Bailey v. Block

134 S.W. 323, 104 Tex. 101, 1911 Tex. LEXIS 125
CourtTexas Supreme Court
DecidedFebruary 15, 1911
DocketNo. 2121.
StatusPublished
Cited by33 cases

This text of 134 S.W. 323 (Bailey v. Block) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Block, 134 S.W. 323, 104 Tex. 101, 1911 Tex. LEXIS 125 (Tex. 1911).

Opinion

Mr. Justice Williams

delivered the opinion of the court.

This is an action of trespass to try title for land in the city of Houston the decision of which depends on the validity of a sheriff’s sale thereof made in 1886 to A. P. Lufkin under a judgment in his favor against Mrs. Louise Bremond, independent executrix of the will of Paul Bremond deceased, to whose estate the land belonged. The plaintiffs in error, plaintiffs below, claim under deeds from Mrs". Bremond, who was also the devisee under the will, and the defendants claim under the prior sheriff’s sale. The judgment under which the sale was made established the debt against Bremond’s estate and also foreclosed a mortgage given to secure it on two pieces of land, other than that in controversy, in the terms of article 1340, Revised Statutes. The order of sale, 'which was in conformity with the judgment, was received by the sheriff Hovember 5, 1886, and he advertised" the mortgaged property for sale on the next sale day and, at the same time, indorsed on the writ a levy on the property in controversy and advertised it also for sale as under execution on the next sale day. When that day arrived, he" first sold- one piece of the mortgaged *103 property and offered the other, but received no bid, and then sold the land in controversy to make up a balance of the judgment left unpaid.

It is found by the trial court that the sheriff, before levying on the land in controversy, ascertained that the mortgaged property would be insufficient to satisfy the judgment and for that reason made the levy on other land.

The question, of course, is whether or not the sale of the land in controversy was void, and the decision of it depends on the effect of several statutory provisions. Article 1340 prescribes that the judgment to be rendered on foreclosure of a mortgage “shall be . . . that an order of such sale issue to the sheriff, etc., directing him to sell-the same (the mortgaged .property) as under execution in satisfaction of the judgment; and if the property can not be found, or if the proceeds of such sale be insufficient to satisfy the judgment, then to make the money, or the balance thereof remaining unpaid, out of any other property of the defendant, as in case of ordinary executions.”

Article 2338 prescribes the requisites of executions, the second and third subdivisions being:

“2. - If the judgment be for money simply, it (the writ) shall require the officer to satisfy the judgment out of the property of the debtor, subject to execution.”
“3. If the judgment commands the sale of particular property for the satisfaction thereof, the writ shall be framed accordingly.”

Article 2343, which is the chief reliance of counsel for defendant, is as follows: “Wthen an execution against the property of any person is issued to an officer, he shall proceed without delay to levy the same upon the property of the defendant not exempt from execution, unless otherwise directed by the plaintiff, his agent or attorney.”

Much light is thrown upon the meaning and purpose of article 1340 by the history of the development of the law regulating the collection of balances, called “deficiencies,” due on mortgage debts after exhaustion of the property given to secure them. Originally the mortgagee could only enforce his mortgage against the property. Later it was established tliát if he had a bond or obligation for the debt collateral to the mortgage, he might, after application of the proceeds of the mortgaged property, maintain an action at law thereon for any balance unpaid. Afterwards, by statute, rule of court, or otherwise, it became the practice in some jurisdictions for the creditor, after the foreclosure and sale of the property and the return thereof showing the result, to apply to the court which decreed the foreclosure for a deficiency judgment; and, in other jurisdictions for the judgment of foreclosure to provide for a report of the sale, the application of the proceeds, and the issuance of execution for any balance ascertained in that way. The last was the procedure in this State (P. D. art. 1480) prior to the revision of 1879, when the further advance shown in article 1340 was made. To all of these practices one prominent requirement is common, and that is that the foreclosure sale is to be made, the proceeds applied and the deficiency thus mathematically ascertained before any proceeding against the property of the debtor other than that mortgaged is allowed. This is true whether the fact is to be ascertained by the Court as the basis of a deficiency judgment. *104 or by the clerk or referee as the basis of a deficiency execution authorized by the decree of foreclosure. Jones on Mortgages, 6th ed., secs. 1709a, et seq., 1920; Freer v. Tupper, 21 S. C., 81; McCall v. Rogers, 77 Ala., 349; Freeman on Execution, section 10; 27 Cyc., 1746, 1751-2, 1754, 1756, 1760-1.

ITeither the court nor the clerk is. allowed by such statutes to estimate in advance the proceeds that will probably result from a sale and award judgment or execution for á probable balance. Is such a power given to the sheriff by our statute? It as plainly denies it to him as other statutes referred to deny it to the court or the clerk. The law is so stated in the opinions in Seligson v. Collins, 64 Texas, 314, and Ward v. Billups, 76 Texas, 466. The point may have been involved, in the former case, only incidentally and, in the latter, not at all; but we are satisfied that the statements made of the law are correct. To the same effect are the decisions in Thomas v. Simmons, 103 Ind., 543, and Mitchell v. Ringle, 151 Ind., 16, based upon a statute like ours.

The judgment provided for in article 1340 is contingent as to the deficiency to be enforced against the general estate of the debtor until it is made certain in the way prescribed, viz: by sale of. the mortgaged property and application of the proceeds; and this is true also of the writ. Freeman on Executions, sec. 10. The officer has neither judgment nor writ to empower him to proceed against other property than that mortgaged until the prescribed contingency has happened, viz: the osale and the application of the proceeds, rendering certain the amount to be collected as under excution. The writ issued on such a judgment by force of article 1340 may operate as both an order of sale und an ordinary execution, but not necessarily so, since the latter office may be prevented from ever coming into effect by the satisfaction of the judgment from the sale or otherwise; and where it does so operate, its two functions are active successively and not concurrently. This is made plain by the language of the statute and results from the fact that the deficiency to be collected as under execution is uncertain until the sale has taken place. It is only “then,” and “if’ the proceeds be insufficient, that the proceeding as under execution is authorized. It irresistibly follows that the function of the writ as a general execution first comes into existence after the sale and that it is in legal effect the same as the execution formerly required to be issued after the sale and return of the order of sale had taken place. The change in the law merely makes it the duty of the sheriff, instead of the clerk to ascertain the deficiency after the sale, and empowers him then to proceed under the same writ instead of a new one.

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Bluebook (online)
134 S.W. 323, 104 Tex. 101, 1911 Tex. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-block-tex-1911.