Boone v. First National Bank

43 S.W. 594, 17 Tex. Civ. App. 365
CourtCourt of Appeals of Texas
DecidedNovember 4, 1897
StatusPublished
Cited by5 cases

This text of 43 S.W. 594 (Boone v. First National Bank) 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
Boone v. First National Bank, 43 S.W. 594, 17 Tex. Civ. App. 365 (Tex. Ct. App. 1897).

Opinions

BOOKHOUT, Associate Justice.

This is a suit instituted by the First Hational Bank of Waxahadh-ie -and the'Masonic Temple Association against J. B. B-oone, Sarah J. Boone, M. B. Templeton, -and I. H. Evans, for an injunction and the -appointment o-f a receiver. The defendants appeared and answered, and upon the preliminary hearing the -court, in chambers, granted the writ of injunction prayed for and -appointed a receiver, from which interlocutory -order -appointing a receiver the defendants have appealed to thi-s court. The material facts are set out in the opinion, and it is not deemed necessary to state them more fully here.

Appellants’ first assignment -of err-or reads as follows: “The receiver in this case was appointed, -as shown by the record -and the petition and affidavit annexed of plaintiffs below, over the answer made by 'defendants bellow. The court erred in making the appointment -of a receiver -and directing him -to take charge of the leaseholds, because it is shown by the -allegations of plaintiffs’ petition that the leaseholds of J. B. Boone are not properly subject to execution, nor subject to sale for the payment of plaintiffs’ debts, it being shown by the allegations of plaintiffs’ petition that J. B. Boone was and is the lessee -of the atore building from the Masonic Temple Association for a term of five years, expiring December 31, 1898, and that said store building can not be sublet without the Consent of said Masoni-c Temple Association, and -that -the Masonic Temple Association has already refused to -allow said B-oone ito sublet it; and it being shown that J. B. B-oone is -a lessee fro-m M. B. Templeton -of -an adjoined store building under a similar lease, -and that both -off -said leaseholds ar-e subject to the statutory provision as to subletting, and that said *367 leaseholds are not subject to the processes of the court, and no valid lien thereon can be acquired by levy of attachment and execution, and no valid sale thereof can be made by any order of the court.”

Under this assignment appellants submit the following proposition: “Under the laws of this state a leasehold in real estate, where the owner lof the property has not by Contract waived his right of subletting, is not subject to levy of attachment or execution, and hence can not be reached by any process of the court.”

In 1893, J. B. Boone entered into a written contract with the Mastonic Temple Association, in which said association leased to J. B. Boone a store building in the town of Waxahachie for the term of five years, ending December 31, 1898, for the consideration of $7500, to be paid in monthly installments of $125 each. By the terms of the lease Boone was given the privilege of subletting said premises to any responsible party in the same line of business, provided the same was agreeable to the Masonic Temple Association. In the year 1893, Boone entered into a similar lease with M. B. Templeton for a store room adjoining the one rented by him from the Masonic Temple Association, for. the consideration of $6000, payable 'in monthly installments of $100 each. By the terms of this lease Boone was given the privilege of subletting the premises to any responsible party in the same line of business, or in any line of business agreeable to the lessor. Boone entered into possession of said premises by virtue of said leases as a tenant of t'he respective parties, conducting and carrying on a mercantile business therein until July 28, 1897, at which time, having become insolvent, .he executed a chattel mortgage conveying his entire stock of goods to T. M. Holland, as trus-' tee, for the payment of certain preferred debts. By the terms of said Chattel mortgage the trustee was instructed to pay 'the balance due the Maisonic Temple Association and M. B. Templeton on their respective lease contracts for the whole of the unexpired term of said leases, ending December 31, 1898.

In August, 1897, the trustee sold the stock of goods, and, in accordance with the terms of the chattel mortgage, paid the Masonic Temple Association and M. B. Templeton the entire rent, stipulated in their leases for the entire term ending December 31, 1898. The chattel mortgage executed by Boone did not purport to convey the leasehold estates.

On August 16, 1897, J. B. Boone being indebted to the First National Bank of Waxahachie in the sum of $3000, evidenced by his promissory note daited July 1, 1897, and maturing November 1, 1897, said bank instituted suit thereon in the District Court of Ellis County, and in said sui-t caused a writ of attachment to issue and had the same levied upon the leasehold estates of said J. B. Boone in said buildings. Said First National Bank and the Masonic Temple' Association brought this suit against J. B. Boone, Sarah J. Boone, I. H. Evans, and M. B. Templeton, in Avhieh the bank set up Boone’s indebtedness, the leases made to Boone by Templeton and the Masonic Temple Association, the making of the chattel mortgage by Boone to Holland, trustee, the sale of the property *368 by the trustee, payment of the landlords by the trustee of the rent for the unexpired term of the leases, the insolvency of Boone, and that the only property he had was the leasehold estates in the property set out in the leases. The bank also set up its suit against Boone and the suing out of the writ of attachment and its levy upon the leasehold estates, and that it had acquired a lien thereon. It was further alleged, that Boone had abandoned his business and assumed to sublet the premises described in the leases to his mother, Sarah J. Boone, who is not engaged in any business, and that the premises were being advertised for rent.

The Masonic Temple Association alleged that it did not consent that Boone could sublet the premises to his mother;' and further alleged it feared the premises would be let to some party who would injure the same.

It is contended by appellants that J. B. Boone has no such estate in the rented premises by virtue of said leases as could be sold under execution, and therefore no lien could be created thereon by levy of a writ of attachment.

It is contended by appellee that the Masonic Temple Association and M. B. Templeton, having received their rents for the entire term of their leases, are and ought to be estopped from preventing the interest of J. B. Boone in said leasehold estates from being subjected to the payment of Boone’s debts. Appellee further contends that, by the terms of the lease from Templeton, Boone has the unqualified right to sublet the premises embraced in that lease to any responsible party in the same line of business, or in any line of business agreeable to the lessor .

It is admitted both by appellants and appellees that the paramount issue in the case is whether the levy of the writ of attachment upon the leasehold estates of J. B. Boone created a lien thereon. If the levy did not create a lien, then the court was without authority to appoint a receiver. Carter Bros. v. Hightower, 79 Texas, 135.

The lease from the Masonic Temple Association gave permission to the tenant Boone "to sublet to any responsible party in the same line of business, provided the same is agreeable to the association.” The lease may as well have said that the tenant should not sublet the premises without the permission of the landlord. By the terms of this lease the tenant could not sublet, even in the same line of business, without the consent of the landlord.

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Bluebook (online)
43 S.W. 594, 17 Tex. Civ. App. 365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boone-v-first-national-bank-texapp-1897.