Dutton v. Kinsey

124 S.W.2d 446
CourtCourt of Appeals of Texas
DecidedNovember 25, 1938
DocketNo. 13834.
StatusPublished
Cited by4 cases

This text of 124 S.W.2d 446 (Dutton v. Kinsey) 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
Dutton v. Kinsey, 124 S.W.2d 446 (Tex. Ct. App. 1938).

Opinion

BROWN, Justice.

On March 16th, 1915, G. A. Dutton and his wife, A. E. Dutton, conveyed a certain tract of land, situated in Wise County, Texas, to one J. E. Hampton, a brother-in-law of Mrs. Dutton. The consideration recited is $1,460 cash, and the execution by Hampton of a promissory note for the sum of $500, payable on- January 1st, 1920, secured by a vendor’s lien on the land conveyed.

Mrs. G. W. Kinsey, a widow, became the owner and holder of the note by purchase thereof, before maturity, and default being made in the payment thereof, after the note and lien had been twice extended, she brought suit on the note and for foreclosure of the lien under the following circumstances developed by the testimony; Mrs. Kinsey testified that Hampton came to see her and exhibited the said deed and told her he had purchased the property from Dutton and wife and wanted her to take up the note, that Dutton wanted all cash so he could buy another place in Oklahoma; that, subsequently, Mr. Dutton came to see her several times in an effort to get her to buy the note, that he had it in his possession and exhibited it to her, and she finally bought it on April 3rd, 1915; that she paid Dutton the face value of the note, $500, and he endorsed the same — it being made payable to Dutton and A. E. Dutton — by endorsement for and in behalf of his wife, *448 and by his personal endorsement, and that Dutton executed a transfer of the note and lien to her; that at the time Dutton had the deed in his possession, and he placed the revenue stamps on same, and her recollection was that Dutton mailed the deed to the County Clerk of Wise County for recording, and that she mailed the transfer for a like purpose. The deed shows that it was recorded subsequent to the sale of the note. She testified further that Dutton came to see her thereafter and told her he had failed to find a place in Oklahoma that suited him and that he had bought the place back from Hampton and he was the person now responsible to her for the payment of the note; that, at his request, she executed two different extension agreements; that Dutton paid some interest on the note, and on several occasions tried to sell the place, on one of which she agreed with the prospective buyer to reduce the note by crediting the note with some of the accrued interest, but all trades fell through. The deed, from Hampton and wife, reconveying the land to Dutton, and in which Dutton assumed the payment of the note, is dated June 5th, 1915, but was not recorded by Dutton until April 18th, 1916 — more than ten months after it was executed.

It was developed by Mrs. Dutton’s testimony that she knew that her husband’s trip to Decatur, Texas, on which she accompanied her husband and Mrs. Kinsey, had to do with the note. She said: “Well, they had business; something concerning the outfit some way. It was the note, I reckon.” She testified that she knew the extension of the note was being asked for and granted. And she testified that she knew her husband received from Mrs. Kinsey $500 for the sale of the note.

Mrs. Dutton, without the joinder of her husband, and without an order of the court permitting her to do so, and without pleading any fact showing her right to sue without the joinder of her husband, answered, claiming the property as her sole and separate estate, inherited from her parents, and that same was and is her homestead; that the deed executed to her brother-in-law, Hampton, was never delivered because the consideration was never paid by him; that it was put on record without her knowledge and consent; that the reconveyance by Hampton and wife to Dutton was a nullity and made in fraud of her rights; that she never consented to any lien being placed on her property, and all instruments purporting to show any sale of her lands, and to create any lien thereon, “are each and all illegal, fraudulent and void, and could not in law affect the right and title of this defendant to her said land,” and as a cross action she prays that plaintiff take nothing against her, and “that she recover over against the plaintiff, and against G. A. Dut-ton (her husband), jointly and severally, the title to the land described in plaintiff’s petition, and that all claims, clouds and liens attempted to be cast against her title be cancelled and removed, etc.”

Thus it appears that the parties to the suit are: plaintiff sues Mr. and Mrs. Dut-ton to establish her debt and lien and for a foreclosure thereof, while the defendant, Mrs. Dutton, sues for the relief indicated in the quoted prayer, as against the plaintiff and her husband, G. W. Dutton, by way of cross-action.

In her supplemental answer, *Mrs. Dut-ton alleges her long ownership and residence upon the premises, and that the plaintiff bought the note without exercising care and diligence, “that if any such care had been exercised or any diligence used, the plaintiff would then have learned that such note was not a valid vendor’s lien on said land, and was illegal and could not be enforced.” She further pleaded “that when she signed •the deed to J. E. Hampton, it was in an attempt to carry out an honest, bona-fide sale of said land, and that said sale was never completed, and such deed was never delivered, and such sale was abandoned, and this defendant never knew that any vendor’s lien note was ever made, or ever transferred to the plaintiff herein, or that she was claiming any lien on her land until a short time before the filing of this suit; and that she has never done any act or thing in connection with this whole matter except that which-was sincere and honest and above-board in every way, and she has never been guilty of any scheme, fraud or conspiracy, as charged, by the plaintiff herein.”

The plaintiff, in answer to the second amended answer of Mrs. Dutton, had pleaded a scheme and conspiracy engaged in by Mrs. Dutton, her husband and her brother-in-law, Hampton, to make the deed and vendor’s lien note for the purpose of disclosing a bona-fide transaction and in order to sell the note to her, and pleaded estoppel on the part of Mrs. Dutton to deny the validity of the debt and lien.

The case was tried to a jury, on special issues, and the following findings were made: (1) that the sale by Dutton and wife *449 to Hampton was simulated for the purpose of giving the appearance to the note in issue of a valid, secured, vendor’s lien on the land, (2) that the reconveyance by Hampton and wife was a part of the scheme to conceal from Mrs. Kinsey the fact that the sale was simulated, (3) that the deed from Dutton and wife to Hampton was delivered to Hampton, (4) that Mrs. Dutton had knowledge of the delivery, (5) that Mrs. Dutton had knowledge of the existence of the vendor’s lien note in question, (6) that she had knowledge of the sale of the note by her husband to Mrs. Kinsey, (7) that when Mrs. Kinsey purchased the note she had no knowledge, or information, that led her to believe,, or reasonably should have led her to believe, that the note and lien were not genuine and valid, (8) that Mrs. Dutton entered into a conspiracy with her husband and her brother-in-law, Hampton, to effect a simulated transaction, (9) that Mrs. Dut-ton authorized her husband to consummate the sale of the note to Mrs. Kinsey, (10) and to make and execute the two extension agreements, and (11) that Mrs. Dutton authorized the delivery of the deed to Hampton.

Judgment having been rendered for Mrs. Kinsey for the relief prayed for, and denying Mrs. Dutton relief on her cross action and answer, Mrs.

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

Related

Noble Mortgage & Investments, LLC v. D & M Vision Investments, LLC
340 S.W.3d 65 (Court of Appeals of Texas, 2011)
Seigal v. Warrick
214 S.W.2d 883 (Court of Appeals of Texas, 1948)
Bradford v. Manney
133 S.W.2d 601 (Court of Appeals of Texas, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
124 S.W.2d 446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dutton-v-kinsey-texapp-1938.