Newton v. McCarrick

75 S.W.2d 472
CourtCourt of Appeals of Texas
DecidedOctober 25, 1934
DocketNo. 2659
StatusPublished
Cited by5 cases

This text of 75 S.W.2d 472 (Newton v. McCarrick) 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
Newton v. McCarrick, 75 S.W.2d 472 (Tex. Ct. App. 1934).

Opinion

O’QUINN, Justice.

James G. McCarrick, appellee, brought this suit in the 117th district court of Nueces county, Tex., against appellants to restrain the sale of certain property described in his petition. I-Ie alleged that he was the owner in fee of a one-third interest in two certain oil and gas leases covering the lands described in his petition, same situated in said Nueces county; that an execution had been issued at the instance of appellants and levied by the sheriff of Nueces county, Paul Cox, upon a one-sixth interest in his said leases, as the property of W. A. Richardson, a third party, and judgment debtor of appellants; that he {appellee) was not a party to said judgment, and was in no manner bound thereby; that W. A. Richardson, the judgment debtor, had no interest of any nature, legal or equitable, in the one-third interest in said leases owned by him. He further alleged that the one-sixth interest in said leases levied upon by appellants constituted a part of his one-third interest, which was owned wholly by him; that such sale, unless restrained, would cast a cloud upon his title, and that irreparable injury would result to him from such sale.

Appellants answered by general demurrer, numerous special exceptions, general denial, and specially answered and alleged:

(a)That the judgment debtor, W. A. Richardson, was the equitable owner of the one-sixth interest in said leases upon which they had levied; that appellee, McCarrick, was holding the legal title to said one-sixth interest in said leases upon which levy had been made for the benefit of said W. A. Richardson ; and that said W. A. Richardson had ácquired and was the owner of said one-sixth so levied upon by and in virtue of a certain contract of date December 7, 1932, between James G. McCarrick, appellee, and the Shasta Oil Company, executed for the purpose of developing certain oil and gas leases, in which James K. Kepley and W. A. Richardson joined with appellee, and by virtue of which said W. A. Richardson became the owner of the one-sixth interest in the leases involved levied upon.

(b) That this suit was brought by appellee for the purpose of furthering a plan between appellee and W. A. Richardson, the judgment debtor, to defraud the creditors of said Richardson, and not to prevent a cloud being cast upon the property of appellee; that, if the legal title to the property involved was in ap-pellee, yet the equitable title thereto was in Richardson, and appellee was holding the title to said property as trustee for the creditors of Richardson because said property was acquired by appellee with trust funds in the hands of appellee derived from personal property belonging to Richardson and transferred to appellee by Richardson in violation of the Bulk Sales Daw of Texas (Rev. St. 1925, arts 4001-4003), wherefore the one-sixth interest in said leases so acquired by appellee was subject to execution for the debts of Richardson.

(c) That appellants’ judgment against Richardson upon which the execution was issued was by appellants duly abstracted and filed according to law in the abstract judgment records of Nueces county, which thereby became and was a lien on the property of W. A. Richardson subject to execution, as was the one-sixth interest in the leases in controversy, and prayed for foreclosure of their alleged lien.

Appellee by verified supplemental petition replied to the answer of appellants by general denial and special exceptions, and specially denied the several matters of defense therein contained.

The case was tried to a jury upon special issues, in answer to which, among other things, they found (a) that appellee, McCar-rick, was not holding the title to the one-sixth interest in the leases levied upon for W. A. Richardson; and (b) that on or about September 1, 1928, Richardson did not transfer his property to James G. McCarrick for the purpose of defrauding his creditors. Upon the verdict judgment was rendered for appellee permanently restraining appellants from levy[474]*474ing upon or selling the interest in said leases so levied upon. This appeal is from that judgment.

Appellants’ contention, presented by-several assignments of error and propositions, that appellee’s pleadings were not sufficiently full and certain to entitle him to injunctive relief, are overruled. The main contention is that appellee’s petition was defective because it failed to allege that the interest levied upon was not a part of the other two-thirds (than the one-third claimed by appellee) interest in the leases covering the lands described by ap-pellee. Also that the petition failed to state all the material and essentials necessary to entitle appellee to the relief asked. Appellee, among other things, alleged that he was the owner in fee of a one-third interest in the leases involved ; that W. A. Richardson, the debtor in the judgment based upon which the execution was issued, did not have, and never had, any interest, legal or equitable, in the one-third interest owned by appellee in said leases, nor any part thereof; that he, appellee, was not a party to the suit in which the judgment against Richardson was rendered, and was not in any manner bound by said judgment; that the levy of appellants’ execution upon a one-sixth interest in said leases was a levy upon a portion of his (appellee’s) one-third interest in same, and a sale under execution of the one-sixth interest so levied upon would be a sale of one-sixth of his interest, and would cast a cloud upon his title, unless the sale was enjoined, and prayed for an injunction to prevent such sale. These allegations were sufficient upon which to base his right to an injunction.

Moi'eover, if it could he said that the allegations of appellee were not sufficiently certain as to his ownership of a portion of the property levied upon by appellants, these allegations, if necessary, were aided by the allegations of appellants in their answer to ap-pellee’s petition. In paragraph S of their answer they denied that appellee owned in fee simple the one-third interest by him claimed in said leases, and denied that he held the legal and equitable title thereto, and asserted that “the legal title to said leases is in plaintiff for the benefit of W. A. Richardson, who owns the equitable title, and that such was the fact at the time of the levy of the execution.” In paragraph 10 of their answer, they say: “* * « ¿n(j they further admit that such execution was levied upon an undivided one-sixth interest in the leases, covering the lands described in plaintiff’s petition, as the property of W. A. Richardson, but they deny that the property levied upon is the property of plaintiff, and say that such property was and is the property of W. A. Richardson if it is the property of any party to this suit, but in any event, it is not the property of the plaintiff.” In paragraph 13 they say: “The defendants' say that though the legal title to said property may be in the plaintiff that the equitable title is in W. A. Richardson, and the defendants say that under the law, in any event, the plaintiff is holding the title to the said property as a trustee for the creditors of W. A. Richardson. ⅜ * * ” These and other allegations of appellants in their answer plainly show that the execution was intended to be and was levied upon one-sixth of the one-third interest in said leases claimed by appellee, they asserting that such was not the property of appellee, but was then and there the property of the judgment debtor, W. A. Richardson. We think there can be no question but that appellee’s petition was sufficient to present to the court the question of his right to an injunction.

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Bluebook (online)
75 S.W.2d 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-mccarrick-texapp-1934.