Continental Inv. Co. v. Bodenheimer

102 S.W.2d 304
CourtCourt of Appeals of Texas
DecidedFebruary 19, 1937
DocketNo. 10364
StatusPublished
Cited by1 cases

This text of 102 S.W.2d 304 (Continental Inv. Co. v. Bodenheimer) 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
Continental Inv. Co. v. Bodenheimer, 102 S.W.2d 304 (Tex. Ct. App. 1937).

Opinion

CODY, Justice.

On January 23, 1929, defendants Sarah Mintz and her husband, Abe Mintz (who were parties to the case below, but who have not appealed, and are no longer in this case), gave a deed of trust lien on a house and lot located in Houston, to secure the payment of their note for $5,-000 of even date, given to Gertrude Bod-enheimer; and on March 11, 1930, moved on to such property, and the nature of their occupancy of it thereafter up until the time of the trial was such as to make it their homestead. Thereafter the city council of Houston took -such appropriate and necessary proceedings as would have fixed an assessment lien against such property for paving to be done on the street on which it abutted, had it not been a homestead. Then thereafter, on February 10, 1931, Mrs. Mintz and husband, the aforesaid owners of the property, gave to the National Paving Company a mechanic’s lien thereon to secure the payment of $716.25, the estimated cost of paving the street in front thereof, and which was chargeable against the owners of such property. Thereafter said indebtedness secured by said mechanic’s lien duly became the property of plaintiff in error, the Continental Investment Company, and belonged to it at the time of the trial. On November 27, 1933, Mrs. Bodenheimer and husband, Abraham, instituted this suit in the district court of Harris county for the recovery of the debt of $5,000, and foreclosure of the deed of trust lien against the rights of the owner of the aforesaid house and lot and of her husband, and of the plaintiff in error. Mrs. Bodenheimer having died during the pendency of the suit, her husband, defendant in error here, qualified as independent executor of her will, and, as such, and individually, prosecuted this suit to judgment. In the trial court plaintiff in error, Continental Investment Company, filed a cross-action on its indebtedness for $716.25 and to foreclose its mechanic’s lien and assessment lien given for said indebtedness for paving. The court concluded, as a matter of law, after making findings of fact substantially as just detailed, that the deed of trust lien asserted by the defendant in error was superior to plaintiff in error’s lien securing the payment of its debt for $716.-25, and plaintiff in error brings writ of error.

Plaintiff in error asserts the superiority of its lien to the deed of trust lien foreclosed by the defendant in error on two grounds: First, because the charter of the city of Houston grants to the city council the power to provide for the priority of paving liens on homesteads, and no statutory or constitutional inhibition denounces the exercise of this power; second, because, so it claims, the homestead exemption of the defendants Mintz (husband and wife) was shown by the evidence to have been waived.

In support of its first proposition, ‘that the council had, under the charter of the city of Houston, power to make paving liens against homestead property superior to liens that are prior in point of time, plain* tiff in error cites these provisions of such charter: [306]*306constitute a personal liability of said owner and a first and prior lien upon said property, superior to all other liens, claims or titles, except for lawful ad va-lorem taxes. Such ordinance shall fix and declare said lien and liability and shall state the time and manner of payment of said assessments. The City Council shall have power to provide that said assessments shall be payable in installments, not, however, exceeding five, the last payable not exceeding, four years from the completion and acceptance by the City of the improvement. * * * ”

[305]*305“Sec. 9. Improvement assessment and fixing lien.- — -When the hearing above mentioned has been concluded, the City Council shall by ordinance assess against the several owners of the property abutting upon the highway, or portion thereof ordered to be improved, and against their property, such proportionate part of the cost of the improvement as may have been adjudged against them, respectively. The portion of said cost assessed against any such owner or his property, together with reasonable attorney’s fees and costs of collection when incurred, shah

[306]*306“Sec. 10. Exemption. — When the Council has reason to believe that the owner of any property may successfully claim the same as exempt from special assessment, it may order that the improvement be not made in front of such property unless said owner shall first satisfactorily secure the payment of the portion of the cost of the improvement determined to be payable by him. And whenever a part of the said cost is payable by the owner of such exempt property, and it is provided in the proceedings or contract with reference to the improvement that the contractor is to look to the owners of abutting property and their property for the payment of such part of said cost, the contractor to whom the work shall be let shall not be required to construct the improvement in front of any such exempt property until first satisfactorily secured in the payment of the amount payable by the owners of such exempt property. And the failure to construct such improvements in' front of such exempt property shall not invalidate the lien or personal liability fixed by said ordinance of assessment against any other property abutting on the highway improved, or the owner thereof.”

In order to test plaintiff in error’s theory, we must first call to mind that on nonhomestead property, assessments for paving benefits are sustained as an exercise of the taxing power; and for sidewalks, as that of the police power. Cain v. City of Tyler (Tex.Com.App.) 261 S.W. 1018. In Higgins v. Bordages, 88 Tex. 458, 31 S.W. 52, 55, 803, 53 Am. St.Rep. 770, decided by our Supreme Court in 1895, long before the charter of the city of Houston was framed, it was said: “We feel constrained, upon authority and sound reasoning, to hold that the charge made against the homestead of Henry and Mary Higgins for the cost of the sidewalk was not a ‘tax/ general or special, within the meaning of section 50, art. 16 [the homestead provision], of the constitution, and that the case of Lufkin v. City of Galveston [58 Tex. 545] is in conflict with the decisions of this court; and, in so far as it holds the homestead liable to forced sale for such assessments, that case is hereby overruled.”

In City of Wichita Falls v. Williams, 119 Tex. 163, 26 S.W. (2d) 910, 915, 79 A.L.R. 704, our Supreme Court again held: “On the whole, we conclude that the homestead is not subject to special assessments, and that these assessments are not taxes within the meaning of section 50, article 16, of the Constitution.”

Other cases holding the same are as follows: Jones v. Whitham & Co. (Tex.Civ.App.) 37 S.W. (2d) 327; City of Wichita Falls v. Citizens’ Lumber Co. (Tex.Civ.App.) 30 S.W. (2d) 440 (writ of error refused); City of Dallas v. Atkins, 110 Tex. 627, 223 S.W. 170; Smith Bros, v. Lucas (Tex.Com.App.) 26 S.W. (2d) 1055; Uvalde Rock Asphalt Co. v. Warren (Tex.Civ.App.) 59 S.W. (2d) 272.

The assessment made by the city council of Houston for paving the street, abutting on the lot that is here in question, therefore created no lien on the property in question, because of the homestead character of such property. The validity of the mechanic’s lien thereon given to secure the payment of the assessment for paving the street on which it abutted is sustained on the same principle as any other mechanic’s lien given for improvements to a homestead. Peoples v. Smith Bros. (Tex.Civ.App.) 65 S. W.(2d) 777.

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Related

Continental Inv. Co. v. Schmeich
145 S.W.2d 219 (Court of Appeals of Texas, 1940)

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102 S.W.2d 304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-inv-co-v-bodenheimer-texapp-1937.