Carter v. Converse

550 S.W.2d 322, 1977 Tex. App. LEXIS 2806
CourtCourt of Appeals of Texas
DecidedMarch 31, 1977
Docket992
StatusPublished
Cited by27 cases

This text of 550 S.W.2d 322 (Carter v. Converse) 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
Carter v. Converse, 550 S.W.2d 322, 1977 Tex. App. LEXIS 2806 (Tex. Ct. App. 1977).

Opinion

DUNAGAN, Chief Justice.

This is a suit to set aside certain deeds and a deed of trust and for full right, title and possession to a lot and residence in the city of Palestine, Texas, which lot and residence was the homestead of appellee, plaintiff below, and her ex-husband. Appellee brought suit against her ex-husband J. W. Converse, Clarence Ellis and his wife, Cynthia Ellis, Joyce Gilmore, First Savings and Loan Association of Athens, Texas, and Trudy Carter, alleging that the above parties participated in several acts of fraud that culminated in the unlawful alienation of her homestead from her title and possession. Appellee sought damages in addition to her requests that the legal instruments in question be held void and set aside. The case was submitted to the jury which answered special issues generally in favor of appellee, and the court entered its judg *325 ment ordering that appellee recover her homestead and that title and possession of same be restored to her, and that appellee have her writ of possession to secure said premises. Appellant Trudy Carter moved for judgment n. o. v. which was overruled, and thereafter made her motion and amended motion for new trial. None of the other defendants appeal. We affirm.

In answer to special issues, the jury found that:

(1) on July 26,1972, when appellee signed a Power of Attorney to her husband, J. W. Converse, she was acting while under duress, while under the undue influence of her husband, and while she was mentally incapacitated (Special Issue No. 1);
(2) the deed from J. W. Converse, individually and as attorney-in-fact for appel-lee, to Melton Ellis and wife was intended by them to be a mortgage (Special Issue No. 2);
(3) appellant’s title attorney finally approved the title to the property in question on October 9, 1972 (Special Issue No. 3);
(4) appellant and/or her attorney, on or before October 9, 1972, “either knew, or knew fact or facts sufficient to show by circumstances or in the reasonable exercise of reasonable diligence should have known fact or facts showing that the deed” from J. W. Converse to Melton Ellis and wife was a mortgage (Special Issue No. 4); and that
(5) appellant Trudy Carter bought the house in good faith, believing she was getting good title to the same (Special Issue No. 5).

Appellant alleges three points of error. In points one and two appellant urges that the court erred in overruling her motion for judgment n. o. v., “because there is no evidence to support the answer to Special Issue No. 4, whereby the jury found actual or imputed knowledge by defendant (appellant herein), or her attorney, that the Converse-Ellis deed was intended as a mortgage,” and alternatively (point of error No. 2) that the jury’s answer to Special Issue No. 4 is either unsupported by factually sufficient evidence or is against the great weight and overwhelming preponderance of the evidence. In her third point of error appellant complains of the court’s admitting into evidence a certain letter and check for the reason that the two items were remote, legally irrelevant, and “reversibly prejudicial to defendant’s position in regard to Special Issue No. 4.”

The facts preceding and giving rise to this controversy were as follows. J. W. Converse and his wife, Gloria Converse (hereafter sometimes called appellee) purchased the home in question by warranty deed in 1961 and continued to occupy the same as their homestead up to the time the events giving rise to this controversy commenced. Appellee and her husband were divorced on October 10, 1975.

During the latter years of the Converse’s marriage their relationship deteriorated, due in principal part to serious medical problems suffered by appellee consisting mainly of digestive tract complications. She underwent numerous operations and extensive treatments and her overall health declined severely. This in turn lead to a deteriorating mental-emotional state and addiction to drugs and narcotics. In 1971 she was placed in a private nursing home for a period of one month. In May, 1972 she was involuntarily committed to the Rusk State Hospital until July 10,1972. On July 24, 1972, she was admitted into a Palestine hospital for two days suffering from a drug overdose.

Because of these chronic health problems and their effect upon the family relationship, it was decided that appellee should spend some time with her brother in Philadelphia, Pennsylvania. On July 26, 1972, appellee was released from the Palestine hospital and left for Philadelphia the next day.

