McKinney v. White

281 S.W.2d 327, 154 Tex. 610, 4 Oil & Gas Rep. 1385, 1955 Tex. LEXIS 587
CourtTexas Supreme Court
DecidedJuly 27, 1955
DocketA-5043
StatusPublished
Cited by3 cases

This text of 281 S.W.2d 327 (McKinney v. White) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinney v. White, 281 S.W.2d 327, 154 Tex. 610, 4 Oil & Gas Rep. 1385, 1955 Tex. LEXIS 587 (Tex. 1955).

Opinion

Mr. Chief Justice Hickman

delivered the opinion of the Court.

This a statutory action in trespass to try title to 160 acres of land in Dickens County brought by respondents, Orville ti. White and wife, against petitioners, William W. McKinney, W. J. Danforth and wife, Marian G. Danforth, R. L. Gass and wife, Annette Gass, C. C. Dowlen and wife, Velma Dowlen, and other parties who filed disclaimers. A judgment in favor of respondents for title and possession of the land was affirmed by the Court of Civil Appeals. 278 S.W. 2d 553. The real controversy is over the ownership of undivided mineral interests in the land. Petitioners claim no interest in the surface.

It was stipulated that the common source of title was Eric P. Swenson. By deed dated October 19, 1916, Swenson and *612 others conveyed the land to Lee W. Bilberry, retaining a vendor’s lien to secure the payment of six purchase money notes made payable to S. M. Swenson and Sons. Bilberry conveyed the land to T. H. Tallant and wife by deed dated May 28, 1917, in which the Tallants assumed the payment of the vendor’s lien notes. On March 30, 1919, T. H. Tallant and wife conveyed % the minerals to A. T. Reed, E. C. Edmonds, and N. E. Porter, which deed was duly recorded. Thereafter, on May 12, 1919, T. H. Tallant and wife conveyed the land to J. F. Tallant, without excepting any mineral interest from the grant or mentioning the mineral deed to Reed et al. As part of the consideration, J. F. Tallant assumed payment of the outstanding vendor’s lien notes. On February 11, 1920, J. F. Tallant conveyed the land to G. M. Williamson, who also assumed the payment of the vendor’s lien notes. On January 29, 1921, S. M. Swenson and Sons transferred the vendor’s lien notes to the American National Insurance Company, the transfer reciting that the Swensons “do sell, transfer and assign, without recourse on us, unto said American National Insurance Company, the said notes (describing them), together with the vendor’s lien securing the payment thereof. * * *” On March 1, 1921, Williamson executed a deed of trust to Shearn Moody, Trustee for the American National Insurance Company “for the purpose of taking up and extending” the above notes. On November 5, 1924, G. W. Williamson and wife conveyed the land to P. H. Miller and wife. On November 21, 1924, Miller and wife conveyed the land to J. C. Guthery and wife. On April 15, 1926, the Gutherys executed a deed of trust to H. W. Ferguson, Trustee for Dallas Joint Stock Land Bank to secure the bank in the payment of a note of even date given in renewal and extension of the balance due on the note executed by Williamson to the American National Insurance Company and the balance due on a note executed by Guthery to Miller, which notes had been transferred to said bank. On March 3, 1936, the land was sold by a substitute trustee under the powers contained in the deed of trust to the Dallas Joint Stock Land Bank, at which sale the bank became the purchaser. Thereafter, the bank conveyed to D. G. Harris and wife. Harris and wife conveyed to Frank D. Hale and wife, who, in turn, conveyed to respondents, White and wife. It is thus shown that whatever title the respondents have in the land came through the sale under the deed of trust.

Turning now to the title of petitioners, the record discloses, as above stated, that while T. H. Tallant and wife were the owners of the land they executed a deed to % of the minerals to Reed, Edmonds, and Porter, Whatever title petitioners have *613 came through that deed. Edmonds filed a disclaimer as to his 1/3 of the 1/2 mineral interest.

The petitioners claim under deeds from Reed and Porter and under Reed’s will. N. E. Porter conveyed his entire 1/6 interest in the minerals to Bess Porter, who, in turn, conveyed the same interest to Eva D. Porter. Eva D. Porter conveyed a 1/12 interest to petitioner, William W. McKinney. She filed a disclaimer in the suit. It thus appears that McKinney’s claimed interest is 1/2 of the Porter 1/6 interest, or 1/12, of the minerals.

Turning next to the claim of petitioner Danforth, we find that A. T. Reed, who acquired a 1/6 interest in the minerals under the deed from T. H. Tallant, conveyed to R. L. Gass and wife “1/3 of 1/2 interest in 1/2 interest” in and to said minerals. That is a 1/12 interest. But Gass conveyed to Danforth the same interest expressed in his conveyance as “1/2 of our 1/3 of 1/2 interest” in these minerals. By that deed Gass parted with all the interest which he acquired through the A. T. Reed deed. However, Reed later died testate, devising his interest in these minerals to his wife and two daughters, Mrs. Dowlen and Mrs. Gass. Thereafter, Reed’s widow, joined by her then husband, and Velma Dowlen, joined by her husband, deeded that interest to Gass and wife. It thus appears that petitioners, William W. McKinney, W. J. Danforth and wife, Marion Danforth, and R. L. Gass and wife, Annette Gass, together own or claim 3/12ths of these minerals. The record does not disclose that petitioners, C. C. Dowlen and wife, Velma Dowlen, own any interest in the minerals.

The question of law to be decided is whether or not the trustee’s sale passed to the purchaser at that sale the mineral estate conveyed by T. H. Tallant to Reed, Edmonds, and Porter. It will be kept in mind that that mineral deed was executed prior to the execution of any deed of trust. At that time Swenson et al owned the superior title to the land, and as such owners had the right to rescind the sale and repossess the property, or affirm the sale and foreclose their lien through a judicial proceeding. Stone Cattle and Pasture Co. v. Boon, 73 Texas 548, 11 S.W. 544.

After that mineral deed was executed, Swenson and Sons transferred the purchase money notes and the vendor’s lien to the American National Insurance Company, but, as noted above, did not transfer the superior title. It is well settled that an assignment of purchase money notes and the vendor’s lien secur *614 ing same does not convey to the assignee the superior title to the land. Stephens v. Matthews’ Heirs, 69 Texas 341, 6 S.W. 567; Farmers’ Loan Trust Co. v. Beckley, 93 Texas 267, 54 S.W. 1027; Cleveland State Bank v. Gardner, 121 Texas 580, 50 S.W. 2d 786; Robinson v. Smith, Texas Civ. App., 130 S.W. 2d 381, error refused.

By that assignment the insurance company acquired only the right to obtain a judgment on the notes with a foreclosure of the vendor’s lien. Obviously, it could not convey any greater right, and the right of the Dallas Joint Stock Land Bank could rise no higher than that of. the insurance company. When the deed of trust was executed by Williamson, he was not the owner of the 1/2 mineral estate conveyed by Tallant to Reed et al. Not being the owner of that interest, he could not fix a deed of trust lien thereon. Neither was Guthery the owner of that interest when he executed a deed of trust to the Dallas Joint Stock Land Bank, under the powers of which the land was sold by the substitute trustee. Since no one with authority to do so executed a deed of trust lien upon the Yi mineral estate sold to Reed et al, that interest could not have passed by the deed of trust sale by the substitute trustee for the Dallas Joint Stock Land Bank.

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Bluebook (online)
281 S.W.2d 327, 154 Tex. 610, 4 Oil & Gas Rep. 1385, 1955 Tex. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckinney-v-white-tex-1955.