Perry National Bank v. Eidson

340 S.W.2d 483, 161 Tex. 340, 4 Tex. Sup. Ct. J. 64, 1960 Tex. LEXIS 603
CourtTexas Supreme Court
DecidedOctober 19, 1960
DocketA-7562
StatusPublished
Cited by24 cases

This text of 340 S.W.2d 483 (Perry National Bank v. Eidson) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry National Bank v. Eidson, 340 S.W.2d 483, 161 Tex. 340, 4 Tex. Sup. Ct. J. 64, 1960 Tex. LEXIS 603 (Tex. 1960).

Opinions

Mr. Justice Norvell

delivered the opinion of the Court.

[342]*342The trial court rendered judgment upon special jury findings in favor of Perry National Bank and against John R. Edison and others who were the collateral heirs of James A. Eidson, a bachelor. The judgment as between the bank and the Eidson heirs was for the recovery of title and possession of a 443/500ths undivided interest in 600 acres of land located in Hamilton County, Texas. This portion of the judgment was reversed by the Court of Civil Appeals. That part of the judgment relating to the remaining 57/500ths interest was left undisturbed and need not be further noticed. 327 S.W. 2d 683.

This litigation arose from transactions between James A. Eidson and E. A. Perry, both of whom are now deceased. Whether such dealings resulted in Perry National Bank’s acquiring outright ownership or merely a mortgagee’s interest in the land and 443 shares of corporate stock of The Eidson Club Lake, a corporation organized by Eidson, is one of the disputed issues in the case.

This Court granted writ of error upon three points asserting in substance that:

1. The Eidson heirs are estopped to assert any claim to the 600-acre tract because of a boundary agreement dated July 5, 1940 by and between James A. Eidson and Perry National Bank.

2. The bank had secured title to the land under and by virtue of a deed executed by The Eidson Club Lake to Perry National Bank and a deed executed by James A. Eidson to E A. Perry and a subsequent quitclaim executed by Perry in favor of the bank.

3. The bank had secured title by virtue of becoming the owner of 453 shares of the capital stock in The Eidson Club Lake. This thesis is set forth in a dissenting opinion filed in the Court of Civil Appeals.

The transactions between James A. Eidson and the Perry National Bank were as follows:

On April 18, 1924, Eidson conveyed 600 acres out of an 1190-acre tract owned by him and located in Hamilton County, Texas, to The Eidson Club Lake, a Texas corporation, in exchange for 443 shares of the outstanding 500 shares of the corporation’s capital stock.

[343]*343On November 5, 1931 The Eidson Club Lake executed a deed purporting to convey the 600-acre tract to Perry National Bank. Also, on this date, James A. Eidson executed a deed which purported to convey the same tract of land to E. A. Perry, who was then the president of Perry National Bank. Eidson likewise delivered 443 shares of the. capital stock in The Eidson Club Lake to the bank and executed a promissory note for $7,660.44 payable to the bank on May 5, 1932, presumably to evidence monies advanced to him. The deed from The Eidson Club Lake to the bank was filed for record shortly after its execution, but the deed from Eidson to Perry was not filed for record until April 4, 1940 at which time E. A. Perry also executed a puitclaim of the 600 acres to the Perry National Bank. In the application for writ of error it is stated that “Petitioner never denied that from 1931 to March 30, 1940, it, the bank, was a mortgagee.”

On April 3, 1940 the bank executed an oil and gas lease on the 600 acres and subsequently executed other oil and gas leases.

On July 5, 1940 Perry National Bank and James A. Eidson executed an agreement purporting to fix and settle the boundary line between the 600-acre tract and the 590-acre tract. The agreement was made in connection with Edison’s refinancing a loan on the 590-acre tract through the Federal Land Bank.

The records of the Perry National Bank show that the note executed by Eidson on November 5, 1931 was renewed and extended from time to time. The last of this series of notes was executed by Eidson on April 1, 1945 for the principal sum of $5,488.50, and due one year after date. E. A. Perry died on February 10, 1950 and James A. Eidson died on January 13, 1954.

By its first point, petitioner asserts that as a matter of law the recitals in the boundary line agreement of July 5, 1940 above mentioned absolutely estopped respondents from denying petitioner’s ownership of the land in controversy. The principle asserted is that of estoppel by deed and petitioner relies upon Havard v. Smith, Texas Civ. App., 13 S.W. 2d 743, no wr. hist., and the authorities therein cited. However, the instrument here involved was not a deed but a contract and such contract is not the subject matter of this litigation. The circumstances surrounding the execution of the agreement were as follows: The record title to the 600-acre tract was in the Perry National Bank by virtue of a conveyance from The Eidson Club Lake [344]*344to Perry National Bank. At that time also the deed from Eidson to E. A. Perry and the quitclaim from Perry to the bank had been filed for record. The record title to the 590 acres was in Eidson who was securing a loan on the property from the Federal Land Bank. There was a fence upon the 590 acres which might possibly be considered as a dividing fence between the 600-acre tract and the 590-acre tract. The Federal Land Bank as a lender wanted it made clear that there were no claims adverse to Eidson extending to the fence which would cloud its title as a mortgagee in any way. As a result the boundary agreement was executed. It describes both tracts of land by metes and bounds and sets forth a definite boundary line between them. The instrument also recites that the fence heretofore mentioned is located upon the 590-acre tract and that the bank “does not now claim, and has neved claimed, any part of the land lying between the said fence and the true boundry line dividing our said lands, and Perry National Bank and J. A. Eidson expressly agree that said strip of land is a part of the security for Loan Number S-13722-S, in favor of the Land Bank Commissioner and also a part of the security for Loan Number 36112-S in favor of the Federal Land Bank of Houston, and that both the Land Bank Commissioner and the Federal Land Bank of Houston have liens upon said strip of land lying between the fence and the true boundary line separating said lands.”

This instrument refers to Perry National Bank as the owner of the 600-acre tract and James A. Edison as the owner of the 590-acre tract. It is this recitation that is relied upon primarily as constituting an “estoppel by deed.”

The boundary agreement was effective for the purposes intended. It would preclude the bank from asserting any claim against the Federal Land Bank to any portion of the 590 acres specifically described by metes and bounds. It was not, however, a deed or conveyance from Eidson to the bank of the 600 acres described therein. It did not purport to be a foreclosure of the mortgage which the bank held against the property. It did not operate as an estoppel against Eidson’s showing that the 1931 deeds were actually given to secure a debt owed by him to the bank and hence constituted mortgage arrangements. We agree with the Court of Civil Appeals on this point. For example:, the doctrine of estoppel does not apply to partition agreements, Hamilton v. Hamilton, 154 Texas 511, 280 S.W. 2d 588, and a recital in a simple contract is not binding in a suit which is not based upon the contract. 31 C.J.S. 235, Estoppel, Sec. 58. See [345]*345also 19 Am. Jur. 603, Estoppel, Sec. 6. Whatever may be the evidentiary value of this agreement with reference to other issues in the case, it does not operate as an estoppel which would preclude the claim of the Eidson heirs as a matter of law.

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Perry National Bank v. Eidson
340 S.W.2d 483 (Texas Supreme Court, 1960)

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Bluebook (online)
340 S.W.2d 483, 161 Tex. 340, 4 Tex. Sup. Ct. J. 64, 1960 Tex. LEXIS 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-national-bank-v-eidson-tex-1960.