Compton v. Republic Building & Loan Ass'n

67 S.W.2d 1095
CourtCourt of Appeals of Texas
DecidedJanuary 18, 1934
DocketNo. 2914.
StatusPublished
Cited by5 cases

This text of 67 S.W.2d 1095 (Compton v. Republic Building & Loan Ass'n) 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
Compton v. Republic Building & Loan Ass'n, 67 S.W.2d 1095 (Tex. Ct. App. 1934).

Opinion

PELPHREY, Chief Justice.

On August 18, 1926, J. M. Russell and wife conveyed 50x50 feet of the southwest side of lot 8 of Mrs. L. Y. Young’s subdivision .of block 979, in Dallas, Dallas county, Tex., to Irene Sadler, in her own separate right and for her separate benefit. It is agreed that in this suit the said Irene Sadler is the common source of title.

On November 23d thereafter, Irene Sadler executed a deed of trust to C. L. Frazier, trustee, for the use and benefit of appellee to secure an indebtedness to appellee of $2,600, evidenced by her note of the same date. It appears from the recitals in the deed of trust that the note then given was in renewal of a note given by C. F. Roderick and wife to V. H. Hextor, trustee, for the sumí of $2,000 on November 6, 1922, in renewal of a mechanic’s lien executed by Irene Sadler, in favor of J.' R. Morgan, on November 22,1926, for $372.49, and to secure the payment of $139.76 in taxes advanced by appellee. ,

On March 14, 1931, Quentin D. Corley, vice president of appellee, executed the following instrument purporting to appoint A. H. Fonda as.substitute trustee under said deed of trust:

“Know all men by these presents: That, whereas, on the 23rd day of November, A. D. 1926, Irene Sadler, of Dallas County, Texas, executed and delivered her certain deed of *1096 trust to C. L. Frazier, of Dallas County, Texas, as Trustee, for better securing the payment of a certain promissory note in the principal sum of $2600.00 executed and delivered 'by the said Irene Sadler, payable to the Republic Building & Doan Association or order, dated November 23rd, 1926, and to become due in monthly installments on the 10th day of each. succeeding month thereafter in accordance with .the charter and by-laws of said association; and,
“Whereas, the said C. D. Frazier is absent from Dallas County, temporarily and unable to execute the trust with which he is empowered in said deed of trust, and default has been made in the payment of said note and . the maturity accelerated; and,
“Whereas, the Republic Building & Loan Association is authorized by said deed of trust to. appoint a substitute trustee upon the resignation, removal or absence of said trustee, C. L.' Frazier, from the City of Dallas:
“Now, Therefore, in consideration of the premises, the Republic Building & Loan Association, acting' through its duly authorized officer, does hereby appoint and substitute A. H. Fonda, trustee, in said deed, of trust in lieu and in place of the said C. L. Frazier, with all the powers and authority given by the, said Irene Sadler to the said C. L. Frazier.”

Prior to the execution.of the above instrument, however, appellant foreclosed a lien .held by him against the property in question and acquired title thereto on February 3, 1931.

The substitute trustee on April 7, 1931, sold .the property to appellee for $500, and executed a deed to appellee therefor.

On August 20, 1931, appellee filed suit against appellant and J, D. Reynolds in trespass to try title, for damages and rents.

Appellant and Reynolds answered by general demurrer, plea of not guilty, and a general denial. In an amended petition appellee pleaded in the alternative that, if it did not own title to the property sued for, it was the owner and holder of the $2,600 note upon which a balance of $2,048.70 was unpaid. It sought judgment for the debt and foreclosure of the lien in case it was not awarded title and possession. In answer Compton alleged that he became the owner of the property on • February 3, 1931; that appellee was not entitled to recover title and possession of the property because the sale made to it by the substitute trustee was void, having been made by a substitute trustee when the appointment of such substitute trustee was not authorized.

Appellant alleged: “This defendant alleges that on the 14th day of March, A. D. 1931, the Republic Building & Doan Association attempted, to substitute in lieu and instead .of said C.- L. Frazier, as Trustee, one A, H. Fonda, reciting in said appointment of such Substitute Trustee, the fact that C. L. Frazier was absent from the -County of Dallas temporarily, and was unable to execute the trust, which statement in said appointment of substitute Trustee, this defendant now alleges to have been .false, and that as a matter of fact said C. L. Frazier was residing and was actually present in the City and county of Dallas, State of Texas, at all times during the months of March and April, 1931, when said alleged substitute foreclosure took place, and this defendant says that said C. L. Frazier, Trustee, was not requested to act, did not refuse to act, and was ready, willing and able to act as Trustee, at all times, and this defendant further alleges that this defendant was at all times communicating with said C. L. Frazier, Trustee, and was relying upon statements made by said C. L. Frazier, Trustee, that he had neither resigned nor had posted the property for sale nor had he been requested to act, and that any attempted foreclosure by said A. H. Fonda, as Substitute Trustee, was void and ineffective as to the rights of this defendant, because said C. L. Frazier was not absent from the City of Dallas during the months of March and April, 1931, and’ that said C. L. Frazier, Trustee, did not resign as said Trustee, and was not requested to act and did not refuse to act, and that said defendant did not consent to the appointment of said A. I-I. Fonda as Substitute Trustee and this defendant alleges that the alleged foreclosure by A. H. Fonda, as such Substitute Trustee, on the seventh day ■of April, A. D. 1931, upon the property described in the plaintiff’s petition and the conveyance theieof by said A. H. Fonda, as Substitute Trustee, is void and conveyed no title to the Republic Building & Loan Ass’n., on account of the above described facts, said Deed being recorded in volume 1688, page 184, D'eed Records of Dallas County, Texas.”

Upon special issues submitted, the jury found that'C..L. Frazier was absent from the city of Dallas on March 14,1931, and that the reasonable rental value of the property from April 7, 1931, to the time of trial was $25 per month.

Judgment was rendered in favor of appellee for the title and possession of the property and for $487.50 as rent on the premises.

Compton has perfected an appeal to this court

*1097 Opinion.

The appeal is predicated upon four propositions: (1) That, where the original trustee was only temporarily absent for a few days, had not been requested to act, had not refused to act, but was ready to do so and was present in the city on the date of sale and the last day of posting, the appointment of a substitute trustee and a sale by him are void; (2) that, where a trustee’s deed fails to show that notice of the sale had been given as required by law and there is no other evidence as to the notice, the sale should he set aside; (3) that the testimony of the witness William M. Cramer was hearsay and inadmissible; and (4) that the evidence was insufficient to ■raise an issue as to whether or not Frázier was out of the city on March 14, 1931.

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Bluebook (online)
67 S.W.2d 1095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/compton-v-republic-building-loan-assn-texapp-1934.