Lone Star Gas Company v. Sheaner

297 S.W.2d 855, 1956 Tex. App. LEXIS 2474
CourtCourt of Appeals of Texas
DecidedDecember 28, 1956
Docket3401
StatusPublished
Cited by6 cases

This text of 297 S.W.2d 855 (Lone Star Gas Company v. Sheaner) 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
Lone Star Gas Company v. Sheaner, 297 S.W.2d 855, 1956 Tex. App. LEXIS 2474 (Tex. Ct. App. 1956).

Opinions

McDONALD, Chief Justice.

This suit was brought by Lone Star Gas Company as plaintiff against Jack Sheaner and James W. Tomlin as defendants to recover a money judgment against Sheaner for $252 unpaid balance of the purchase price of a water heater, and for foreclosure of a chattel mortgage lien against Sheaner and Tomlin, the latter being the person in whose possession the heater was situated. Judgment by default was taken against Sheaner, but a motion for summary judgment denying plaintiff’s right to foreclose its asserted lien on the water heater against defendant Tomlin was sustained by the Trial Court. Plaintiff appeals, contending that defendant Tomlin was charged as a matter of law with constructive notice of its lien as provided in Article 5498, R.C.S., since plaintiff complied with all of the requirements of such article.

The facts in this case are without dispute and are before us by way of the pleadings, motions for summary judgment, and affidavits, and are summarized as follows:

In December 1954 plaintiff Lone Star Gas Company sold Jack Sheaner a water heater for $249, less $24.90 trade-in on old water heater, less $10 down payment, plus finance charges of $38.52, leaving an unpaid balance of $252 which Sheaner agreed to pay in 36 monthly installments of $7.04 each.

Sheaner executed a conditional sales contract to Lone Star, which contained usual mortgage-lien provisions, described the water heater and stated it was to be installed at 3050 Norwalk Drive, Dallas, Texas.

The heater was installed in the house at 3050 Norwalk Drive, Dallas, Texas.

The contract-mortgage lien was filed in the Chattel Mortgage Records in the Dallas County Clerk’s office as "Lien on Machinery Situated on Realty”.

In April 1955 Sheaner defaulted in his payments, owing $238 on the heater. The Gas Company turned the contract over to its attorney for collection, who brought this suit for debt and foreclosure of the lien.

At the time of the installation of the water heater, 3050 Norwalk Drive, the house and real estate upon which the plaintiff Gas Company installed the water heater, were owned by Pressley Funk, he having acquired same by general warranty deed from Central Building Corporation, such deed being duly recorded. Plaintiff Gas Company installed the water heater on Pressley Funk’s premises without Funk’s knowledge or consent, and without Funk’s knowledge or consent installed the heater in lieu of the heater that was on the premises as a permanent fixture. In May 1955 Pressley Funk, by general warranty deed, sold the premises, together with all rights and appurtenances thereto belonging, to defendant Tomlin (which deed is duly recorded). Defendant Tomlin purchased the property in good faith, for a valuable consideration, without notice or knowledge, actual or constructive, of plaintiff Gas Company’s claim to the water heater. Defendant Jack Sheaner was a stranger to the record title of the property at the time he executed the chattel mortgage lien, at all times thereafter, and nowhere appears in the chain of record title to the property. The house and real estate purchased by Tomlin was in possession, custody and control of Funk at the time of the purchase of same by Tomlin and Tomlin believed that the real estate, including the water heater affixed thereon, belonged to Funk, and it was sold to Tomlin as such, and Tomlin .so relied in purchasing the real property (with the heater affixed thereon).

Under the foregoing state of the record the Trial Court granted plaintiff judgment against Sheaner; denied plaintiff’s motion for summary judgment of foreclosure of lien on the 'water heater against defendant Tomlin; and granted defendant Tomlin’s [857]*857motion for summary judgment that plaintiff Gas Company take nothing as to him.

As noted, plaintiff complied with the terms of Article 5498, R.C.S. in recording its mortgage and lien, and now contends that having so complied, defendant was charged as a matter of law with notice of such lien.

Article 5498, R.C.S. provides:

“When any machinery * * * susceptible of being attached to the realty in such a way as to become a fixture thereto and is located upon real estate in such manner as the same may be deemed a fixture thereto, and at the time of its location upon such real estate there is a lien or mortgage evidenced by written instrument * *, executed by the purchaser * * *, and the instrument evidencing said lien * * * contains a description of said machinery * * *, as well as the real estate upon which it is to 'be- located * * *, and such instrument is registered under the provisions of this Act, then the registration of such instrument evidencing said lien, * * shall be notice to all persons * * * of all the rights of the owners * * of the indebtedness secured by said instrument the same as if recorded at length in the deed records or records of mortgages upon realty of the county where the real estate is situated *

We therefore note that the Notice imported by a proper recording of the chattel mortgage lien is:

“The same as if recorded at length in the deed records or records of mortgages upon realty of the county where the real estate is situated.”

From the foregoing it is apparent that Article 5498 gives a properly executed and recorded chattel mortgage on realty, with reference to the question of Notice, no greater dignity than would be extended to a deed, deed of trust, or mortgage upon such realty when executed by a stranger to the title thereto, and not in the purchaser’s chain of title. This article places them on the same basis as to notice as to one dealing with the realty.

It is the law of this state that the record of a deed or mortgage by a stranger to the title to real estate, although dtily recorded, is not constructive notice to a subsequent purchaser from the record owner of the property, because such instrument is not in the chain of title to such property.

36 Tex.Jur., Sec. 51, p. 480, states the rule:

“The record of a deed by a person who is not shown by the record to have been connected with the title under which a subsequent purchaser claims is not notice to a subsequent purchaser from an owner of the property.”

To the same effect are: Brown v. Ackerman, Tex.Com.App., 17 S.W.2d 771; Lumpkin v. Adams, 74 Tex. 96, 11 S.W. 1070; 36 Tex.Jur., pp. 492-493; Patton on Titles, Sec. 44; 45 Am.Jur., Sec. 99, p. 475.

36 Tex.Jur., Sec. 58, p. 492, states:

“The statute provides that the record of any instrument authorized to be recorded shall be notice to all persons of the existence of such instrument. The literal terms of this provision would require that all persons be held to know what appears on the face of a duly recorded instrument, and there are statements in many of the cases to the effect that the proper record of an instrument which has been authorized to be recorded is notice to all the world. But this proposition is subject to important qualifications; and registration does not have such broad effect to impute notice as might be inferred from a literal construction of the statute.
“The registration of an instrument carries notice of its contents only to

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Lone Star Gas Company v. Sheaner
297 S.W.2d 855 (Court of Appeals of Texas, 1956)

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297 S.W.2d 855, 1956 Tex. App. LEXIS 2474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-star-gas-company-v-sheaner-texapp-1956.