Carr v. Cleveland

86 S.W.2d 858
Court of Appeals of Texas·Decided October 25, 1935·No. No. 2737.·Published·Cited by 9 cases

Opinion

O’QUINN, Justice.

This is an appeal from a judgment sustaining a general demurrer and certain special exceptions to the petition of appellants, who were plaintiffs below. The suit was originally instituted by John F. Carr in the district court of Polk county, on April 5, 1894, against William D. Cleveland & Co. and David Russell, seeking to recover certain lands described in. his petition,, and the annulment of a deed of trust sale of said lands, and, in the alternative, to recover a money judgment against William D. Cleveland & Co. in the sum of $10,000.

In order to understand the nature of the suit, in all of its mutations, we give the following brief history of the litigation:

In July, 1888, John F. Carr and family resided in Polk county, Tex., and were engaged in farming. He owned certain tracts of land aggregating more than 6,000 acres, situated in Polk, Liberty, and San Jacinto counties. At that time, D. S. Chandler was engaged in the mercantile business in the town of Livingston in Polk county. Carr knew Chandler welt and had had much business dealings with him. It was agreed between Chandler and Carr that Carr would enter into partnership with Chandler in said mercantile business and would pay in $10,000 in cash as his part of the capital in said business, but Carr not having the money on hand, arranged to borrow same through William D. Cleveland & Co. from J. Gordon Brown of Austin, Travis county, Tex. To this end, on July 13, 1888, Carr executed his three certain promissory notes aggregating $10,000, payable to said Brown, and on said date Carr and his wife executed two deeds of trust covering all of the lands to R. L. Brown, trustee, to secure the payment of said $10,000 loaned Carr by J. Gordon Brown. The notes were also signed by D. S. Chandler and by Chandler & Carr, and were guaranteed by said William D. Cleveland & Co., a mercantile firm of Houston, Tex., and Halff & New-bouer Bros., another mercantile firm of Houston. The guaranties of these firms were not made on the notes, but on a separate instrument; Cleveland & Co. guarantying for $7,027.44, and Halff & New-bouer Bros, for the balance of the $10,000. The deed of trust authorized the trustee, R. L. Brown, upon default by Carr to sell the lands at public auction in Travis county, Tex. In April, 1892, Carr defaulted in the payment of interest, as stipulated in the notes and deed of trust, and the land in Polk county was sold in that county by the trustee under the deed of trust, *859 to David Russell, the agent of Cleveland & Co., for $7,500, who conveyed the land to Cleveland & Co., and s.aid company paid in cash to J. Gordon Brown, the owner and holder of the notes, the balance of the debt due him by Carr, which included, necessarily, that portion of the debt guaranteed by Half? & Newbouer Bros., and took from Brown an assignment of Carr’s notes and of the deeds of trust securing their payment. In June, 1892, the trustee, R. L. Brown, having refused to make sale of the lands in Liberty and San Jacinto counties, David Russell, under authority of the deed of trust, was appointed trustee by ■Cleveland & Co., the holder of the notes, and he sold the lands in Liberty and San Jacinto counties for $750; the title passing to Cleveland & Co. Thus, by the sales ■of the lands covered by the deeds of trust, and by the payment in cash by Cleveland ■& Co. in 1892, the debt due Brown by Carr was discharged by Cleveland & Co. in April, 1892. The money, $10,000, borrowed by Carr from Brown, was paid by Brown to Cleveland & Co., as the agents ■of Carr and the firm of Chandler & Carr; and upon its receipt Cleveland & Co. applied the whole of it, less a few hundred dollars expenses incurred by Carr in securing the loan, to a debt due them and to a debt due to Halff & Newbouer Bros, from D. S. Chandler. Carr was credited on the books of Chandler & Carr with the $10,000, and Chandler charged with said amount. The firm of Chandler & Carr commenced business after the loan was secured by Carr from Brown, and traded with Cleveland & Co., receiving monthly statements of their account with the latter firm, until November 23, 1891, when it ceased to exist, and on said date said Chandler & Carr made an assignment for the benefit of their creditors.

So far as we can determine from the record, Carr did not in any manner question the validity of the sales of the lands under the deeds of trust executed by him and his wife to secure the payment of the money he had borrowed from Brown, until April 5, 1894, when he instituted suit in the district court of Polk county against Cleveland & Co. and David Russell to recover the lands bought by Cleveland & Co. at the sales made by the trustees, and to have' the notes and liens executed by him and the deeds of conveyance executed by said trustees to Cleveland & Co. canceled, or, in the alternative, to recover of Cleveland & Co. the sum of money paid to them for him by J. Gordon Brown in July, 1888, with interest thereon.

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Carr v. Cleveland, 86 S.W.2d 858 (Tex. Ct. App. 1935).

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