Brod v. Guess

211 S.W. 299, 1919 Tex. App. LEXIS 511
Court of Appeals of Texas·Decided April 16, 1919·No. No. 6081.·Published·Cited by 5 cases

Opinion

BBADY, J.

Appellant brought suit against appellees, C. P. Guess and C. B. Starke, alleging that on March 16, 1917, Guess executed Ms note to W. P. Baugh, or order, for $890, with interest and attorney’s fees, and payable October 16, 1917; that before maturity Baugh transferred and assigned the note to appellant, without recourse; that contemporaneously with the execution of the note Guess executed and delivered to Baugh a chattel mortgage to secure same, upon the rents to become due from the crops for the year 1917 on certain land's rented to Allison Bros., which mortgage was forthwith recorded in Bell county, where the land was situated; and that the mortgage was also assigned to appellant along with the note.

Appellant further alleged that on the -day of January, 1917, Guess rented the land to Allison Bros, for the year 1917, and that such tenants were to pay as rent for the land one-fourth of all the cotton and cotton seed and one-third of all grain grown thereon in said year; that a crop of corn, cotton, and hay was by said tenants grown' on the land during the year 1917, and thereby became subject to the mortgage; and that the value of the rent cotton was the sum of $450, and the value of the rent hay was $26.66. Appellant also alleged that appellee, C. B. Starke, without his knowledge and consent, at various times between August 1st and December 1, 1917, converted and appropriated to his own benefit all of the rents and proceeds of the above-described agricultural products.

Appellee Guess filed no answer, but made default, and appellee Starke filed general demurrer and general denial only.

The case was tried by the court without a jury, and judgment rendered in favor of appellant against appellee Guess for the amount of the note, interest, attorney’s. fees, and costs, and for foreclosure of the chattel mort *300 gage, from which judgment Guess has not appealed. The court sustained the demurrer of appellee Starke to appellant’s evidence, and adjudged that appellant take nothing against him.

The case was tried upon an agreed statement of facts, which, omitting the details of the documentary evidence, was substantially as follows: That on or about September 10, 1915, T. N. Hartrick acquired equitable title to the land, the rents from which are in controversy in this suit; that during the fall of 1916 Hartrick rented the land to Allison Bros, for agricultural purposes for the year 1917, and they agreed to pay Hart-rick rents for said year. That on or about February 9, 1917, C. P. Guess acquired equitable title to the land, and thereafter Guess and Allison Bros, renewed and ratified the rental contract theretofore existing between the latter and Hartrick. That at the time Hartrick acquired equitable title to the land from Starke, he, as part consideration for the purchase thereof, executed vendor’s lien notes secured by a deed of trust on the land, which instrument was filed for record February 13, 1917., The deed of trust did not undertake to convey the rents or growing crops, but did contain the clause: “Together with' all and singular the rights, members, hereditaments and appurtenances to the same belonging or in any wise incident or appertaining.’’ That on March 16, 1917, Guess' executed the note sued on, and the payee, W. P. Baugh, assigned the same .to appellant, Brod, the present owner and holder, without any notice of Starke’s lien on the land, except the record of the deed of trust. That contemporaneously with the execution of the note Guess executed a chattel mortgage securing the same, with lien on the rents to accrue on the farm for the year 1917, which was filed for registration on the following day. That on April 6, 1917, the trustee named in the deed of trust, at the request of appellee Starke, published notice of sale of the land because of default in the payment of past due principal and interest, and on May 1, 1917, Starke became the purchaser at the trustee’s sale. The trustee’s deed to Starke did not undertake to specifically convey the growing crops, but contained the identical clause above quoted from the deed of trust. The trustee’s deed was recorded May 3, 1917. That the rents from the crops grown on the land by the Al-lisons during the year 1917 aggregated the sum of $438.30, which rents were paid to Starke, at his instance and request, in cash by the Allisons, and that Starke had at the date of the trial the proceeds of such rents, and refused to pay the same over to appellant. That O. P. Guess was insolvent. That, by the terms of the rent contract between Hartrick and Allison Bros., the latter were required to gather and sell the crops, and to deposit the portion of the cash proceeds representing the rent in bank to the credit of Hartrick, and that a similar arrangement was made when the contract was renewed by the Allisons with appellee Guess.

The trial court filed conclusions of fact, which substantially followed the agreed statement of facts, and the court also made the following conclusions of law:

“(1) That any lien which plaintiff, as mortgagee, may have had against the crops grown on said premises did not extend to the proceeds arising from the sale thereof, and defendant Starke was not guilty of conversion when receiving part of such proceeds.
- “(2) That, the deed of trust under which defendant Starke acquired title to the premises being of record prior to the execution of the mortgage under which plaintiff claims a lien for rents accruing thereon, he, the plaintiff, his assignor and mortgagor were charged with due notice thereof, and are not entitled to any rents which became due or accrued after the foreclosure of and sale under that deed of trust.”

The questions presented by the assignments of error in appellant’s brief are substantially to this effect: Did the title to or property in the rents accruing upon the land belong to appellee Guess or to Starke, the purchaser at trustee’s sale, at the time the same accrued, and was Starke guilty of conversion by receiving and appropriating to his own use and benefit the share of the crops representing such rent?

The decision of these questions necessitates an inquiry into the true relation of the parties, and at least a brief review of the authorities, and a determination of the legal and equitable principles upon which the questions must turn.

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Brod v. Guess, 211 S.W. 299, 1919 Tex. App. LEXIS 511 (Tex. Ct. App. 1919).

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