Magee v. I. & G. N. Wood & Coal Co.

269 S.W.2d 498, 1954 Tex. App. LEXIS 2651
CourtCourt of Appeals of Texas
DecidedApril 22, 1954
Docket12566
StatusPublished
Cited by13 cases

This text of 269 S.W.2d 498 (Magee v. I. & G. N. Wood & Coal Co.) 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
Magee v. I. & G. N. Wood & Coal Co., 269 S.W.2d 498, 1954 Tex. App. LEXIS 2651 (Tex. Ct. App. 1954).

Opinions

NORVELL, Justice.

This is a suit for judgment upon a promissory note with a foreclosure of a materialman’s and mechanic’s lien against a homestead. The note was for the principal sum of $10,447, dated May 10, 1950, and due on or before 120 days after date. It was executed by Joseph P. Magee, Jr., and Wanda F. Magee, and payable to the order of' P. H. Blánk and D. M. Cude.

On May 10, 1950, Magee and wife also entered into a materialman’s and mechanic’s lien contract, hereinafter more fully described, wherein it, was agreed that Blank and Cude should construct a dwelling house upon lots owned by the Magees, according to certain plans and specifications and that in return therefor, the Ma-gees would pay to Blank and Cude the sum of $10,447.00, represented by the note. A deed of trust lien was also given .’to secure the payment of this note. The ’-note, materialman’s and'mechanic’s :lien and deed' of -trust lien were all transferred to I. and G. N.-Wood and Coal Company, by written assignment, bearing date of June 2, 1950¡ The note was also indorsed by Blank and Cude.

It appears that as the work progressed upon the dwelling house called for in the materialman’s and mechanic’s lien contract, I. and G. N. Wood and Coal Company furnished- materials and advanced monies to meet the payrolls of Blank and Cude.

The case was tried to a jury upon special issues, many of which inquire about matters concerning which there was no dispute in the evidence. Such findings of the jury as are necessary to an understanding of our disposition of the case are as follows :

Question No. 5: Do you find from a preponderance of the evidence that P. H. Blank and D. N. Cude constructed improvements on the land of Joseph P. Ma-gee, Jr., and wife, Wanda F. Magee, in substantial compliance with the plans and specifications in question? Answer: No.

Question No, 6: Do you find from a preponderance of the evidence that in building the house that deviations from the plans and specifications were orally agreed to by the defendant, Joseph P. Magee/Jr.? Answer: No.

. Question No. 9: Do you find from a preponderance of the evidence that the construction of the house in question was performed in a workmanlike manner? Answer : No.

Question No. 12: Do you find from a preponderance of the evidence that .the house built by Blank and Cude for the Magees can be remedied'to comply with the, plans and specifications? Answer: No.

The. jury also found that I., and G. N. Wood and Coal Company had advanced to Blank and Cude the sum of $6,000 for labor, and'material , worth $3,300, in connection with the construction on the Magee property (Special Issue' No. 7) ; that the' reasonable cash value of the-house actually, constructed, exclusive of the value, of the. [500]*500land, was $12,000 (Special Issues Nos. 8 and 14), and that had the house been constructed according to the plans and specifications agreed upon it would have been worth $17,000 (Special Issue No. IS). (It appears that a substantial portion of the building materials used was furnished directly by appellants.) The jury also failed to find from a preponderance of the evidence “that the I. and G. N. Wood and Coal Company, aside from furnishing materials, were working together with Blank and Cude in the actual construction of the house in question” (Special Issue No. 16).

Upon these findings the trial court rendered judgment as follows:

• (a) In favor of I. and G. N. Wood and Coal Company and against Joseph P. Ma-gee, Jr., and Wanda F. Magee, as makers and against P. H. Blank and D. N. Cude as indorsers, for the full amount of the note sued upon, together with accrued interest thereon amounting to $12,707.61.

(b) Foreclosing the materialman’s and mechanic’s lien and deed of trust lien against the property insofar as the sum of $9,300 was concerned. (The description of the property was also corrected, but there is no dispute as to this action.)

(c) Providing that if Blank and Cude were required to pay any part of the judgment rendered against them and against the Magees, they should recover over and against the Magees for such sums, not to exceed the sum of $4,300, however.

(d) Providing for the recovery of $1,-077.95 attorney’s fees as provided by the note.

Joseph P. Magee, Jr., and wife, Wanda F. Magee, will be referred to as appellants ,* I. and G. N. Wood and Coal Company, as appellee, while Blank and Cude will be referred to by name.

Appellants contend that the court erred in allowing appellee to recover on the note, as the same was not a negotiable instrument, and that, in the alternative, appellee failed to plead that it was an innocent purchaser for value thereof. Discussing first, the question of pleading, it appears that a copy of the note was attached to the trial petition and although the allegations of the pleadings are not in the usual form employed in asserting the claim of innocent purchaser, we are of the opinion that they are sufficient. Under the provisions of the Negotiable Instruments Act, Article 5935, § 59, Vernon’s Ann.Civ. Stats., “every holder is deemed prima facie to be a holder in due course”, and it appears that an issue seeking to overthrow this presumption was actually submitted to the jury — Special Issue No. 16, above mentioned.

The contention that the note was not negotiable is based upon the fact that it contained the following recitation:

“Payment hereof is secured by builder’s and mechanic’s lien and deed of trust lien upon the following described real estate in Bexar County, Texas, to-wit:
“Lots 20 and 21, Block 3, Oakland Estates, an addition to the City of San Antonio, Bexar County, Texas, ac-> cording to plat thereof recorded in Vol. 980, page 281, Plat Records of Bexar County, Texas.
“This note is given in part payment of lumber, building material and labor to be furnished by the payees, in accordance with the contract of even date herewith, same to be used in the construction of certain improvements for the makers hereof on the above described premises and property.” (The block number should have been 6 rather than 3, and the description was corrected by the court in the decree, as heretofore indicated.)

The Negotiable Instruments Act, Article 5932, § 3, provides that “An unqualified order or promise to pay is unconditional within the meaning of this Act, though coupled with: * * * 2. A statement of the transaction which gives rise to the instrument; * * This statutory provision was considered in connection with [501]*501a contractual clause similar to that involved here, in Continental Nat. Bank of Ft. Worth v. Conner, 147 Tex. 218, 214 S.W.2d 928, and upon authority of that case we hold that the instrument sued upon was a negotiable instrument and that there was no error in awarding appellee judgment thereon for principal, interest and attorney’s fees.

A different question, however, is presented as to the validity of the lien asserted against the homestead. Ordinarily, one recovering upon a note is also entitled to foreclosure of the lien securing payment thereof, as illustrated by the case cited. However, a distinction must be drawn when Article 16, § 50, of the Constitution, Vernon’s Ann. St., is involved. As pointed out in Murphy v. Williams, 103 Tex. 155, 124 S.W.

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Magee v. I. & G. N. Wood & Coal Co.
269 S.W.2d 498 (Court of Appeals of Texas, 1954)

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Bluebook (online)
269 S.W.2d 498, 1954 Tex. App. LEXIS 2651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magee-v-i-g-n-wood-coal-co-texapp-1954.