Tolbert v. Southgate Timber Co.
Tolbert v. Southgate Timber Co.
Opinion
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 92
¶ 1. The estate of a long-deceased owner of land brought suit against timber cutters whose rights to the timber were granted by only two of a large number of heirs who owned the property. The chancellor dismissed, finding that the estate was not a proper party and that adding the true parties in interest would be futile since they would have no cause of action against the timber cutters. We disagree. Therefore we reverse, order the substitution of the heirs, and remand.
¶ 3. Moffett had ten children. One died without issue. The 120 acres that she owned at her 1917 death is now owned by the heirs and devisees of the nine children. Among those heirs are Elouise Gaines and Nathaniel Crump, who own a combined 5/72 interest in the property. On July 19, 1999, Gaines and Crump executed warranty timber deeds on the 120 acres to Mark Isle and Jesse Edwards. Southgate Timber Company then contracted with Isle and Edwards for the timber.
¶ 4. After the timber was cut, the Moffett estate was reopened solely to authorize suit against the timber deed grantees and their assign, Southgate. On July 18, 2000, Evelyn Tolbert, as newly-named administratrix of the Moffett estate, filed suit against Southgate, Isle, and Edwards. Southgate later filed a cross-claim against Isle and Edwards, and a third-party complaint against the cotenants Gaines and Crump. Isle and Edwards were not served with process and have never appeared. A month later, two individuals claiming to own an interest in the property filed to intervene.
¶ 5. In May 2004, Southgate filed a motion to dismiss for failure to state a claim upon which relief may be granted and for lack of subject matter jurisdiction, or in the alternative for summary judgment. The estate sought to amend the complaint to add some of the Moffett heirs as plaintiffs. The chancellor denied the motion to amend and granted the defense motion to dismiss. The estate's appeal has been deflected to this Court.
¶ 6. The administratrix of the Moffett estate brought suit to recover the fair market value of the trees that the defendants cut from the property, claiming that the owners other than those from whom timber deeds had been obtained must be compensated. The chancellor found that the estate was not a proper plaintiff in this litigation, since title to an intestate's real property descends to that person's heirs and does not pass through the estate. That proposition is a venerable one:
Campbell v. Brown,These lands, which belonged to Charles McCarroll in his life time, descended to his heirs upon his death. The title became vested in them, and can only be *Page 93 divested by the decree of the probate court, upon proceedings instituted and conducted according to the statutes of the state. The administrator, as such, had no interest in the lands, and can only take possession in the mode and for the purposes enumerated by the law. One case is given by the statute in which he may sell the real estate, and that is when the personal property is insufficient to discharge the debts of the deceased. Another is, perhaps, when it can be shown that it was for the interest of the heirs to convert it into money. But in any proceeding, in one case or the other, the heirs must have notice.
Partee v. Kortrecht,The meaning which has been uniformly given to the statute is, that, while the land descends directly to the heir, it goes incumbered with the "charge;" and though the administrator has no title or interest in it, yet, when the contingency arises of the insolvency of the personal estate, he may assert his dormant right to the real estate, and appropriate it as assets.
¶ 7. Other statutes make specific provision for an administrator's litigation authority. An estate administrator may bring suit regarding claims that arise during administration, such as to protect assets of the estate. Miss. Code Ann. §
¶ 8. Standing to bring suit exists in Mississippi if a party can "assert a colorable interest in the subject matter of the litigation or experience an adverse effect from the conduct of the defendant." Harrison County v. City of Gulfport,
¶ 9. Tolbert filed suit as the administratrix of Moffett's reopened estate. The estate had no colorable claim to the long-deceased Moffett's real property, nor any authority to bring suit regarding it. Whatever convenience arises from having an entity such as an estate represent a large number of heirs does not override the requirement that the actual parties in interest be the plaintiffs.
¶ 10. Reasonable time is to be given after an objection to substitute the proper entity or individuals who are the actual parties in interest. M.R.C.P. 17(a). The chancellor noted that an amendment to add new plaintiffs might correct the problem of using the estate as the representative plaintiff. The chancellor found that *Page 94
questions would also need to be resolved regarding whether the amendment would relate back in time so as to overcome a statute of limitations hurdle. M.R.C.P. 15; Miss. Code Ann. §
2. Cause of action under Section
¶ 11. The chancellor found that this litigation was governed by the following statute:
(1) If any person shall cut down, deaden, destroy or take away any tree without the consent of the owner of such tree, such person shall pay to the owner of such tree a sum equal to double the fair market value of the tree cut down, deadened, destroyed or taken away, together with the reasonable cost of reforestation, which cost shall not exceed Two Hundred Fifty Dollars ($250.00) per acre. The liability for the damages established in this subsection shall be absolute and unconditional and the fact that a person cut down, deadened, destroyed or took away any tree in good faith or by honest mistake shall not be an exception or defense to liability. To establish a right of the owner prima facie to recover under the provisions of this subsection, the owner shall only be required to show that such timber belonged to such owner, and that such timber was cut down, deadened, destroyed or taken away by the defendant, his agents or employees, without the consent of such owner. The remedy provided for in this section shall be the exclusive remedy for the cutting down, deadening, destroying or taking away of trees and shall be in lieu of any other compensatory, punitive or exemplary damages for the cutting down, deadening, destroying or taking away of trees but shall not limit actions or awards for other damages caused by a person.
