Neeley v. Lane

193 S.W. 390, 1917 Tex. App. LEXIS 249
CourtCourt of Appeals of Texas
DecidedMarch 14, 1917
DocketNo. 1135.
StatusPublished
Cited by1 cases

This text of 193 S.W. 390 (Neeley v. Lane) 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
Neeley v. Lane, 193 S.W. 390, 1917 Tex. App. LEXIS 249 (Tex. Ct. App. 1917).

Opinion

HUFF, C. J.

The first State Bank of Decatur, Mich., instituted a suit complaining of S. D. Riley, L. W. Fry, C. K. Johnson, R. F. Lane, John G. Lane, and C. D. Neeley, in which it sought a judgment on a promissory note for the sum of $812.50 dated July 20, 190S, and due January 1, 1913, bearing interest from date of 10 per cent, per annum, with 10 per cent, attorney’s fees. The note was executed by S. D. Riley, made payable to L. W. Fry, and was secured by a vendor’s lien on a certain 160 acres of land situated in Cottle county. The note was afterwards transferred to the plaintiff bank. C. K. Johnson purchased the land from Riley, and assumed payment of the notes due on the land, among which was the one sued on. Thereafter R. F. Dane and J. G. Dane purchased the above-described property from Johnson, assuming the lien, and Neeley purchased from Lane, subject to the lien, with notice thereof. Neeley answered, admitting substantially the allegations in the petition, and filed a cross-petition against R. F. Lane and John G. Dane, stating substantially that he purchased this land from them and that they executed to him a warranty deed. This land was paid for by the exchange of property, and he did not assume to pay the note sued on. 1-Ie prayed for judgment over against Lane for any sum that he might be compelled to pay to free the land from this incumbrance and to establish a lien against the property given in exchange.

The case was submitted to the jury on special issues, and the jury in answer thereto say that they believed it to be the intention of Neeley to assume the payment of the note sued on, and that he knew that this note was an outstanding vendor’s lien against the land.

The assignments present error on the part of the court in refusing to instruct a verdict for Neeley on his cross-petition, and further that the evidence did not warrant the jury in so finding. Fry conveyed the land to Riley July 20, 1908, paying $400 cash, one note for $350 due January 1, 1909, and four notes for $812.50, each due, respectively, January 1, 1910, 1911, 1912, and 1913, a vendor’s lien being retained in the deed and notes on the land to secure their payment. These notes were transferred to the bank by written transfer on the 27th day of January, 1910, in which the $350 note was released, having been theretofore paid. Riley and his wife conveyed the land to G. K. Johnson, they assuming as part consideration for the land the payment of four notes for $812.50 each. In this deed it is recited that each of the notes has marked upon it an extension for 12 months, and all accrued interest upon said notes to January 1, 1910, having been paid. This deed is dated July 2, 1910. On the 12th day of January, 1912, Johnson and wife conveyed the land to R. F. Lane. Lane assumed the payment of the two notes above specified *391 for $812.50 each, and also executed Ms note, payable to Johnson, for the sum of $2,788.50, payable at the Eirst State Bank of Paducah. A vendor’s lien was retained in the instrument of conveyance to secure the payment of these notes, and there was also recited in the deed that a deed of trust was executed to W. H. Abernathy as trustee to secure the $2,-73S.50 note. It was also recited in that deed that the plaintiff bank in this case had extended the two notes for $812.50 each to January 1, 1913 and 1914, respectively. On the 12th day of June,-1912, R. P. Lane and wife, by deed conveyed the land to C. D. Neeley, with full covenants of warranty, reciting the consideration of $4,000 cash paid by O. D. Neeley and the assumption by him of the payment of two certain promissory notes, one in the sum of $2,738.50, signed by R. P. Lane and John G. Lane, in favor of O. K. Johnson, dated January 12, 1912, bearing interest, from January 1, 1912, at the rate of 10 per cent, per annum, and due January 1, 1913, the other being in the sum of $812.50, signed by S. D. Riley in favor of L. W. Pry, dated July 20, 190S, bearing interest from date at the rate of 12 per cent, per annum, the interest being paid up to January 1, 1912, and due January 1, 1913. The deed purports to have granted and sold the land to Neeley with general covenants of warranty, but expressly reserving the vendor’s lien to secure payment of the notes above described.

On the 8th day of June, 1912, the following contract was entered into:

“This contract, entered into this day by and between C. D. Neeley of Dumont, party of the first part, and John G. Lane, of Paducah, Texas, party of the second part, witnessetb: That O. D. Neeley has sold and hereby agrees, to convey to party of the second part good ¿nd sufficient warranty deed to his gin plant at Dumont, Texas, consisting’ of the entire plant, one acre of land, and the dwelling house situated on the land belonging to Pete Holler. John G. Lane has sold and hereby agrees to convey to party of the first part, by good and sufficient warranty deed, one hundred and sixty acres of land about three miles -west of Paducah, Texas, known as the Rotan place, and being the same land conveyed to Lane by O. K. Johnson, in January, 1912.
“Party of the first part agrees to assume the payment of two notes against the one hundred and sixty acres of land; one being for $812.50, bearing interest at the rate of 8 per cent, per annum, and due January 1, 1913, and the other being for $2,738.50, in favor of the Pirst State Bank of Paducah, bearing interest from date at the rate of 10 per cent, per annum, and due January 1, 1913. The party of the second part agrees to execute his promissory note for the sum of $1,000.00 in favor of party of the -, first part, due December 15, 1912, bearing interest at the rate of 10 per cent, per annum from date, secured by a lien on the joint property; this note, according to agreement, representing- the difference in value of the two properties traded. Each party here agrees to furnish an abstract to property conveyed showing good and merchantable title, and a reasonable time shall be allowed to either party in which to correct same if found necessary, this contract to be consummated within ten days from date hereof, and either party hereto failing or refusing to carry out the terms of this contract shall forfeit to the other the sum of $500.00, for which the aggrieved party shall have his right of action by law.”

The evidence in this case shows that after Neeley purchased he paid off the note for $812.50 assumed by him, and it is also agreed by the parties that the two Lanes are insolvent, and notoriously so. It is also shown that the $1,000 note executed by Land to Neeley for the difference between the two properties was paid. Neeley and Abernathy both swear positively that Neeley did not assume payment or agree to pay the note sued on in this ease. Neeley says he knew nothing about the note, but he left the matter largely in the hands of Mr. Abernathy to draw up the contract, and Abernathy states that Neeley did not agree to pay but one note for $812.50, and while it was left to him to draw the papers and the deed, he in some manner overlooked the fact that the time extending the payment of the notes had been recited in the deed, and that they had been so extended for one year, and for that reason doubtless he did not mention the matter to Neeley. Lane’s testimony is to the effect that he procured a statement of the indebtedness against the land before he and Neeley went to look at the land and he told Neeley that he could go to Abernathy, who would figure up what was due, and that he many not have it exactly right, but that Abernathy could tell him what it was; that he had the abstract and all the papers.

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28 S.W.2d 1095 (Court of Appeals of Texas, 1930)

Cite This Page — Counsel Stack

Bluebook (online)
193 S.W. 390, 1917 Tex. App. LEXIS 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neeley-v-lane-texapp-1917.