Lipsitz v. First Nat. Bank of Gordon

293 S.W. 563
CourtTexas Commission of Appeals
DecidedApril 20, 1927
DocketNo. 773-4752
StatusPublished
Cited by19 cases

This text of 293 S.W. 563 (Lipsitz v. First Nat. Bank of Gordon) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lipsitz v. First Nat. Bank of Gordon, 293 S.W. 563 (Tex. Super. Ct. 1927).

Opinion

SHORT, J.

Since the basis of this litigation is a final judgment rendered in Rice Heirs v. Douis Dipsitz et al., and since that case was tried twice in the district court and appeals were prosecuted.therein to the Court of Civil Appeals, wherein opinions were written-which are reported in 211 S. W. 293, and 233 S. W. 594, we refer to those opinions as part of the statement necessary to be made in order that the controversy involved in this case can be clearly understood. The statement of the nature and result of this suit as made by the defendants in error here, who were appellees in the Court of Civil Appeals, in their brief filed in that court, is adopted by us, and is as follows:

“This suit grows out of a previous suit in the district court of Palo Pinto county, styled Dee Rice et al. v. Douis Dipsitz et al., and numbered 4659 on the docket of the court, wherein Dee Rice and other children of Dois E. Rice, deceased, the first wife of J. R. Rice, sued J. R. Rice and his second wife, and Douis Dipsitz and A. M. Barrett, trustees in certain deeds of trust theretofore executed by Rice individually and as community administrator for the benefit of his creditors; the object of that suit being to cancel said deeds of trust and for recovery of a one-half interest in 19 tracts of land and for partition, etc.
“The first deed of trust was executed by J. R. Rice alone to A. M. Barrett. The deed of trust to Dipsitz was thereafter executed by J. R. Rice individually and as community administrator, joined by his wife, Kathryn Rice, and A. M. Barrett; the latter having been named as trustee in the first instrument. The property conveyed was at an agreed valuation of $15,000, which was to be prorated on the debts of all of the creditors. The property at the agreed valuation of $15,000 was sufficient to liquidate 53 per cent, of the claims of creditors.
“The plaintiffs in cause No. 4659 sought cancellation of the deeds of trust and recovery of the property on the ground that the demands of the creditors were the individual debts of their father, J. R. Rice, and not community debts, for fraud, and because the execution of the instruments was procured by coercion, and because in the execution of same Rice was not acting for or in the best interest of the community estate, because the bond of J. R. Rice as community survivor was insolvent at the time he gave it, etc.
“Among other defenses in cause No. 4659, the defendants pleaded that the demands of certain of the creditors were community indebtedness, and that they should be made a charge against the property in the event of recovery by the plaintiffs.
“Upon the final trial of cause No. 4659, all issues relating to the invalidity of the deeds of trust were resolved in favor of the plaintiffs Dee Rice and others, and same were canceled and held void.
“In answer to special issues Nos. 9 and 10, the jury found the following claims of' creditors, together with interest thereon from April 5, 1915, to be community debts, to wit: First National Bank of Gordon, $2,660; Jim Oox, $1,100; Mrs. Anderson, $110.
“The court further expressly found that 53 per cent, of the community debts above mentioned was not an adequate consideration for the consideration for the conveyance of the property therein described in the deed of trust to Dipsitz.
“By the terms of the decree, the plaintiffs therein recovered an undivided half interest in the 19 tracts of land involved, and were awarded and decreed a partition; their interest, however, being charged with the following amounts on account of the community claims above mentioned: First National Bank of Gordon, $704.80; James Oox, $291.50;, Mrs. M. A. Anderson, $29.15 — together with interest thereon at 6 per cent, from April 5, 1915, being 53 per cent, of one-half of the claims.
“The decree further provided that, in the event of a failure of the Rice heirs to pay said amounts, order of sale should issue, and that the property set aside to the said heirs should be sold in satisfaction of said amounts. Same not having been paid, the property thereafter, following the affirmance of the judgment on appeal, and following partition, was sold by the sheriff of Palo Pinto county and the proceeds thereof to the extent of $1,832.90 paid over to the said Douis Dipsitz.
“The defendants in that cause were Dipsitz, Barrett, J. R. Rice, and wife, Kathryn Rice. This judgment upon appeal was affirmed April 16, 1921. Lipsitz v. Rice (Tex. Civ. App.) 233 S. W. 594.
“Upon demand of First National Bank of Gordon and James Cox, Dipsitz refused to pay over to them the amounts so recovered; he [565]*565claiming that the individual creditors of Rice •svere entitled to pro rata shares of same.
“The instant suit was instituted by the First National Bank of Gordon and James Cox against the defendant Louis Lipsitz, in which all the other creditors of J. R. Rice were made parties defendant, with the allegation that they were claiming an interest in the fund.
“The plaintiffs (appellees) sought a recovery on three separate and distinct grounds.
“(1) On the ground that, according to the judgment in cause No. 4659, the recovery by Lipsitz as trustee was for and on behalf of the community creditors only and not for the benefit of Rice’s individual creditors.
“(2) That, if the decree in cause No. 4659 upon a proper construction did not in terms or according to its true intention and meaning so provide, then that such in fact was the judgment and decree of the court, and that the entry of the judgment should be so corrected and reformed as to so provide.
“(3) That, if it should be determined that the judgment in cause No. 4659 should he held to provide for a recovery by Lipsitz for the use and benefit of all creditors of J. R. Rice, and that such was in fact the judgment and decree of the court rendered in that cause, then that same was a fraud upon the rights of the appellees; that the individual creditors of J. R. Rice were entitled to and had no interest in said recovery, the said community claims being the sole property of the plaintiffs; that plaintiffs would not be hound by the said decrees not being parties to the said cause, individually or otherwise, except in so far as the said Lipsitz undertook to represent them; that said deeds of trust were expressly canceled by the terms of said decree, and that the consideration to appellees for the execution thereof and the confirmatory agreement, had wholly failed; and that appellees were entitled to recover their claims, regardless of that judgment, all parties at interest being parties hereto.
“In addition to the funds In the hands of Lipsitz the plaintiffs sought judgment against Lipsitz for the remainder or for 47 per cent, of their claims chargeable against the property awarded the Rice heirs on account of fraud and gross negligence as detailed in their petition.
“Trial was before the court who rendered judgment in favor of plaintiffs.”

The Court of Civil Appeals found that the trustee Lipsitz was not guilty of any bad faith or any actual fraud in defending the suit brought by the Rice heirs.

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Cite This Page — Counsel Stack

Bluebook (online)
293 S.W. 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lipsitz-v-first-nat-bank-of-gordon-texcommnapp-1927.