Reynolds Mortgage Co. v. Smith

280 S.W. 879
Court of Appeals of Texas·Decided January 28, 1926·No. No. 3164.·Published·Cited by 6 cases

Opinion

HODGES, J.

This suit was filed on October 16, 1924, in the district court of the Seventeenth judicial district of Tarrant county by the Reynolds Mortgage Company against Jennie Watson Smith individually and as the administratrix of her deceased husband, C. C. Smith. Harold Smith, a minor son of C. C. Smith, and the City National Bank of Clarksville, were also made parties defendant. For cause of action it was alleged, in substance, that on September 25, 1919, C. C. Smith and his wife, Jennie Watson Smith, executed a note for the sum of $7,500 payable to the Reynolds Mortgage Company, with interest at the rate of. 6per cent, per annum. It also stipulated for the payment of attorney’s fees in. case of default. The interest was payable annually, and was evidenced by ten coupons, one due each year after the date of the note. The first coupon was for $536.25, and the others for $487.50 each. All of those interest coupons were unpaid at the date of the institution of this suit, except the first. To secure the payment of that note and the interest coupons, Smith and wife executed a mortgage on 199 acres of land situated in Red River county, Tex. On the same date, September 25, 1919, Smith and wife executed another note for $1,136.25 payable to the Reynolds Mortgage Company in ten annual installments. The first installment was for $123.75, due November 1, 1920; the others were for $112.50 each. To secure the payment of this second nóte, an *880 other deed of trust was executed by Smith and wife upon the same land, but was made subordinate to the deed of trust executed to secure the note for $7,500. None of the installments of the second note had been paid at the time this suit was filed, except the first. It is further alleged that on January 15, 1921, Smith executed a deed of trust on the same land to secure an indebtedness to the City National Bank of Clarksville, but that deed of trust was inferior to the two previously mentioned. The Reynolds Mortgage Company, for á valuable consideration, assigned the note for $7,500 to the Pan-American Life Insurance Company of Louisiana, and that company was still the legal owner and holder. For the purpose of protecting its own lien, the Reynolds Mortgage Company, prior to the institution of this suit, paid to the Pan-American Life Insurance Company two of the interest coupons of $487.50 each, and those coupons had been assigned to it by the Pan-American Life Insurance Company. It is also alleged that O. C. Smith was dead, . leaving his wife, Jennie Watson Smith, and a minor child, Harold Smith; that Mrs. Smith had been appointed administratrix of the estate of her husband.

■ The prayer was for the debt evidenced By the matured and unpaid interest coupons, and, the installments due upon the second note. The petition, also sought a foreclosure of the lien upon the land incumbered to secure the debts.

'' lipón a plea of privilege the case was transferred to the district court of Red River county. On November 29, 1924, Mrs. Smith appeared in that court and filed a plea in abatement, alleging, in substance, that C. 0. Smith died in October, 1923; that she was his' surviving widow; that Harold Smith was his minor son and only child; that at the time of his death Smith left a number of debts. The only property he then owned was his community interest in a portion of the land described in'the plaintiff’s original petition. At the time the deed of trust was executed, the land was his homestead, and the trust deed was for that reason void; that debts amounting to $863.63 on account of the last sickness and funeral expenses of C. C. Smith had been contracted and paid by her out of her own separate funds, and for which she claimed reimbursement; that the land upon, which the mortgage company claimed a lien, if not her homestead, should be subjected to the payment of that claim. She further alleged that she had fully qualified as administratrix of the estate of O. O. Smith in the county court of Red River county, and that such administration was then open and pending. She further pleaded her cover-ture at the time the notes and trust deeds were, executed, and that the debts were not those for which she might be held personally liable. It ¡was. also alleged that the. claims upon which the suit was founded had not been presented to her as administratrix for allowance. Upon' a hearing on that plea the district court of Red River county dismissed the case, and from that order of dismissal this appeal has been prosecuted by the Reynolds Mortgage Company.

There is in the record no statement of facts, and there appears to be no dispute, about the facts set up in the plea of abatement. We must therefore assume that the .judgment of dismissal was supported by the evidence.

It is clear that the claim sued on is one for which the estate of O. O. Smith was primarily liable, and that at the time this suit was filed' an administration upon his esr tate was pending jn Red River county. The claims are such as the law contemplates shall be presented to the administration for allowance, and which should be paid in due course of the administration. Rev. Civ. Stat. of 1911, art. 3488. For that reason the county court, and not the district court, was the proper, forum. Wilkinson v. McCart, 116 S. W. 400, 53 Tex. Civ. App. 507; Buchner v. Wait (Tex. Civ. App.) 137 S. W. 383; Degetau et al. v. Mayer et al. (Tex. Civ. App.) 145 S. W. 1054; Taylor v. Williams, 108 S. W. 815, 101 Tex. 392; Whitmire v. May et al., 72 S. W. 375, 96 Tex. 317; Bradford v. Knowles, 25 S. W. 1117, 86 Tex. 505; Wilson v. Harris, 44 S. W. 65, 91 Tex. 427; Robertson v. Paul, 16 Tex. 472.

The jurisdiction of the district court is invoked upon the ground that it is the only tribunal that can try all of the issues and .adjust all of the equities of the parties interested. The estate has here no equities to be adjusted. The claims against it are those for which it is primarily liable; they are liquidated demands and are secured by liens on land belonging to the estate of the decedent. The fact that Mrs. Smith has a community interest in the land would not alone affect the validity of the lien given to secure these debts. The appellant can therefore obtain all the relief to which it is entitled against the estate in the county court. While the probate court cannot render a judgment foreclosing a lien on i*eal estate, the statute provides a method whereby incumbered property may be sold and the proceeds applied to the payment of the secured debt. Articles 3420, 3462, and 3463, Rev. Civ. Stat. 1911.

The question then is: Did the joinder of the minor child of the decedent, the City National Bank, and Mrs. Smith, individually, in a suit against the estate, authorize a resort to the district court to the exclusion of the probate court where the administration was then pending? The minor child had no interest to be adjusted that could not be settled in the probate proceedings. He took the inheritance from his deceased father subject to. the payment of debts *881 for which the property was liable. The bank was admittedly only a junior mortgagee. It is not alleged that the indebtedness to the bank was still unpaid, or that the bank is still holding a claim against the estate of Smith. Upon the face of the petition nothing appears which justified a resort to the district court in order to settle claims or equities held by the minor or the bank.

It is admitted that 82 acres of the land included in the trust deeds belonged to the separate estate of Mrs. Smith.

Free access — add to your briefcase to read the full text and ask questions with AI

Reynolds Mortgage Co. v. Smith, 280 S.W. 879 (Tex. Ct. App. 1926).

280 S.W. 879 (Reynolds Mortgage Co. v. Smith) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Christensen v. Harkins
740 S.W.2d 69 (Court of Appeals of Texas, 1987)
Taliaferro v. Texas Commerce Bank
660 S.W.2d 151 (Court of Appeals of Texas, 1983)
Kelley v. Barnhill
188 S.W.2d 385 (Texas Supreme Court, 1945)
Connor Bros. v. Williams
112 S.W.2d 709 (Texas Supreme Court, 1938)
Williams v. Connor Bros.
83 S.W.2d 692 (Court of Appeals of Texas, 1935)
Reynolds Mortgage Co. v. Smith
280 S.W. 881 (Court of Appeals of Texas, 1926)