McClendon v. Gahagan

6 S.W.2d 796, 1928 Tex. App. LEXIS 495
CourtCourt of Appeals of Texas
DecidedApril 19, 1928
DocketNo. 643.
StatusPublished
Cited by5 cases

This text of 6 S.W.2d 796 (McClendon v. Gahagan) 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
McClendon v. Gahagan, 6 S.W.2d 796, 1928 Tex. App. LEXIS 495 (Tex. Ct. App. 1928).

Opinion

STANFORD, J.

This suit was filed by ap-pellees, O. M. Gahagan, H. I. Gahagan, Susie G. Fisher, joined by her husband, T. B. Fisher, and Cornelia Thornhill, Rosa Thornhill, and Herman Thornhill, by C. A. Thornhill, as next friend, as plaintiffs, against J. O. Mc-Clendon, Cecil McClendon, Houston McClen-don, and L. B. Carter, as defendants. Plaintiffs alleged they were the heirs and only heirs of Mrs. O. G. Gahagan, deceased; that during the lifetime of their mother, Mrs. C. G. Gahagan, she sold.to J. O. McClendon 81 acres of land for $12,000, $1,250 cash, one note for $750, payable to Cecil McClendon, one note for $1,000, payable to Houston McClen-don, and one note for $9,000, payable to- their said mother, Mrs. O. G. Gahagan, deceased. All of said notes were executed by J. O. Mc-Clendon, the father of Cecil and Houston Mc-Clendon. Plaintiffs sought recovery on the $9,000 note, alleging that all of said notes were secured by a first and equal vendor’s lien on said land, and prayed for a foreclosure and sale of said land, and that the proceeds of such sale, if not sufficient to pay all said notes in full, be applied to the payment of said notes ratably or in proportion to the respective amounts of same. Cecil McClen-don and Houston McClendon were made parties defendants because they were the owners, respectively, of the $750 and the $1,000 note. L. B. Carter was made a party defendant because he had executed three $50 notes to J. O. McClendon, who had indorsed same to the plaintiffs as collateral security to the $9,000 note. L. B. Carter was dismissed from the suit. J. O. McClendon made no defense and has not appealed. Cecil McClendon and Houston McClendon alleged, in substance, that when J. O. McClendon, their father, bought the 81 acres of land from Mrs. O. G. Gahagan and executed the three notes, they were minors, and that prior thereto they, by their said father as next friend, had recovered of C. E. Sehaff, receiver for the M. K. & T. Rail *797 way Company of Texas, certain moneys, to wit, Cecil, $750, and Houston, $1,000, and that said amounts had been paid into the registry of the district court of Ellis county for them, and that upon an order of said court their said funds were invested in said vendor lien notes for $750 and $1,000, executed by J. O. McClendon to Mrs. C. G. Gahagan, said notes being drawn, $750 payable to Cecil McClen-don, due March 26, 1923, and $1,000, payable to Houston McClendon, due June 12, 1926, said due dates being the dates said minors, respectively, would become of age.

The case was tried before the court without a jury, and judgment rendered in favor of appellees against J. O. McClendon for $16,-310.75; also in favor of appellant Cecil Mc-Clendon against J. O. McClendon for $1,-513.45; also in favor of appellant Houston McClendon against J. O. McClendon for $2,-086.82. The court also found that the lien securing said three notes was a first vendor’s lien on said land, and the lien securing said three notes is of equal force, effect, and standing, and foreclosed said lien, and directed that in case the land did not sell for enough to satisfy the judgment in full in favor of appellees and appellants Cecil and Houston McClendon, then that the proceeds of said sale be prorated among the holders of the judgments herein in proportion to the amount held by each party bears to the whole indebtedness. Appellants Cecil and Houston McClendon have duly appealed, and present the record here for review.

Appellants.present two propositions, to wit:

(1) That the trial court erred in refusing to adjudge the lien securing the notes of appellants to be a first, prior, and superior lien upon the land to that held by appellees.

(2) Before sustaining the contention of ap-pellees to have their lien adjudged to be on an equality with appellants’ lien, the court should have required appellees to first replace the money of appellants into the registry of the court.

The agreed statement of facts in this case, which was adopted by the trial court as his findings of fact, shows conclusively: That on and prior to April 7,1917, Cecil McClendon, a minor, was the owner of $750 and Houston McClendon, a minor, was the owner of $1,000, and that both said amounts were on deposit in the registry of the district court of Ellis county by virtue of a judgment of said court in cause No. 9267, Cecil and Houston McClendon, Minors, by J. O. McClendon, Next Friend, v. C. E. Schaff, Receiver of the M. K. & T. Railway Company of Texas; that on April 7, 1917, J. O. McClendon in said cause filed his application, addressed to the judge of said court, for the investment of said minors’ funds, and after setting out the fact of the recovery of said amounts by said minors, and that said amounts were on deposit in the registry of said court, and that a safe investment of said funds could be made, prayed for an order of the court authorizing the investment of same in the following manner: then sets out that he had bargained to purchase from C. G. Gahagan 81 acres of land for $12,-000, $1,250 cash, the first note for $750, payable to Cecil McClendon, the second for $1,-000, payable to Houston McClendon, and the third note for $9,000, payable to Mrs. O. G. Gahagan, all of said notes secured by a first vendor’s lien upon said property; said application continuing as follows:

“Petitioner further shows to the court that the vendor of said property proposes and offers to subrogate all the rights of the vendor to said Cecil and Houston McClendon in the respect of securing said two notes by the vendor’s lien in such manner that they and each of them will be so secured by first liens upon said property in like manner as will be the note which will be made payable to said vendor in order that they may realize the cash thereon.
“Wherefore, petitioner prays that he have an order and decree of the court ordering the clerk to pay over said sums of money to said Mrs. C. G. Gahagan upon the execution and delivery of the said two notes above described, and after the proper conveyance of said tract of land upon the terms herein named.
“[Signed] J. O. McClendon.”

The judge’s fiat on the above application was as follows:

“April 7th, 1917. The foregoing investment is authorized and on terms mentioned, and the district clerk will record order in minutes, as directed by law. [Signed] F. L. Hawkins, Judge 40th Judicial District.”

An order was prepared and incorporated in the minutes of the court, which, after reciting in full the application to invest said funds and the fiat of the court thereon, concluded as follows:

“It is therefore ordered and decreed that when the terms of said application be in all things performed, and there is presented to the clerk notes in favor of said minors, in the amount and secured as shown in said application, and proper deed of conveyance fully executed and delivered, then said clerk is directed to take receipt therefor, and pay over to the vendor of said land the amounts of money called for in said notes, and thereafter hold said notes subject to further orders of this court.”

The deed and notes were executed as described in the application, the deed reciting as follows:

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6 S.W.2d 796, 1928 Tex. App. LEXIS 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclendon-v-gahagan-texapp-1928.