First Nat. Bank of Eldorado v. Douglas

7 S.W.2d 148, 1928 Tex. App. LEXIS 535
CourtCourt of Appeals of Texas
DecidedMay 2, 1928
DocketNo. 7218.
StatusPublished
Cited by1 cases

This text of 7 S.W.2d 148 (First Nat. Bank of Eldorado v. Douglas) 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
First Nat. Bank of Eldorado v. Douglas, 7 S.W.2d 148, 1928 Tex. App. LEXIS 535 (Tex. Ct. App. 1928).

Opinion

BLAIR, J.

On May 4, 1926, appellant sued Ella D. Douglas, individually and as admin-istratrix of the estate of her deceased husband, W. H. Douglas, and also his heirs and certain grantees, seeking under article 3314, Revised Statutes 1925, to subject and to establish and foreclose a statutory lien on certain lands in payment of an indebtedness owing by W. H. Douglas to appellant. ■ The petition alleged in substance that on July 20, 1922, W. H. Douglas executed and delivered to it his note for $4,351, bearing 10 per cent, interest, given for and in renewal of an indebtedness of more than three years’ standing, and that the note was due and unpaid. It was further alleged that W. H. Douglas died intestate January 21, 1925, leaving surviving his widow, Ella D. Douglas, who was duly appointed and qualified as administra-trix of his estate, and one child, Prank Douglas ; that Nora Douglas was the wife of the said Prank Douglas, and of this marriage three children, Allen, Bill, and Ruby, were born, the last two being minors; that on November 8, 1920, and subsequent to the date he became indebted to appellant, W. H. Douglas and his wife, Ella D. Douglas, being then insolvent, without consideration and by a deed of gift, conveyed certain lands to Frank and Nora Douglas for life, with remainder to their three above-named children in fee, the deed being filed for record May 5, 1921; that by a deed of gift, filed for record July 10, 1921, W. H. Douglas and his wife, Ella D. Douglas, being still insolvent, conveyed to their three above-named grandchildren other lands; that the deeds of gift were executed for the purpose of hindering, delaying, and defrauding the grantors’ creditors, including appellant, and as to appellant were void; that for the purposes of this suit the lands should be considered as belonging to the community estate of W. H. Douglas, deceased, and his surviving wife, Ella D. Douglas; and that Prank Douglas should be considered the heir of the community interest of his deceased father. By an amended original petition, filed March 11, 1927, appellant alleged the same facts as were alleged in its original petition, but in addition thereto alleged that the said administratrix refused to allow the note as a claim or indebtedness against the estate of W. H. Douglas, deceased, whereupon appellant sued her as administratrix in a separate proceeding from this, and on November 16, 1926, obtained a judgment establishing as against the said estate its claim or indebtedness as evidenced by the note. The deeds of gift and a certified copy of the judgment obtained against the administratrix November 16,1926, were attached to and made a part of appellant’s petition by reference. Appellant prayed for judgment establishing its debt against the estate of W. H. Douglas deceased; also to subject and to establish and foreclose a statutory lien under article 3314, Revised Statutes 1925, on the lands described in the gift deeds in satisfaction and payment of its indebtedness in accordance-with law; and also for judgment directing sale of the lands in suit, under execution issued on its judgment of November 16, 1926, with writ of possession to purchaser thereunder. The Douglases above named were made parties defendant and answered jointly ; the minors being represented by an attor-ny ad litem. Their following general exceptions to appellant’s petition were sustained by the trial court, and the cause dismissed-upon appellant’s refusal to amend:

“(1) To that portion of said petition which-seeks to establish a debt owed by W. H. Douglas, deceased, for the reason that said petition-shows that said debt has been established by a court of competent jurisdiction, and the only court of competent jurisdiction, and is therefore res adjudicata.”
“(2l) To that portion of plaintiff’s petition seeking to establish a lien against said property defendants say that said petition shows on its face that, if the plaintiff has ever had any cause of action, same has long since been barred-by the three, four, and five year statutes of limitations, all of which are here specially pleaded.”

In reference to the first exception we sustain the action of the trial court. It clearly appears from the petition that the same indebtedness sought to be here established against the estate of W. H. Douglas, deceased, as evidenced by the note, was established against said estate by the judgment of November 16, 1926. That judgment was by a court of competent jurisdiction,- all parties-necessary to the suit being before the court,, and is therefore res adjudicata of that portion of this suit which seeks to .again establish-the indebtedness in suit as one owing by said' estate.

The court erred in sustaining the second exception; that is, the limitations exception to the portion of the cause of action to-subject and to establish and foreclose a statutory lien on the lands described in the gift deeds in payment of the indebtedness evidenced by the note and later by the judgment of November 16, 1926. Article 3314, Revised. Statutes 1925, provides, in part, that:

“Whenever a person dies intestate, all- * * * his estate shall vest immediately in. his heirs, ⅜ * ⅜ but * * * subject in their hands to the payment of the debts of the intestate.”

The article further provides that when an-administrator of the estate of an intestate has been appointed “he shall recover possession of and hold such estate in trust to be-disposed of in accordance with law.” There is no specific statute of limitationsi fixing the-time in which a suit under this article to sub *151 ject property of an intestate in the hands of his executor, administrator, or heirs to the payment of intestate’s debts will be barred, or when limitations will begin to run against that character of suit. ' This court held in the case of Langston v. Robinson (Tex. Civ. App.) 2S3 S. W. 660, that articles 5607 and 5508, Revised Statutes 1925, barring a suit to recover real estate, if not commenced within three years, are not applicable to a suit under article 3314, supra, to subject property of an intestate in the hands of his executrix to the payment of his debts, but that the only limitation applying in such a suit was a limitation against the claim or indebtedness itself. We still maintain that view. The heirs have no right of possession of an intestate’s property after an administrator has been appointed. The administrator holds the property “in trust to be disposed of according to law.” Therefore suits under article 3314 to subject the property of an intestate in the hands of his administrator or heirs to the payment of intestate’s debts are not affected by any limitations of possession by such administrator or heirs so long as the debts of intestate remain unsatisfied, and the creditor’s remedy for their collection is not lost under some applicable statute of limitations or by his laches. In other words, the only limitation applying to that portion of the suit is a limitation against the claim or indebtedness itself, or against the remedy for its collection. It is clear from the allegations of the petition that neither the note evidencing the indebtedness in suit, nor the judgment of November. 16, 1926, later evidencing the same indebtedness, was barred by any statutes of limitations applicable to any action or remedy thereon at the time appellant filed either its original petition or its amended original petition. The indebtedness in suit was evidenced by a note due July 20, 1923.

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Related

Douglas v. First National Bank of El Dorado
40 S.W.2d 801 (Texas Supreme Court, 1931)

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Bluebook (online)
7 S.W.2d 148, 1928 Tex. App. LEXIS 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-of-eldorado-v-douglas-texapp-1928.