Coles' Adm'rs v. Perry

7 Tex. 109
CourtTexas Supreme Court
DecidedJuly 1, 1851
StatusPublished
Cited by12 cases

This text of 7 Tex. 109 (Coles' Adm'rs v. Perry) 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
Coles' Adm'rs v. Perry, 7 Tex. 109 (Tex. 1851).

Opinion

Hughes, S. J.

We have given to the various questionsarising in-this cause the careful consideration which the extent of the interests involved required at our hands; and, having arrived at conclusions satisfactory to ourselves, we proceed to state those conclusions, premising that we do not propose to take up the various questions made by the numerous assignments of error in the order of assignment, or, indeed, in any order with reference to such assignments ; but, as tiie examination which wo have made and the conclusions at which we have arrived will necessarily dispose of all the important questions arising in the court below and in this court, we will consider as questions of importance ouly those which the counsel have considered worthy of argument; and when those have been disposed of, our duty will be considered as performed. With these preliminary observations, we proceed, and start with the inquiry—

1. What is the true interpretation of tiie instrument sued on ? Is it evidence of a contract of sale or of-mortgage? This inquiry, by the manner in which we state theproposilion, is confined to an examination of the instrument itself, without a resort to testimony aliunde. \

Tiie instrument is signed by John P. Coles only; sets forth that on that day he laid settled all accounts with Stephen F. Austin, on which settlement he was indebted to said Austin, in the sum of eight hundred and fifty-eight dollars and thirty-eight cents. A debt was then duo by Coles to Austin, the ascertainment. of which had been the object of the settlement; and, after being so ascertained, the next inquiry between tiie parties w.ottld naturally be, what is to be done with tills ascertained debt? Is it to be now paid in money or property, or is it to be secured and paid in future? Tlie.se questions are answered by the instrument by the use of these words: “Which I agree to pay by the half of a grant of land on tiie Yegua and Brazos; ” not that he will secure the payment by the land, but that he will pay — discharge—the debt with the property mentioned; nor is the present tense used, I do hereby pay by or with the land, hut he agrees hereafter to pay.

Here it is insisted that, there being an acknowledgment of a pre-existing debt, and that acknowledgment being tiie evidence of the debt, tiie debt may he sued for aud recovered, notwithstanding the agreement; and that these two circumstances are evidence that t'he instrument was intended as a security for the payment of money, and, notwithstanding the literal interpretation of the instrument would make it a contract of sale, because of the object and intent, It will be converted into a mortgage; and to maintain this proposition, the reasoning of Chief Justice Marshall is referred to, in Conway’s Ex’rs v. Alexander, 2 Cond. R. S. C. U. S., 479; 7 Cr. R., 218.

In that case, the contest between the parties was, whether tiie instrument, upon tiie construction of which the right of either party depended, was a sale of property, defeasible by the payment of money at a future day, or a mortgage — not whether it was a contract of sale without defeasance, or a mortgage; and in such a case the attention of the court could only be directed to the considerations which should and ought properly to induce the belief that [66]*66the one or the other kind of contract was intended ; and in this inquiry, Chief Justice Marshall properly directs his intention to the inquiry, whether the money mentioned in the conveyance in (rust under his consideration was secured to bo paid, and whether an action could have been maintained to recover it. He found no covenant for its payment, or anything else conducing to show that it might he recovered, and came to the conclusion that an action could not be maintained for its recovery, and (he instrument was determined not to be a mortgage; and we see not what other influence this case should have, further than in so far as it is an enumeration of some of tiie. indicia, of a mortgage. The circumstances of that ease were in no respect those in this, as furnished by the instrument under consideration.

It is true that, in order to ascertain whether a given contract is or is not one of mortgage, the fact Chat the sum of money mentioned as the consideration of the contract is a precedent debt, is of great weight in arriving at a correct conclusion; hut this is generally in cases in which, upon the instrument itself, there appears to have been a sale, and, by testimony aliunde, it is sought to convert it into a mortgage; then, when it is ascertained that it is a precedent debt, and there intervenes other circumstances, and other elements are found, tending to show the true nature of the agreement, and that tiie object was tiie security of the debt, as soon as that object is ascertained, the instrument will be treated accordingly, and decreed to lie a mortgage. This result, however, is arrived at by ascertaining the real intention of the parties, and ruling in accordance with that intention, however that intention might have been concealed under the forms of particular instruments of different description. As to the instrument under consideration, we are endeavoring to arrive at its true interpretation, not by evidence aliunde, but by the terms of the instrument itself.* So far as examined, tiie evidence of the true intention of the parties is strong; but that intention will be made still more manifest should it be ascertained that an action could not have been maintained to recover the debt acknowledged.

Tiie acknowledgment, as it lias been seen, is of the existence of a debt which is agreed to be paid in a particular manner by one half of a tract of land. Suppose Coles to liave been sued for tiie debt, and the instrument in question liad been offered in evidence to prove tiie debt, would tiie debt have been proved in such manner as to authorize the recovery? We think not, because tiie same instrument which ascertained the debt also provided for its payment in a particular manner, and the acceptance by the creditor of the agreement offered by tiie debtor must necessarily lie an extinguishment of the old obligation; otherwise, there would be two obligations in force at the same time, binding on the debtor, and to he discharged by him, when the rule of the law under which tiffs contract was made is, that when there are two obligations founded upon the same canse, and the second is different from the first, and both subsisting', the creditor may use that which he desires, and by moans of the election of tiie one, the debtor is discharged from the other, (ó Febrero, p. 220, sec. Í3.) If the debtor, by tiie election to use the agreement under consideration, lias discharged the debt, it follows that an action cannot be maintained upon anything hut the instrument received in discharge of the precedent debt.

But. it may be said that in arriving at tiffs conclusion we looked beyond the instrument for the purpose of ascertaining whether the instrument lias been accepted. This is only true in appearance; for the existence of the other obligation is only capable of being proved by its possession by the creditor; and when offered in evidence proves, as well as the debt, the manner of its payment, and also the acceptance of it by the creditor; otherwise, it would not he found in his custody.

But whether an action could or could not he maintained to recover the money mentioned in the instrument, can in no manner whatever, in our view, affect the question as to whether the contract was or not a mortgage— there being other parts of tiie writing not yet brought in review, ancl which [67]*67have an important bearing in settling the question.

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Bluebook (online)
7 Tex. 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coles-admrs-v-perry-tex-1851.