Miss. Code Ann. §
¶ 12. Long ago the Supreme Court concluded that because the statute was highly penal, it must be construed narrowly. If the owner of an interest in the land authorized the cutting of timber, the remaining owners have no claim under the statute. The right to the penalty is a joint right; what bars one owner to the penalty bars all owners. Bollinger-Franklin LumberCo. v. Tullos,
¶ 13. However, the rule has also been that an action for waste may be available when the statute does not offer a remedy. In one precedent, a mother deeded land to her four children, reserving a life estate. Threatt v.Rushing,
¶ 14. In a 2000 opinion, this Court relied onThreatt to state that even though cotenants could not sue under Section
The remedy provided for in this section shall be the exclusive remedy for the cutting down, deadening, destroying or taking away of trees and shall be in lieu of any other compensatory, punitive or exemplary damages for the cutting down, deadening, destroying or taking away of trees but shall not limit actions or awards for other damages caused by a person.
1989 Miss. Laws ch.
¶ 15. We re-examine the Fly holding in the context of the facts of the present appeal. In our case, two cotenants authorized the taking of every other cotenants' property. The actual cutting was accomplished by third parties. No single cotenant has the right to cut the timber. In the past, failure of cotenants to abide by that limitation would subject them to claims for waste from other cotenants. A partition action or "some other form of litigation" was the proper remedy if cotenants could not agree on whether to have their timber cut. Threatt,
¶ 16. These rights among cotenants — partition action before the cutting or a claim for waste if the cutting occurred without all owners' permission — have historically coexisted with the penalty statute in the field of remedies for improper cutting of timber. The judicial interpretations that made the penalty inapplicable if some individuals with possessory interests granted permission to cut, also permitted actions for waste. The question in this appeal is the effect of the 1989 provision that the penalty was the exclusive remedy with one exception, and no other "compensatory, punitive or exemplary damages" are collectible.
¶ 17. The only statutory exception to the exclusive remedy is that the penalty for cutting and taking away timber "shall not limit actions or awards for other damages caused by a person."Id. This Court has discussed the meaning of "other damages":
Smith v. Parkerson Lumber, Inc.,The court went on to speculate that "other damages to which this statute *Page 96 refers would be to property or persons incurred during the cutting of trees, unrelated to the destruction or damage of the trees." McCain [v. Memphis Hardwood Flooring Co.,
725 So.2d 788 ,] 794 (¶ 21) [(Miss. 1998)]. The Encyclopedia of Mississippi Law gives more insight as to what is meant by damages unrelated to this destruction of trees, and list examples such as "damage to roads, fences, other improvements, or to the soil." [Ogletree, "Resources: Timber, Water Wildlife," in 7] Jeffrey Jackson Mary Miller, [ENCY. OF MISS. LAW] § 63:13[n. 1].
¶ 18. Southgate in effect argues that in 1989, the statute displaced every form of suit formerly coexisting with the statutory penalty. Despite the statute's allegedly broadened scope, Southgate would continue to give effect to precedents that made the statute unavailable to any group of cotenants who seeks damages against another group. Such an interpretation immediately creates situations in which no remedy exists for some takings of private property.
¶ 19. To understand the present statute better, we examine the acts of its creation. The 1989 enactment collapsed into one statute what previously had been divided into five, distinguished in the past by the type of trees cut. Miss. Code Ann §§
¶ 20. The statutory penalty for cutting of trees has existed in some form at least since 1822. Miss. Code Ch. 12, art. 6, § 7 (1848). Recovery of the penalty or actual damages had long been allowed. Mhoon v. Greenfield,
¶ 21. To interpret the 1989 enactment, we are mindful of the canon of construction that when the legislature leaves statutory language unchanged, it presumably ratifies settled judicial interpretations of that language. In re Kelly'sEstate,
¶ 22. Another source of information about the breadth of statutory change is the description of the purposes that appear in an enactment's caption. Aikerson v. State,
¶ 23. Also creating parameters for our analysis is the rule that to deny a class of injured persons any right to make a claim clashes with the provision that "every person for an injury done him in his lands, goods, person, or reputation, shall have remedy by due course of law. . . ." Miss. Const, art.
