City Nat. Bank of Corpus Christi v. Craig

233 S.W. 631, 1921 Tex. App. LEXIS 929
CourtCourt of Appeals of Texas
DecidedJune 8, 1921
DocketNo. 6581. [fn*]
StatusPublished
Cited by8 cases

This text of 233 S.W. 631 (City Nat. Bank of Corpus Christi v. Craig) 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
City Nat. Bank of Corpus Christi v. Craig, 233 S.W. 631, 1921 Tex. App. LEXIS 929 (Tex. Ct. App. 1921).

Opinion

FLY, C. J.

This is a suit by plaintiff in error against defendant in error and Nellie 31. Craig, Jr., Henry H. Craig and Kathryn Craig, who, for convenience, will be identified as plaintiff and defendant, to recover on a note for $5,509, dated May 12, 1915, and another for $593.35, dated September 11, 1916, and for foreclosure of an attachment lien on certain lots of land in ■ Nueces county, which were levied upon, on August. 11, 1917; a copy of such levy having been filed immediately with the county clerk of Nueces county by the sheriff. N. H. Hand intervened, claiming a superior lien on the land through a deed of trust executed on October 31, 1917, by Nellie M. Craig, given to secure her promissory note for $2,350. It was alleged that intervener had no notice of the attachment lien at the time the deed of trust was executed and recorded.- No jury was demanded, and the court rendered judgment in favor of plaintiff as against defendant for $9,146.72, and for foreclosure of a deed of trust lien, against Mrs. Nellie M. Craig, Nellie M. Craig, Jr., Henry H. Craig, and Kathryn C. Craig, on certain lots, but secondary as to a lien held by Niles H. Hand on certain described lots, all in Bay View addition to the city of Corpus Christi. Judgment was rendered in favor of 1-Iand against Sirs. Nellie M. Craig for $3,270 and a foreclosure of a prior lien to that of plaintiff on lots 6, 7, 8, 9, 10, 16, 17, 18, 19, and 20 in block 15, said Bay View addition. Plaintiff sued out a writ of error, making the bond payable to Niles H. Hand alone.

There are but two questions in this case presented by the record, and they, are as to whether the filing of the return of the attachment levy on the lots on which Hand claimed a mortgage lien was sufficient to put him on notice as to the attachment lien, or in case it did not, was Hand charged with notice by,pendency of the suit. Before the rights of Hand arose, the suit of plaintiff against the Craigs had been filed, and the sheriff had levied on the property in controversy, and filed his return with the county clerk of Nueces county. The matter filed by the sheriff was not recorded by the clerls until after Hand’s rights had attached. No statutory lis pendens notice was ever filed by plaintiff.

[1] Prior to 1905, the filing of a suit was notice to every one of lis pendens, and in order to relieve purchasers and other interested parties of the burdens imposed by the doctrine of pendente lite, as held by the courts of Texas, the following law was passed on April 15, 1905 (Laws 1905, c. 128) by the Twenty-Ninth Legislature:

“During the pendency of any suit or action, legal or equitable, involving the title to real estate, or seeking to establish any legal or equitable estate, interest or right, present or future, vested or contingent, therein or to enforce any lien, charge or incumbrance against the same, any party plaintiff, as also any party defendant seeking affirmative relief therein, may file with the county clerk of each county where such real estate or any part thereof is situated a notice of the pendency of such suit, to be signed by the party filing the same or *632 his agent or attorney, setting forth the number and style of the cause, the court in which pending, the names of the party thereto, the kind of suit and a description of the land affected.”

The second section of the act requires the county clerk to record the notice in a well-bound book, styled “Lis Pendens Record,” and to index the same both direct and reverse, under the names of each and all parties to the suit.

In the third section of the act it is provided :

“The pendency of such suit or action shall not prevent effective transfers or incumbrances to a third party for a valuable consideration and without other notice, actual or constructive, by a party to the suit of any such real estate as against a subsequent decree for the adverse party, unless such notice shall have beep properly filed under the name of the party attempting to transfer or incumber in the county or counties in which said land is situated.”

The sections of the act mentioned are placed in the Revised Statutes as articles 6837, 6838, and 6839. That law had the effect of effectually superseding common-law rules prevailing at the time of its enactment as to notice pendente lite. As said by the Court of Civil) Appeals of the Second District, in the case of Burke-Simmons Co. v. Konz, 178 S. W. 587:

“The Legislature having assumed to legislate upon the question of lis pendens, and to prescribe steps to be taken and rules to be observed, in order that a litigant, in a suit involving title to land, may invoke its protecting aegis, so far as the statutory regulation extends, in our opinion it supersedes’and limits the common-law rules theretofore prevailing with reference thereto.”

The statute would be futile and present no excuse for its existence if it did not set aside former rules as to the matter. The Supreme Court denied a writ of error in the case cited, and, as there was only the one point in the case, must necessarily have approved the decision.

In the case of Pope v. Beauchamp, 110 Tex. 271, 219 S. W. 447, the Supreme Court views the act of 1905 as viewed by this and the Port Worth Court of Civil Appeals. In that case the Supreme Court, in holding that the act did not embrace within its scope anything to affect the bona fide purchaser of negotiable paper, said:

“The act can be given no other effect than as preventing the operation of lis pendens in any suit or action of the character mentioned where a transfer or incumbrance is executed by a party to the suit to a third party for a valuable consideration, without notice, unless the notice prescribed in article 6837 has been filed. By its terms the act in no wise purports to extend the effect of notice of any pending suit or action, but does impose a limitation on the prevailing common-law doctrine. However, there can be no doubt of the legislative purpose to restrict and not to extend the binding force of judgments on those acquiring rights pendente lite in good faith and for value and without actual notice, in the light of the history of statutes of the class to which our statute belongs.”

The evidence fails to show that the inter-vener had any notice, actual or constructive, of the pendency of the suit, and it follows that the rule of lis pendens would not apply under the facts of this ease.

It is not denied that the sheriff filed his return on the levy made by virtue of the writ of attachment, but that would not be a compliance with the law of lis pendens, and could not give notice under the statute, but if it gave notice at all it must be through compliance with the law as embodied in article 6858, in regard to the record of the return of the sheriff therein provided for.

Article 6858 was enacted in 1889, when the common-law rule as to pendente lite was in force and effect, and seems to have been passed with that rule in view, for it seems to have no effect whatever so far as land attached within the county where the suit Is pending is concerned. The law says:

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Cite This Page — Counsel Stack

Bluebook (online)
233 S.W. 631, 1921 Tex. App. LEXIS 929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-nat-bank-of-corpus-christi-v-craig-texapp-1921.