Cohen v. Texas Land, Mortgage, Ltd.

137 S.W.2d 806
CourtCourt of Appeals of Texas
DecidedJanuary 26, 1940
DocketNo. 14011.
StatusPublished
Cited by1 cases

This text of 137 S.W.2d 806 (Cohen v. Texas Land, Mortgage, Ltd.) 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
Cohen v. Texas Land, Mortgage, Ltd., 137 S.W.2d 806 (Tex. Ct. App. 1940).

Opinion

DUNKLIN, Chief Justice.

This suit was instituted by Aaron Cohen against the Texas Land & Mortgage Company, a corporation, and E. W. Hunt, in *808 the nature of trespass to try title to one-half of all the oil, gas and other minerals in 3068.16 acres of land, situated in Archer County. He filed certain special pleadings challenging the sufficiency of certain muniments of title relied on by defendants to defeat a recovery by plaintiff, which will be hereinafter shown.

Both defendants filed answers which included a general demurrer, general denial, plea of not guilty. And defendant, E. W. Hunt, also pleaded the three year statute of limitation to plaintiff’s suit, with a further prayer for removal of plaintiff’s claim of title as a cloud upon his title, and for judgment decreeing title in him.

Plaintiff filed a supplemental petition, in reply to the answer of defendant, Hunt, presenting a general demurrer, general denial and plea of not guilty. And further, that there had been a severance of plaintiff’s title from that claimed by defendant before the' latter acquired title and that defendants had never been in adverse possession of plaintiff’s mineral rights for which he sued; in the absence of which there was no sufficient basis for the plea of limitation.

Upon trial without a jury, judgment was rendered denying plaintiff a recovery as against either of the defendants, and vesting in defendant Hunt title to the land sued for by plaintiff. Plaintiff has appealed.

Following is the documentary evidence upon, which the rights of the parties are based:

J. M. Senter and wife are the common source of title claimed hy the parties.

On February 29, 1920, J. M. Senter and wife executed a deed of trust on the property in controversy, together with all royalties accruing from any leases on the land, to secure the payment of their two promissory notes payable to the defendant, the Texas Land & Mortgage Company, the first for the principal sum of $5,-000, and the second for the principal sum of' $17,500, payable February 1, 1930, with interest thereon payable annually at the rate of 7 per cent per annum, with option in the holder to mature the principal for default in payment of any interest in-stalment. That note was introduced in evidence and endorsed thereon are credits for all interest instalments paid at their respective due dates up to February 1, 1930. A. G. Wood was named as trustee in the deed of trust, with power to sell the property at public sale to satisfy the debt in the event of default in payment of the note after maturity, upon request of the holder and convey the property to the buyer by a proper deed of conveyance. With a further provision that should A. G. Wood, the named trustee, fail or refuse or be disqualified to act, then the holder of the note or general manager of said mortgage company shall have power to appoint a substitute' trustee, without notice to the makers, vested with the same powers as given to said Wood; also power in the original or substitute trustee to execute to the purchaser at such sale a deed of conveyance to the property sold, which shall be prima facie evidence that all prerequisites to the validity of the sale, under the terms of the deed of trust, were had and done. That instrument was duly acknowledged by the grantors as . required by Statute, and was duly recorded in the mortgage records of Archer County, on March 4, 1920.

On February 1, 1923, J. M. Senter and wife, for a consideration of $8,000 paid and secured to be paid by Aaron Cohen, executed and delivered to Aaron Cohen,' plaintiff, a deed of conveyance, with general warranty of title, to an equal undivided one-half of all the natural gas, petroleum, coal and all other minerals and mineral substances whatsoever in, on and under the land in controversy, with these further stipulations : “It is agreed and understood that all future oil, gas and mineral leases affecting the hereinafter described lands, are to be made and executed by J. M. Senter, and it shall not be necessary for the said Aaron Cohen to join therein or assent thereto, but the said J. M. Senter agrees to pay to said Aaron Cohen one-half of all bonus of lease money, and one-half of all rentals hereafter received, after the payment of all necessary expenses connected therewith. It is understood that all of said lands are now under lease, and the foregoing clause as to bonus and lease money shall not apply unless and until said lands are again leased.”

Plaintiff’s suit was predicated upon that deed, which was duly acknowledged at the time of delivery, and filed and recorded in the deed records of Archer County, on February 5, 1923; and it established prima facie his right of recovery, unless defeated . by facts, subsequently occurring and hereinafter noted.

*809 On July 24, 1923, J. M. Senter and wife executed to S. G. Helm a deed to the land in controversy (which included both the surface right and the one-half mineral rights then in the grantors), with warranty of title. The consideration recited in that deed was “the sum of Nine Thousand ($9,000-00) Dollars cash to us in hand paid by S. G. Helm, the receipt of which is hereby acknowledged, and the further consideration that the grantee herein takes the property hereinafter described, subject to the payment of twenty two thousand five hundred ($22,500.00) Dollars, and all accrued interest thereon, owing to The Texas Land & Mortgage Company, Ltd., as shown by a deed of trust recorded in Volume 10, page 263, Deed of Trust Records of Archer County, Texas, and further subject to the payment of Five Thousand One Hundred Sixty and No/100 ($5,160.00) Dollars and all accrued interest thereon owing to H. C. Curtis, as shown by a deed recorded in Book 53, page 462, of the Deed Records of Archer County, Texas.” That deed was duly acknowledged by the grantors and filed for record on July 29, 1923.

On February 19, 1930, S. G. Helm and wife, Evelyn Helm, executed a deed of trust, reciting the execution by J. M. Senter and wife to A. G. Wood, trustee, of date February 27, 1920, to secure payment of their two notes in favor of the Texas Land & Mortgage Company, one for $5,000, maturing February 1, 1925, and one for $17,-500, maturing February 1, 1930, with these further stipulations:

“Said two notes above described, having been assumed by S. G. Helm, in deed from J. M. Senter and wife, Laura Senter, dated July 24th, 1923, and recorded in Vol. 73, page 640, Deed Records of Archer County, Texas.
“And, Whereas, interest has been paid on said notes to February 1st, 1930, and the following payment on the principal $5,000.-00, on Feb. 13th, 1925, leaving the last note of $17,500.00 still remaining due and unpaid. It is expressly agreed and understood that we, said S. G. Helm and wife, Evelyn Helm, in order to further secure the last note above described, do hereby convey, in trust, to James C. Macdonald, Trustee, all rights that we, or either of us have in any and all royalties arising or accruing out of, or under, any lease, or leases now existing on the land above referred to, or any part thereof, and of record in the .-■County where said land is situated; and said S. G. Helm and wife, Evelyn Helm, have requested that the date of maturity of aforesaid note be extended. - ■

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Related

Texas Land & Mortgage Co. v. Cohen
159 S.W.2d 859 (Texas Supreme Court, 1942)

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Bluebook (online)
137 S.W.2d 806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cohen-v-texas-land-mortgage-ltd-texapp-1940.