Republic Guaranty & Surety Co. v. Wm. Cameron & Co.

143 S.W. 317, 1912 Tex. App. LEXIS 161
CourtCourt of Appeals of Texas
DecidedJanuary 3, 1912
StatusPublished
Cited by18 cases

This text of 143 S.W. 317 (Republic Guaranty & Surety Co. v. Wm. Cameron & Co.) 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
Republic Guaranty & Surety Co. v. Wm. Cameron & Co., 143 S.W. 317, 1912 Tex. App. LEXIS 161 (Tex. Ct. App. 1912).

Opinion

AVTLLSON, C. J.

(after stating the facts as above). [1] There is language in the bond which, if considered alone, would indicate an intent of the parties thereby to secure the payment of any and all indebtedness, without reference to whether it was in favor of parties entitled to fix liens on the property or not, which might be incurred by Heck & Ulander in carrying out their contract to construct the house. But we do not think this language should be permitted to control in the interpretation of the bond, for other language in the instrument clearly indicates that such was not the intention of the parties. The obligation of the bond, it will be noted, was to Cantwell and “to all persons who may become entitled to liens under” his (Cant-well’s) contract with Heck & Ulander, and not to persons generally, to whom Heck & Ulander might become indebted in complying with their contract. And it also will be-noted that the bond concludes with a declaration as to its purpose inconsistent with an intent to have it inure to the benefit of any creditors of Heck & Ulander other than those who might become entitled to liens on the property. The declaration referred to is as follows: “This bond is made for the use and benefit of all persons who may become entitled to liens under said contract, according to the provisions of law in such cases made and provided, and may be sued upon by them as if executed to them in proper person.” AVhen these parts of the bond are kept in mind, the only reasonable construction which can be given it, we think, is that it was intended to indemnify Cantwell against statutory liens which parties dealing with Heck & Ulander in connection with the construction of the building might fix, or have a right to fix, against the property, and as more directly accomplishing this than it otherwise could be accomplished, to permit such parties, as well as Cantwell, to sue on the bond. The making of the bond was contemplated by Cantwell and Heck & Ulander at the time they entered into the contract covering the construction of the house, as was shown by a stipulation in that contract requiring Heck & Ulander, “by bond herewith annexed,” to furnish to Cantwell “a release from liens or rights of liens.” This stipulation in the contract, showing that the bond contemplated was one which would protect Cantwell against “liens or rights of liens,” is entitled to be considered in determining the meaning of the bond actually made, and we think adds to the weight of the language in the bond which we think should be held to control in construing its meaning.

So construing the bond, the questions arising on the face of the record are: (1) Had Cameron & Co., Inc., and Buckley & Son, or either of them, acquired “liens or .rights of liens” on the property? (2) If they had, were they entitled to sue on the bond? (3) If they were not, was Cantwell entitled to sue on it for their use and benefit?

The trial court found “that at the date,” quoting from his findings, “of the contract between Cantwell and Heck & Ulander, the property on which the house was to be constructed was not the homestead of J. AV. Cantwell; no clear abandonment of the homestead at Corsicana being shown, * * * and no preparation having been made to make the property in question a home at the date of the contract.” The finding is attacked as erroneous, because not supported by the testimony.

*320 [2] Removal from a homestead with a fixed intent never again to return to and use it as such constitutes an abandonment thereof, without reference to whether another homestead has been acquired or not. Woolfolk v. Ricketts, 41 Tex. 362; Cline v. Upton, 56 Tex. 322; Shepherd v. Cassidy, 20 Tex. 29, 70 Am. Dec. 372; Gouhenant v. Cockrell, 20 Tex. 96. On the trial below it was agreed that the removal of Cantwell and his family to Et. Worth was a permanent removal and without intent ever to return to Corsicana to live. It would seem, therefore, that the finding of the court that the Corsicana homestead had not been abandoned by Cantwell was against the admission of the parties that it had been.

That the conclusion of the court in that respect was erroneous would not, however, establish that his conclusion that the lot was not homestead at the time contract was entered into between Cantwell and Heck & Ulander also was erroneous; for, as stated above, Cantwell need not have acquired another homestead before his abandonment of the old one could become effectual.

[3] There is nothing in the record, other than may be evidenced by the contract itself, showing or tending to show that, prior to the time he entered into the contract with Heck & Ulander, Cantwell had an intention to make the property ' his homestead; but it was agreed by the parties, on the trial below, that that contract was made by Cantwell “for the purpose of building and erecting a homestead for himself and family.” It was further agreed that, on December 16th following, Cantwell and his family moved into the house, then incomplete, and thereafter-wards with his family occupied it as a home. It thus clearly appeared that the property became Cantwell’s homestead, and we think it must be held to have become so at the time he entered into the contract with Heck & Ulander on July 26th, and therefore that the finding of the trial court to the contrary was erroneous. West End Town Co. v. Grigg, 93 Tex. 451, 56 S. W. 50. In the case just cited the Supreme Court said: “The purpose of Grigg and wife to establish their homestead upon the lots at some future time, if able to erect a residence upon it, did not make it a homestead, but the making of the contract under which that residence was built, concurring with the intent to occupy it, fixed the homestead right from that time.”

[4] The material on account of which Cameron & Co. claimed a lien was furnished to Heck & Ulander on and between August 19 and December 15, 1909; and the material on account of which Buckley & Son claimed a lien was furnished to Heck & Ulander on and between October 12, 1909, and January 1, 1910. At all those times the property against which the liens were claimed was Cantwell’s homestead. Because it was then homestead, the liens were invalid. Valid liens against the property, covering the material so furnished, could have been created in no other way th'an by a contract in writing, consented to by Cantwell’s wife, “given in the same manner as is required in making a sale and conveyance of the homestead.” Const. art. 16, § 50.

We do not think any of the authorities cited by appellee hold to the contrary of the conclusion we have reached.

Pope v. Graham, 44 Tex. 198, seems to be the case most confidently relied upon. There Graham undertook to build a house for Pope. After the completion of the house, the latter gave his note to the former for a balance unpaid of the contract price due him. The note on its face recited the existence in Graham’s favor of a mechanic’s lien on the property to secure its payment. When Graham sought to enforce the lien he claimed against the property, Pope sought to defeat same by interposing the homestead right of his wife, who, it was claimed, was the equitable owner of the ground on which the improvement was made. On appeal a judgment in Graham’s favor foreclosing the lien as asserted by him was affirmed.

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Bluebook (online)
143 S.W. 317, 1912 Tex. App. LEXIS 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-guaranty-surety-co-v-wm-cameron-co-texapp-1912.