Anderson v. Schmoker

114 S.W.2d 292, 1938 Tex. App. LEXIS 895
CourtCourt of Appeals of Texas
DecidedJanuary 28, 1938
DocketNo. 13654.
StatusPublished

This text of 114 S.W.2d 292 (Anderson v. Schmoker) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Schmoker, 114 S.W.2d 292, 1938 Tex. App. LEXIS 895 (Tex. Ct. App. 1938).

Opinion

SPEER, Justice.

This case had its origin in the probate proceedings of the county court of Wichita county, where „ Ray N. Anderson, David W. Anderson, and J. B. Barlow are administrators of the estate of Leona F. Anderson Killion, deceased.

It appears from the record that this was an estate consisting of nearly a hundred thousand dollars in assets, and more in liabilities; that the estate was at all times insolvent; that over a period of time since 1931, when the administrators were appointed, until in 1934, the court ordered, and by its orders of approval permitted, the administrators to assemble the properties, sell and dispose of them, pay debts under classifications made by law, and to generally administer the estate. There were several pieces of real estate incumbered by liens which the administrators transferred to lien creditors in satisfaction of their respective claims; other unincumbered lands were sold for cash and the proceeds used in the administration.

C. S. Schmoker held an indebtedness against the estate of approximately $10,000, secured by a first lien on about 116 acres of land in Wichita county, Tex.; it being the land involved in this suit. Schmoker made proof of and presented his claim against the estate, showing the security held by him, in July, 1934; by the proof of claim made, he elected to rely upon the provisions of subsection (b) of section 1, of article 3515a, Vernon’s Ann.Civ.St, as a preferred debt and lien against the specific property shown to secure the indebtedness.

The claim against the estate thus made was presented to the administrators, but they neither allowed or rejected it. This was equivalent to its rejection, and it became the duty of claimant to preserve his rights by instituting suit thereon.

One phase of this case has been before this court, as shown in Nutt et al. v. Anderson et al., 87 S.W.2d 760, 761. We may properly take cognizance of that proceeding, in so far as it affects the case under consideration. The issues involved in the cited case, the judgment there rendered, and the disposition made of it by this court and by the Supreme Court, were pleaded and proven upon the trial of the instant case.

In the cause formerly before this court, it appears that the administrators, under order of the probate court, had sold at public sale the land now in controversy to J. Newton Nutt, and the order of that court confirmed the sale and ordered the administrators to make conveyance of title to the purchaser, “free and clear of all liens, claims, titles, equities and estates whatever except lawful taxes” against the same.

On June 6, 1934, Mr. Nutt, the purchaser at administrator’s sale, filed a suit in trespass to try title against the estate, the administrators, all record creditors, and all unknown creditors of the estate, as parties defendant. C. S. Schmoker was permitted to intervene and set up his claim in the form of a note and the deed of trust securing it, and prayed in cross-action against Nutt, and all other parties who had not disclaimed, for the establishment of his debt and superior lien on the land. A judgment was rendered in that case decreeing to Nutt the legal title and possession of the land, against all parties defendant, except C. S. Schmoker, as defendant and intervener. By the same judgment it was decreed that Schmoker’s claim for debt and superior lien on the land were established, and judgment was rendered in his favor for the amount of the debt and a foreclosure of the lien on the land; it being the same land now in controversy. An appeal from that judgment to this .court was perfected by Nutt and the administrators. By the opinion above cited, this court, speaking through the late Justice Martin, affirmed the judgment of the trial court; an application for writ of error was denied by the Supreme Court. That judgment, which established Schmoker’s debt and lien as being superior to any and all claims of Nutt and the administrators, became final and is binding on the administrators; the effect of that *294 judgment was not altered by a subsequent conveyance by Nutt to the administrators, which conveyance we shall have occasion to mention later in this opinion.

The instant case was instituted by Sch-moker on April 3, 1936, when he filed an application in the probate court of Wichita county, Tex., for an order requiring the administrators to sell the land for the purpose of procuring funds with which to satisfy his debt of $10,376, with interest thereon at 10 per cent, per annum since September 11, 1934, and in satisfaction of his first and superior lien o-n the land, consisting of one tract of 112 acres and another tract of 4.62 acres, fully described in the application, and we deem it unnecessary to repeat the description here. It was shown in the application that the debt and lien were the same as that established by the district court from which judgment an appeal was taken to this court and affirmed by the opinion above cited. Allegations were made of the presentation of the claim and lien to the administrators; that it was rejected by them when they failed to act thereon; that by the intervention in the former suit by cross-action against the administrators he had preserved his debt and lien; he pleaded somewhat in detail the nature of the former suit, the finality and binding effect on the administrators; and that there were no other funds in the hands of the administrators with' which to satisfy his claim. Prayer was for an order requiring the sale of the lands and the application of the proceeds to his debt and lien, but that no deficiency judgment be allowed.

The administrators answered by general denial and by several special pleas and defenses. They alleged the estate was the owner of the lands described in plaintiff’s application; in this respect it is claimed that theretofore, under an order of the probate court, they had been authorized to sell the lands to J. Newton Nutt, and that they did, on the first Tuesday in May, 1934, make such a sale to Nutt, free and clear of all claims and liens, except lawful taxes against it; that, being unable to secure a release from C. S. Schmoker of his claims against the land, the probate court, by order entered to that effect, permitted them to receive from said Nutt a reconveyance of the land in consideration of a return by them to Nutt of the consideration paid to them by him under said previous sale, and that they now hold the land under said deed of reconveyance from Nutt.

The further allegation was made by the administrators that in October, 1936, they had made their annual report of the condition of the estate, by which it was shown the estate was insolvent, and that there remained unpaid certain debts classified by article 3531, Rev.Civ.Statutes, as amended by Acts 1931, c. 234, § 1, Vernon’s Ann. Civ.St. art. 3531, as preferred claims over that asserted by Schmoker, the amount of which said preferred and superior claims were over $4,000. That by said report it was shown the land in controversy was the only property in the hands of the administrators out of which funds could be obtained with which to pay said preferred debts; allegations were made that the report so filed had been duly approved by the probate court, and that the claim of Schmoker was inferior to and subject to the payment of said preferred and superior claims.

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Related

Nutt v. Anderson
87 S.W.2d 760 (Court of Appeals of Texas, 1935)

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Bluebook (online)
114 S.W.2d 292, 1938 Tex. App. LEXIS 895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-schmoker-texapp-1938.