First State Bank of Memphis v. Seago

120 S.W.2d 951
CourtCourt of Appeals of Texas
DecidedOctober 10, 1938
DocketNo. 4935.
StatusPublished
Cited by2 cases

This text of 120 S.W.2d 951 (First State Bank of Memphis v. Seago) 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 State Bank of Memphis v. Seago, 120 S.W.2d 951 (Tex. Ct. App. 1938).

Opinion

STOKES, Justice.

This suit was filed April 4, 1936, by the-appellant Bank against appellee, S. L. Seago, upon two promissory notes in the respective sums of $2429 and $2703. Appellant also sought foreclosure of a deed: of trust lien, given by appellee to secure-the payment of the notes, upon an undivided one-fourth interest in lots Nos. 1 to IS inclusive, in block No. 32, of the original-town of Memphis.

Appellee answered by pleading the general issue and by special answer to the effect that the deed of trust was void because the property covered by it constituted his business homestead, it being, at the time the deed of trust was executed, and for many years prior thereto and at all times since its execution,’the place where he, as the head of a family, exercised his calling or business as a cotton ginner and service station operator.

There was no contention that the notes were given for improvements on the property nor for part of the purchase price nor for taxes due thereon- or assessed against the same.

A jury was empaneled to try. the case, but at the conclusion of the testimony the parties agreed that the jury may be discharged and all issues of law and fact 'submitted to and determined by the court. Judgment was rendered in favor of appellant against appellee upon the notes but, finding the property to constitute the homestead of appellee, foreclosure of the deed of trust -lien was denied.

Appellant duly excepted to the judgment, gave notice of appeal, and presents the case in tins court upon the general contention that lots Nos. 13, 14 and IS had been abandoned by appellee as a business *953 homestead and the court erred, therefore, in denying foreclosure of its deed of trust lien as to that portion of the property.

The facts show that the fifteen lots constituted the entire block No. 32 and that, although on the plat of the city of Memphis, it was subdivided into fifteen lots, yet the entire block had always been used as a unit and appropriated in its entirety, especially since 1916 when ap-pellee and his partners erected a cotton gin about the center of same. Appellee operated the gin continuously from 1916 to the date of the trial. He was a married man and owned other lots and property in the city of Mémphis which constituted the residence homestead of himself and family. In July, 1929, he erected a brick structure on the southeast corner of the block, .consisting of drive-in shed and a room adjoining, which was suitable for, and has thereafter been used as a gasoline filling station. This structure was located on the south 24 feet of lot No. 15 and the southeast portion of lot No. 14. The undisputed evidence shows that the cotton season covered only about half of each year and that during the other half, prior to the erection of the filling station, appellee was without employment. He testified that he erected the filling station in order that he might operate it and thereby be employed or engaged during the time each year the cotton gin was not in operation. He testified that he, personally, operated the filling station for about eighteen months after it was built and then leased it to other parties for one year, with the understanding and agreement that he would be given employment at the filling station during the time he was 'not engaged in operating the cotton gin. At the end of the year, the lease was renewed and the filling station has been leased each year since, always with the understanding that appellee would be given •employment in the filling station during the time when he was not engaged in operating the cotton gin. The deed of trust was executed March 26, 1935, and at that time the filling station was under lease for a year, appellee being then employed by the lessee to assist him in connection with its •operation.

The case presents two phases of the ■question of whether or not the filling station and the plot of ground upon which it was located were abandoned as the business homestead of appellee. First, whether or not the erection of the filling station and its operation by appellee, in person, constituted an abandonment of that portion of the property and, secondly, whether or not the leasing of it, under the circumstances, constituted such abandonment and, in either case, deprived it of the exemption granted by Art. 16, Sec. 51, of the Constitution, Vernoris Ann.Civ.St.Const. Art. 16, § 51, as the homestead of appellee by virtue of its being a place to exercise, the calling or business of appellee as the head of a family.

As to the first phase of the question, appellant asserts that appellee having contended and shown that his occupation, calling or business was that of cotton ginner and that the building constituting the filling station, including the ground upon which it was located, having been dedicated to a use foreign to that of a cotton ginner, which was his chief occupation, it necessarily would follow that- same was abandoned as a place to exercise his calling or business as a cotton ginner and, this having taken place prior to the execution of the deed of trust," the court erred in denying appellant a foreclosure of its deed of trust upon that portion of the property.

It has many times been held by the courts of this state that a homestead, whether it be the lot or lots upon which the family resides or a place to exercise the calling or business of the head of the family, will not be considered abandoned before the acquisition of a new one, except upon evidence of very convincing character showing abandonment. Carstens et al. v. Landrum, Tex.Civ.App., 5 S.W.2d 208; Bogart v. Cowboy State Bank & Trust Co., Tex.Civ.App., 182 S.W. 678; Sykes v. Speer et al., Tex.Civ.App., 112 S.W. 422.

In delivering the opinion of the court in the Sykes Case, supra, Justice Hodges, said [page 426] : “When no other homestead has been acquired ‘it must be undeniably clear and beyond, almost the shadow, at least of reasonable grounds of dispute, that there has been a total abandonment with an intention not to return and claim the exemption,’ before an abandonment will be found. Gouhenant v. Cockrell, 20 Tex. [96], 97; Cantine v. Dennis (Tex.Civ.App.) 37 S.W. [184] 186.”

In the Carstens Case, supra, it is said [page 210] : “The rule is that an old home will not be considered abandoned before the acquisition of a new one, except upon *954 evidence of very convincing character showing abandonment with intention not to return.”

While these cases refer to the homestead in its entirety, the same rule unquestionably applies when it is contended that a portion only of the old home has been abandoned.

The Constitution, Art. 16; Sec. 51, Vernon’s Arin.Civ.St. Art. 16, § 51, among other things, provides that the homestead of the family shall consist of * * * “a place to exercise the calling or business of the head of a family.” It has been said that the words “calling” and “business”, taken together, embrace every legitimate avocation in life by which an honest support of a family may be obtained. In the case of Shryock et al. v. Latimer, 57 Tex. 674, Justice Stayton, speaking for the Supreme Court, said that:

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120 S.W.2d 951, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-state-bank-of-memphis-v-seago-texapp-1938.