Havis v. Thorne Inv. Co.

46 S.W.2d 329
CourtCourt of Appeals of Texas
DecidedFebruary 3, 1932
DocketNo. 3727
StatusPublished
Cited by10 cases

This text of 46 S.W.2d 329 (Havis v. Thorne Inv. Co.) 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
Havis v. Thorne Inv. Co., 46 S.W.2d 329 (Tex. Ct. App. 1932).

Opinion

HALD, C. J.

July 12, 1020, R. T. Barbee and wife conveyed the N. E. ¾ of Sec. 1, block JIC-2, in Hale county, to Mrs. Bertie May Carruth, retaining in the conveyance the vendor’s lien to secure the payment of ten notes of even date, each in the sum of $444.45 and interest at 8 per cent., due respectively July 1, 1030, to July 1, 1039, inclusive. This deed was recorded August 28,1029.

Thereafter, on October 6,1929, the Barbees, by written transfer, assigned the first nine of the above-mentioned ten notes to appellee Thorne Investment Company, expressly stipulating in the transfer that note No. 10, retained by them, should “be secured by a lien upon said premises, second, subordinate and inferior to the lien securing the nine notes hereby assigned to said Thorne Investment Co. and subordinate to the lien, terms and provisions of two deeds of trust from Bertie May Carruth and R.tE. Carruth, her husband, to A. E. Pool, trustee for the benefit of said Thorne Investment Co. securing the payment of one principal note for $4,000.00, and six interest notes aggregating the sum of $400.00.”

This instrument was filed for record December 19, 1929, and duly recorded December 31, 1929.

The Carruths executed to Pool, as trustee for appellee investment company, their first deed of trust to secure their debt of $4,000 and interest at 6 per cent. It recites that the note secured thereby represents money advanced by the Thorne Investment Company which had been applied to the renewal and extension of their nine vendor’s lien notes in the principal sum of $444.45 each, dated July 12,1929, payable to the order of R. T. Barbee. It does not appear when this instrument was recorded, but, since a foreclosure of their second deed of trust only is sought in this action, that fact is immaterial.

Thereafter, on the 25th day of September, 1929, Mrs. Carruth, joined by her husband, executed a second deed of trust to Pool as trustee for the appellee investment company, conveying the land in controversy to secure the payment of six certain promissory notes, executed by them to the appellee investment company; note No. 1 being for $20, due December 1,1929, the remaining five notes being for $76 each, payable December 1, 1930, and annually thereafter to December 1, 1934. These notes were given to secure the interest payable on the principal debt of $4,000 mentioned in the first deed of trust. This instrument was filed for record the 25th day of February, 1930, and duly recorded on the 4th day of March, thereafter.

On the 7th day of February, 1930, the Car-ruths conveyed the land in question to Hazel H. Havis, “for and in consideration of the sum of $7,500.00, to us paid and secured to be paid by Hazel H. Havis, as follows: $3,055.00 cash in hand paid, the receipt of which is hereby acknowledged and confessed, and the further consideration of the assumption by the grantee herein of a certain loan in the principal sum of $4,000.00, due the Thorne Investment Co. of Abilene, Texas, the said note bearing interest at the rate of six per cent per annum and the further assumption by the grantee herein of a certain vendor’s lien note being No. 10 in a series of ten notes due and payable to the order of R. T. Barbee, et ux.,” etc.

On the 30th day of April, 1930, the Carruths filed what purports to be a correction deed, conveying the land in question to the appellant Hazel Havis, in consideration of the sum of $7,500 cash paid: “And the further consideration that grantee herein assumes and agrees to pay six certain promissory notes in favor of Thorne Investment Co. of Abilene, Texas, being of even date with and secured by deed of trust from grantors herein to A. E. Pool, Trustee” — followed by a description of the six notes above mentioned.

This suit was filed by Hazel Havis to cancel the second deed of trust executed by the Carruths to the appellee investment. compg.ny to secure these six notes, upon the ground that she had purchased said land for a -valuable consideration without any notice of either of them. She sought also the cancellation of the correction de.ed executed by the Carruths and described above, in which it is recited that, as part consideration, she ¿ssumfes the payment of the six interest notes described above. She alleges that this dee'd was made without her knowledge or consent, that she never accepted it and knew nothing of its existence and nothing of the deed of trust or the notes which it purports to secure until she was notified by the Thorne Investment Company that one of the notes for $76 was due.

The appellee investment company answered by certain exceptions, general denial, and [331]*331sought by cross-action against the Carruths to recover upon the note for $76, due December 1, 1930. The suit was for the balance of $50, interest, and a foreclosure of said deed of trust against all defendants. The appellee investment company further alleged that the quarter section of land had been conveyed to the Carruths by Barbee and wife for an indebtedness evidenced by ten notes in the sum of $444.45 each. That the Carruths had executed to said appellee a note and bond in the sum of $4,000, the consideration for which the appellee purchased nine of the above-mentioned ten notes, and that the Carruths executed a deed of trust upon said land to secure the payment of said $4,000 note, and that the one note for $20 and the five notes for $76 each were given by the Carruths to secure the payment of further interest upon the $4,000 note. That by written transfer on October 6, 1929, Barbee and wife, for the recited consideration of $4,000, assigned the first nine of said vendor’s lien notes to appellee investment company, reciting that the lien held by Barbee securing note No. 10 of the series of ten vendor’s lien notes should be subordinate and inferior to the lien securing said nine notes and subordinate to the lien and terms of the two deeds of trust given by the Carruths to appellee investment company to secure the payment of one principal note for $4,000 and six interest notes aggregating the sum of $400.

The appellant Hazel Havis, by supplemental petition, excepted to that part of defendant’s 'answer which set up that the Barbees executed a transfer to appellee of the nine notes ' upon the ground that such transfer could not be any record or constructive notice to her of any. fact therein recited or of the existence or contents of such transfer, and further specially excepted to that part of the answer setting up that in a transfer made by Barbee and wife assigning the nine vendor’s lien notes that the lien -securing note No. 10 should be subordinate to the lien, terms, and provisions of two deeds of trust executed by the Carruths for the benefit of appellee, on the ground that such recitation in such transfer, even though duly of record, was made by the Barbees after they had conveyed said land to the Carruths, under and through whom the plaintiff holds title.

The court overruled both of the exceptions, and peremptorily instructed the jury to return a verdict against the plaintiff and in favor of the Thorne Investment Company for the balance due on said note to date and for foreclosure of its lien. Judgment was entered accordingly.

The appellant says that the only question involved in this suit is whether or not plaintiff had notice of the second deed of trust and the six notes aggregating $400 described in said second deed of trust.

We think that this correctly states the crucial issue.

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Cite This Page — Counsel Stack

Bluebook (online)
46 S.W.2d 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havis-v-thorne-inv-co-texapp-1932.