For some time appellee’s husband (hereafter called Mr. Converse) had been trying to sell the family homestead. His intentions were, allegedly in part, to sell the homestead (a very large house) and buy a less expensive home, using the surplus money to pay community debts caused by appel-lee’s illnesses. On several occasions, J. W. *326 Converse had attempted to persuade appel-lee to give him a power of attorney, which she had refused to grant.

On the night of July 26, Mr. Converse again presented appellee with a power of attorney authorizing him to sell, encumber, or lease the homestead for the purpose of raising funds to pay community debts. Since appellee was to leave for Philadelphia the next day, appellee signed the power of attorney and acknowledged her signature before Melt Ellis, a defendant in the trial court and Mr. Converse’s employee and business associate.

The jury found that this power was executed under duress, undue influence, and while appellant was mentally incapacitated (Special Issue No. 1). Appellant does not challenge this finding.

Approximately three months later, Mr. Converse, acting for himself individually and under his wife’s power of attorney, conveyed the homestead to Mr. Ellis and his wife by an instrument entitled a warranty deed dated October 27, 1972, which said instrument was later filed for record on November 16, 1972. The purchase price was stated to be $25,000.00 and was financed in that amount through the Henderson County Savings and Loan Association of Athens by a loan and deed of trust arrangement. Mr. Converse himself paid the loan application fee to the savings and loan and also co-signed the note given to obtain the loan.

The Converse family continued to occupy the premises after the deed to Mr. Ellis and wife. There is evidence to the effect that Mr. Converse rented the premises from Mr. Ellis through a rental agreement for a monthly rental equal to the monthly payment owed on the Ellis-Converse note to the savings and loan; that Mr. Ellis never exercised dominion or control over the home; that Mr. Converse made all the payments on the Ellis-Converse note; that the savings and loan company contacted Mr. Converse when the note payments were late; that Ellis never depreciated the home as rent property; and that Ellis and Mr. Converse had an agreement that in the event Mr. Converse died, Ellis would deed the premises back to the Converse family. Converse and Ellis both testified that this sale was a legitimate conveyance not intended to be a mortgage, and that Converse’s occupancy was as Ellis’s tenant under a formal rental contract. There is also testimony, however, that the sale was actually a sham conveyance concocted so that Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fletcher v. Minton
217 S.W.3d 755 (Court of Appeals of Texas, 2007)
Madison v. Gordon
39 S.W.3d 604 (Texas Supreme Court, 2001)
Poth v. Small, Craig & Werkenthin, L.L.P.
967 S.W.2d 511 (Court of Appeals of Texas, 1998)
Harris County Appraisal District v. Drever Partners, Inc.
938 S.W.2d 196 (Court of Appeals of Texas, 1997)
Lindsay v. Beneficial Reinsurance Co.
59 F.3d 942 (Ninth Circuit, 1995)
In Re Winn's Stores, Inc.
177 B.R. 253 (W.D. Texas, 1995)
Thompson v. Apollo Paint & Body Shop
768 S.W.2d 373 (Court of Appeals of Texas, 1989)
Hacienda Savings Ass'n v. Houston-Gulf Investment Corp.
759 S.W.2d 195 (Court of Appeals of Texas, 1988)
Bennerson v. Small
842 F.2d 710 (Third Circuit, 1988)
McSpadden v. Moore
728 S.W.2d 439 (Court of Appeals of Texas, 1987)
Bennerson v. Small
23 V.I. 113 (Virgin Islands, 1987)
Equitable Trust Co. v. Roland
721 S.W.2d 530 (Court of Appeals of Texas, 1986)
Kotrla v. Kotrla
718 S.W.2d 853 (Court of Appeals of Texas, 1986)
Grissom v. Watson
704 S.W.2d 323 (Texas Supreme Court, 1986)
Gulf Atlantic Life Insurance Co. v. Hurlbut
749 S.W.2d 96 (Court of Appeals of Texas, 1985)
NRG Exploration, Inc. v. Rauch
671 S.W.2d 649 (Court of Appeals of Texas, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
550 S.W.2d 322, 1977 Tex. App. LEXIS 2806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-converse-texapp-1977.