Brown v. O'Meara

193 S.W.2d 715, 1946 Tex. App. LEXIS 806
CourtCourt of Appeals of Texas
DecidedMarch 7, 1946
DocketNo. 11723.
StatusPublished
Cited by7 cases

This text of 193 S.W.2d 715 (Brown v. O'Meara) 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
Brown v. O'Meara, 193 S.W.2d 715, 1946 Tex. App. LEXIS 806 (Tex. Ct. App. 1946).

Opinion

CODY, Justice.

This suit was instituted by plaintiffs for title and possession of a quarter section of land in Harris County, against Mrs. M. L. Brown, Lewis Fogle, Esq., and certain defendants who disclaimed, and so who need not be named. Perry V. Cook intervened in the suit as a plaintiff. To understand the pleadings of the plaintiffs, and the in-tervener, Cook, it is deemed advisable to state certain of the facts about which there is no dispute.

On November 11, 1922, the aforesaid Cook conveyed the land in question to Luther F. Maness by general warranty deed, for the cash consideration of $1,700, and for fifteen notes totalling $5,500, which were executed by the said Maness, and made payable to Cook, and for the assumption by said Maness of certain notes held by the Federal Land Bank- of Houston, totalling $2,400. The indebtedness so held by the Land Bank was secured by a prior superior deed of trust lien. And the notes given by Maness to Cook were secured by a second deed of trust lien. Cook assigned one of the Maness notes to the Federal Land Bank, which note was for the principal sum of $1,000, together with the lien securing it, and subordinated the lien retained by him securing the remaining Man-ess notes to the lien transferred to the Land Bank to secure the $1,000.

Thereafter, on March 20, 1932, said Luther F. Maness was killed in a railroad accident. And the widow brought suit in behalf of herself and children for damages in the District Court of Harris County. She and her children are plaintiffs in this suit. The damage suit for the death of Maness was settled, and under such settlement the children were awarded $1,000, which was paid into the registry of the court. Thereafter, on the first Tuesday in October 1933, the Maness notes held by him being in default, Cook caused his second deed of trust lien to be foreclosed, and he bought in the land at such foreclosure sale, and promptly placed the trustee’s deed to himself of record. For reasons not ex *717 pressly disclosed by the record, he never went into possession of the land.

The Katy National Farm Loan Association was the agent through which the Land Bank obtained the loan on which said Bank held the first lien against the land. After Cook had foreclosed his second lien notes, the Bank, acting within the terms of the loan, re-transferred to the Loan Association $130 of the loan which had become delinquent. And thereafter the Loan Association foreclosed the lien which it held to secure said $130. To anticipate — at this point we will state that it was the contention of Cook that the foreclosure by the Loan Association of the $130 lien was merely a simulated transaction, conducted for the purpose of hindering, delaying and defrauding him, Cook, in the collection of his debt.

At all material times, Mrs. Maness was either the wife or widow of Luther F. Maness. She married Mr. O’Meara before this suit was filed; but for convenience she will here be referred to as Mrs. Man-ess. Mr. O’Meara has joined her pro for-ma as plaintiff in this suit, and qualified as guardian of the estates of her minor children, and in such capacity has sued herein as plaintiff for said minor children. Mrs. Maness’s oldest child had ceased to be a minor before this suit was filed, and has joined as plaintiff. She — Mrs. Orma Riley —was joined pro forma by her husband.

After alleging the foregoing facts, about which there is no dispute, plaintiffs also alleged:

That after the death of Luther F. Man-ess, Mrs. Maness leased the land to the defendant, Mrs. Brown. That Mrs. Brown gained an ascendency over mind and will of Mrs. Maness. That at the time Cook foreclosed his second lien notes, Mrs. Man-ess and the estate of Luther F. Maness were delinquent on the payments due to the Land Bank. And said Bank was demanding that such delinquency be paid up, and was threatening to foreclose if it was not so paid up. That the defendant, Mrs. Brown, learned about the children’s money which was deposited in the registry of the court, and proposed that this money be obtained and used to pay up the delinquency. That, following the proposal of Mrs. Brown, $831.30 of said money '(Belonging to the Maness children) was withdrawn from the registry of the court and paid over to the Land Bank, but the same was paid over to the Land Bank as having been furnished by and belonging to defendant, Mrs. Brown. And the Bank assigned said indebtedness, so delinquent in the sum of $831.30, and the inferior lien securing it, to defendant, Mrs. Brown.

That 'it was then decided, upon the advice of Mrs. Brown, that Mrs. Maness was not to pay the $130 due the Loan Association, but was to seek to have the same foreclosed, thereby “wiping out the subordinate lien indebtedness and sale at trustee’s sale to the said Perry V. Cook.” And it was further decided that Mrs. Brown would act for Mrs. Maness and children in buying in the property. And said lien, securing said indebtedness in the sum of $130, was purportedly to be foreclosed at trustee’s sale on the first Tuesday in February 1936. And by prearrangement with the Land Bank and the Loan Association, the land was bought in by the Loan Association. And that, pursuant to said plan, the Loan Association executed its deed dated March 4, 1936, conveying the property to Mrs. Brown upon the consideration of her giving her note for $130, and assuming the outstanding indebtedness due the Land Bank. And that Mrs. Brown took said deed as trustee for Mrs. Maness and children.

That it was agreed that Mrs. Maness was to deed by quit-claim the naked legal title to the land to Mrs. Brown, to hold the land in trust for Mrs. Maness and children. And pursuant to the agreement of Mrs. Brown to hold the title in trust for Mrs. Maness and children, Mrs. Maness acting for herself and as natural guardian and next friend of her children, quit-claimed the land to Mrs. Brown on February 13, 1936, - which quit-claim deed was not recorded until January 5, Í940.

Plaintiffs go on to allege, among other things, that Mrs. Brown leased the land for oil, etc. And prayed for title and possession of the land and damages.

Cook was represented by the same attorney that represented plaintiffs. And in his plea of intervention he adopted the allegations of their petition. He alleged further:

That following the foreclosure of his second lien, and prior thereto, he had inquired of the Land Bank as to the state of the prior lien indebtedness, and was advised prior to November 21, 1935, (the date of the assignment of the delinquent por *718 tion of the loan in the sum of $831.30 to Mrs. Brown), as to such delinquency and the amount of it. And that he was also advised by the Bank that Mrs. Brown had paid same for the account of Mrs. Man-ess and children, and had taken an assignment of the Bank’s superior lien” securing it. That subsequently he duly received notice that the lien securing the payment of the sum of $130 held by the Loan Association, and attended such foreclosure sale. That said sale was also attended by Mrs. Maness and by Mrs. Brown (whom Cook • did not then know). That though he attended the sale, he did not bid on the property because of the representations of the Bank that the delinquent part of the debt had not been paid by Mr. Maness nor Mrs. Maness, nor the Maness Estate, but had been paid by Mrs. M. L. Brown, and was therefore still due on the property, secured by a lien.

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Bluebook (online)
193 S.W.2d 715, 1946 Tex. App. LEXIS 806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-omeara-texapp-1946.