Holt v. Ford

34 S.W.2d 1110
CourtCourt of Appeals of Texas
DecidedNovember 19, 1930
DocketNo. 3477.
StatusPublished

This text of 34 S.W.2d 1110 (Holt v. Ford) 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
Holt v. Ford, 34 S.W.2d 1110 (Tex. Ct. App. 1930).

Opinion

JACKSON, J.

This suit was instituted in the district court of Wheeler county, Tex., by D. E. Holt against F. G. Ford to recover a debt of $11,644.47, a balance, evidenced by three notes executed by the defendant and payable to plaintiff at Wheeler, Tex., and to foreclose an alleged lien-given on certain land fully described, to secure the payment of said debt.

Plaintiff alleged:

That the first note for the principal sum of $12,550.47, dated January 31, 1927, was entitled to credits amounting to $906. That the second note was for the principal sum of $112.39, dated February 8, 1928, and the third note was for the principal sum of $209.42, dated January 11, 1929. That each of said notes provided for 10 per cent, interest and 10 per cent, attorney’s fees, and was past due.

That the first note was a renewal of former notes given from time to time, and on or about October 15, 1923, the defendant and his wife executed to plaintiff a general warranty deed to certain lands in Wichita county, Tex., which he fully describes, and which we will call the Wichita county land, but that by mutual agreement said deed was not intended: as a conveyance, but was intended as a mortgage or deed of trust lien on said land to secure the payment of said first note. That the second and third notes evidenced money advanced by plaintiff to the defendant to pay the annual taxes on the Wichita county land upon the promise' and agreement of the defendant that such advancements should be-a charge against said land and plaintiff sub- *1111 rogated to the rights of the tax lien and said notes in addition thereto secured by the general warranty deed along with the other indebtedness owed by the defendant to the plaintiff.

That, at the time the deed was executed, it was agreed that the Wichita county land would be subdivided into small tracts. That the defendant should sell such tracts to purchasers to whom the plaintiff would execute deeds, and that the cash and notes received for such smaller tracts should be applied to the payment of the defendant’s indebtedness to plaintiff. That said lands were subdivided and certain tracts thereof sold, and the vendor’s lien notes received for said tracts were deposited with plaintiff as collateral security for his indebtedness. That certain other tracts remained unsold. The tracts, both sold and unsold, were described in detail.

That the defendant had deposited with plaintiff six certain vendor’s lien notes known as the Stephenson notes, which he describes in detail, for the aggregate sum of $6,160.75, as additional security for the notes sued on.

Plaintiff sought judgment for his debt, interest, and attorney fees, a foreclosure of his alleged lien on the unsold tracts of the Wichita county land, and that -the Stephenson vendor’s lien notes be ordered sold as under execution and the proceeds applied to the payment of plaintiff’s debt.

The defendant answered by general demurrer, numerous special exceptions, and general denial. He also pleaded a failure of consideration on the first note to the extent of $2,533.44; admitted the execution of the deed to plaintiff to the Wichita county land, but denied that the deed constituted a lien against said land, and denied that it was the intention of himself or of plaintiff that the deed should constitute a lien for the payment of his debt -to plaintiff, or that the Wichita •county land should be held as security therefor.

He also pleaded payment of the notes sued on, alleging:

That plaintiff was the owner of what the defendant designates as the Kelly land and the south one-half of section 7, which lan'd he describes as sections 19, 20, 32, the south one-half of 7, the west 330 acres of 33, the east 160 acres of 33, and the' west one-half of 31, situated in Wheeler county, Tex., and which we will hereafter call the Wheeler county land. That in September, 1924, the plaintiff and defendant entered into an agreement by the terms of which the defendant was employed to advertise the Wheeler county land for sale and attempt to interest people in the purchase thereof. That he was to bring or send prospective purchasers to inspect the Wheeler county land. That plaintiff agreed to accept $15 per acre net for said land, and that all cash and notes in excess of $15 per acre should be divided equally between the plaintiff and defendant. That all cash and notes accruing to defendant by virtue of such agreement was to be credited by plaintiff on the note or notes owed to him by the defendant. That, in pursuance to such agreement, the defendant advertised the Wheeler county lands for sale, took and sent prospective purchasers to the plaintiff, who, under and by virtue of such agreement, sol'd lands covered by the agreement for which he received in cash and notes $19,632.50 in excess of $15 per acre, and that the defendant was entitled to a credit upon his notes of one-half of $19,632.50.

That in 1919 the defendant sold the north one-half of section 21, block 84, in Wheeler county, to H. G. Blackstock, and accepted certain vendor’s lien notes against the land. That he sold said notes and indorsed them to plaintiff. That Blackstock defaulted in the payment of said notes, and by agreement between plaintiff and defendant Blackstock was released from his liability on the notes in consideration of his reconveying said land to the plaintiff, who agreed that, if said land was later sold, he would pay the defendant one-half of the amount realized therefor over and above the indebtedness against the land at the time of the reconveyance by Blackstock to plaintiff. That such indebtedness was $6,-000, all of which was paid by the plaintiff. That in 1929 the plaintiff sold the Blackstock land for $8,800, made a net profit of $2,800, and was thereby liable to pay to defendant one-half thereof, or $1,400. That, by reason of the facts alleged, the defendant has fully paid off and discharged all of his indebtedness to the plaintiff.

The plaintiff, by a supplemental petition, pleaded general denial.

In response to special issues submitted by the court, the jury found that on January 31, 1927, the defendant owed plaintiff $12,550.47; that the deed from the defendant and his wife to plaintiff conveying the Wichita county land was not intended by the parties to be a lien to secure the defendant’s indebtedness to plaintiff; that the plaintiff and defendant agreed that, if the Wheeler county lands were sold for more than $15 per acre, the excess was to be divided equally between plaintiff and defendant; that said lands were sold for more than $15 per acre, and that such excess amounted to $18,032.50; that the plaintiff agreed to credit the defendant with one-half of the excess so received in cash and notes on defendant’s indebtedness to plaintiff; that it was agreed between' plaintiff and the defendant that the defendant should have one-half of the amount that plaintiff should receive for the Blackstock land over and above the indebtedness against said land; that the plaintiff received over and above the indebted *1112 ness against the Blaekstock land $2,800.

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Bluebook (online)
34 S.W.2d 1110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holt-v-ford-texapp-1930.