Heffron v. Cunningham

13 S.W. 259, 76 Tex. 312, 1890 Tex. LEXIS 1258
CourtTexas Supreme Court
DecidedFebruary 25, 1890
DocketNo. 2821
StatusPublished
Cited by22 cases

This text of 13 S.W. 259 (Heffron v. Cunningham) 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
Heffron v. Cunningham, 13 S.W. 259, 76 Tex. 312, 1890 Tex. LEXIS 1258 (Tex. 1890).

Opinion

STAYTOH, Chief Justice.

On May 4, 1885, appellant executed to Mrs. Mary A. Wicks three negotiable promissory notes, each for $916.66, and due in one, two, and three years from date—notes, however, bearing date March 31, 1885. These notes were given for the purchase money of a lot in the city of Galveston sold by Mrs. Wicks to appellant, and before their maturity were endorsed to E. H. Cunningham in part payment of advances made to Mrs. Wicks.

At the time Cunningham acquired the notes he had no notice whatever of claim, or fact which would give rise to claim, that they were not justly due to Mrs. Wicks.

The sale of the property was made through H. M. Trueheart & Co., representing Mrs. Wicks, and to evidence the terms of sale before deed and notes were delivered that firm executed a paper which is as follows:

“EARNEST RECEIPT.
“$200. Galveston, February 26, 1885.
“ Received from Isaac Heffron two hundred dollars, earnest to close sale to him of lot 105, in section Ho. 1, Galveston Island, and improvements, at total price of $3250. Terms of payment: Cash (including this earnest), $500; one year and 8 per cent interest, $916.66; two years and 8 per cent interest, $916.67; three years and 8 per cent interest, $916.67; total, $3250.
“ Title to be perfect, or to be made perfect, or this earnest to be refunded. Deed at expense of seller. Abstract of title at expense of seller, and all taxes to and including 1884. Deed of trust at expense of [317]*317buyer, and taxes of 1885. Possession at once. Notes to bear interest from March 1, 1885, and payable sooner at buyer’s option.
[Signed] “H. M. Trueheart & Co.,
“Agents for Mrs. M. A. Wicks.”

On May 4, 1885, Heffron paid the further sum of $300, which completed the cash payment, executed the notes, gave a trust deed to secure their payment, and received a deed from Mrs. Wicks, when the following was endorsed on the paper above set out:

“ We agree to hold the notes and deed of trust for ninety days from this date, and within which time title is to be made clear by necessary actions through court. May 4, 1885.

[Signed] “H. M. Trueheart & Co.”

It appears from the evidence that the title to the property was examined by an attorney employed by Heffron, and that while facts were claimed and believed to exist that made it the separate estate of Mrs. Wicks, then a widow, the deed was made to her during the life of her husband, and it was feared that on this account claim that it was community property might at some time be set up by their children, then minors.

To remove this seeming cloud on the title it was agreed that Heffron, holding deed from Mrs. Wicks, should institute a suit against her and her children to clear the title, and it was in contemplation of this that the last statement above that title was to be perfected was made.

The evidence further shows that the argreement made by Trueheart & Co. to hold the notes for ninety days was made for the purpose of preventing the circulation of the notes until the contemplated suit should be decided, which all parties supposed could be done within ninety days from the time this last agreement was made.

Heffron, however, contends and stated on the stand that it was expressly agreed when he executed the notes if the title was not cleared within ninety days from that date the trade was to be considered at an end, and the money advanced to be repaid.

It is contended by Mrs. Wicks and by Trueheart & Co. that there was no such understanding, but that on the contrary the agreement was that the notes should remain in possession of Trueheart & Co. until the title was clear, but that the trade should stand whether the title was cleared within ninety days or not.

The District Court of Galveston County began its next term after May 4, 1885, on the first Monday in June, and the term next following the June Term began the first Monday in October, 1885. Owing to difficulty in fixing the locality of the proposed defendants in the suit to be brought by Heffron, Heffron’s attorney filed suit, not to the June Term, but to the October Term, the suit being filed September 8, 1885. That suit was No. 12,652, the plaintiff being Isaac Heffron and the defendants [318]*318"being the four minor Wicks children, who answered through their mother, the guardian of their estate, having so been appointed by the County Court of Galveston-County.

On October 10, 1885, in that cause, a trial was had, evidence was heard, and the judgment of the court was rendered divesting the title to the" property out of the defendants and vesting it in Heifron, subject only to the payment by him of the purchase money notes made by him in favor of Mrs. Wicks, which are the same sued upon in the case at bar. Mrs. Wicks also filed an answer in her own right.

The following declaration is found in that judgment: “And it appearing to the court that the minor defendants Adeline Wicks, Celeste Wicks, Edward Wicks, and Louis Wicks had been personally served with process as required by law, and the said minor defendants having answered through their duly and legally appointed guardian, Mary A. Wicks, who answered for herself and in her own right as well as for said minors, and the court having heard the evidence in this cause,” etc.

The judgment further declares that Heifron was “represented by his counsel.”

It was shown that Mrs. Wicks was the duly qualified guardian of the estates of her minor children.

It is urged that appellee was not abona fide holder of the notes sued on, and that he held them subject to any equities existing between appellant and Mrs. Wicks. This is upon the assumption that appellee received them . in payment of an existing debt due to him by Mrs. Wicks.

The evidence does not justify the claim that the notes were received by appellee in payment of an existing debt.

After stating that he acquired the notes without notice of any claim that consideration for them had in any respect failed, or that they were not justly due, appellee stated that his “object was to furnish my sister (Mrs. Wicks) with means to purchase a home in Sewanee, Tennessee. When the notes were transferred to me I was at my plantation in Fort Bend County, Texas. * * * I advanced to my sister considerably more than the amount of the notes, and the notes were taken in part payment of said advances. They were transferred to me by H. M. Trueheart & Co., agents of Mrs. Mary A. "Wicks, on her order, in the usual course of business.”

This is the evidence bearing on the question, and the inference from it is that the money was advanced or paid in part on the faith of the notes. If, however, the notes had been received in payment of a part indebtedness appellee would be a bona fide holder.

While there is some conflict of authority on this question, it must be considered as settled in this State that one who in good faith takes by endorsement, before maturity, a negotiable promissory note in payment [319]*319______ ■of an existing debt, is a bona fide holder. Greneaux v. Wheeler, 6 Texas, 528.

This is the rule recognized by the great weight of authority, and the grounds on which it stands have been too often stated to justify repetition. Dan.

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Bluebook (online)
13 S.W. 259, 76 Tex. 312, 1890 Tex. LEXIS 1258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heffron-v-cunningham-tex-1890.