First National Bank v. Western Mortgage & Investment Co.

24 S.W. 691, 6 Tex. Civ. App. 59, 1894 Tex. App. LEXIS 401
Court of Appeals of Texas·Decided January 3, 1894·No. No. 230.·Published·Cited by 1 cases

Opinion

FISHER, Chief Justice.

Plaintiff in error sued James Ford and J. L. Driskill to recover on certain promissory notes executed by them, payable to plaintiff in error, and to foreclose a mortgage on certain real estate and cattle. The defendant in error, the Western Mortgage and Investment Company, was made defendant for the reason that it claimed to have a lien upon the same property. Plaintiff’s petition alleged that its mortgage was to secure a debt existing — that is, the notes sued on— at the time it was executed.

The defendant in error, the Western Mortgage and Investment Company, answered, that defendant Ford was indebted to it, and had, prior to the mortgage of the plaintiff, executed to defendant a mortgage covering the cattle in controversy, and that the plaintiff in error had notice of that fact, and that it was not mortgagee for value.

The court below submitted to the jury only the issue as to whether the plaintiff in error had notice of the mortgage executed by Ford to the defendant in error at the time its mortgage was executed. In response to this issue, the jury found that the plaintiff did have notice. Thereupon the court rendered judgment in favor of the Mortgage and Investment Company, foreclosing its lien on the property and giving it priority.

Opinion. — We do not pretend to set out all of the facts, but find only such facts as are necessary to be considered in disposing of the issues raised by the briefs of the parties. These facts are as follows:

September 4, 1885, James Ford, in order to secure a debt of $39,075 due the Western Mortgage and Investment Company, executed and delivered to it a mortgage upon the following described cattle: “ My herd of 1500 cattle, located on my ranch pasture in McCulloch County, Texas, each and all of said cattle being marked and branded with the following mark and brand, F + H, and consisting of bulls and breeding and grazing cattle of one year old and upwards.”

January 3, 1887, James Ford executed and delivered to the plaintiff in error a mortgage, to secure a debt of $28,780.35, on the following described cattle: “All cattle in the following brand, to-wit, F + H, estimated at 2000 head. Some of said cattle are now in my pasture in McCulloch and Menard Counties, Texas, and the remainder on the range in said counties and elsewhere in the State of Texas, together with the *61 increase of said cattle.” This mortgage was not given at the time the debt was created, but was executed subsequent to that time, and upon no new consideration, so far as shown by the facts in the record.

At the time the plaintiff in error’s mortgage was executed, the jury have found, it had notice of the existence of the mortgage previously ■executed to the Western Mortgage and Investment Company, and as the facts upon this issue are not given in the record, and as counsel have .agreed that the evidence upon this point was conflicting, we find, in deference to the verdict, that the plaintiff in error had notice of the existence •of the mortgage executed by Ford to the defendant in error.

The possession of the cattle covered by these mortgages remained with the defendant Ford, the mortgagor, until the foreclosure by the judgment rendered in this cause.

At the time the mortgage to the defendant in error, the mortgage and Investment company, was executed, there were in the herd of cattle covered by said mortgage about 200 calves under one year old, and the in.crease of said stock of 1500 head covered by said mortgage since its •date of September 4, 1885, up to the time the judgment was rendered by the court below, is about 1800 head. No other cattle have been added •to said stock so mortgaged except.the increase.

We deem it unimportant to discuss at length that phase of the case that •complains of errors of the court in its charge on the question of notice, and of its refusal to give certain charges upon that subject. The question of notice is unimportant, as it appears that the plaintiff in error -acquired its subsequent mortgage solely upon the consideration of the pre-existing debt due it by Ford. Whether it had no notice of the prior -mortgage of the defendant in error at the time it acquired its mortgage •would not better its condition, because it is not supported by such a con-sideration as would protect it as an innocent purchaser or subsequent .mortgagee.

We apprehend that a subsequent mortgagee who acquires his rights -without notice stands in no better position than a subsequent purchaser -without notice. In the latter case, it has been steadily held by a long .line of decisions in this State, that an antecedent or pre-existing debt is .not a sufficient consideration as a basis for an innocent purchaser without notice. Overstreet v. Manning, 67 Texas, 659; Watkins v. Edwards, 23 Texas, 443; Ayres v. Duprey, 27 Texas, 593; Bailey & Pond v. Tindall, 59 Texas, 540; McKamey v. Thorp, 61 Texas, 648; Funk v. Paul, 64 Wis., 35; Jones on Mort., sec. 458.

But independent of this view of the law, as the record does not disclose 'the facts on the subject of notice, but simply says that the evidence upon this point was conflicting, we can not say that there was any error committed .in the charge of the court or in refusing the charges requested.

*62 We come now to the main question in the case: Does the prior mortgage of the defendant in error, although it does not mention increase, cover the increase of said herd of cattle so mortgaged, and does it include the calves then existing at the time of its execution that were under the. age of one year ?

The court below, as indicated by the judgment it rendered, held that, the increase and calves were covered by the mortgage, and gave judgment of foreclosure thereon in favor of the mortgage and investment, company, defendant in error.

The parties admit that the increase of stock may be mortgaged, but the-plaintiff in error contends that the prior mortgage of the defendant in error does not cover the increase, and that the language of the mortgage by the use of the words “ one year old and upwards,” in describing the property mortgaged, excludes the idea that it was the purpose of the parties to the instrument that it should embrace the increase and the calves-then existing under the age of one year.

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First National Bank v. Western Mortgage & Investment Co., 24 S.W. 691, 6 Tex. Civ. App. 59, 1894 Tex. App. LEXIS 401 (Tex. Ct. App. 1894).

24 S.W. 691 (First National Bank v. Western Mortgage & Investment Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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