Hunnicutt v. Lee

23 S.W.2d 479
Court of Appeals of Texas·Decided December 19, 1929·No. No. 2349. [fn*]·Published·Cited by 1 cases

Opinion

PELPHREY, C. J.

Plaintiff in error instituted this suit against E. B. Lee and Chat-ham-Phenix National Bank & Trust Company, as trustee, in the Eorty-Eourth district court of Dallas county. In the statement and discussion we will refer to the parties as they were designated in the trial court.

Plaintiff prayed for the rescission of the ex-ecutory sale of a certain six-room frame house and to recover the title and possession of same, and, in the alternative, for a judgment for unpaid purchase money, for foreclosure of a prior and superior vendor’s lien expressly retained in a deed to certain lands upon which the house was then situated.

Plaintiff alleged that he sold and conveyed a certain tract of land out of the Lagow League, fronting 50 feet on Grand avenue in the city of D’allas, Tex., the house in question here being at that time affixed thereto, and part of said land, to defendant E. B. Lee, on or about November 18, 1924; that a part of the purchase price was evidenced by a note in the sum of $4,250, executed by said Lee and payable to plaintiff; that thereafter Lee sold and conveyed said house to R. G. Hockett, on or about January 7, 1926, and as a part of the consideration therefor Hockett executed and delivered to plaintiff his note in the sum of $5,000, payable to plaintiff, in lieu, extension, and renewal of the note theretofore executed by Lee; that subsequently, by virtue of arrangements between Lee and Hockett, Lee acquired title to and possession of the house aforesaid, and on or about the month of August, 1926, without the knowledge or consent of plaintiff, removed the house from said land and placed same upon land then owned by said Lee, being lot 10, in block 1460-A in Pair Park addition to the city of Dallas, located upon South Eitzhugh street; that the $5,000 note, with the exception of $580, was due and unpaid; that the $1,000 described in the deed from plaintiff to Lee as having been paid was not in fact paid; that, since the conveyance from plaintiff to Lee, Lee and Hock-ett have had the possession and the use of said property and the rents and revenues therefrom, the usual and reasonable rental value of which was $50 per month; that the value of said house was $2,500; that said bank, as trustee, was claiming some right, title, equity, interest, or lien in and to said house, but that, if any it had, they were subject, junior, and inferior to the lien, right, title, and equities of plaintiff thereto and therein.

Plaintiff, under his claim of a right to rescind the sale of the house, tendered to Lee in open court the $5,000 note and offered to cancel same. Plaintiff further sought judgment against Lee for conversion of the house, and the establishment and foreclosure of a materialman’s lien upon the house and the' tract of land upon which it had been moved.

Defendant Lee answered by general demurrer and general denial. Defendant Chatham-Phenix National Bank &' Trust Company, as trustee, answered by general demurrer and general denial, and specially denied knowledge of the facts set forth in plaintiff’s petition prior to the service of citation upon it. It further pleaded that Investment Securities Company of Texas had loaned said Dee about $3,000, and had taken as security a lien upon said house and the lot upon which it had been placed ; that the lien and notes had been purchased by the Chatham-Phenix National Bank & Trust Company, and were later transferred by said bank to Chatham-Phenix National Bank & Trust Company, as trustee, for value, before maturity and in the due course of trade; and that said Investment Securities Company of Texas and the subsequent holders of said notes and lien had no knowledge or notice that said house had been removed from the lot sold by plaintiff to Lee, or that plaintiff claimed any title or lien with respect to said house.

The bank further alleged that plaintiff had no lien upon, nor right, title, nor interest in, said house, because the notes and deeds involved in the transactions between plaintiff and Lee, Lee and Hockett, and Hockett and plaintiff, had all been canceled and rescinded, and had become res judicata by virtue of a suit for rescission of the sale of said first-named tract of land, brought by the plaintiff against R. G. Hockett et al. in the district court of Dallas county, Texas, in which suit *481 said sale liad been rescinded and tbe notes and deeds canceled. By way of estoppel tbe bank alleged that plaintiff, with full knowledge that said bouse bad been removed to lot 10, allowed tbe same to remain thereon and to become a part thereof, and permitted tbe apparent ownership of tbe bouse to remain in Lee, and that by so doing be was estopped to assert title to said bouse as against defendant bank as trustee.

By a supplemental petition plaintiff excepted to tbe bank’s plea of res judicata, on tbe ground that said plea was insufficient for failing to allege that either of tbe defendants were parties to tbe suit brought by plaintiff against Hockett et al., or that tbe bouse involved in this suit was involved in that suit, or upon the land there involved. Plaintiff also excepted to the plea of estoppel for failing to allege that plaintiff knew of any ulterior motive on tbe part of Lee in mortgaging the bouse, or the land upon which it bad been placed; that plaintiff participated in any way therein, or that plaintiff stood by, with knowledge that tbe mortgage was about to be given, and failed to assert his rights, when be should have done so, in obedience to his duty to speak.

After denying generally the allegations of the answer, plaintiff further pleaded-that, if the judgment obtained by him in the suit against Hockett et al. canceled, rescinded, or released the deeds of conveyance, notes, titles, liens, rights, or interests described in plaintiff’s petition and the answer thereto, the house, not being upon the land involved in that suit, was not involved therein, and that defendants herein were not parties thereto. Plaintiff prayed that, in the event the court found any of said notes, deeds, titles, and rights had been canceled, rescinded, or released, the court exercise its equity powers, and revive and treat said notes, deeds, titles, liens, remedies, and rights, as in force for the purpose of protecting plaintiff against the intervening rights of the defendant bank as trustee.

The case was tried before the court, and after overruling the special exceptions of plaintiff the court rendered judgment that plaintiff take nothing as against Ohatham-Phenix National Bank & Trust Company as trustee; that plaintiff recover as against E. B. Lee judgment fixing a lién upon the house and lot No. 10 to secure the indebtedness of $2,500, but that said lien should be subject, inferior, and subordinate to that certain deed of trust lien created by Lee and wife in the deed of trust executed by them to Junkin, trustee securing three notes payable to Investment Securities Company of Texas, aggregating $3,000, being the notes and lien now held by defendant bank as trustee, which lien was decreed to be a first, prior, and superior lien upon said lot and house, to any lien decreed in plaintiff’s favor.

It was ordered that order of sale issue for the seizure and sale of said house* and lot as under .execution, but subject to the lien of defendant bank as trustee, and that no execution issue against defendant Lee, plaintiff having dismissed as to any personal action against him. The ease is now before this court upon a writ of error.

Opinion.

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

Hunnicutt v. Lee, 23 S.W.2d 479 (Tex. Ct. App. 1929).

23 S.W.2d 479 (Hunnicutt v. Lee) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hunnicutt v. Lee
38 S.W.2d 572 (Texas Commission of Appeals, 1931)