Lindley v. Easley

59 S.W.2d 927, 1932 Tex. App. LEXIS 1302
Court of Appeals of Texas·Decided May 24, 1932·No. No. 1098·Published·Cited by 16 cases

Opinion

HICKMAN, Chief Justice.

Appellant instituted this suit in the district court of Fisher county as an action in trespass to try title; his petition containing the formal allegations of a suit in that nature. By agreement of the parties the case was transferred to Taylor county: The two counties are in the same judicial district. Appel-lee J. M. Easley and Walter Garter were named defendants, but the latter filed a disclaimer, and no questions pertaining to him are.presented. Where the term “appellee” is used, it will refer to J. M. Easley only. In his answer appellee pleaded not guilty, and by way of special plea alleged the following, in substance: That on January 6, 1925, he was the owner of the land in question and conveyed same to one J. F. Fraser, as a part of the consideration for which Fraser executed to him notes aggregating $4,900 secured by a vendor’s lien upon the land, and further secured by a deed of trust in which Henry James was named trustee; the notes being due serially from November 15, 1925, to November 15, 1930; that after the execution of said vendor’s lien notes appellee transferred them to one O. W. Gill, and thereafter Fraser reconveyed the land to. appellee, the latter agreeing that he would “take care of said notes.” Appellee further alleged that in May, 1925, Gill “desired the money on said notes, and in order to procure the money for the said Gill the defendant herein borrowed from C. D. Lindley * * ⅜ the sum of $3,330.00 by note dated June 2nd, 1925, due December 1st, 1925, with 10%,interest per annum from maturity”; that he executed to Lindley his note for $3,700, but received from Lindley the sum of $3,330 only; that $370 was added to the face of the note for interest for six months, and the note bore 10 per cent, interest from maturity. The answer further alleged that, in order to secure his personal-note to appellant, appellee “had the said Gill” transfer to the appellant as collateral three of the vendor’s lien notes executed by Fraser, being the last three of the series of notes, and aggregating approximately $3,700; that the loan procured from appellee by appellant was usurious, on account of which all payments theretofore made, both as principal and interest, should be applied as credits on the principal and no interest allowed thereon. Total payments aggregating $2,539.-65 were alleged, leaving a balance of approximately $800 remaining unpaid after applying all payments to the principal.

As a special defense to appellant’s action to try title, appellee alleged that, on or about the 8th day of July, 1931, D. R. Lindley, substitute trustee under the deed of trust executed by Fraser to Henry James, trustee, advertised the land in question for sale under the terms of the deed of trust, the sale to be made on the first Tuesday in August thereafter; that prior to the date of sale the appellee prepared a petition for an injunction against the sale, and the honorable district judge of Fisher county, who is also the judge of the district court in Taylor county in which this action was tried, granted his prayer for injunction upon his giving bond in the sum of $1,000, to be approved by the district clerk of Fisher county; that on the morning of the first Tuesday in August the bond was filed with and approved by said clerk and the injunction issued accordingly. It was alleged that, if he were mistaken about his allegation that the substitute trustee had notice of the issuance of the injunction before the land was actually cried off, he did have notice before the deed was executed to the purchaser. It was claimed that the deed made by the substitute trustee to the appellant, who was the purchaser at such sale, was void, -because made in violation of the injunqtion.

There was an alternative plea to the effect that the property was sold to appellant at the trustee’s sale for $1,500, and that, if same should be held valid, appellant would be due appellee the sum of approximately $800. The prayer was that the deed executed by the substitute trustee to appellant be canceled, set aside, and held for naught, and. alternatively that, in the event such sale be upheld, appel-lee have judgment against appellant for the difference between the balance owing by him to appellant and $1,500, the amount of appellant’s bid.

Appellant, by supplemental petition, after his general demurrer and general denial, alleged the execution of the vendor’s lien notes by Fraser-to appellee; that same were transferred and assigned by appellee to C. "W. Gill; alleged the transfer and assignment of the last three of said notes by Gill to appellant; alleged the terms of the deed of trust executed by Fraser to Henry James, trustee; ap-pellee’s default in the payment of the last note of the series,-and the sale by the substitute trustee at which he was the purchaser. He further alleged as an alternative plea that he was the owner of said vendor’s lien notes; that the last one was due and unpaid; that he had paid taxes on the land in the amount of $160.38, and in the alternative prayed for judgment for the principal, interest, and attorneys’ fees on said note, for the amount he had paid as taxes, and for a foreclosure of his vendor’s lien and deed of trust lien upon the land in question.

The case was tried before the court without the assistance of a jury, and judgment was rendered canceling the deed by the substitute trustee to appellant, decreeing that appellant take nothing by reason of his suit in trespass to try title, and further decreeing that the appellant, upon his cause of action set up in his supplemental petition, recover from the appellee $1,029.76, this amount consisting of a balance due by appellee to appellant as principal, interest, and attor[929] neys’ fees, and for taxes. A foreclosure ot the vendor’s lien and deed of trust lien was awarded. The amount of the judgment was arrived at by treating the transaction as usurious and applying all payments made by ap-pellee to appellant upon the principal, and then adding thereto the amount which appellant had paid as taxes.

The first question for determination relates to appellant’s action in trespass to try title, and a determination thereof depends upon whether or not the court erred in canceling the deed executed by the substitute trustee to appellant. It is the admitted law that a sale made in violation of an injunction conveys no title to the purchaser, particularly if the purchaser is the one who violated the injunction. Ward v. Billups, 76 Tex. 466, 13 S. W. 308: Morgan v. Engine Co. (Tex. Civ. App.) 274 S. W. 255; 32 C. J. p. 374.

Appellant recognizes this rule of law in a case where the injunction is not void, but contends that the injunction relied upon by appellee was absolutely void, in that the order granting same required a bond in the sum of $1,000 only, and bond was given in that sum, whereas the law requires that in suits to enjoin the collection of a debt the injunction bond shall be fixed by the court in a sum at least double the amount of the debt sought to be enjoined. It is provided in article 4648, R. S. 1925, that: “If the injunction be applied for to restrain the execution of a money judgment or the collection of a debt, the bond shall be fixed in double the amount of such judgment or debt.”

The question of whether the injunction was granted to restrain the collection of a debt is one not easy to determine. But, assuming that it should be so classified, the failure to require a bond in a sufficient amount would not render the injunction void and authorize its disobedience with impunity. Miller v. Clements, 54 Tex. 351; Mansfield v. Ramsey (Tex. Civ. App.) 196 S. W. 330.

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Lindley v. Easley, 59 S.W.2d 927, 1932 Tex. App. LEXIS 1302 (Tex. Ct. App. 1932).

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