Chapman v. Crichet

95 S.W.2d 360
CourtTexas Supreme Court
DecidedJune 3, 1936
DocketNo. 6668
StatusPublished

This text of 95 S.W.2d 360 (Chapman v. Crichet) 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
Chapman v. Crichet, 95 S.W.2d 360 (Tex. 1936).

Opinion

SMEDLEY, Commissioner.

On trial without a jury in district court, judgment was rendered in favor of plaintiffs in error against ’ defendant in error and A. R. McMahon jointly and severally for the amount of the principal, interest, and attorney’s fees due on five negotiable promissory notes, each in the sum of $500; and for foreclosure of a deed of trust lien on a tract of land in El Paso county. On appeal by defendant in error only the Court of Civil Appeals reformed the judgment of the district court by eliminating the part of it that imposed personal liability upon defendant in error. 63 S.W. (2d) 1099.

Prior to December 5, 1924, the tract of land was owned by • defendant in error, Crichet, and was encumbered by deed of trust lien securing three notes, each in the sum of $500, due December 13, 1924, 1925, and 1926, respectively, which he had executed to the First Mortgage Company of El Paso. Crichet conveyed the' land on December 5, 1924, to M. P. Hignett, the deed reciting as consideration $500 in cash, the payment by Plignett of the first of the three $500 notes belonging to’ the mortgage company, the assumption by Plig-nett of the payment of the other two of said $500 notes, and the execution by Hignett of four notes payable to Crichet) the first two being each for $500, the third for $1,000, and the fourth for $1,315; and being due December 15, 1925, 1926) 1927, and 1928, respectively. This deed was recorded in Book 435, at page 192; of the deed records of El Paso county. The notes given by Hignett to Crichet were secured both by vendor’s lien and by deed of trust lien.

Hignett did not pay the first of the three notes owed by Crichet to the mort[362]*362gage company, but on the next day, December 6, 1924, he executed three notes each in the sum of $500 payable to said mortgage company, due December 6, 1925, 1926, and 1927, respectively, and given in renewal and extension of the three notes 'executed by Crichet which Hignett had agreed to assume and pay. These new notes were secured by deed of trust. Crichet by written instrument consented to this rearrangement, extension, and renewal, and further agreed that the lien securing the four notes held by him should be secondary and inferior to the lien securing the notes belonging to the mortgage company.

On March 12, 1926, Crichet assigned and transferred to First Mortgage Company of El Paso the two notes for $500 each payable to him, executed by Hignett, and agreed that the lien securing the notes so transferred should be prior and superior to the lien securing the other two notes of the series which were retained by him. On the same day, March 12, 1926, Plignett executed five notes payable to the First Mortgage Company of El Paso, each in the sum of $500, the first three due March 12, 1927, 1928, and 1929, respectively, and the other two due March 12, 1930, and executed another deed of trust securing these notes. As appears from recitals in the deed of trust, these five notes were executed in renewal and extension of the three notes executed by Hignett to the mortgage company on December 6, 1924, and the two notes executed by Hignett which were assigned by Crichet to the mortgage company. Crichet by written instrument, signed and acknowledged, gave his consent to this rearrangement, extension, and renewal of the indebtedness, and agreed that the lien securing the notes held by the mortgage company should be superior to the lien securing the two potes which he had retained.

• On. .November 1, 1927, Hignett conveyed fhe land to. Crichet, the deed reciting as consideration -■ the sum of $10 and “the assumption and agreement to pay by the grantee herein of all the notes described in the deed from Cecil C. Crichet to M. P. Hignett, which deed is recorded in Book 435 of the de4e.d records of El Paso County, Texas, at page 192, and the assumption and agreement to pay by the grantee of all taxes against said property.” It is to be observed that the deed here referred to for description of the notes assumed by Crichet was the deed executed by Crichet to Hignett on December 5, 1924, in which were described three notes, each in the sum of $500, executed by Crichet, payable to the mortgage company, and which Hignett agreed to assume and pay, and two notes each for $500, one for $1,000 and one for $1,350, executed by Hignett, payable to Crichet.

Crichet accepted the deed last described, went into possession of the land, and made payments of interest to the mortgage company while he owned the land.

By deed dated January 2, 1929, Crichet conveyed the' land to A. R. McMahon, the consideration recited in the deed being $1,000 cash, the assumption by' the grantee of the payment of the series of five notes aggregating $2,500 given by Hig-nett to First Mortgage Company of El Paso dated March 12, 1926, and the execution of four new notes in the principal sum of $625.

