Betterton v. Eppstein

14 S.W. 861, 78 Tex. 443, 1890 Tex. LEXIS 1427
CourtTexas Supreme Court
DecidedNovember 28, 1890
DocketNo. 3080
StatusPublished
Cited by4 cases

This text of 14 S.W. 861 (Betterton v. Eppstein) 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
Betterton v. Eppstein, 14 S.W. 861, 78 Tex. 443, 1890 Tex. LEXIS 1427 (Tex. 1890).

Opinion

STAYTON, Chief Justice.

—The property in controversy was seized [446]*446under attachments issued against R. H. Stephenson, and while in custody of the sheriff was ordered to be sold as perishable property by the judge from whose court the writs issued.

The property consisted of a stock of goods, and under the order referred to these were sold by the sheriff on December 22, 1888, and at that sale C. L. Betterton became the purchaser, paid the amount of his bid, and received the property.

At that sale a member of the appellee firm was present, bidding for the goods, and he then gave notice of the claim of lien on which his firm •now relies.

The money paid by Betterton was paid into court.

■On November 29, 1888, Stephenson rented from appellees certain store houses, in which the goods were when seized under attachments. The rental contract was by its terms to extend from date to September 1,1891; under it Stephenson was to pay $480 per annum for one house and $300 per annum for the other, the rent to be paid monthly in advance at the rate of $40 for one and $25 for the other. It was further stipulated in the contract that plaintiffs might declare all of the rent due for the whole term on the failure of Stephenson to pay either one of the monthly installments.

Stephenson failed to pay the monthly rent in advance, and on the day Betterton purchased the goods, but after he had paid for them and been put in possession, appellees sued out a distress warrant, which they caused to be levied on the goods to secure rent for the entire term.

Their landlord’s lien was subsequently established in the District Court, where judgment was rendered against Stephenson for $2140, with foreclosure of lien, subject to any right Betterton might have under his purchase.

When the distress warrant was levied Betterton made his claim under the statute to try the right of property, which is the case now before us, and on final hearing it was adjudged that the property in his hands was subject to sale to satisfy the sum due appellees by Stephenson.

Ho question is raised as to the entire regularity of the proceedings under which Betterton claims, but several questions are presented bearing on the right of appellees to subject the property to sale in satisfaction of their judgment.

Under the view taken of the case, however, it will only be necessary to consider one question, which is, did Betterton acquire title to the property by his purchase, freed from the claims of all other persons, even to subject it to the payment of a debt secured by lien prior to that under which he purchased?

The statutes of this State empower a court or the judge of a court from which attachment issues to order the sale of personal property seized under such a writ when it shall be made to appear that such property is in [447]*447danger of serious and immediate waste or decay or that the keeping of the ■same until the trial will necessarily be attended with such expense or deterioration in value as greatly to lessen the amount likely to be realized therefrom.” Bey. Stats., art. 171.

They prescribe the procedure and require the proceeds to be paid into -court within five days after the sale is made. Be v. Stats., arts 172,173,174.

If the property had been sold under final process after judgments in the attachment suits for the purpose of satisfying them, there is no doubt that the sales would have been subject to the liens of any persons superior and prior to the liens acquired by attachment.

It is not believed, however, that the same rule applies when personal property, perishable in its nature, is sold pending litigation under order of court or of a judge having power under a statute to make‘such an or-der; for such sales are made for the conservation of the rights or interests of every person owning or having claim upon the property which might be lost pending litigation from natural decay, waste, or deterioration in value.

, By the seizure under the attachment the custody of the property became that of the State, or as it is sometimes expressed, the custody of the law; and as a legal custodian it had the power to do whatever was necessary to preserve the property, which in law is the value of the thing, even though to do so it became necessary to change its form from goods to money.

A recent writer has well said that “The sale of perishable property by order of court, before any condemnation of it or before any merging of an attachment lien with a judgment lien, may be made without publication notice to an absent defendant. Such a sale always rests upon neces.sity for its justification. * * * Admitting the necessity in any case,' the want of notice to the owner would not render invalid the title acquired by the purchaser at the sale. * * * It is not an exceptional judgment divesting the owner of his rights, for he owns the proceeds after his perishable property has been converted into cash. The thing sold would have perished had it not been sold. The purchaser has obtained the title the former owner had, but not by virtue of an attachment judgment against the property. * * * The court’s right to sell is for the preservation of the property by changing it from its perishable condition to money, which remains in custody as its substitute. There is no hearing and determining the question of the validity of the plaintiff’s claim nor of the liability of the property attached. There is no exercise of jurisdiction in the sense in which jurisdiction is exercised when there is final judgment in the case.” Waples on Att., 317.

While title to property is not divested by the levy of attachment upon it, nor jurisdiction thereby conferred on a court, without such notice as the law requires to be given to render a judgment final in its nature, sub[448]*448jecting the property to sale for its satisfaction, yet “ special circumstances, as the perishable nature of the goods, may warrant the court in ordering a sale prior to the judgment, still the rule remains unaffected even by an exception. The property (attached) being in custodia legis to abide the result of the suit, without change of ownership, the application for the order of sale is a duty owing to the defendant, and the order is made to protect the property from diminution or deterioration. Although the purchaser takes a perfect title to the perishable article, the title of the defendant immediately attaches to the money realized at the sale, still, however, subject to the lien.” 1 Wade on Att., 27.

It is said by other authors that “It should, however, be remembered that from the moment a court of competent jurisdiction assumes the control or custody of a particular thing, its acts verge on the nature of proceedings in rem, and should be held to have that character whenever it is necessary for the protection of the property itself or of the parties to the proceeding. Thus an order for the sale of goods seized under an attachment as perishable will pass a good title to the purchaser, free from all defects in that of the garnishee or defendant.” 2 Smith’s Lead. Oases, 695.

Such was held to be the law in the following cases: Taylor v. Carlyle, 24 Pa. St., 267; Magee v. Beirne, 39 Pa. St., 50; Young v. Kellar, 94 Mo., 592.

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Bluebook (online)
14 S.W. 861, 78 Tex. 443, 1890 Tex. LEXIS 1427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betterton-v-eppstein-tex-1890.