Summary
The Alabama Supreme Court held that Ala. Code § 8-9-12 provides the exclusive remedy for a grantor seeking annulment of a real-property conveyance supported by a promise of lifetime support. Because the deceased co-grantor did not institute proceedings during his lifetime, his interest could not be annulled on a failure-of-consideration theory. The court affirmed in part, reversed in part, and remanded for entry of a judgment consistent with its opinion.
Topics
Practice areas
Questions Presented
- Whether Alabama Code § 8-9-12 provides the exclusive remedy for a grantor's dissatisfaction with consideration consisting of a grantee's promise to provide lifetime support.
- Whether the Court of Civil Appeals properly instructed the trial court to consider failure of consideration as an alternative basis for annulling J.L. Wade's conveyance after J.L. Wade's death.
- Whether proceedings to annul a conveyance under § 8-9-12 may be initiated after the grantor's death or by a surviving co-grantor seeking relief as to the deceased grantor's interest.
Holdings
- Alabama Code § 8-9-12 provides the exclusive remedy for a grantor's failure of, or dissatisfaction with, consideration consisting of a grantee's promise to support the grantor during life.
- J.L. Wade's conveyance could not be annulled under § 8-9-12 because proceedings were not instituted during his lifetime.
- The Court of Civil Appeals erred by instructing the trial court to consider failure of consideration as a basis for annulling J.L. Wade's interest.
Key quotations
“Thus the exclusive remedy for a grantor's dissatisfaction with such consideration, for any reason, is the statutory cause of action, with its condition that the proceedings be instituted during the grantor's lifetime.” (1226)
“Mrs. Wade, as such a cograntor of precisely such a conveyance, cannot simultaneously invoke the statute to annul the conveyance of her own interest and yet evade the exclusivity and the strictures of the statute by annulling the conveyance of the deceased J.L. Wade's interest on the theory of failure of consideration to redress her own dissatisfaction with the consideration as a third party beneficiary.” (1226)
Factual background
In 1977, J.L. Wade and Bertha Maurine Wade deeded approximately 65½ acres in Etowah County to their daughter Betty Wade Alexander and her husband Ray Alexander, reserving a life estate. The deed recited nominal consideration and love and affection, and the trial court found that a material part of the consideration was the Alexanders' agreement to support the grantors during their lives. J.L. Wade and Betty Alexander later died, after which Bertha Wade sued to annul the conveyance; the trial court annulled the deed as to both grantors' interests.
Procedural history
Bertha Maurine Wade sued Ray Alexander to annul a conveyance under Alabama Code § 8-9-12. The trial court annulled the deed and divested Alexander of his interest. The Court of Civil Appeals affirmed the annulment of Wade's interest, reversed the annulment of her deceased husband's interest under § 8-9-12, and remanded for consideration of failure of consideration as an alternative equitable theory. The Supreme Court granted certiorari, affirmed in part, reversed the remand instruction, and remanded to the Court of Civil Appeals for entry of a judgment consistent with its opinion.
Remand instructions
The cause was remanded to the Alabama Court of Civil Appeals for entry of a judgment consistent with the Supreme Court's opinion, eliminating the instruction to consider failure of consideration as a basis for annulling J.L. Wade's interest.