Pantaze v. Slocum

518 S.W.2d 407, 1974 Tex. App. LEXIS 2906
CourtCourt of Appeals of Texas
DecidedDecember 31, 1974
Docket17566
StatusPublished
Cited by9 cases

This text of 518 S.W.2d 407 (Pantaze v. Slocum) 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
Pantaze v. Slocum, 518 S.W.2d 407, 1974 Tex. App. LEXIS 2906 (Tex. Ct. App. 1974).

Opinion

OPINION

BREWSTER, Justice.

This was a trespass to try title suit that was tried to a jury. Also tried was defendants’ counter claim seeking to set aside the sheriff’s sale and deed under which the plaintiff claimed title. At the close of the evidence the court granted defendants’ motion for a directed verdict, denied the one made by the plaintiff, Diamond J. Pantaze, and rendered judgment for the defendants. The judgment set aside the sheriff’s sale *409 and deed under which Pantaze claimed and awarded title to the house and lot in question to the defendants, Robert E. Slocum and wife, Patsy Slocum. Pantaze, who is an attorney, is appealing from that decree.

Francis Shushok and wife, Suzette Shu-shok, were claimed to be the common source of title. Pantaze obtained a judgment against the Shushoks on May 8, 1970, in the County Court of Dallas County. He procured an abstract of the judgment and filed it in the judgment lien records of Tarrant County on May 13, 1970. A writ of execution was issued and on September 30, 1971 the sheriff levied the execution on the property involved to collect the judgment. Pantaze claimed title to the lot by reason of being the purchaser at the execution sale. Following this sale held on November 2, 1971, the sheriff deeded to Pan-taze the interest that the Shushoks owned in the property on date of the levy of the execution, which date was September 30, 1971.

The Slocums claimed title to the property by reason of having purchased it from the Shushoks for $22,000.00 on July 6, 1970, on which date the Shushoks deeded the land to them.

By means of the counter claim that the Slocums had filed herein against Pantaze, they sought to set aside the sheriff’s sale and deed on the grounds that the purchase price paid by Pantaze was grossly inadequate and because there were irregularities in the sale.

We will discuss Pantaze’s points of error Nos. 1, 3, 4, 5, 6, 8 and 10 together because in each it is contended that the trial court erred in setting aside the sheriff’s sale and deed on the ground that the purchase price was grossly inadequate and there were irregularities in the sale. In each point a different reason is advanced as to why that ruling was erroneous. We overrule all of those points of error.

The law is settled that where the price paid for the property at a sheriff’s sale is grossly inadequate and where this is accompanied by irregularities in the sale, even though they are slight, a court of equity will set such sale aside. This is especially true where the debtor makes a prompt offer to pay off the indebtedness involved together with the costs incurred. Moore v. Miller, 155 S.W. 573 (San Antonio Civ.App., 1913, writ ref.); Nance v. Currey, 257 S.W.2d 847 (Dallas Civ.App. 1953, no writ hist.); Cox v. Wheeler, 150 S.W.2d 159 (Texarkana Civ.App., 1941, no writ hist.); Steffens v. Jackson, 16 Tex.Civ.App. 28, 41 S.W. 520 (1897, writ ref.), and Graham v. Cansler, 191 S.W. 856 (Beaumont Civ.App., 1916, no writ hist.).

Pantaze contends that the evidence here did not show as a matter of law that the value of the house and lot at the time of the sheriff’s sale was such that the price paid for it at the sheriff’s sale by Pantaze ($225.00) was grossly inadequate.

He takes the position that the only evidence before the trial court as to the value of the house and lot was the opinion testimony of the Slocums where they estimated the market value of the house and lot to be $30,000.00.

We disagree. There was other evidence on value. It showed that on July 6, 1970, the Slocums, in a bona fide purchase, bought the house from the Shushoks for a price of $22,000.00; at that time the house was in need of repairs and the Slocums thereafter and before the sheriff’s sale on November 2, 1971, spent over $2,000.00 in repairing it and in improving it; the house was located in the Ridglea Hills Addition to the City of Forth Worth; it had over 2,000 square feet of floor space in it; it is ranch style and is partly brick veneered and partly cedar shingled on the sides; it has two bedrooms and a study that has been converted into a bedroom; it has two baths and a dual air conditioning system with two units; it has a dining room area off the living room; it has a large patio in the back yard, a garage, and a work shop at the back of the garage; and the lot on *410 which the house is located consists of ⅜ of an acre of land.

Seven photographs of the house were introduced into evidence and they showed the house and lot to be an attractive property.

The parties stipulated that the rental value of this property on the date of the sheriff’s sale was $200.00 a month and that its rental value at trial time (December 10, 1973) was $225.00 a month.

We hold that these stipulations, together with the undisputed evidence, establish as a matter of law that the value of the house and lot at time of the sheriff’s sale was in excess of $22,000.00.

There was $10,926.64 due on the first lien against the house at time of the sheriff’s sale. This would mean that Pantaze would be acquiring property having a value of over $11,000.00 through the sheriff’s sale.

Pantaze at the sheriff’s sale paid $225.00 for the house and lot, $83.00 of that amount being paid to the sheriff for his fees, and the remaining $142.00 was credited on Pantaze’s judgment which totaled $759.65.

The amount of Pantaze’s bid at the sheriff’s sale was thus less than two per cent of the value of the property.

We hold that the trial court did not err in holding as a matter of law that the price Pantaze bid for the property at the sheriff’s sale ($225.00) was shockingly disproportionate to the value of the house and lot involved and that such price was grossly inadequate.

Of such a purchase the court in Moore v. Miller, supra, said: “ ‘ . . . the mere fact of attempting to hold property so purchased will be held conclusive evidence of fraud. Certainly, where there is an enormous inadequacy of price at a sheriff’s sale, if there are but slight irregularities or other circumstances attending calculated to prevent the property from bringing something like its reasonable value, it is regarded as unconscientious in the purchaser to hold the property so purchased, and his deed will be canceled.’ ”

In his 8th point of error Pantaze contends that the Slocums did not make a prompt tender of the balance due on the judgment. His 9th point of error was that the court erred in holding as a matter of law that the Slocums were not guilty of laches in trying to pay Pantaze’s judgment lien more than 20 months after they had actual knowledge of the judgment lien. We overrule both points.

The undisputed evidence showed that the Slocums were not aware of this judgment until the time of the closing of their purchase of the house and lot from the Shu-shoks. They were then told by the title company lawyer that the judgment was on appeal by the Shushoks and that the title company was holding in escrow enough of Shushok’s money to pay the judgment if and when it became final.

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Cite This Page — Counsel Stack

Bluebook (online)
518 S.W.2d 407, 1974 Tex. App. LEXIS 2906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pantaze-v-slocum-texapp-1974.