Dall v. Lindsey

237 S.W.2d 1006, 1951 Tex. App. LEXIS 1569
CourtCourt of Appeals of Texas
DecidedFebruary 5, 1951
Docket6118
StatusPublished
Cited by9 cases

This text of 237 S.W.2d 1006 (Dall v. Lindsey) 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
Dall v. Lindsey, 237 S.W.2d 1006, 1951 Tex. App. LEXIS 1569 (Tex. Ct. App. 1951).

Opinion

MARTIN, Justice.

Laura Lee. Lindsey, appellee, sued Curtis B. Dali and twenty-four other defendants, appellants, in trespass to try title to recover an undivided oiie-half interest in the minerals in and under 480 acres of land situated in Hale and Lubbock Counties. A number of the appellants sought judgment over against E. Orcutt on his warranty of title as made in certain mineral deeds. Liability of Orcutt to the appellants is primarily predicated on Laura Lee Lindsey’s prevailing in this case.

Laura Lee Lindsey and husband executed a first deed of trust on the 480 acres of land to secure a debt of $11,000 due the Empire Mortgage Company and also executed a second deed of trust on the same land to secure a debt for $1,655 due the Empire Mortgage Company. Laura Lee Lindsey’s title to .one-half the minerals is based wholly upon the invalidity of the trustee’s sale as made under the second deed of trust.

As a basis of recovery in the trial court, the appellee stressed the non-compliance with two particular provisions of the. deed of trust as follows: . ■ ■

First: That H. L. Hunter, substitute trustee, was not appointed in writing as required by the deed of- trust Under this point, two further issues were made: (a) That the sale was void because H. L. Hunter was disqualified to act as trustee in the deed of trust in that he was an officer and stockholder of the Empire Mortgage Company at the time he made a sale of the land and minerals to it. (b) Since there was no appointment in writing of the said H. L. Hunter as trustee, the curative provisions of Article 5523a, Vernon’s Ann.R. C.S. had no application.

Second: That the deed of trust provided for a sale of the land at the Courthouse door in the town' of Plainview, Hale County, Texas, and that the sale by the trustee in Lubbock County, Texas, as provided by Article 3810, R.C.S., was void.

The cause was tried before the court, without the intervention of a jury, upon the issues above stated. Judgment was rendered that Laura Lee Lindsey recover an 'undivided one-half interest in the minerals in and under said lands. Judgment for appellants over against E. Orcutt on his warranty of title was denied by the trial court. There is no serious controversy as to the facts but only as to the law applicable thereto.

The appellants perfected their appeal and by appropriate points joined issue with the appellee as to the proper application of the law to the facts under the issues as above' made. The points outlined above will be discussed separately in the order shown. An opinion on these issues will effect a ruling on the points stressed in this appeal by both the appellants and the ap-pellee.

The first contention, as to whether or not H. L. Hunter was appointed in writing as required by the deed of trust, is wholly a question as to the language used in the instrument of record. This instrument, as to t'he part here in issue, states: “That the Empire Mortgage Com *1008 pany, the legal owner and holder of the indebtedness described in said deed of trust has appointed H. L. Huntér, of Wichita County, Texas, as substitute trustee to act for and in the stead of said Wiley L. Robertson.” ,

The record shows that Wiley L. Robertson, trustee, by a written instrument, declined to act as trustee on March 8, 1932, and, on the same date the Empire Mortgage Company' executed the above appointment of H. L. Hunter. Ruling solely on the expression “'has appointed” as used in the instrument of appointment, the trial court followed the appellee’s contention and held the appointment to be merely ah “ex parte statement by the vice president about some instrument” and that same did not constitute an appointment- of a substitute trustee. ■

“The interpretation of any instrument ought to be broad enough to allow it to operate fairly and justly under all the conditions to which it may apply.” 12 Am.Jur. § 250, p 792. A-reasonable and plain construction of the language used in the instrument here in question is that the past tense was used merely to show the then completed act qf appointment — that upon the corporation executing the instrument, the appointment was a then completed act as required by the deed of trust.

The written instrument of March 8, 1932, constitutes an appointment in writing of H. L. Hunter as substitute trustee to act for and in the stead of Wiley L. Robertson, trustee. This point is further concluded by a subsequent ruling upon the application of Article 5523a, R.C.S.

Next to be considered is Section (a), under the first point above. Was the trustee’s sale void in that H. L. Hunter was disqualified to act as trustee because he was an officer and stockholder of the Empire Mortgage Company at the time he made the sale of the land and minerals to the corporation? Although the parties did not contract in the deed of trust that the trustee could purchase at his own sale, it is observed that the Empire Mortgage Company was the beneficiary under the deed of trust, the holder of the indebtedness secured thereby and 'was likewise the purchaser of the land and minerals at the sale under the deed of trust. These facts bring the cause within the rule stated by the Supreme Court in Southern Trust & Mortgage Co. v. Daniel, 143 Tex. 321, 184 S.W.2d 465, 467: “The rule is settled in this state that a mortgagee with power to sell may purchase at his own sale made at public auction, and that a deed of trust is in legal effect but a mortgage with power of sale. * * * Under that rule, if the petitioner were a beneficiary under the deed of trust, the sale to it could not be impeached.” See also Heiner et ux. v. Homeland Realty Co., Tex.Civ.App., 100 S.W.2d 795; Kaiser v. Hutcheson, TexCiv.App., 112 S.W.2d 1058.

H. L. Hunter was not disqualified to act as trustee under the facts shown and the sale could not be impeached.

The final proposition under the First point, Section (b), is whether or not Article 5523a, R.C.S. applies to the trustee’s deed and bars any question being raised as to the authority of the trustee to sell the land and execute the deed or as to the verity of the facts therein recited in that appellee’s suit was filed more than ten years after the recording of the trustee’s deed. This article has not been passed upon or construed by the State Courts of Texas.

Article 5523a as applicable to this cause reads: “Any person who has a right of action for the recovery of land because of any one or more of the following defects in any instrument * * * where such instrument is executed by a trustee without record of Judicial or other ascertainment of the authority of such trustee or of the verity of the facts therein recited ; * * * shall institute his suit therefor not later than 10 years next after the date when such instrument has been * * * actually recorded in the office of the county clerk of the county in which 'such real- estate is situated and not after-wards”.

The statute does not fix the period of limitation by adverse possession or like elements but fixes it solely by requiring the suit for the recovery of the land to be instituted “not later than 10 years next *1009

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Bluebook (online)
237 S.W.2d 1006, 1951 Tex. App. LEXIS 1569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dall-v-lindsey-texapp-1951.