¶ 24. We examine prior precedents of the state's appellate courts to determine what interpretation has already been given to the exclusive remedy provision. The traditional non-statutory remedy against third-party timber cutters without authority from any owner was a suit for trespass and conversion.Greenlee v. Mitchell,
¶ 25. In the only Supreme Court opinion to analyze the exclusive remedy phrase, the landowners argued from pre-1989 precedents that they could sue for actual damages and for the statutory penalty. McCain v. Memphis Hardwood FlooringCo.,
¶ 26. We discovered eight Supreme Court opinions since 1989 that cite this statute, but other than the ones discussed above, the cases do not reach this remedy point.E.g., Memphis Hardwood Flooring Co. v. Daniel,
¶ 27. This Court has several times found the penalty statute to be inapplicable. We allowed suit by a remainderman against the life tenant for waste since the statutory penalty was never available to such a claimant.Twin States Land Timber Co. v. Chapman,
¶ 28. Less relevant, we stated in another suit that it would have been futile for a landowner to add a common law trespass count to her complaint against a person for cutting her timber, since Section
¶ 29. As noted, several of our opinions allowed suits for waste to proceed when the claimants were among those who would never be entitled to the statutory penalty. The chancellor in this case believed that we erred when labeling a suit by owners against a third party without an ownership interest a claim for waste. We agree with the chancellor that at common law, when an owner of timber sued a complete stranger for the taking of timber, that was an action for trespass and conversion. Masonite Corp. v. Williamson,
¶ 30. We acknowledge that a plausible grammatical argument exists that no other remedy survived making the statute the "exclusive remedy for the cutting down" of trees. The statute imposes liability for cutting "by the defendant, [or by] his agents or employees, without the consent of such owner. . . ." Miss. Code Ann. §
¶ 31. Authorizing one cotenant to take other cotenants' property without providing any recourse would run afoul of the constitution's provision that "every person for an injury done him in his lands . . . shall have remedy by due course of law. . . ." Miss. Const, art.
¶ 32. In summary, the penalty as interpreted since 1900 does not apply to claims that fit the definition of waste. Claims for waste that were not subject to the statutory penalty included those made by interest owners against third parties who were authorized by other interest owners to cut timber. Until 1989, the statutory penalty had been an alternative remedy solely for claims that under the common law were for trespass and conversion. After 1989, the statute is not one alternative but is the exclusive claim that may validly be made for damage arising from trespass and conversion, in which no owner consented to the cutting. In other words, within its *Page 100 area of coverage, the statute in 1989 eliminated all alternative or supplemental remedies. New areas of applicability were not added, however. This is a logical, reasonable, and natural interpretation in the context of the former statutory language. It is also a constitutional interpretation.
¶ 33. The previously recognized extra-statutory right still exists for nonconsenting cotenants to bring suit not only against their contracting fellow owners but also against the timber cutter. Owners whose timber is cut because of the trespass or other completely nonpermissive act of a wrongdoer are limited to the procedures and remedies of Section
3. Amendment of complaint
¶ 34. We now examine the chancellor's refusal to allow amendments to the complaint. The estate brought suit against Southgate and two individuals who were never served. Sought was $122,000 for the market value of the timber that was cut. The complaint does not refer to the statutory penalty. The estate's response to the motion to dismiss was that it was not seeking statutory damages but, as co-owner of the timber, simply wanted to share in the timber-cutting proceeds. The estate alleged that dismissal based on the unavailability of the statutory penalty would violate the constitutional provision we have already discussed regarding having a remedy for every wrong.
¶ 35. The chancellor's first opinion was on February 3, 2005. She found that though no cause of action was named in the complaint, the plaintiffs request for relief was "controlled" by Section
¶ 36. A second opinion issued on November 2, 2005. The estate in a motion for reconsideration had again argued that no claim under the statute was being made. Perhaps in light of the references in the chancellor's first opinion toFly, the estate now labeled its claim as one under the common law doctrine of waste. In Fly, this Court had stated that nonconsenting cotenants could claim waste against the third-party timber cutter. Fly,
¶ 37. The chancellor then turned to whether the complaint could be amended to join the heirs of the long-deceased Elizabeth Moffett since they were the owners of the land. In the chancellor's view, allowing *Page 101 an amendment here that would then relate back for statute of limitations issues would go beyond the purpose of the rules. M.R.C.P. 15(c). The present owners of the land — Moffett's numerous heirs — had always clearly been the real parties in interest. The relation back rules "were not intended to protect parties who should have been named Plaintiffs at the initial filing of the law suit when they were known." Moreover, two of the present owners were the cotenants who started this problem when they executed timber deeds; they could not properly be made plaintiffs even though they were Moffett heirs. The chancellor found that the Moffett estate should never have been reopened, and the estate should have known these heirs were the appropriate plaintiffs all along.
