Grace v. Wade & Mains

45 Tex. 522
CourtTexas Supreme Court
DecidedJuly 1, 1876
StatusPublished
Cited by89 cases

This text of 45 Tex. 522 (Grace v. Wade & Mains) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace v. Wade & Mains, 45 Tex. 522 (Tex. 1876).

Opinion

Moore, Associate Justice.

The only question in this case is, whether a vendee of land, who claims title by an unrecorded deed, or bond for title, or the purchaser, with notice of such deed or bond, at execution sale on a judgment [525]*525against the vendor, where the creditor has no notice of the title or claim of the vendee at the date of the levy of the execution, has the better title. The determination of this question depends upon the nature and character of the lien acquired by a creditor by the judgment and levy of execution, and if it is admitted that the lien of the creditor is superior to the unrecorded deed of the vendee, whether a purchaser under the execution with notice, is entitled to all the rights of the creditor.

Both of these propositions, as we think, are plainly and conclusively answered by our statutes. There appears to be, however, some uncertainty on the subject in the mind of the profession, as well as some confusion in regard to it in the later decisions of the court. This seems to us to arise from a failure to apprehend the full^ import and purpose of the statutes, and from not observing^the facts upon which the earlier decisions of the court turned and the distinctions adverted to by the court in determining those cases.

It is well settled that the lion acquired by a judgment or levy of an execution by the common law, extends to and binds only such title or interest as the debtor has in the land at the date of the judgment or levy of the execution under which the lien is claimed, and that the equitable rights of third persons will be upheld against the legal hen of the debtor. (Blankenship v. Douglas, 26 Tex., 228.)

But the rights of the lien creditor, and of third parties claiming by unrecorded conveyances, are not to be determined with us by the common law, but by the statute changing and modifying, and to some extent, at least, entirely abrogating the common-law rule in such case.

Article 4988, Paschal’s Dig., says: “All bargains, sales, and conveyances whatsoever, of any lands, tenements, and hereditaments, whether they may be made for passing any estate of freehold or inheritance, or for a term of years; * * * and all deeds of trust and mortgages whatsoever, which shall hereafter bo made and executed, shall be void as [526]*526to all creditors, and subsequent purchasers for valuable consideration without notice, unless they shall be acknowledged or proved, and lodged with the clerk to be recorded according to the directions of this act, but the same, as between the parties and their heirs, and as to all subsequent purchasers, with notice thereof, or without consideration, shall nevertheless be valid and binding.”

And the next succeeding article expressly shows that title bonds, if, indeed, there could have been otherwise any doubt about it, are written contracts in relation to land, to which the provisions of the article we have quoted, apply.

The statute, in plain and unmistakable language, says that unrecorded conveyances, whether by deed or bond, are void as to two classes of persons, viz, “ all creditors ” and “subsequent purchasers for valuable consideration without notice.” How, it will be noted that there is a marked distinction between these two classes of persons for whose benefit the statute was enacted; for while such unrecorded instruments are void as to “ all creditors,” they are only so as to “ purchasers for a valuable consideration and without notice.” And lest there might be any uncertainty in its proper construction, and to guard against all danger of confounding the two classes, as to whom such instrument was declared void, without making any qualification or restriction as to creditors, it enacts, that as to the parties to such instruments, and their heirs, and all subsequent purchasers with notice, and without valuable consideration, they shall be valid. And as still further showing that the same rule was not intended to apply to the “creditors,” as to whom the unrecorded.instrument is declared void, as is applicable to “subsequent purchasers,” the statute again says: “Every conveyance, covenant, agreement, deed, deed of trust, or mortgage, in this act mentioned, which shall be acknowledged, proved, or ^ certified, according to law, and delivered to the clerk of the proper court to he recorded, shall take effect and be valid as to all subsequent purchasers for a valuable consideration, [527]*527without notice, ancl as to all' creditors from the time when such instrument shall he so acknowledged, proved, or certified and delivered to such clerk, to he recorded, and from that time only. (Paschal’s Dig., art. 4994.)

How, if the unrecorded instrument cannot take effect, but is void as to creditors, it is absurd to say that the creditor’s lien does not bind the land to which it applies, or that it cannot be enforced by the sale of the land so bound by it for the payment of the debt, just as if no such instrument existed. And it would be equally as absurd to say that the right acquired by the creditor by his lien, not merely to purchase himself, but to have the land sold in open market, when once secured, can be taken away by the subsequent record of such instrument, or that the party holding such lien can, by subsequent notice, be precluded from the full benefit of his lien for the satisfaction and discharge of his demand, except by becoming himself the purchaser.

It is scarcely necessary to say that our courts, like those of other States whose statutes on this subject extend to creditors, have held that they only apply to and protect creditors who have acquired some character of lien upon or interest in the land. It may be well to remark that it has also been held by our court that the equity of the statute only applies to creditors who are not chargeable with notice of the unrecorded deed prior to acquiring their lien, differing in this respect from the construction given their statute by the courts of Virginia, from which ours seems to have been in the main copied. But as the creditor in this case had no notice prior to the levy of the execution whereby the lien was acquired, we are not called upon to choose between these conflicting decisions, if this could be now regarded as an open question in this court.

The cases to which we are cited by appellee’s counsel in support of the ruling of the court below, are those of Fisk v. Wilson, 15 Tex., 432; Blankenship v. Douglas, 26 Tex., [528]*528226; Ayres v. Duprey, 27 Tex., 598; Orme v. Roberts, 33 Tex., 768; Price v. Cole, 35 Tex., 461.

r While the last of these cases unquestionably maintains the judgment in this case, none of the others can be properly said to do so. The leading principles decided in these cases, as well as the essential facts upon which the judgments in them rest, are altogether different from those presented by the case of Price v. Cole. This manifest difference was not adverted to in the opinion in the latter case, but seems to have been entirely overlooked by the court. The court evidently took it for granted the judgments in these several cases were absolutely decisive of the case then before it, and contented itself, on their supposed authority in its support, with the bare announcement of its judgment.

In Fisk v.

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45 Tex. 522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-v-wade-mains-tex-1876.