Postal Savings & Loan Ass'n v. Powell

47 S.W.2d 343
CourtCourt of Appeals of Texas
DecidedDecember 24, 1931
DocketNo. 2466
StatusPublished
Cited by17 cases

This text of 47 S.W.2d 343 (Postal Savings & Loan Ass'n v. Powell) 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
Postal Savings & Loan Ass'n v. Powell, 47 S.W.2d 343 (Tex. Ct. App. 1931).

Opinion

PELPHREY, C. J.

Appellees, D. P. Powell and wife, Susie Powell, and W. M. Brooks and wife, Annie Brooks, instituted this suit against Palmer Haworth, J. E. Whitehead, G. W. Johnson, and the Postal Savings & Loan Association, for cancellation of a mechanic’s lien and note given by them to G. W. Johnson, and of a deed of trust and note in favor of the Postal Association in which Palmer Haworth was named as trustee, to remove cloud east upon their title to properties mentioned in said instruments and to restrain appellants from asserting any right, title, or interest in said properties by virtue of such asserted liens.

Appellees, in their second amended petition, upon which the case was tried, alleged the execution by them of a contract with appellant Johnson for a “turnkey” job for a consideration of $20,000, for which they executed a mechanic’s lien note in his favor; that the contract provided for a written acceptance of the building by them; that the mechanic’s-lien note was assigned to appellant Postal Savings & Loan Association; that the mechanic’s lien contract and note were void, being on the homestead of appellees and not being acknowledged by Susie Powell and Annie Brooks, with the formalities required by law; that such instruments created no lien on appellees’ property because the notary’s acknowledgment fails to show that the wives of appellees had declared that they had signed them for the purposes and consideration therein expressed and did not recite that each of them had declared that she did not wish to retract it; that the said mechanic’s lien contract and note are also void and unenforceable because of the failure of appellants to comply with the contract to construct the building in accordance with the contract (pointing out particulars in which they failed); that appellees had never executed a written acceptance of the building, but had taken possession thereof relying upon the promise of appellants to complete the building as per contract; that all of appellants except Palmer Haworth were actuated by bad faith and fraudulent intentions, and acted with a view of overreaching appellees, thereby entitling them, .to $1,000 punitive or exemplary damages; that the provisions calling for appellees to pay for insurance on the property and for the payment of attorney’s fees are void, the property being the homestead of appellees and not subject to having liens for such charges fixed thereon; that appellant Whitehead, by representing to ap-pellees that it was necessary for them to furnish additional information as to their financial standing and to make an application for a loan to refinance the building when completed, fraudulently induced them to sign a deed of trust note for $29,000, including property 'other than that covered by the mechanic’s lien contract and note; that in so doing he acted for himself and as agent of the Postal Association; 'that the said deed of trust and note are void because covering the homestead of appellees, the signature of ap-pellees thereto having been secured by such fraudulent representations and because said instruments were not explained to the wives, Susie Powell and Annie Brooks, by the notary taking their acknowledgments thereto; that there was a failure of consideration as far as said deed of trust and note were concerned, the Postal Association not having paid Off the liens on the homestead, not having paid the taxes thereon, not having paid the $10 called for in said deed of trust, and having failed to construct the improvements in accordance with the contract; that the Postal Association knew that the work on the improvements had barely commenced, if at all, at the time it accepted the benefits of the deed of trust for $29,000; that the mechanic’s lien contract and note were not negotiable, and that if the Postal Association received same as recited in the transfer from Johnson it took the sub-rogated part thereof with full knowledge of the terms of the building contract and subject to all the rights of appellees; that Whitehead, for himself and on behalf of his then undisclosed principal, the Postal Association, jointly with Johnson constructed the improvements on the homestead; that Whitehead, out of his own funds, the funds of the ’ Postal Association, or other funds, paid for all the labor and material used in the building; that Whitehead, the Postal Association, and Johnson, were jointly interested in the construction contract for their mutual profit and actually constructed such improvements as were placed on the property of appellees; that Whitehead, Postal Association, and Johnson all fraudulently conspired to defraud appellees in furnishing insufficient and inadequate material for the proper construction of the improvements and in deviating materially from the plans [346]*346and specifications and to, by tricks, acquire mortgages and liens on all their property; that in pursuance with such conspiracy Johnson, notwithstanding his failure to complete the improvements as per contract, demanded of appellees $7,000 for extras; and Whitehead and Postal Association demanded the payment hy appellees of $35,822.72, and the execution by appellees of additional security on other property owned by them in Dallas county; that appellant threatened to file suits ' and did file suits on the deed of trust in Harris county, in an attempt to intimidate ap-pellees into mortgaging all their property to pay the first lien indebtedness of approximately $12,000, and to pay for the improvements; that the suit is brought for the purpose of ascertaining what is due appellants on a quantum meruit basis; that no lien existing against appellees’ property, they are liable to appellants only for the value of the labor and materials necessary to duplicate the improvements as they exist, and prayed for their damages, as alleged, be credited against any amount due appellants on quantum meruit.

The Postal Association answered by general demurrer, special exceptions, a general denial, admitted-its corporate existence, the execution of the mechanic’s lien contract; denied that the contract pleaded by appel-lees was the contract entered into between appellees and Johnson, and alleged that if so it had been materially altered by one or more of appellees; denied that the property covered by the mechanic's lien contract was the homestead of appellees; alleged that the building constructed by Johnson was a new building and had never been occupied by ap-pellees until after its completion; that ap-pellees, by using the property as a hotel for colored people, and mainly for immoral purposes and in violation of law, were estopped from asserting its homestead character.

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Bluebook (online)
47 S.W.2d 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/postal-savings-loan-assn-v-powell-texapp-1931.