Byrd v. Southeast Enterprises, Inc.
Byrd v. Southeast Enterprises, Inc.
Opinion
This case, which involves the redemption of certain real property, has previously been before this Court. See Southeast Enters., Inc. v. Byrd,
These appeals are by Jerry H. Byrd and Sharon B. Byrd. In 1994, the Byrds purchased real property at a foreclosure sale. In 1995, Southeast Enterprises, Inc. ("SEI"), a junior mortgagee, sought to exercise its statutory right to redeem the property. (That led to case no. CV-95-92 in the Coffee Circuit Court.) In September 1996, the trial court issued an order computing the total redemption price at $1,289,177.54. SEI appealed to this Court.
In June 1997, while SEI's appeal was pending before this Court, SEI filed, pursuant to Rule 60(b), Ala.R.Civ.P., an "Independent Action for Relief of Judgment Resulting from Fraud on the Court." (This "independent action" was case no. CV-97-127.)
On February 13, 1998, this Court issued its opinion in SEI's appeal.See Southeast Enters., Inc., supra. This Court affirmed in part, reversed in part, and remanded. In its opinion, this Court stated:
"In sum, we deny the motion to dismiss the appeal; we affirm that portion of the trial court's judgment that included the higher-priority mortgage in the redemption price; we reverse those portions of the judgment computing interest, valuing permanent improvements at cost and not granting credit for rental value and timber cut or destroyed; and we remand this cause for further proceedings consistent with this opinion."
720 So.2d at 878. On remand, the Byrds requested that the trial court schedule a hearing to determine the redemption price to be paid by SEI. The trial court issued an order consolidating CV-95-92 and CV-97-127, on motion by SEI.
After conducting a hearing, the trial court found that a fraud had been perpetrated on the court by Farmers Home Administration ("FmHA") and the Byrds and issued an order setting aside its prior judgment. This order permitted SEI to redeem the property by paying $206,962, plus interest, within 60 days from April 20, 2000.
On May 19, 2000, the Byrds filed a motion to alter, amend, or vacate the judgment and a motion to stay enforcement of the judgment and to set a supersedeas bond. The court set July 28, 2000, as the hearing date for these motions.
On June 28, 2000, the court issued two orders — one directing that the funds be placed in a certificate of deposit pending resolution of this case and one approving the payment of the redemption price and directing the issuance of a deed.
On July 3, 2000, the Byrds moved to vacate the June 28, 2000, order and deed, contending that the trial court had inadvertently overlooked the pending motion to *Page 268
stay enforcement of the judgment and to set a supersedeas bond. The Byrds also requested that the trial court enter an order staying the execution of the judgment pending appeal. On July 5, 2000, the Byrds filed with this Court a petition for a writ of mandamus, requesting this Court to direct the trial court to vacate its orders of April 20, 2000, and June 28, 2000, and to enter an order in compliance with this Court's prior mandates as set forth in Southeast Enters.,Inc.,
On July 29, 2000, the trial court heard argument on the motion to alter, amend, or vacate the judgment, and on August 15, 2000, it denied the motion. These appeals followed.1
The Byrds contend that SEI had lost its right to redeem the property by failing either to post a supersedeas bond or otherwise to obtain a stay of the September 13, 1996 order,2 pending the prior appeal. We have reviewed the record from the prior appeal, and we find that this was one of the issues the Byrds raised in their motion to dismiss that appeal. However, this Court denied the Byrds' motion to dismiss the appeal.3Southeast Enters., Inc., 720 So.2d at 878. As this Court stated in TitanIndemnity Co. v. Riley,
"`Under the doctrine of the "law of the case," whatever is once established between the same parties in the same case continues to be the law of that case, whether or not correct on general principles, so long as the facts on which the decision was predicated continue to be the facts of the case.'"
(Citations omitted.) Thus, applying the doctrine of "law of the case," we conclude *Page 269 that SEI has not lost its right to redeem this property.
