Muller v. Seeds
Muller v. Seeds
Opinion
B.N. Muller III appeals from a summary judgment entered by the Chilton Circuit Court in favor of Linda S. Seeds and Chris Seeds. We reverse and remand. *Page 1176
The 162-acre tract owned by Silver Point is divided into six lots, and Silver Point was selling the lots. As each lot was sold, Muller would execute a release of the lot from the operation of his mortgage. At the time of this litigation, Lots 1, 2, 4, and 5 had been sold by Silver Point and released by Muller; Lots 3 and 6 remained subject to the mortgage. In early 2000, the Seedses, after negotiating with Shirley, entered into a sales contract to purchase Lot 3 from Silver Point. However, Muller refused to execute a release of Lot 3 upon its sale, writing on the sales contract, "Rejected-No Value."
Silver Point, through Shirley, and the Seedses proceeded with the sale, notwithstanding Muller's refusal to release Lot 3 from the mortgage. The Seedses closed on the sale, paying $60,350 for Lot 3, of which $12,500 was paid to Silver Point. Of the $12,500, $11,000 was tendered by check to Muller, who alleges that he took the check "as evidence" but that he never cashed it or deposited it.
Subsequent to the closing, Muller informed Shirley and the Seedses that he had never released Lot 3 from his mortgage, and he requested that possession of Lot 3 be surrendered to him. When neither Shirley nor the Seedses complied with Muller's request, the mortgage being in default, Muller proceeded to foreclose upon the property; pursuant to the power-of-sale provision in his mortgage, he conducted a foreclosure sale, at which he purchased the property that had not been released from the mortgage — Lots 3 and 6 — as the highest bidder. The Seedses refused to surrender possession. Muller then timely filed an ejectment action in the Chilton Circuit Court, seeking to have that court eject the Seedses from Lot 3. Muller's complaint also purported to seek relief in rem against Lot 3.
The Seedses timely filed an answer and a counterclaim against Muller, alleging breach of contract and wrongful foreclosure. Their answer asserted 10 defenses, some of which were affirmative defenses, such as payment. The Seedses, however, never explained exactly what contract they were alleging in their counterclaim Muller had breached.
The Seedses filed a motion for a summary judgment on Muller's ejectment claim against them, which the trial court initially denied. Approximately one year later, however, after further discovery, the Seedses filed a renewed motion for a summary judgment, again only as to Muller's ejectment claim, which the trial court granted. The court, pursuant to Rule 54(b), Ala. R. Civ. P., certified the summary judgment as a final judgment.
"`A plaintiff who establishes that he has both legal title to the property when his complaint is filed and a right to immediate possession has established the elements for statutory ejectment. Atlas Subsidiaries v. Kornegay,
288 Ala. 599 ,264 So.2d 158 (197[2]). Further, if the mortgage and foreclosure deed . . . are produced, as well as proof of both demand for and refusal to deliver possession, then all the necessary elements of ejectment are established. Jones v. Butler,286 Ala. 69 ,237 So.2d 460 (1970).'"
Muller purchased the property at the foreclosure sale; thus, legal title to Lot 3 vested in him, and he was entitled to take immediate possession. See Ala. Code 1975, §
The Seedses challenge the validity of Muller's foreclosure, however, contending that the consideration they paid was sufficient to secure a release of Lot 3 from Muller's mortgage. Initially, we note that the Seedses only vaguely argued this issue in their motions for a summary judgment, merely contending that Muller had "received proceeds from the real estate closing sufficient to satisfy his lien on Lot 3" and that he would be "unjustly enriched" if he were permitted to prevail on his ejectment action. Muller's mortgage, however, contained no language providing that he would grant a release upon the payment of any consideration. On appeal, the Seedses belatedly argue that Muller had authorized Shirley both to sell property and to grant partial releases from Muller's mortgage. We note that this argument is raised for the first time on appeal. Moreover, the evidence proffered by the Seedses on appeal — a short colloquy from a deposition of a third party — when viewed in the light most favorable to Muller, as the nonmovant, merely establishes that Muller authorized Shirley to handle transactions and to quote prices with respect to those lots Muller had released from his mortgage. Thus we conclude that the Seedses failed to meet their burden as summary-judgment movants as to this argument. *Page 1178
The Seedses also argue that they were entitled to a summary judgment on the authority of Conway v. Andrews,
The effect of Conway, according to the Seedses, is that the defendant in an ejectment action can prevail over the plaintiff, even if the plaintiff has superior title, by demonstrating that the property should have been sold in individual parcels rather than in en masse. The fact that Lots 3 and 6 were sold at foreclosure together, rather than one at a time, the Seedses contend, justifies an order setting aside the entire foreclosure and directing the mortgagee (if in possession) to release the parcel from his mortgage.
We note, however, that in Conway Andrews prevailed and the trial court set aside Conway's foreclosure because Andrews counterclaimed in chancery requesting that the sale be set aside.
In their counterclaim, the Seedses alleged Muller's "wrongful foreclosure" and specifically requested that the trial court set aside the foreclosure. That counterclaim, however, has never been ruled upon and is not before this Court. Only Muller's ejectment claim is currently at issue, and only the Seedses' legal and equitable defenses to that claim may be considered in reviewing the summary judgment. Other than the Seedses' earlier argument that they paid sufficient consideration to Muller for a release of Lot 3 from the mortgage, however, they argue the applicability of no defense — legal or equitable. Thus they have failed to present evidence sufficient to entitle them to a summary judgment on Muller's ejectment claim. Consequently, concluding that the Seedses failed to meet their burden, we reverse the summary judgment.
REVERSED AND REMANDED.
NABERS, C.J., and SEE, STUART, and BOLIN, JJ., concur. *Page 1179
Reference
- Full Case Name
- B.N. Muller III. v. Linda S. Seeds and Chris Seeds.
- Cited By
- 34 cases
- Status
- Published