Frantz v. Masterson

133 S.W. 740, 1911 Tex. App. LEXIS 1344
CourtCourt of Appeals of Texas
DecidedJanuary 5, 1911
StatusPublished
Cited by6 cases

This text of 133 S.W. 740 (Frantz v. Masterson) 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
Frantz v. Masterson, 133 S.W. 740, 1911 Tex. App. LEXIS 1344 (Tex. Ct. App. 1911).

Opinion

McMEANS, J.

Tbe following statement of the nature and result of the suit made ‘by appellants in their brief is substantially correct and is adopted:

“This suit was brought by Frank and Orville Frantz and George O. Thompson to enjoin tbe sale of about 50,000 acres of land by a trustee, who was purporting to act in favor of A. R. and H. Masterson in tbe matter of a foreclosure of about $220,-000 worth of vendor’s lien notes against said land under a deed of trust, all tbe notes not being due at that date upon their face, but only one of them so due, and tbe rest having been declared due by tbe bolder on tbe assumption that default bad been made in tbe payment of one of tbe notes and interest. It was averred that, according to their provisions, it was the right of tbe holders upon default to declare them all due, and to proceed to foreclosure. Tbe principal ground upon which the suit was brought by plaintiffs in error was that defendant in error A. R. Masterson, from whom George C. Thompson, one of tbe plaintiffs in error, bad purchased, bad undertaken to furnish an abstract of title showing good title to tbe 50,-000 acres of land. Tbe attorneys for George O. Thompson had found some defects in tbe abstract of title, which A. R. Masterson and H. Masterson, who was interested with him, assured Thompson that they could and would speedily cure, and insisted that the sale 'be perfected and tbe transaction closed; that Thompson made tbe cash payment and executed, tbe vendor’s lien notes and deed of trust securing them, and A. R. and H. Mas-terson, in consideration of tbe prompt closing of tbe deal, executed a written collateral agreement that they would proceed with all diligence to correct tbe defects pointed out by the attorneys for Thompson so that the abstracts would show a marketable title; that thereupon, on the faith of said collateral agreement, tbe deal was closed, tbe cash money stipulated in tbe contract of sale paid, and a deed made by Mas-[741]*741terson to Thompson, and vendor’s lien notes and a deed oí trust executed by Thompson for the deferred payments; that A. R. and H. Masterson thereafter used no diligence to correct the defects pointed out by the attorneys of Thompsón which they had obligated themselves to correct, and never corrected them at all, and, when the first deferred payment became due, demanded its payment, which was refused by the said Thompson and his subvendees Frantz & Frantz, who had succeeded to all Thompson’s rights under the purchase and contracts from and with the said Mastersons. The plaintiffs in error contended, and so set up in their petition, that the Mastersons had no right to declare the notes due -or insist upon the payment of any note upon its due day, unless they had first performed their undertaking set out in their collateral agreement upon which the trade was so speedily closed, that the proposed trustee’s sale was unjust and inequitable, and they appealed to the court to grant a writ of injunction restraining the sale until the said Mastersons. should perform their undertaking embodied in the collateral agreement.

“A temporary injunction was granted and the sale restrained. Whereupon H. Master-son, who had become the owner of all the deferred obligations, except certain obligations assumed by the said Thompson and which had not yet become due, reconvened in said cause, and asked a judgment and foreclosure of the vendor’s lien on the deferred payments. Upon a hearing the trial court dissolved the temporary injunction, and rendered judgment in favor of H. Mas-terson on the notes held by him, and foreclosed the lien by which they were secured, rendering judgment thereon against the plaintiff in error Geojge O. Thompson, and his coplaintiffs in error, Frantz & Frantz, who in their purchase from Thompson had assumed all his obligations and become sub-rogated to all his rights. The said H. Mas-terson had also set up that default had been made in the payment of said notes according to their terms, and under the provisions of said notes and deed of trust he was entitled to collect 10 per cent, of the amount of the principal and interest due thereon as attorney’s and collectiofi fees, alleging in this connection that he had placed the notes for collection in the hands of Elliott Cage, an attorney at law, and had agreed with him at the time of placing said notes in his hands for collection that he, the said Mas-terson, would pay to the said Elliott Cage 10 per cent, on the face of his recovery of said notes as attorney’s fees.

“The trial court in rendering a judgment dissolving the temporary injunction, and for foreclosure, rendered a judgment in favor of the said H. Masterson for 10 per cent, attorney’s fees, as stipulated in said note, amounting in the aggregate to about $20,000. The court, having theretofore sustained a general demurrer and special exceptions to plaintiffs’ original petition and supplemental petition, found in his conclusions of law and facts that the sum of 10 per cent, of the amount recovered was not a reasonable attorney’s fee, but that $3,000 was a reasonable fee for the labor and work performed, 'but that, in view of the decisions upon the point in Texas, he felt compelled to render a judgment for attorney’s fees for the full amount of 10 per cent, of the amount of principal and interest because H. Masterson had actually contracted with his attorney for the 10 per cent, stipulated in the note, and had made himself liable to the said attorney for that sum. He therefore rendered judgment for the amount sued for and 10 per cent, attorney’s fees.”

The plaintiffs in error made the point that the contract for attorney’s fees was merely a contract for reasonable compensation for the expenses of the holders of the notes in procuring judgment and foreclosure, and that the holders had no right, as against plaintiffs in error, to make a contract for a larger sum than a reasonable attorney’s fee, and this notwithstanding the stipulation in the notes for 10 per cent., and, further, that if it should be true,. in any case, that the defendants in error could, acting upon the face of the contract, make an agreement with their attorney for 10 per cent., estop-ping the plaintiffs in error from questioning that amount as reasonable, that no pleadings had been filed presenting the issue of es-toppel, and that judgment ought not to be rendered for any greater sum than a reasonable attorney’s fee. The court, rendered judgment nevertheless,' as stated, and the plaintiffs in error have brought the case to this court on writ of error for review. There is no statement of facts; the cause being before this court on the trial court’s conclusions of fact and law.

Plaintiffs in error’s first assignment of error complains of the action of the court in sustaining defendants in error’s general demurrer to their amended original petition. The petition discloses that, at the time George C. Thompson purchased the land, accepted the deed, and executed his vendor’s lien notes therefor, he was well aware of certain defects in the title of a few parcels of the many that went to make the 50,000 acres embraced in and conveyed by the deed, and that he closed the deal without requiring such defects to 'be first cured, relying upon the collateral agreement of the Master-sons to thereafter cure the same. There was no allegation that the title to any of these tracts had failed in whole or in part, and the petition negatives that the vendees had been evicted therefrom, nor was a rescission of the contract prayed for, nor was there any offer to pay to defendants in error the notes in the proportion that the number of acres the title to which was claimed to ■be defective bore to the total number con

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Cite This Page — Counsel Stack

Bluebook (online)
133 S.W. 740, 1911 Tex. App. LEXIS 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frantz-v-masterson-texapp-1911.