Braly v. Ragsdale

3 Tenn. App. 205, 1926 Tenn. App. LEXIS 91
CourtCourt of Appeals of Tennessee
DecidedJuly 24, 1926
StatusPublished
Cited by4 cases

This text of 3 Tenn. App. 205 (Braly v. Ragsdale) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braly v. Ragsdale, 3 Tenn. App. 205, 1926 Tenn. App. LEXIS 91 (Tenn. Ct. App. 1926).

Opinion

CROWNOVER, J.

This was a suit to recover an alleged difference in consideration on a sale of a tract of land in Giles County.

The complainants, R. A. Braly and wife, purchased said land from defendant, J. H. Ragsdale, for the consideration of $8820, and executed eight notes bearing interest with vendor’s lien retained.

A part of the first note was paid, but complainants were not able to meet the other payments, and negotiated, through the Ragsdale Realty Company, of which firm defendant, Ragsdale, was a member, a sale of said land to Dr. W. P. Copeland for $10,136, evidenced by four notes of $2,534 each with lien retained on the land, which, notes were made payable to complainants, but were delivered to defendant, Ragsdale, as collateral security. Copeland, not being able to pay the first note, desired to negotiate a loan of $4000 from the defendant, American Trust Company, but in order to do so, it became necessary to execute a first mortgage on said land for said loan to said trust company; so Ragsdale joined in the deed of trust, releasing his claims, and he also released the liens of all of said notes. Ragsdale received the proceeds of said $4000 loan less commissions, and then took a second mortgage on said land from Copeland to secure the balance of his • original indebtedness of $5224.69, evidenced by three notes bearing interest, and also to secure the balance of $1517.69 due complainants, but provided that his balance of $5224.69 should be a prior lien.

By agreement, Ragsdale paid out of the proceeds of said trust company loan two small notes that complainant owed to a bank and to A. J. Holt’s estate, on which he was surety and kept the balance which he applied to his indebtedness against complainants and Copeland, leaving the balance of $5224.69.

After the loan from the trust company was made and the deed of trust was executed and delivered, some differences arose as to the application of a part of the proceeds of said loan, and complainants have filed a bill in which they allege that the Copeland notes were left with defendant Ragsdale pending a settlement and not as collateral security, that Ragsdale released the lien of said notes without their knowledge and consent, and without authority of which said trust company had knowledge. Complainants insisted that as defendant Ragsdale had released the lien of their notes without their consent they were entitled to a personal decree for $2296 against Trim and to have the same declared a lien on said land as against Ragsdale and the trust company and also have an accounting for their part of the proceeds of said trust company loan of $4000.

*207 The defendants, American Trust Company and its trustee, "Witherspoon, answered denying any knowledge of the release of the lien without authority, and pleaded that the trust company was a bona-fide holder in due course for value without notice. They further alleged that the note and lien of the deed of trust had been transferred to the Metropolitan Life Insurance Company before the filing of the bill in this cause, and which company was made a party to this suit and also pleaded that it was a holder in a due course of trade for value without notice.

Defendant, Ragsdale, filed his answer as a cross-bill seeking a recovery for balance due against all of said parties and also made Dr. "W. F. Copeland a defendant. Ragsdale admitted the execution of the conveyances and notes, and the deed of trust to said trust company, and also admitted the release of the liens of all of said notes, which he alleged was with the knowledge and consent of complainants, Braly and wife.

An order was made on complainants, Braly and wife, to take their proof in chief within thirty days after the order was entered. This order was ignored, and another order was later made on complainants to take their proof within sixty days, but this order was not complied with, and complainants finally took their proof more than thirty days after the time had expired.

The defendants complied with the order made on them and took their proof on the cross-bill within the time allowed. By agreement the clerk and master was appointed special commissioner to sell said tract of land and to hold the proceeds subject to the orders of the court. He advertised the land and sold it to the highest bidder. The bid was raised several times and finally it was sold to the American Trust Company for the sum of $3790. The title was divested out of all parties and vested, in the American Trust Company.

The chancellor decreed that it appeared that the American Trust Company was the owner of the $4000 mortgage, which together with interest, taxes and attorney’s fee amounted to $4949.05 and that the land only brought $3790, it was therefore, ordered that the cash payment made be refunded to said Trust Company and the purchase money notes be canceled, as said Trust Company was in no way liable for the costs and expenses of this litigation. This order is not excepted to.

Cross-defendant, "W. F. Copeland, made no defense and pro con-fesso was taken against him.

Complainants’ proof was stricken from the files because not taken within the time required by the order, and complainants’ original bill was dismissed without prejudice upon their own motion.

*208 The complainants moved the court to be allowed to' use their proof on file in support of the answer to the cross-bilb which was granted by the Court.

The complainants then moved the court for more time to take more proof and to be allowed to cross-examine R. E. Lee, and to take proof in rebuttal, which order was overruled by the court.

The chancellor granted J. II. Ragsdale a decree on his cross-bill in the sum of $6873.60 (the amount of the three notes, interest and attorney’s fees) against R. A. Braly and wife, Mrs. Lucy Braly, and W. F. Copeland, which was decreed to be a first lien on said land, subject to the $4000 deed of trust' to the American Trust Company.

The complainants, Braly and wife, excepted to said decree and appealed to this court and have assigned errors.

The first assignment is that' the court erred in refusing to grant complainants a continuance of the cause for the purpose of taking proof.

The complainants and their solicitor filed affidavits in which they stated that they were unable to have their proof taken because the clerk and master was busy and they had no money with which to employ a stenographer, and for this reason they were delayed in taking their proof until after the time had expired. They do not show in their affidavits that they have any other witnesses who know any material facts. They did not state in their affidavits the names of any witnesses or what they witnesses would prove, and we think that their reason for the delay in taking proof is no excuse at all. Under the law they could have given notice and reduced their testimony to writing. We think it is evident from this record that these complainants could write, and their attorney could have written the questions and they could have written their answers thereto without the aid of a stenographer.

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Cite This Page — Counsel Stack

Bluebook (online)
3 Tenn. App. 205, 1926 Tenn. App. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braly-v-ragsdale-tennctapp-1926.