Helge v. American Central Life Ins. Co.

124 S.W.2d 191
CourtCourt of Appeals of Texas
DecidedDecember 14, 1938
DocketNo. 8773.
StatusPublished
Cited by5 cases

This text of 124 S.W.2d 191 (Helge v. American Central Life Ins. 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
Helge v. American Central Life Ins. Co., 124 S.W.2d 191 (Tex. Ct. App. 1938).

Opinion

BAUGH, Justice.

This suit was originally filed by the American Central Life Insurance Company against Augusta Helge, a feme sole, as maker, on a mortgage bond in the sum of $3,000, dated February 10, 1927, due January 1, 1937, payable to S. W. Hughes, and to foreclose a deed of trust lien on 154 acres of land in McCulloch County given by her to secure its payment. This bond and mortgage was assigned by Hughes to said plaintiff on February 15, 1927. While said suit was pending, the American United Life Insurance Company acquired the assets of the American Central Life Insurance Company, and was substituted as plaintiff. Meantime Mrs. Augusta Helge died testate, and the independent executor of her estate was made a party defendant. Both in the original and amended petitions, foreclosure of said lien was sought against Ernest J. Helge, executor of the estate of E. V. Helge, deceased, and his surviving widow, Hazel Helge, and against their several named children, under allegations that they were claiming an interest in said lands; but no personal judgment was sought against any of said last named defendants.

■Hazel Helge, for herself, and as next friend of her minor children, defended on the grounds that said lands had at all times been the homestead of herself and husband, E. V. Helge, until his death in April, 1930, and thereafter of herself and her minor children; that the deed from herself and E. V. Helge to his mother, Augusta Helge, dated January 1, 1927, wherein Augusta Helge executed a series of vendor’s lien notes payable to E. V. Helge to take up and extend a part of which the loan here involved was made, was but a simulated transaction for the purpose of fixing a mortgage on their homestead; that S. W. Hughes knew all these facts; and that the deed of trust sought to be foreclosed was therefore void. She also filed a cross-action against S. W. Hughes for damages for fraud in the event foreclosure be allowed the plaintiff; and a cross-action for damages against Ernest J. Helge, executor of the will of her deceased husband, and his bondsmen, alleging that he had dissipated and misappropriated her husband’s estate and had failed to pay off the .debt herein sued upon, though her husband’s will had so directed him and he had had sufficient funds on hand belonging to* the estate of her deceased husband with which to do so. Numerous pleas, and counter pleas, were filed but the foregoing general statement will suffice for our inquiry here.

The case was tried to a jury, but at the close of the evidence the trial court in-tructed a verdict in favor of the plaintiff for its debt; in favor of Hughes on the cross-action against him; dismissed Hazel Helge’s cross-action against Ernest Helge, executor of her husband’s estate; established the validity of plaintiff’s lien on the land; and ordered its judgment certified to the probate court for observance. From this judgment Hazel Helge and her children prosecute this appeal on affidavit of inability to pay costs.

The following facts are not controverted: E. V. Helge purchased said lands in 1915 and occupied same continuously thereafter as a homestead. As part of the purchase price he executed fourteen vendor’s lien notes for the sum of $176.10 each, maturing one each year from 1918 to 1931. Eight of these notes were purchased by F. M. Newman, and when the loan here involved was made in February, 1927, there remained unpaid of this series, the sum of $1,151.51. On January 1, 1927, E. V. Helge and wife conveyed said lands by general warranty deed, which was duly recorded, to Augusta Helge, for a recited consideration of $8,470, of which $1,000 was recited to be cash; and the execution by Augusta Helge of eight vendor’s lien notes payable to E. V. Helge — the first three being for the sum of $1,000 each, due in 1, 2, and 3 years, and made a prior lien on said lands; and the remaining five notes for $894 each, secured by a second lien on said lands. The first three of these notes were assigned by E. V. Helge to S. W. Hughes, and merged into and extended *193 by Augusta Helge, the maker thereof, in the note or bond here involved, and a deed of trust executed by her to secure their payment. Of the $3,000 paid by Hughes for these notes, $1,151.51 was paid by him to F. M. Newman to discharge the original purchase money notes held by him and the vendor’s lien securing them. The remaining $1,818.74, after deducting certain expenses, was paid to E. V. Helge. On January 11, 1928, Augusta Helge re-conveyed said land to E. V. Helge for a recited consideration of $9,000, $1,500 as cash, the assumption by him of the bond herein sued upon, and the cancellation of the five $894 notes theretofore executed by her to him.

E. V. Helge died testate prior to the filing of this suit, his will was duly probated, and administration of his estate still pending at the time of the trial hereof. Pending trial, after suit was filed, Augusta Helge died testate, her will was probated, and administration of her estate pending at the time of the trial hereof.

The first contention made by appellants is that under the facts and circumstances above outlined, the district court was without jurisdiction to try this cause, and that the probate court had exclusive jurisdiction of all the issues raised, because administration of the estates both of E. V. Helge and Augusta Helge was then pending in the probate court. This contention cannot be sustained. It is settled by the constitution, decisions, and statutes, as a general proposition, that the probate court has exclusive jurisdiction over the administration of estates, allowance and payment of claims against same, and settlement and distribution thereof, except where its powers are limited by the terms of a testator’s will itself as authorized by Art. 3436, R.C.S. But this rule is not without exception.

In the instant case when Augusta Helge reconveyed said lands to E. V. Plelge in January, 1928, who assumed the payment of the debt sued upon, as between them, E. V. Helge then became primarily liable thereon. But the holder of said indebtedness was not required to accept the new obligor unless it chose to do so. It still had the right to look to Augusta Helge, the maker, for the collection of its note, and the enforcement of its lien upon her failure to pay. This it did in the instant suit. As to this, the district court clearly had jurisdiction, so long as Augusta Helge was alive. And having properly acquired jurisdiction over the subject matter of this suit, it is now settled that it retained such jurisdiction, though she died after suit was filed, and her will was probated. It was only necessary in such case to make the executor a party, and upon a determination of the issues involved, to certify the judgment to the probate court for performance. Lauraine v. Ashe, 109 Tex. 69, 191 S.W. 563, 196 S.W. 501; Farmers’ & Merchants’ Nat. Bank v. Jones, Tex.Civ.App., 254 S.W. 251; Art. 2080, R.S.; Art. 2222, R.S. So far as the estate of E. V. Helge was concerned, and the interests of the devisees under his will, no personal judgment was sought against any of them; and under the issues made by their pleadings, without setting out same here, it is manifest, we think, that all of such issues could not have been fully adjudicated by the probate court. And where jurisdiction of the probate court is inadequate for that purpose, then the district court has jurisdiction and may grant the necessary relief. Gregory v. Ward, 118 Tex. 526, 18 S.W.2d 1049; Lauraine v. Ash, supra; Griggs v. Brewster, 122 Tex.

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Bluebook (online)
124 S.W.2d 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helge-v-american-central-life-ins-co-texapp-1938.