Murray Co. v. Simmons

229 S.W. 461, 1921 Tex. App. LEXIS 36
CourtTexas Commission of Appeals
DecidedMarch 23, 1921
DocketNo. 188-3235
StatusPublished
Cited by16 cases

This text of 229 S.W. 461 (Murray Co. v. Simmons) 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
Murray Co. v. Simmons, 229 S.W. 461, 1921 Tex. App. LEXIS 36 (Tex. Super. Ct. 1921).

Opinion

POWELL, J.

This suit was brought by the Jacksboro Oil & Milling Company, hereinafter called the milling company, in the district court of Jack county on the 14th day of February, 1916, against W. H. and C. A, [462]*462Simmons, hereinafter called. Simmons Bros., and the Mnrray Company. It was for recovery upon a note given by Simmons Bros, for $5,835.87, in renewal of two notes executed by them December 16, 1910, and for a foreclosure of a deed of trust given to secure this indebtedness. On December 16, 1910, Simmons Bros, owed a large debt to various creditors for gin machinery then in gins at Jean and Loving, Tex. Simmons Bros, contracted a loan from the milling company of $5,500 to satisfy pressing creditors, to be secured by a deed of trust upon their gin plants. The money was advanced, and its repayment evidenced by the two notes of December 16, 1910, due respectively on December 15, 1911 and 1912, each note providing on its face for extension by agreement, and a deed of trust was signed and acknowledged of even date with the two notes. The deed of trust was properly recorded January 27, 1911, in the real estate mortgage records of the county.

The said renewal note for $5,835.87 executed to the milling company by Simmons Bros, was dated December 10, 1915, due 30 days from its date, and by its terms specifically renewed the notes executed on December 16, 1910, and the deed of trust given on the same date. This renewal in express terms provided that the deed of trust should continue to cover the same property described in the original.

On July 2, 1913, Simmons Bros., without consulting the milling company, entered into a contract with the Murray Company for a lot of new gin machinery to be installed at Loving. This new machinery consisted mainly of a six-stand steel gin, with accessories. In part payment for said new machinery Simmons Bros, executed four notes, each for the sum of $426, maturing November 1 and December 1, 1913, and November 1 and December 1, 1914. These notes were secured by a chattel mortgage contract, executed1 by Simmons Bros, on July 2, 1913, acknowledged July 5, 1913, and properly filed for record as a chattel mortgage on July 12, 1913.

On August 5, 1913, Simmons Bros, purchased six steel ratcher feeders from the Murray Company, and in part payment thereof executed two notes, each for the sum of $165.75, maturing November 15, 1913 and 1914, respectively. These notes were secured by a chattel mortgage contract, similar in all respects to the first one above described in favor of the same company, executed August 5, 1913, acknowledged August 21, 1913, and duly deposited in the office of the proper county clerk as a chattel mortgage on August 27, 1913.

The proof showed that when the machinery was shipped by the Murray Company to Simmons Bros, at Loving, Tex., the bill of lading covering the shipment was mailed to a local bank, with draft attached, to be surrendered to Simmons Bros, only upon the execution by the latter of the various notes and mortgages above set out. Simmons Bros, went to the bank and executed all of said papers with reference to the Murray Company machinery. The mortgage contracts provided specifically that all the property being sold by the Murray Company to Simmons Bros, should remain personal property until fully paid for, and be subject to removal at the pleasure of the Murray Company in case of default by Simmons Bros, in the payment of the notes given for such machinery. These express contracts were signed by Simmons Bros, before they ever took possession of this machinery, or placed it upon their gin lot at Loving, Tex.

The Murray machinery was installed in the Loving gin plant. Mr. W. H. Simmons, of the firm of Simmons Bros., testified he installed it himself. In doing so, he set aside the wooden frame gin stands, some of - which had been in use since 1905, and others since 1906 and 1907.

The milling company sued Simmons Bros, on their note as aforesaid, and alleged that the Murray machinery had become a part of the realty at the Loving gin plant, and was therefore covered by its deed of trust. It prayed for judgment for a priority of its lien over that retained by the Murray Company on its own machinery. Simmons Bros, confessed a judgment all around. The Murray Company asked for a judgment for its debt on the notes above described and for a foreclosure of its mortgage lien as against the milling company and Simmons Bros. It claimed its lien was in no sense junior to the deed of trust lien in favor of the milling company.

The case was tried by the court without the intervention of a jury, and no findings •of fact or conclusions of law were filed. However) the court did sustain the contentions of the milling company in full, and rendered judgment for it against Simmons Bros, for the debt and a foreclosure upon both pieces of gin property. The Jean property was ordered to be sold first, and if it failed to satisfy the judgment then the Loving property was to be sold. If there was a balance from the Loving property after satisfying the judgment in favor of the milling company, it was to be applied upon the judgment rendered for the Murray Company. Judgment was also rendered in favor of the Murray Company against Simmons Bros, for its debt and a foreclosure of its lien on the machinery described in its chattel mortgage, subject, however, to the prior foreclosure in favor of the milling company.

The judgment in favor of the milling company was for $7,061.40, and in favor of the Murray Company for $2,718.52. Each of said amounts was to draw interest from March 10, 1917, the date of the judgment, at the rate of 10 per cent, per annum. Simmons [463]*463Bros, accepted, the judgment, and the Murray Company alone appealed. The Court of Civil Appeals affirmed the trial court’s judgment. See 205 S. W. 517.

[1] The only question at issue on this appeal is whether the milling company's deed of trust covers the Murray machinery at the Loving gin, and its lien thereunder is prior and senior to the purchase-money mortgage lien thereon in favor of the Murray Company. The deed of trust was executed about three years prior to the installation of the Murray machinery, and the latter was installed about two years before the renewal of the milling company’s deed of trust was executed. The renewal did not specify the Murray machinery, but, on the contrary, specifically provided the renewal should cover the same property described in the original deed of trust. But, if the renewal had referred to the new machinery, it would not have been any more effective than the original deed of trust, for the Murray Company’s mortgages were duly of record long before said renewal was executed. Consequently, the deed of trust in favor of the milling company could not have covered the Muriray machinery except upon the theory that when the latter was installed it became a part of the realty and not subject to removal.

[2] Did this new machinery become a part of the realty as affecting the priority of the liens asserted by the milling company and Murray Company? We think the controlling question in determining this issue is the intention of the parties. In this case it is clearly shown that the intention of the parties was that the Murray machinery should remain chattels, and there had been no such attachment of said chattels to the realty as would injure the realty by the removal of the chattels. Consequently, as we view it, such chattels cannot be regarded as a part of the realty, and are not subject to the milling company’s deed of trust as against the Murray Company’s mortgage.

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Bluebook (online)
229 S.W. 461, 1921 Tex. App. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-co-v-simmons-texcommnapp-1921.