Cathey v. Weaver

242 S.W. 447, 111 Tex. 515, 1922 Tex. LEXIS 80
CourtTexas Supreme Court
DecidedMay 24, 1922
DocketNo. 3146.
StatusPublished
Cited by78 cases

This text of 242 S.W. 447 (Cathey v. Weaver) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cathey v. Weaver, 242 S.W. 447, 111 Tex. 515, 1922 Tex. LEXIS 80 (Tex. 1922).

Opinion

Mr. Chief Justice CURETON

delivered the opinion of the court.

In 1907 the plaintiff in error, G. C. Cathey, owned the land involved in this suit. On April 27th of that year he sold and conveyed it by deed to E. E. McClain. As a part of the consideration, McClain executed and delivered to Cathey a note, of even date with the deed, for the principal sum of $700.00, with interest from date until paid, due October 1, 1907. A vendor’s lien was retained in both the deed and note in favor of Cathey, to secure the payment of the note. This note was never paid, and is still owned by Cathey. Cathey did not file suit on the note until his cross action was filed in this case on December 14, 1914, which was after his right to recover the land by virtue of the superior title had been barred by limitation under the amended act of the Legislature of 1913, and after the note had been barred in October, 1911. The land in controversy was bought from McClain by G. H. T. Dodson, who gave a deed of trust thereon to defendant in error, F. B. Weaver, to secure a note for the principal sum of $2160.75. This note and deed of trust were executed on February 13, 1911. The note became due November 1, 1914. On *519 December 2, 1914, the defendant in error filed his original petition in the District Court of Brown County against the necessary parties, including the plaintiff in error, G. C. Cathey, for recovery on this note and foreclosure of his lien on the land. On December 14, 1914, Cathey filed his answer, in which, among other things, he alleged that his vendor’s lien reserved in the deed and note was superior to the lien of defendant in error. He prayed for foreclosure of the vendor’s lien on the land in controversy, for sale thereunder, and that the amount of his note, interest and attorney’s fees, be first satisfied before any part of the proceeds of the sale should be applied to the satisfaction of defendant in error’s claim. In the alternative, he prayed for a decree to establish and fix his superior title to the land as a vendor thereof. Weaver’s position and pleadings were to the effect that Cathey’s note, his vendor’s lien, and his right to recover the land by virtue of any superior title, were barred by limitation. Cathey’s contention was that his right to foreclose his lien had been extended by the two legislative acts of 1913. Other issues were made, but this statement is sufficient for the purposes of this opinion.

The trial court held that Cathey’s note, lien, and right of recovery by virtue of the superior title were barred by the statute of limitation, and rendered judgment foreclosing the deed of trust lien in favor of Weaver, ordered the land sold, the proceeds of the sale to be first applied to the liquidation of the judgment in favor of Weaver on the note sued upon, the balance, if any, to be paid to Bailey, a subsequent and the last vendee of the land.

Plaintiff in error carried the case to the Court of Civil Appeals, which held that Cathey’s claims were barred, and affirmed the judgment of the trial court in favor of Weaver. The court, however, reformed that portion of the judgment which directed that the residue of the amount for which the land might be sold, after the liquidation of Weaver’s judgment, be paid the subsequent vendee, Bailey, by ordering the same to be deposited with the clerk of the trial court, who was instructed to hold it for ten days, in order to give plaintiff in error, Cathey, time within which to file a plea impleading Bailey, and assert as against Bailey his claim to such residue. 193 S. W., 490.

It is to be observed that the deed of trust note held by Weaver was executed February 13, 1911, and that in October of that same year Cathey’s vendor’s lien note became barred by the four years statute of limitation.

The determination of the principal question at issue requires an examination of the legislative history of the statutes of limitation involved. Prior to July 14, 1905, vendor’s lien notes and notes secured by deeds of trust or mortgages on real estate, with or without powers of sale, were barred by the statute of four years limitation. R. S., Art. 5688. Vendor’s and other liens, being but incidents of the debts which they secured, became barred and unenforcible when *520 the debts were barred. Stone v. McGregor, 99 Texas, 51, 57, 87 S. W., 334; Hale v. Baker, 60 Texas, 217, 219; Rindge v. Oliphint, 62 Texas, 682, 685; Brown v. Cates, 99 Texas, 133, 136, 87 S. W., 1149; McKeen v. James, 23 S. W., 460, 465; Fuller v. O'Neal, 82 Texas, 417, 18 S. W., 479; Goldfrank v. Young, 64 Texas, 432.

However, where the owner of vendor’s lien notes was at the same time holder of the superior title retained in the deed to secure the payment of the notes, or where the deed of trust or mortgage contained a power of sale, the holders of the notes were not without remedy.

If the holder of a vendor’s lien note was at the same time the holder of the superior title, he could bring suit to recover the land by virtue of such superior title, although the note was barred by the four years statute of limitation. McPherson v. Johnson, 69 Texas, 484, 487, 6 S. W., 798; Stephens v. Mathews, 69 Texas, 341, 344, 6 S. W., 567; White v. Cole, 87 Texas, 500, 29 S. W., 759.

But if the holder of a vendor’s lien note had never acquired the superior title, or had parted with it, or if as an original vendor he had transferred any of the notes which the superior title was reserved to secure, he could not maintain an action for the land. In other words, to maintain an action to recover the land, the ownership of the barred vendor’s lien notes and the superior title was required to be in one and the same person. Farmers Loan and Trust Co. v. Beckley, 93 Texas, 267, 54 S. W., 1027; Stephens v. Mathews, 69 Texas, 341, 6 S. W., 567; Hatton v. Bodan Lumber Co., 57 Texas Civ. App., 478, 123 S. W., 163; 166; Douglass v. Blount, 95 Texas, 369, 380, 58 L. R. A., 699, 67 S. W., 484.

In the case where the barred note was secured by a deed of trust or mortgage containing a power of sale, such power of sale, not calling for a judicial process, could be executed, although an action on the debt was barred by limitation. Fievel v. Zuber, 67 Texas, 275, 3 S. W., 273; Goldfrank v. Young, 64 Texas, 432.

To remedy such evils as this condition was conceived to permit, the Twenty-ninth Legislature at its regular session passed an Act to fix the time within which the power of sale conferred in mortgages and deeds of trust might be exercised, and after which vendor’s liens should be presumed to be released and satisfied. This Apt, Chapter 138, General Laws of the Regular Session of the Twenty-ninth Legislature, became effective July 14, 1905, and was incorporated in the Revised Statutes of 1911, Sections 1, 2, and 3 thereof becoming, respectively, Articles 5693, 5694, and 5695, of the Revised Civil Statutes of 1911.

This Act was prospective only in its operation, and rights and remedies as to obligations created prior to July 14, 1905, were in no way affected by it. As to obligations created subsequent to that date, it provided in effect that the right to sue for and recover land by virtue of the retention of the superior title, and the right to make *521

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Bluebook (online)
242 S.W. 447, 111 Tex. 515, 1922 Tex. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cathey-v-weaver-tex-1922.