emma Stephenson in 1940. Thereafter Littleton accounted to Grace Stephenson Zeh for the rent collections until September or October of 1943.

At the request of Emma Stephenson no effort was made by Littleton to pay any state, county or city taxes on said real estate.

In March, 1938, a suit was filed in Chancery Court of Roane County, Tennessee, for the collection of delinquent state and county taxes on said property, said cause being styled State of Tennessee ex rel. v. Ed Burnett et al., No. 4766 in said Court. This cause proceeded through various references and reports and on January 14, 1939 the property involved herein was sold under the decree of the Chancery Court and bought in by the state for the delinquent taxes due it, and said sale was duly confirmed by the Chancellor.

Apparently Littleton continued to rent the property and collect rents thereon, accounting to Emma Stephenson and later to Grace Zeh, for the net collections. Some time around 1939 or 1940 the said property was rented to C. K. Young and wife, Madeline Young, complainants herein, at a monthly rent of $25 per month.

During the month of August 1943 the Youngs and Littleton were both negotiating with Grace Zeh, of Arlington, Virginia, who claimed to represent all of the 'known heirs' of Margaret Little, seeking to purchase the real estate from her and her associates. Littleton seems to have made an offer of $1,000 or $1,500 for the purchase of the interest of Grace Zeh and her associates and tendered part payment of this amount to Mrs. Zeh. About the same time Mrs. Zeh made an agreement with the Youngs whereby they were to pay $4,000 for the property, out of which sum all delinquent taxes were to be paid and the balance held in escrow by B. L. Sadler, President of the First National Bank of Harriman, to be paid to Mrs. Zeh upon delivery of a quitclaim deed to the property, properly executed and acknowledged by all of the 'known heirs' of Margaret Little.

On or about September 15, 1943 Grace Zeh sent to B. L. Sadler the deed, which was dated September 10, 1943, and was executed and acknowledged by Grace Zeh, Margaret Stephenson, Louise Stephenson Prog and Byrd Stephenson and also by Grace Zeh as attorney for Mary Jo Black. A photostatic copy of the power of attorney giving Grace Zeh authority to execute the deed on behalf of Mary Jo Black was attached to the deed. The above named appear to be the sole legal heirs of the said Emma Byrd Stephenson. This deed was also executed and acknowledged by Bruce Faulkner, a legal heir of Mary Byrd Faulkner, another sister of the deceased Margaret Little.

It developed in the proof in this cause that Mary Byrd Faulkner had another son, George Faulkner, who had died intestate leaving surviving heirs. George Faulkner had three sons, two of whom predeceased him and the other died without issue so that Edna Faulkner, wife of the deceased George Faulkner, claimed as sole legal heir of her husband.

Shortly after the deed was deposited in escrow with B. L. Sadler, C. K. Young had his attorney, Judge R. B. Cassell, examine the deed and give an opinion as to the title to the property and at Judge Cassell's suggestion Young requested Grace Zeh to secure affidavits from the 'known heirs' who had executed the deed, which affidavits were to the effect that they were the only legal heirs of Margaret Little. They also requested, at the suggestion of Judge Cassell, that the original power of attorney authorizing Grace Zeh to execute the deed for Mary Jo Black be sent to him for recording in the Register's Office of Roane County.

Grace Zeh replied to this request stating that she could not secure the affidavits requested and that she understood there were probably some other unknown heirs; but she did promise to forward the original power of attorney, which was never done.

Thereafter Young requested that Grace Zeh and her associates join with him in filing court proceedings against the unknown heirs of Margaret Little in order to clear up the title to the property and in order that Young might receive good title to the property under the deed which had been executed. Young requested that the expense of the court proceedings be deducted from the $4,000 purchase price. Grace Zeh refused to join in this proceeding and refused that any further deduction be made from the purchase price other than the taxes which she had already agreed to pay out of the purchase price. Mrs. Zeh indicated that she and her associates were becoming impatient about the delay in closing the transaction and stated that unless the deal was consummated by November 5, 1943 that the deed held in escrow by B. L. Sadler be returned to her and cancelled so that she might be free to negotiate with other prospective purchasers of the property.

On October 30, 1943 Young paid delinquent taxes and expenses in the following amounts:

W. B. Ladd, Clerk and Master, for State and County taxes (1936 to
                  1941) .............................................................. $ 733.81
                W. E. Billingsley, Trustee, State and County Taxes (1942 to 1943) ...... 151.54
                City of Harriman, City Taxes (1938 to 1943) ............................ 483.35
                Revenue Stamps on Deed ................................................... 4.40
                                                                                      ---------
                  Total ............................................................. $1,373.10
                

Young then paid the balance of $2,626.90 to B. L. Sadler, as escrow agent for Grace Zeh and associates and the deed from Grace Zeh et al. to C. K. Young was delivered to him and recorded in the Register's Office of Roane County, Tennessee.

On November 4, 1943 the First National Bank of Harriman issued its cashier's check in favor of Mrs. Grace Zeh in the amount of $2,363.31. The difference between the amount of the cashier's check and the amount paid to Sadler by Young represents the sum of $226.99 which appears to have been deducted at the request of Littleton, as compensation for his services in acting as 'agent and legal representative' of Mrs. Zeh and the other 'known heirs' of Margaret Little. The cashier's check in favor of Mrs. Zeh was never delivered to her. It appears from the record that it was held in the bank temporarily at the request of Littleton and later was held by the bank under an order of injunction of the Chancery Court of Roane County.

On November 8, 1943, Young procured a tax deed to said property from the Commissioner of Finance and Taxation, which seems to have been in proper form and approved by the Governor and the Attorney General and which deed was recorded in the Register's Office of Roane County, Tennessee on November 30, 1943.

On November 15, 1943 C. K. Young and wife, Madeline Young, filed the original bill in this cause in the Chancery Court of Roane County, being styled C. K. Young et ux., against the Unknown Heirs of Margaret B. Little, deceased, No. 5304 in said Court.

The substance of the bill in this cause was that the Youngs had acquired the entire title to said real estate by virtue of their purchase from Grace Zeh and her associates, the only 'known heirs' of Margaret Little, deceased, and also by virtue of the tax deed from the Commissioner of Finance and Taxation, and it was prayed that the unknown heirs of Margaret Little be made parties by publication and that any claims that might be made on behalf of any unknown heirs be declared void and spurious and removed as a cloud upon their title.

It is clear that Littleton had full knowledge of all of these proceedings. This appears in a letter written by him to Charles T. Byrd, dated December 7, 1943, and filed as an exhibit in this cause. It also appears clearly from Littleton's own testimony in which he states that he collected rent on the property as agent for Grace Zeh until about the middle of September 1943, and that thereafter Young tendered the rent to him until the middle of October, 1943, but that he refused to accept the same.

After the original bill was filed in cause No. 5304, Littleton made strenuous efforts to obtain quitclaim deeds from the other 'unknown heirs' of Margaret Little. According to Littleton's testimony he secured some deeds by mail, some by telephone and some by airplane trips made during his vacation period, and as a result of these efforts he did secure and has filed in the record of these consolidated causes 29 quitclaim deeds from various heirs of Margaret Little.

It seems to be undisputed that Margaret Little had 11 brothers and sisters, one of whom died without issue. It is conceded by all parties that this deceased brother or sister left no legal heirs.

It also seems to be undisputed that at the time of her death there were 10 brothers and sisters (or their descendants) who stood in the position of legal heirs of the said Margaret Little deceased.

The original deed from ...