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T & W Homes Etc, LLC v. James Kendall Crotwell
235 So. 3d 66
| Miss. | 2017
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Background

  • In 1973 Gilbert Lum executed a general warranty deed conveying 40 acres to his daughter, Lucille Crotwell, reciting consideration and recording the deed; the deed also expressly "reserve[d] unto himself a life estate" and "all mineral interest owned by him in said lands for his lifetime."
  • The deed included language reserving Lum a "life estate ... coupled with a full and absolute disposition to be exercised by him as though he were the fee simple owner thereof."
  • In 1998 Lum executed a warranty deed conveying one acre of that 40-acre tract to Richard Prestage (subject to prior mineral rights and Lum’s life estate). The property later passed by foreclosure to T & W Homes, which received title by Substitute Trustee’s Deed.
  • Crotwell’s heirs sued to confirm title, remove cloud, and eject, arguing Lum had no power to reconvey fee title to land he had conveyed by warranty deed to Lucille; the chancery court granted summary judgment to the Crotwells on that issue.
  • Interlocutory appeal asks whether Lum’s reservation of a life estate with a purported power to "dispose" as if fee owner created a valid right to reconvey fee simple (or was an illegal, repugnant restraint on alienation).

Issues

Issue Plaintiff's Argument (Crotwells) Defendant's Argument (T & W / Lum) Held
Whether the reservation "life estate ... coupled with a full and absolute disposition ... as though he were the fee simple owner" created a valid power to reconvey fee simple or was repugnant to the warranty deed The deed effected a present conveyance of fee to Lucille; Lum reserved only a life estate and could only convey whatever interest he actually retained (i.e., his life estate); any reservation of a power to reconvey fee is repugnant to the granting clause and void as restraint on alienation Such reservations are recognized in other authorities; language gives Lum power to dispose as fee owner, so his later conveyance to Prestage was valid and Lucille’s remainder was contingent until Lum’s death The reservation is read as preserving Lum’s life estate only; any attempt to reserve a right to reconvey fee simple is repugnant to the warranty deed’s granting clause and void; Lum could convey only his life estate during his lifetime.

Key Cases Cited

  • Jamieson v. Jamieson, 912 S.W.2d 602 (Mo. Ct. App. 1995) (upheld later conveyance where initial instrument was treated as a gift and no present conveyance was found)
  • Kyle v. Wood, 86 So.2d 881 (Miss. 1956) (life tenant given power to dispose under a will may defeat remainder under certain testamentary contexts)
  • Dukes v. Crumpton, 103 So.2d 385 (Miss. 1958) (a reservation of "all rights of sale and management" held an illegal and void restraint on alienation repugnant to a present fee grant)
  • Morrow v. Morrow, 129 So.3d 142 (Miss. 2013) (standard: questions of law reviewed de novo)
Read the full case

Case Details

Case Name: T & W Homes Etc, LLC v. James Kendall Crotwell
Court Name: Mississippi Supreme Court
Date Published: Aug 24, 2017
Citation: 235 So. 3d 66
Docket Number: NO. 2016-IA-00605-SCT
Court Abbreviation: Miss.