Commercial Securities Co. v. Thompson

239 S.W.2d 911, 1951 Tex. App. LEXIS 2074
CourtCourt of Appeals of Texas
DecidedMay 11, 1951
Docket15219
StatusPublished
Cited by5 cases

This text of 239 S.W.2d 911 (Commercial Securities Co. v. Thompson) 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
Commercial Securities Co. v. Thompson, 239 S.W.2d 911, 1951 Tex. App. LEXIS 2074 (Tex. Ct. App. 1951).

Opinion

McDONALD, Chief Justice.

On March 30, 1951, we entered judgment reversing the judgment of the trial court, and rendering judgment that appel-lee take nothing. After further study of the case, we have come to the conclusion that we were in error in so doing, and that we should withdraw our original opinion and substitute the following as our opinion in the case.

In 1949 Commercial Securities Company, appellant in the case now before us, filed suit in a district court in Harris County against A. R. Thompson and Ruby Thompson, seeking judgment on a note and foreclosure of a chattel mortgage lien on an automobile and other personal property. A writ of sequestration was issued, and ■the defendants replevied the property. W. E. Thompson, appellee in the cause now before us, was one of the sureties on the replevy bond.

On December 21, 1949, judgment was rendered in the Harris County suit. The judgment, which was introduced in evidence in the cause now before us, recites that “the defendants, A. R. Thompson and Ruby Thompson, and the sureties on the defendants’ replevy bond, W. E. Thompson and Clyde Austin, announced in open Court that judgment should be entered for the plaintiff.” The judgment decrees that Commercial Securities Company recover “of and from A. R. Thompson and Ruby Thompson, as principals, and of and from W. E. Thompson and Clyde Austin, as sureties,” the sum of $1496.96, plus an additional sum of $224.53 as attorney’s fee. The judgment decrees a foreclosure of the chattel mortgage lien on the above property, and also provides: “An order of sale shall issue hereon to the Sheriff or any Constable of any County of the State of Texas where such property may be found, directing him to seize and sell the same as under execution. The proceeds arising from such sale shall be first applied to the satisfaction of this judgment and costs; and any balance above this shall be turned over to the defendant. If the property cannot be had, or if the proceeds of such sale shall be insufficient to satisfy this judgment and costs, then the officer executing such writ shall make the unpaid balance out of A. R. Thompson and Ruby Thompson, thereafter out of W. E. Thompson and Clyde Austin.”

None' of the parties named in the judgment excepted to the-judgment or appealed from .it.

Thereafter the property covered by the mortgage was delivered to a constable, who sold it under order of sale for the sum of $525, and the judgment was credited accordingly. Thereafter Commercial Securities Company caused to be filed in the office of the County Clerk of Wichita County an abstract of the judgment in said cause, *913 which showed a credit of $506 on the judgment.

The suit in which the present appeal is taken was filed in a district court in Wichita County by W. E. Thompson against Commercial Securities Company. Thompson’s pleadings consist of a formal count in trespass to try title, relating to a described tract of land in Wichita County, and certain special allegations. The suit presented by the latter allegations is one to remove the cloud cast by the abstract of judgment on appellee’s title to the Wichita' County land, based on the theory that the mortgaged property was turned over to the constable as aforesaid, and that the delivery of such property to the constable constituted a full satisfaction of the judgment rendered against appellee as surety on the replevy bond. The .suit is also for dámages resulting from the cloud cast on the title by the abstract of judgment.

The adjudications in the judgment rendered in the Wichita County suit are: (1) The judgment in the Harris County suit was a valid' and subsisting judgment but has been satisfied and discharged as to ap-pellee Thompson. (2) The abstract of judgment is a cloud on the title to appel-lee’s property, and by virtue thereof ap-pellee has been damaged in the sum of $750. (3) Plaintiff’s title is quieted and the cloud cast by the abstract of judgment is removed.

In 38 Texas Jurisprudence, pages 197 to 232 inclusive, will be found a general discussion of the status, rights and liabilities of those who sign a replevy bond, where a writ of sequestration has issued and the property has been replevied by the defendant. The procedure, so far as the case before us is concerned, is governed by Rules 701, 702, 704 and 705, Texas Rules of Civil Procedure. Rule 702 provides, among other things, that a condition of the replevy bond shall be that the defendant will have the property forthcoming “in the same condition as when it is replev-ied” to abide the decision of the court, or that he will pay the value thereof, “or the difference between its' value at the time of replevy and the time of judgment”, in case he shall be condemned to do so. The two provisions of Rule 702 which are set out in quotation marks are in addition to the language of Art. 6850, which was superseded by Rule 702. Rule 704 provides, among other things, that in case the suit is decided against the defendant final judgment shall be entered against all the oblig-ors in such bond jointly and severally for the value of the property replevied, “as of the date of the execution of the- replevy bond”. The quoted provision of Rule-704 was not' contained in; Article 6852,, which Rule 704 superseded. ' ■ -

The trial court in the Wichita County suit found, after a non-jury trial, tliat the replevied property was delivered undamaged and uninjured to 'the constable who executed the order of sale, and found that there was no damage to'the-property between the date of replevy and the date of the constable’s sale other than depreciation. The trial court also found, however, that the property depreciated in market value $600 between the date of replevy and the date of the constable’s sale.

Relying largely on- the opinion in American Mortgage Corporation v. Samuell, 130 Tex. 107, 108 S.W.2d 193, appellee contends that the delivery of the property to the constable, as found by the court in the Wichita County suit, must be treated as a full satisfaction of the judgment rendered against the sureties in the Harris County suit.

Under the Samuell case, supra, and other cases which could be cited, the judgment rendered in a suit to foreclose a mortgage lien on personal property, where writ of sequestration has issued and the property has been replevied, ought to fix the rights and liabilities of the sureties on the replevy bond, and in a number of cases judgments have been reversed, on appeal by the sureties, because there was not a proper adjudication of the rights and liabilities of the sureties. For example, see Reliable Iron Works v. First State Bank and Trust Company, Tex.Civ.App., 241 S.W. 592; Johnson v. Whitaker, Tex.Civ.App., 60 S.W.2d 848. In Scott v. G. W. Waldrop and Company, Tex.Civ.App., 8 S.W.2d 552, writ refused, it is declared that the right to tender the replevied property to the officer *914 within ten days after judgment as a credit thereon is a right conferred by the statutes, and is not required to be inserted in the judgment itself.

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239 S.W.2d 911, 1951 Tex. App. LEXIS 2074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-securities-co-v-thompson-texapp-1951.