Graham v. Letot

103 S.W.2d 1031
Court of Appeals of Texas·Decided February 6, 1937·No. No. 12102·Published·Cited by 4 cases

Opinions

BOND, Justice.

This suit was filed by appellant, Mrs. M. V. Graham, against appellee, Oliver Letot, on March 5, 1934, in trespass to try title; she amended her petition on October 12, 1934, retaining her allegations of trespass to try title and, in the alternative, that she had theretofore procured a judgment in cause No. 66092-B, styled John R. Brandon et al. v. O. G. Claxton et al., on a paving assessment certificate, evincing a lien against the property in controversy, sought foreclosure of said lien against appellee.

Appellee filed a plea of not guilty and asserted superior title in himself, under the three and five-year statutes of limitation (Vernon’s Ann.Civ.St. arts. SS07, 5509), and also pleaded the two and four-year statutes of limitation (articles 5526, 5529), in bar of appellant’s suit.

The cause was submitted to the court without a jury and judgment entered in favor of appellee for the title and possession of the property, and removed all clouds cast upon his title by virtue of the paving certificate, lis pendens notice, judgment, etc., from which appellant has appealed.

The facts in this case are undisputed: On May 18, 1923, by general warranty deed, the Davies Construction Company conveyed the property in controversy to C. T. Layton and, as a part of the purchase price, Layton executed to Lingo Lumber Company a first vendor’s lien note of $2,-000, reserved on the property, and also executed a deed of trust lien to John C. Read, trustee, for the use and benefit of the payee of said note. On March 23, 1923, Lingo Lumber Company assigned the $2,000 note and lien to Oliver Letot, by a duly executed and recorded transfer, and, on January 6, 1925, O. G. Claxton became the owner of the property, assuming the $2,000 lien then existing and held by Oliver Letot.

While O. G. Claxton was the beneficiary owner and in possession of the property in question, and Oliver Letot was the owner of the vendor’s lien, the city of Dallas, on April 18, 1924, by resolution, ordered the pavement of Ash Lane, a street in the city and in front of said property, and, by necessary steps and successive resolutions and ordinances, affected the pavement of the street, and thereafter, on June 29, 1925, issued to the contractor, Fuller Construction Company, a special assessment certificate in the sum of $287.42, covering the cost of such improvement.

All of the proceeding being regular and in compliance with the statutes and the charter of said city, O. G. Claxton and wife were privileged to and did execute a collatcr.J and cumulative mechanic’s lien contract, as further evidencing the security of said assessment and certificate; and, after the creation of such liens, G. C. Mc-Elyea became the owner of the property and John R. Brandon et al. became the owners of the paving and mechanic’s liens.

On December 1, 1926, suit was filed by John R. Brandon et al., the owners of the paving certificate and lien, the purpose being to obtain a judgment on their debt against O. G. Claxton and to foreclose the paving or assessment lien against said property. The defendants, in that suit, were O. G. Claxton, one of the parties appearing in the chain of title and who executed the valid mechanic’s lien to secure the cost of the pavement; Lingo Lumber Company, the alleged owner of the $2,000 first vendor’s lien note, of date prior to the institution of the proceedings creating the paving lien; Davies Construction Company, the owner of a second vendor’s lien note of even date with the Lingo note; and G. C. McElyea, the record owner of the property at the time of the institution of said suit. Oliver Letot was not a party defendant in that suit. Judgment was entered on January 19, 1928, by a district court of Dallas county, simply giving to plaintiffs therein a personal judgment against O. G. Claxton for the amount of the paving certificate, and the alleged lien of Lingo Lumber Company was adjudged a first and superior lien against the property, and the lien of Davies Construction Company a second lien. Appeal was perfected in that case and this court reversed the judgment as to the adjudication of the liens and entered a judgment, establishing the paving certificate as a first and superior lien on the property, and that the liens of the Lingo Lumber Company and Davies Construction Company were inferior liens thereto. Brandon v. Claxton (Tex.Civ.App.) 30 S.W.(2d) 679. The Supreme Court affirmed this judgment on March 2, 1932. Claxton v. Brandon, 121 Tex. 184, 47 S.W.(2d) 263.

[1033]*1033In the meantime, the appellant in this suit, Mrs. M. V. Graham, acquired the interests of the plaintiffs J. R. Brandon et al. in the above suit, and when the mandate of the Supreme Court had been filed in the court below, caused an order of sale to issue and the property sold to satisfy her judgment of foreclosure, she becoming the purchaser thereof under a sheriff’s deed, dated July 4, 1933; and thereafter instituted this suit against Oliver Letot, who, on July 3, 1928, by trustee’s deed duly recorded, acquired the property by foreclosure of his lien, in default of payment of his $2,000 note.

It is conceded that appellee has been in open, peaceable, adverse, and continuous possession of the property, by use and occupancy only, 'since his purchase; that he has never given notice to appellant, the holder of the superior lien; that he was holding possession antagonistic to her lien; and further conceded that appellee’s immediate predecessor in title, C. T. Layton, held the title through and under a regular chain of title from the state of Texas down to himself, subject only to the first and second vendor’s liens created in the deed to him. It is also conceded that the paving proceedings and the issuance of the certificate by the city of Dallas were regular and in compliance with the statute and charter of said city. There is no attack made on the judgment foreclosing the paving lien, or the lien itself, created by the city and O. G. Claxton on the property by virtue of the paving proceedings, except that appellee, Oliver Letot, was not a party thereto, had no actual notice thereof, and was not given an opportunity to be heard as a holder of a prior vendor’s lien on the property; and that, not being made a party to the former suit of foreclosure, the judgment rendered therein was not binding as to him; thus, his rights to the property, at the time of the institution of the present suit, had ripened into a superior title under the three-year statute of limitation, and that the paving lien was barred as to him under the two and four-year statutes of limitation.

A lien on property is only an incident to a debt and where there is no debt or other unperformed obligations, there can exist no lien, and so long as the debt or obligations are in esse, not barred by limitation, the lien survives. O. G. Claxton, the beneficiary owner of the property, by mechanic’s lien contract and perforce of the statute, obligated himself to pay the value of the improvements on the property evidenced by the paving certificate, and the paving lien was merely an incident to such obligation; so, when that debt was merged into a final judgment and execution issued thereon against the obligor in 1932, we think it was tantamount to extending the two and four-year statutes of limitation, not only as to the debt, but the lien as well, to a period of ten years, the limitation period applicable to judgments (Vernon’s Ann.Civ.St. art. 5532). '

It has been decided in this state that a purchaser of land charged with á lien to secure a debt is entitled to assert against the holder of the lien the statute of limitation barring the debt.

Free access — add to your briefcase to read the full text and ask questions with AI

Graham v. Letot, 103 S.W.2d 1031 (Tex. Ct. App. 1937).

103 S.W.2d 1031 (Graham v. Letot) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Alexander v. Ling-Temco-Vought, Inc.
406 S.W.2d 919 (Court of Appeals of Texas, 1966)
Mingus v. Kadane
125 S.W.2d 630 (Court of Appeals of Texas, 1939)
Currie v. Burgess
120 S.W.2d 788 (Texas Supreme Court, 1938)