Curtis Sharp Custom Homes, Inc. v. Glover

701 S.W.2d 24, 1985 Tex. App. LEXIS 12902
CourtCourt of Appeals of Texas
DecidedNovember 4, 1985
Docket05-84-00455-CV
StatusPublished
Cited by22 cases

This text of 701 S.W.2d 24 (Curtis Sharp Custom Homes, Inc. v. Glover) 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
Curtis Sharp Custom Homes, Inc. v. Glover, 701 S.W.2d 24, 1985 Tex. App. LEXIS 12902 (Tex. Ct. App. 1985).

Opinions

DEVANY, Justice.

Jo Ann Glover, one of the appellees, was employed by Curtis Sharp Custom Homes, Inc., and Curtis Sharp, appellants (“Sharp”), as a secretary and bookkeeper, beginning in January, 1980. It is alleged that she embezzled over $70,000.00 from Sharp during the course of her employment. Jo Ann Glover was convicted of that crime and Sharp later filed a civil suit against her and her husband, David Gene Glover, the other appellee. The court gave judgment to Sharp for $70,786.00, and, apparently, found that $5,004.31 of those embezzled funds were used to pay for improvements to the previously existing homestead property owned by the Glovers. We say “apparently” because there was no specific finding recited in the judgment that this is so. As part of that civil judgment, the court granted Sharp an “equitable lien” in the amount of $5,004.31 against “Jo Ann Glover’s undivided half interest in the Glover homestead,” but also held that Sharp take nothing against David Glover. No appeal was taken from that judgment, hence, it must be considered final. Subsequent to that judgment, Sharp demanded payment from the Glovers, but [25]*25they refused to pay. Thereafter, Sharp filed the present suit to foreclose the equitable lien against Jo Ann’s undivided one-half interest in the homestead. Each side filed a motion for summary judgment. On February 2, 1984, the trial court issued summary judgment for the Glovers, ruling that the equitable lien granted in the first lawsuit could not be foreclosed. We affirm.

In a single point of error, Sharp contends that its equitable lien can be foreclosed against Jo Ann’s homestead interest. We disagree. The court in Smith v. Green, 243 S.W. 1006, 1007 (Tex.Civ.App.—Amarillo 1922, no writ), stated the fundamental principle that:

The Constitution (article 16, § 50) protects the homestead against forced sale for the payment of all debts except for purchase money, taxes and improvements, and provides that no lien on the homestead shall be valid except it be created for such character of debt, and provides that the lien to secure a debt for improvements must be created in a particular manner; otherwise it cannot exist. (Emphasis added.)

In the instant case, the embezzled funds were property which Sharp was deprived of and which, by judicial decree, resulted in a personal judgment and a purported equitable lien against Jo Ann Glover’s previously acquired interest in the homestead property to the extent of $5,004.31. Since the purported equitable lien was imposed by judicial decree, we must examine the jurisdiction of the trial court in that case over the subject matter, to-wit: the homestead, in view of the language of the constitution. TEX.CONST. art. XVI, § 50.

In 1951, this court stated “that a forced sale of the homestead in satisfaction of a debt of any character except as provided by the Constitution ... is void.” Cline v. Henry, 239 S.W.2d 205, 208 (Tex.Civ.App.—Dallas 1951, writ ref’d n.r.e.). The court in that case went so far as to state that a lien created by judicial decree against a homestead was void. Cline, 239 S.W.2d at 208.

We distinguish the cases cited by Sharp from the instant case. In none of those cases was a lien imposed upon a previously existing homestead and then allowed to be foreclosed against the homestead property. Taking these cases in chronological order, we find a common underlying principle used by the courts in arriving at the results. The cases we refer to are: Smith v. Green, 243 S.W. 1006 (Tex.Civ.App.—Amarillo 1922, writ ref’d); First State Bank of Ellinger v. Zelesky, 262 S.W. 190 (Tex.Civ.App.—Galveston 1924, no writ); Meyers v. Baylor University in Waco, 6 S.W.2d 393 (Tex.Civ.App.—Dallas 1928, writ ref’d); and Bush v. Gaffney, 84 S.W.2d 759 (Tex.Civ.App.—San Antonio 1935, no writ).