The Byrds also contend that SEI's "Independent Action for Relief of Judgment Resulting from Fraud on the Court" was untimely filed, and, thus, that the April 20, 2000, order is due to be vacated. As previously noted, in September 1996 the trial court issued its judgment, and in June 1997 SEI filed its "independent action," alleging fraud upon the court.4
Rule 60(b), Ala.R.Civ.P., states, "This rule does not limit the power of a court to entertain an independent action within a reasonable time and not to exceed three (3) years after the entry of the judgment . . . to relieve a party from a judgment, order, or proceeding, or to set aside a judgment for fraud upon the court." In light of the foregoing, we conclude that SEI's "independent action" was not untimely filed and that it was the appropriate means for SEI to use. See Brice v. Brice,
The following facts create the basis for SEI's "independent action": Section
At the July 19, 1999, hearing, Jerry Byrd testified that he felt no obligation under the redemption statute to volunteer information either to SEI or to the trial court regarding the April 14, 1995, contract with Pea River Timber Company, Inc.; the $170,000 he received from Pea River Timber Company, Inc., in April 1995; or the $75,000 ($50,000 of which applied to the property subject to redemption) he received in January 1997, because, he said, the April 14, 1995, contract had been recorded and was a matter of public record, and the contract stated that he was to repay the money if the timber could not be harvested because of the redemption of the property. The court's April 20, 2000, order stated:
"The Court also considered with great weight the testimony of the Defendant, Jerry Byrd, wherein he [said] he had no obligation to volunteer any information concerning the sale of timber on the lands made the basis of this suit. He also testified he had no duty to advise as to the receipt of the [$170,000] incident to said conveyance.
"This Court is convinced [that] state law has not been complied with as a result of fraud on this Court. Parties to a redemption action ARE without question UNDER A DUTY/AN OBLIGATION to divulge pertinent/VERY MATERIAL information to the redeeming party AND more importantly, TO THE COURT.
"Neither was done in the instant case. . . .
"The [Byrds] committed a fraud on THIS COURT by asking THIS COURT to incorporate into its decree the omission of the [$170,000] credit due [SEI].
"IT IS THEREFORE ORDERED that this Court's prior judgments are hereby set aside and held for naught . . . for fraud on the Court."
In their brief filed with this Court in these present appeals, the Byrds admit that, pursuant to §
In the prior appeal, SEI contended that "it [was] not required to include in the redemption price the higher-priority mortgage owned by FmHA." 720 So.2d at 874. This Court determined that "[t]he trial court correctly included the higher-priority mortgage in the redemption price" because "under §
In Titan Indemnity Co., supra, this Court, quoting Gray v. Reynolds,
"`It is well established that on remand the issues decided by an appellate court become the "law of the case," and that the trial court must comply with the appellate court's mandate. The trial court's duty is to comply with the mandate "according to its true intent and meaning," as determined by the directions given by the reviewing court.'"
(Citations omitted.)
In its April 20, 2000, order, the trial court found that FmHA had committed a fraud on the court, and it set aside the September 13, 1996, judgment entered in favor of FmHA. The trial court clearly recognized that it was not following the mandates set forth in SoutheastEnterprises, Inc.,
"As to the argument that such an order as this would conflict with the already-rendered opinion of the Alabama Supreme Court, this trial court is convinced that other decisions of our state Supreme Court are more in point with the action taken herein by the trial court. A revisit is demanded and due as redemption procedures are governed by statute where erroneous calculations — created intentionally through a fraud on the court — MUST BE CORRECTED FOR THE SAKE OF JUSTICE."
The apparent basis for the trial court's finding that FmHA committed a fraud on the court is this rationale: (1) that this debt was time-barred by state and federal statutes; (2) that the preamendment statute (§§
After reviewing the record in the prior appeal and researching the law on these issues, we make the following observations as to the basis for the trial court's finding that FmHA had committed a fraud on the court: (1) In April 1978, Hubert "Butch" Prestwood, Jr., and his wife, Mary Prestwood, executed three promissory notes and a mortgage on the property subject to redemption. SEI contends that the Prestwoods defaulted in 1980.9 FmHA *Page 272 foreclosed on the mortgage on September 1, 1994.
