McAdams v. McElroy

Opinion

SIMS, J.

Cross-complainants, who in the lower court were, and will be here, collectively referred to as McAdams, have appealed from a judgment which denied their claim to one-half of the timber rights on lands which in 1958, as a result of the dissolution of a partnership, had been distributed to cross-defendants, who similarly were, and will be, collectively referred to as Ogletrees. They contend that the trial court committed prejudicial error in failing to make requested findings on whether the parties in 1958 treated the timber as a partnership asset subject to distribution, and on when the cross-complainants’ cause of action accrued. They further allege that the court’s finding that the cross-defendants were not estopped to assert the statute of limitations is not supported by substantial evidence. We find no error in the proceedings below. The judgment must be affirmed.

The facts as reflected by the uncontroverted findings show that in June 1958 the parties, the McAdams and the Ogletrees, were partners, each with a half interest in the Ogletree Lands Company partnership, and at that time entered into negotiations for the purpose of dissolving the

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partnership and distributing the partnership assets among themselves. The parties reached a tentative division of assets of the partnership which provided that cross-complainants the McAdams would receive (as part of their share) a describable 160 acres. Before the instruments implementing this division had been executed, the parties were advised by the attorney who was handling the transaction and by the title company that Simpson Timber Company owned the timber on seven forty-acre parcels of real property which were included in the property to be conveyed to the cross-defendants, Ogletrees by the tentative division. Thereafter, in order to effect a division of the assets of the partnership, the parties reached an agreement which differed from the tentative division of assets, in that the aforesaid 160 acres was received by the Ogletrees rather than by the McAdams. The agreement was carried out and performed by the parties.

On October 1966, the Ogletrees filed an action to quiet title to the seven forty-acre parcels and for declaratory relief naming Simpson Redwood Company as a defendant. In the first cause of action it sought to quiet title against all persons, and in the second cause of action it sought a declaration that the timber company had no right, title or interest in the timber on the seven forty-acre parcels as the successor in interest of a grantor of those parcels who had reserved certain timber rights in a 1913 conveyance to the Ogletrees’ predecessor in interest.