¶ 38. The chancellor refused to amend because of her holding that new plaintiffs could bring a suit for waste only against the two cotenants who signed the timber deeds. Reforming the suit as one by the nonconsenting heirs, newly named as plaintiffs, against the two consenting heirs, newly named as defendants, for waste would create an entirely new suit. As we have discussed, though, when a cotenant contracts with a third party to commit injury to the common property as opposed to committing the injury herself, the wrong by the third party may still be labeled "waste." We now turn to whether this complaint would need to be amended to make a claim for waste.
¶ 39. The complaint avoided putting a specific label on the cause of action, but it clearly eschewed the statutory penalty by seeking the actual value of the trees and not double the value under the statute. .After setting out the events that led to the cutting and asserting a right in the estate to bring suit, the complaint alleged that Southgate and the two individuals who got the timber deeds did "enter the land of the Moffett Estate, without permission of all the heirs and proceeded to cut, remove and sell timber" when the defendants knew that they had not received permission from all owners. The complaint set out the amount of damages based on the fair market value of the trees, and sought to impose liability on the defendants for that value and for attorneys' fees, jointly and severally. That language is proper notice of a claim for waste, or in the chancellor's view, for trespass and conversion. If the consenting cotenants are considered indispensable parties in a claim for waste against their assigns, they may be joined. M.R.C.P. 19. In the motion to reconsider the chancellor's first opinion, the estate argued that it should be allowed to proceed with an action for waste against Southgate, In finally choosing a label for its claim, the estate chose well. Yet it would not matter if the proper category were trespass and conversion. Substance controls, not labels. Since we are remanding, we set aside the chancellor's decision not to permit an amendment to join the two contracting cotenants in an action for waste. That can be reconsidered on remand.
¶ 40. The final issue is whether it was proper to refuse to substitute the non-consenting heirs for the estate as plaintiffs. This is the applicable court rule for substitution of plaintiffs:
(a) Real Party in Interest. Every action shall be prosecuted in the name of the real party in interest. . . . No action shall be dismissed on the ground that it is not prosecuted in the name of the real party in interest until a reasonable time has been allowed after objection for ratification of commencement of the action by, or joinder or substitution of, the real party in interest; and such ratification, joinder or substitution shall have the *Page 102 same effect as if the action had been commenced in the name of the real party in interest.
M.R.C.P. 17. Substitution was denied because the chancellor found that adding the new plaintiffs would be futile. We disagree as to futility, as a claim for waste may properly be made. The original complaint was sufficient notice to permit evidence to be presented of waste. Thus we are squarely faced with whether the chancellor should have allowed the individual owners to be joined.
¶ 41. In one recent precedent, the Supreme Court allowed substitution of an estate as the proper party in interest, even after a previous appeal had affirmed a partial summary judgment and then remanded to consider a remaining claim. MethodistHosp. of Hattiesburg v. Richardson,
¶ 42. In conclusion, the defendant's argument that the statutory penalty is invariably the only remedy for wrongful cutting of timber has now been resolved and rejected. The plaintiffs assertion that waste is the proper cause of action in this case is also resolved and accepted. The complaint has always simply stated that damages were sought for cutting timber without the permission of all the owners. The proper claim is exactly the one with which the defendant has been contending since the date the complaint was filed. The only reason to dismiss, then, would be because the estate is the named plaintiff. Rule 17(a) states that no suit is to be dismissed for the absence of the real party in interest. Affirming this dismissal would be ignoring the plain language of the rule.
¶ 43. We reverse and remand for proceedings consistent with this opinion.
¶ 44. THE JUDGMENT OF THE JONES COUNTY CHANCERY COURTIS REVERSED AND THE CAUSE IS REMANDED FOR PROCEEDINGS CONSISTENTWITH THIS OPINION. ALL COSTS OF THIS APPEAL ARE ASSESSED TO THEAPPELLEE.
KING, C.J., LEE AND MYERS, P.JJ., IRVING, CHANDLER, GRIFFIS, BARNES, ISHEE AND ROBERTS, JJ., CONCUR.
Reference
- Full Case Name
- Evelyn Tolbert, Administratrix of the Estate of Elizabeth Moffett v. Southgate Timber Company
- Cited By
- 13 cases
- Status
- Published