Williamson v. Shoults,"Though recovery on the note is barred by a statute of limitation, the running of such statute on the note does not prevent foreclosure of the mortgage given as security therefor. There is no statute of limitation on the foreclosure of a mortgage. It is only when the mortgage debt has been due after maturity for a time sufficient to raise a presumption that the same has been satisfied that mere delay will furnish a defense to foreclosure. That time is ordinarily twenty years."
In the prior appeal, we determined "[t]he trial court [had] correctly included the higher-priority mortgage in the redemption price." 720 So.2d at 875. Thus, this became the law of the case — that the unpaid deficiency balance owing to FmHA was to be included in the redemption price to be paid by SEI — and it could not be revisited on remand, because we find no evidence to support the trial court's finding that FmHA had committed a fraud on the court.
When calculating the redemption price in its April 20, 2000, order, the trial court stated that it was using the preamendment statute (§§
Bennie Herring's motion to dismiss the appeal (see note 1) is denied. The April 20, 2000, judgment of the trial court is affirmed insofar as it finds that the Byrds committed a fraud upon the court in regard to the "timber cut and sold" during the redemption period; and that judgment is reversed insofar as it finds that SEI is not required to pay the higher-priority mortgage held by FmHA and insofar as it calculates the redemption price to be paid by SEI. This case is remanded for proceedings consistent with this opinion.
MOTION TO DISMISS APPEAL DENIED; AFFIRMED IN PART; REVERSED IN PART; AND REMANDED.
Moore, C.J., and Lyons and Johnstone, JJ., concur.
Woodall, J., concurs in the result.
"5. . . . [I]f [SEI] shall pay the aforesaid sum of $1,289,177.54, with interest to the date of payment, to the Clerk of Court within thirty (30) days of the date of this judgment, the [Byrds] shall convey the title to said property to [SEI] free from any lien. Failing therein, [SEI's] right of redemption shall cease."
(Emphasis added.) We recognize that a judgment ordering redemption of real property merely allows the plaintiff (here, SEI) to purchase the property from the defendant or defendants (here, the Byrds) within a specified time at a fixed dollar amount, with the condition that if the plaintiff fails to comply with the terms of the judgment, then the plaintiff loses the right of redemption. Rhoden v. Miller,
"with instructions that the circuit court grant [SEI] an oral hearing at which [SEI] will furnish evidence to the court that, not only did [the Byrds] furnish fraudulent information to [SEI], but [the Byrds] also committed a fraud on the court and that the court's reliance on that fraud was the basis of its final order from which [SEI is] appealing. [SEI] will prove by documents that [the Byrds] sold approximately one hundred seventy thousand ($170,000.00) dollars worth of timber in the spring of 1995 and concealed that fact from [SEI] and the court."
SEI further argued in its motion to remand that the Byrds' "conceal[ment of] this fact, when [they are] statutorily required to give SEI credit, is fraud" and that when the Byrds "[a]llow[ed] the circuit court to issue a final order based on this fraudulently calculated charge, [it was] a fraud on the court."
The Byrds argue that SEI's contention — concerning fraud upon the court — was previously rejected by this Court. We do not agree. On March 28, 1997, SEI's motion to remand was "denied without prejudice to [SEI] to file in the trial court a motion to proceed pursuant to Rule 8(b), [Ala.R.App.P.]"
In the prior appeal, the record contained no evidence indicating that the Byrds had concealed information from SEI and the trial court about timber sold during the statutory period of redemption. In its reply brief in the prior appeal, SEI stated that it recognized that the record needed further development to support its contention that the Byrds had committed a fraud upon the court.
"(d) Any one entitled and desiring to redeem shall be granted a credit as against the amount of money required to be paid for redemption as follows:"(1) For all timber cut or sold on the land by the purchaser or his or her transferees, during the statutory period of redemption."
(Emphasis added.)
SEI contends that the statutory limitations period began to run in 1980 and that FmHA's claim was barred because FmHA failed to file an action on the note within six years.
Reference
- Full Case Name
- Jerry H. Byrd and Sharon B. Byrd v. Southeast Enterprises, Inc.
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