In Smith v. Green, the wrongfully used partnership funds were used for improvements on the homestead which the married couple continued to occupy. When they exchanged the homestead for another, they received a new homestead plus $11,500.00 in cash which they deposited into a bank. The court’s rationale permitted the imposition of a constructive trust which allowed the court to follow the trust property through its mutations into its changed form which was the bank deposit of $11,-500.00, not the new homestead.

In Ellinger, the husband embezzled funds which he used in part to purchase and improve property, which he subsequently declared as homestead. The court used the doctrine of constructive trust to hold that the husband was never the owner of the property. In Meyers, again the husband stole funds and purchased a home which he subsequently declared homestead. Again the doctrine of constructive trust was used to follow the funds. In Bush, a fraud in real estate was used by Bush to purchase a homestead. The court used the constructive trust doctrine to follow the proceeds into property which became homestead after purchase.

We distinguish these cases based on the rationale that, where a constructive trust is declared to exist on the stolen funds, the trust property may be traced in its muta[26]*26tions to property purchased with the stolen funds, providing the property can be identified and is not a previously existing homestead. The property acquired belongs to the beneficiary of the trust and a subsequent declaration of homestead is too late to protect the mutated stolen constructive trust property.

The case before us is unique because a prior final judgment has imposed a lien on one-half of the already existing homestead. Since the Glovers did not make a direct attack upon that judgment, either by a bill of review or an appeal, it must be considered as final, although it may be void for want of jurisdiction over the subject matter. Middleton v. Murff, 28 Tex.Sup.Ct.J. 396, 689 S.W.2d 212 (1985). In Middleton at 397, 689 S.W.2d 212, the supreme court stated that it recognized:

an exception to the Rule 329b(f) requirement of a bill of review in cases where the court rendering the judgment had no “jurisdictional power” to do so. We have defined “jurisdictional power” in this sense to mean “jurisdiction over the subject matter, the power to hear and determine cases of the general class to which the particular one belongs.”

The record presented to us in this case includes the petition of Sharp in the first lawsuit, which clearly states that Sharp seeks a lien on a family homestead. Hence, the court in that first lawsuit knew it was dealing with a constitutionally protected homestead, which is evident from the judgment. While we have no authority over the former judgment, we are, nevertheless, compelled to collaterally view the equitable lien as a nullity. In this case, David Glover filed a separate answer in the court below in which he attacked the validity of the equitable lien established in the first lawsuit and cited the constitution as his basis for such attack. Thus, we are presented with the question of a final, non-appealable judgment which appears void on its face, and which one of the appellees collaterally attacked.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

in Re Amelia v. Kelly
Court of Appeals of Texas, 2015
In re Tarkanian
562 B.R. 424 (D. Nevada, 2014)
Andrew R. Mireles v. Jennifer S. Jack
Court of Appeals of Texas, 2009
Maki v. Chong
75 P.3d 376 (Nevada Supreme Court, 2003)
Mowbray v. Avery
76 S.W.3d 663 (Court of Appeals of Texas, 2002)
McDaniel v. Camp (In Re Camp)
59 F.3d 548 (Fifth Circuit, 1995)
Bransom v. Standard Hardware, Inc.
874 S.W.2d 919 (Court of Appeals of Texas, 1994)
Mosley v. Ticor Title Insurance Co. of California
875 S.W.2d 10 (Court of Appeals of Texas, 1994)
Vackar v. Patterson, Boyd, Lowery, Aderholt & Peterson, P.C.
866 S.W.2d 817 (Court of Appeals of Texas, 1993)
Rogers v. Great American Federal Savings & Loan Ass'n
801 S.W.2d 36 (Supreme Court of Arkansas, 1990)
Pinson v. Commissioner
1990 T.C. Memo. 234 (U.S. Tax Court, 1990)
Smith v. Moody
862 F.2d 1194 (Fifth Circuit, 1989)
Mallou v. Payne & Vendig
750 S.W.2d 251 (Court of Appeals of Texas, 1988)
Smith v. Moody (In Re Moody)
77 B.R. 566 (S.D. Texas, 1987)
Southern County Mutual Insurance Co. v. Powell
736 S.W.2d 741 (Court of Appeals of Texas, 1987)
Southern County Mut. Ins. Co. v. Powell
736 S.W.2d 745 (Court of Appeals of Texas, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
701 S.W.2d 24, 1985 Tex. App. LEXIS 12902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-sharp-custom-homes-inc-v-glover-texapp-1985.