Newman v. Coker

310 S.W.2d 354, 1958 Tex. App. LEXIS 1775
CourtCourt of Appeals of Texas
DecidedFebruary 10, 1958
Docket6714
StatusPublished
Cited by15 cases

This text of 310 S.W.2d 354 (Newman v. Coker) 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
Newman v. Coker, 310 S.W.2d 354, 1958 Tex. App. LEXIS 1775 (Tex. Ct. App. 1958).

Opinion

'CHAPMAN, Justice.

After considering appellee’s motion for rehearing the former opinion announced in this cause is withdrawn and this opinion is announced in lieu thereof.

This case involves priority of liens on Lot 8, Block 2, Ben Dixon subdivision, City of Lubbock, Lubbock County, Texas. The house, the construction of which gave rise to what appellee terms his contractual mechanic’s and materialman’s lien and appellant’s claim under a constitutional and statutory materialman’s lien is 2015 44th Street on the lot and block and within the subdivision and city above named. A vendor’s lien is also involved in the priorities claimed. Sam C. Newman d/b/a Bowman Lumber Company is appellant and R. A. Coker is appellee.

Appellee Coker originated this case by a pleading in trespass to try title, for foreclosure of a vendor’s lien acquired by assignment from Kline A. Nall and for foreclosure of a contractual mechanic’s and materialman’s lien acquired by assignment *357 from H. S. Dobbs. Cited as defendants were the named lumber company, Charles William Aydelotte and wife Erlene Aydel-otte, Aubrey R. Anderson and J. B. Joiner. Both liens held by appellee Coker were alleged to be superior to any claims asserted by any of the defendants. Anderson and Joiner were named as defendants because they held judgment liens against Charles William Aydelotte. All defendants answered except Joiner but only the lumber company has appealed from the judgment of the court below holding title to be in the Aydelottes subject to certain liens: (1) that appellee Coker holds a first vendor’s lien through assignment from Kline A. Nall securing a note in the amount of $2,075; (2) a valid mechanic’s and materialman’s lien, inferior only to the vendor’s lien described above, securing a note in the principal sum of $7,000, dated February 9, 1955, originally payable to H. S. Dobbs, but assigned by Dobbs to Coker on February 21, 1955, and recorded on February 24, 1955; (3) that Sam C. Newman d/b/a Bowman Lumber Company, by virtue of agreements with the owner, Charles William Aydelotte, has a valid constitutional materialman’s lien securing materials furnished by said company in the construction of the house on the property described and totaling the amount of $3,977.79, which is inferior to those asserted by Coker and described above; (4) and defendant Anderson holds a valid judgment lien inferior to all liens above described.

Appellant answered by a plea of not guilty, denied every allegation of appellee and pleaded it had a constitutional lien superior to any lien asserted by Coker. It also alleged it furnished materials for buildings located on various other properties owned by defendant Aydelotte and against which Coker either held title or lien rights; that appellee claimed an interest in all or a part of such properties and that he recognized the validity of appellant’s liens insofar as the other property involved in this action; that it furnished materials during the time appellee had actual and constructive notice of such fact; that ap-pellee stood by when legally required to speak and is now estopped from reaping the rewards of its improvements placed on the premises, from asserting the insufficiency of its lien and from asserting a prior lien.

In a cross-action appellant alleged that prior to February 17, 1955, it made a contract with Erlene Aydelotte and husband, Charles William Aydelotte, under the terms of which it was to furnish materials for the construction of a frame house on the property described and for which Aydelotte agreed to pay a reasonable market price; that July 15, 1955, it filed its materialman’s lien evidencing its constitutional lien and that same is prior to Coker’s liens, and prayed for foreclosure of its constitutional lien. In a supplemental answer appellant alleged it notified Coker of the materials furnished and that it would look to him for its money for said materials. The case was tried to the court and judgment rendered as aforesaid.

Aydelotte, at and prior to the period of time involved in the law suit was in the business of building and selling houses in the City of Lubbock. During February, March and April of 1955 Aydelotte entered into contracts with Lynch and Dobbs, contractors, to build five houses in the City of Lubbock for him at various locations and gave notes, secured by mechanic’s and materialman’s liens on each separate place to either Lynch or Dobbs, or both of them, which were then assigned by the contractors to Coker who furnished money for their construction. The lien on each house would then be released by Coker, after construction and upon the payment of his loan. The evidence indicates Coker’s interest in the transactions was a $300 profit on each house as consideration for financing the construction and in its findings of fact the court so found.

In the process of the trial in the court below one of the attorneys referred to the case as a comedy of errors, a description *358 quite appropiate to the facts developed and which contributed to a record that has given this writer much concern.

The testimony of Aydelotte indicates that prior to any of the transactions involved herein he had, by verbal contract, purchased a number of lots from Kline A. Nall, constructed improvements on them, then at the time of the sale or at the time of securing a loan on the improved property paid off the purchase price of the lots. The record does not indicate how such transactions were financed during construction but does show that prior to February 9, 1955, Aydelotte had a verbal contract with Nall to purchase Lot 8 described above, the deed to be made when the purchase price was paid. Also, shortly prior to February 9, Aydelotte orally contracted with his wife’s nephew, H. S. Dobbs, to build a house on the lot in controversy. Dobbs was also a son-in-law of Lynch, the other contractor who was building houses for Aydelotte at the same time the house on Lot 8 was under construction and it appears the two were working together on the five projects regardless of whose name appeared on the paper work incident thereto. On February 9, 1955, Aydelotte and wife, Erlene Aydelotte executed a note in the amount of $7,000 to Dobbs, secured by a mechanic’s and materialman’s lien on said lot, as consideration for the construction of a house thereon, the cost of which was not to exceed the amount of the note. Plans and specifications were furnished for the construction. There is no testimony that Dobbs ever checked the records to determine the owner of record of the lot on which he was building the house and it was completed in May, 1955, with the record title still in Nall. On February 21, 1955, Dobbs, before filing his lien of record, assigned the note and lien to appellee, Coker, for money with which to pay for the materials and labor of the construction and the lien was filed for record on February 24, 1955. Between the dates of February 24, 1955, and May 11, 1955, Coker advanced monies to Dobbs in the amount of $6,985 with which to pay for the construction of said house, with record title still in Nall. In March, 1956, Coker’s attorney, in the process of examination of the abstract of title to said property, discovered that title to said property was in Kline A. Nall. A deed was prepared for Nall to convey the property to Aydelotte but instead of conveying Lot 8, as intended, he conveyed Lot 7 in the same block. This transaction took place on March 12, 1956, almost a year from the time of the completion of the house.

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Bluebook (online)
310 S.W.2d 354, 1958 Tex. App. LEXIS 1775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-coker-texapp-1958.