The suit,was brought on the five notes .each in the sum of $500 given by Plignett to the mortgage company on March 12, 1926, in renewal and extension of the original five notes each in the sum of $500 described in the deed executed by Crichet to Plignett on December 5, 1924. In a trial amendment plaintiffs in error alleged the execution of the several original and renewal notes, the deeds, and other instruments above described, with knowledge and assent on the part of Crichet to the several renewals and extensions, and alleged that his action in assuming the notes and indebtedness described in the deed of December 5, 1924, constituted an assumption and agreement to pay the notes and indebtedness sued upon.

The Court of Civil Appeals held that the terms of the deed reciting Crichet’s assumption to pay the notes described in the deed of December 5, 1924,'were plain and unambiguous in meaning and that such plain and unambiguous contract and assumption could not be extended so as to impose upon Crichet. liability for the payment of notes other than those described.

In our opinion, the Court of Civil Appeals gave too narrow and too literal an effect to the language used in the deed evidencing Crichet’s assumption of the indebtedness. We agree with the conclusions of the learned trial judge that the notes sued upon by plaintiffs in error represent and stand in the place of the notes describ[363]*363ed in the deed of December 5, 1924, that they are comprehended in the assumption made by Crichet in the deed of November 1, 1927, and that he is personally bound for the payment of them by his assumption.

Crichet, as part of the consideration for the conveyance to him, assumed and agreed to pay an existing indebtedness against the land. Notes are not the indebtedness; they are the evidence of the indebtedness. For convenience, and as an easy method of identifying an indebtedness represented or evidenced by notes, we often refer to the notes as if they were the debt, and contracts drawn to evidence the assumption of such indebtedness ordinarily speak of the assumption of the notes, but it is the debt or the obligation evidenced by the notes that is assumed. The original notes described in the deed of December S, 1924, were evidence of the debt owed by Hignett as part of the purchase price of the land. That part of the debt represented by the five notes each for $500 described in that deed was extended and renewed, and was finally evidenced by the five notes each for $500 executed by Hig-nett to the First Mortgage Company on March 12, 1926. By the extensions and renewals, the debt and the lien securing it were carried forward and kept in effect.

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

Related

Hill v. Hoeldtke
142 S.W. 871 (Texas Supreme Court, 1912)
Hill v. Texas Trust Co. of Austin
236 S.W. 767 (Court of Appeals of Texas, 1922)
Dansby v. Stroud
48 S.W.2d 1018 (Court of Appeals of Texas, 1932)
Rushing v. Citizens' National Bank of Plainview
162 S.W. 460 (Court of Appeals of Texas, 1913)
Rowe v. Massey
54 S.W.2d 1094 (Court of Appeals of Texas, 1932)
Darby v. Farmers' State Bank of Burkburnett
253 S.W. 341 (Court of Appeals of Texas, 1923)
MacManus v. Orkney
40 S.W. 715 (Texas Supreme Court, 1897)
Crichet v. Chapman
63 S.W.2d 1099 (Court of Appeals of Texas, 1933)
Otto v. Halff & Bro.
34 S.W. 910 (Texas Supreme Court, 1896)
Brannin v. Richardson
185 S.W. 562 (Texas Supreme Court, 1916)
Holland v. Nimitz
239 S.W. 185 (Texas Supreme Court, 1922)
Ewing v. Carter
70 S.W.2d 277 (Court of Appeals of Texas, 1934)
McGuire v. Bidwell
64 Tex. 43 (Texas Supreme Court, 1885)
Harkey v. Cain
6 S.W. 637 (Texas Supreme Court, 1887)
Panhandle Construction Co. v. Lindsey
123 Tex. 613 (Texas Supreme Court, 1934)
Wilson v. J. W. Crowdus Drug Co.
222 S.W. 223 (Texas Commission of Appeals, 1920)
Miller v. Hodges
260 S.W. 168 (Texas Commission of Appeals, 1924)
Edwards v. Beals
271 S.W. 887 (Texas Commission of Appeals, 1925)
Higgins v. Bankers' Mortgage Co.
13 S.W.2d 683 (Texas Commission of Appeals, 1929)
Cooper Grocery Co. v. Strange
18 S.W.2d 609 (Texas Commission of Appeals, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
95 S.W.2d 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-crichet-tex-1936.