Rivers v. Westbrooks

126 S.W.2d 46, 1939 Tex. App. LEXIS 457
CourtCourt of Appeals of Texas
DecidedMarch 1, 1939
DocketNo. 8781.
StatusPublished
Cited by4 cases

This text of 126 S.W.2d 46 (Rivers v. Westbrooks) 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
Rivers v. Westbrooks, 126 S.W.2d 46, 1939 Tex. App. LEXIS 457 (Tex. Ct. App. 1939).

Opinion

BAUGH, Justice.

Appellant, as plaintiff, brought this suit •against appellees, as defendants, for debt .and to foreclose a vendor’s lien on 45½ •acres of land in Bastrop County. The defendants answered pleading limitation against the notes; that the transactions ■out of which they were executed were simulated for the purpose of placing a mortgage on the homestead of Greely West-brooks and wife; and prayed for cancellation of the lien and judgment for title to the lands. The plaintiff, by supplemental petition, pleaded estoppel against defendants; ratification of the original transaction by renewal and extension of the debt and lien; that the transaction out of which the notes were executed was bona fide; and that plaintiff was an innocent purchaser in good-faith for a valuable consideration. Trial was to a jury on one special issue in answer to which they found that the transaction in question was for the purpose of placing a mortgage on the homestead. The court thereupon rendered judgment in favor of plaintiff for his debt, denied him foreclosure of his asserted lien, and cancelled same as a cloud upon defendants’ title; hence this appeal.

The material facts are substantially as follows: The appellant,' Roy D. Rivers, was a merchant in the town of Elgin. During 1925 he had furnished supplies and merchandise to Greely Westbrooks, a negro farmer, who owned the land here' involved and with his wife and children had for many years occupied and used it as their homestead. Because of the drouth and crop failure of 1925, Greely West-brooks had been unable to pay Rivers what he owed him and in the fall of 1925 Rivers told him that he could not extend credit to him for another year unless Greely furnished him security. The only security Greely could furnish was his homestead, and Rivers told him that he could not mortgage that. According to Greely’s testimony, contradicted by that of Rivers, the latter told Greely that he could sell his land to his brother, Bill Westbrooks, a single man, who could execute him notes therefor, and that he, Rivers, would purchase some of the notes.

On December 26, 1925, Greely and Bill "went to the office of an attorney in Elgin who drew a deed from Greely and wife, Viola, to Bill, to their homestead, in consideration of the execution by Bill to Greely of 10 vendor’s lien notes, recited as the entire consideration; notes 1 and 2 being for $325 each, secured by a prior lien on the land, due in one and two years thereafter; the other 8 notes being for $200 each and due one each year from 1928 to 1935. On the same dáy, and as a part of the same transaction, Greely executed an assignment of notes 1 and 2, the ones here involved, to Rivers, who marked Greely’s account with him, then amounting *48 to a little more than $100, paid, and credited Greely on his books with the balance. No money was paid. It is not clear whether Viola signed the deed in the attorney’s office or at their home; nor whether Bill executed the notes in the attorney’s office or out at the farm. It seems that the attorney retained both the deed and the transfer of the notes and had them recorded. Rivers paid the attorney for his services and the recording fees. The negroes both testified that neither of them paid out or received any money. What became of the other 8 notes does not appear. .Greely testified that he never had them, and Bill testified that he had never paid them nor been asked to pay them. It is not controverted that Greely and his wife then and at all times thereafter continuously used and occupied said premises as their homestead and that Bill never claimed title thereto.

In October, 1933, at the instance of Rivers, Bill, Greely, and Viola Westbrooks all joined in a renewal and extension of said 2 notes and lien and executed a new .note for $703.93, due October 19, 1934, being the note herein sued upon.

The issue submitted to the jury was as follows:

“Special Issue No. 1: Do you find from a preponderance of the evidence that at ■the time of the execution of the deed in evidence, there was an agreement entered into between the plaintiff, Roy D. Rivers, and all of the defendants, Greely West-brooks and wife Viola Westbrooks, and Bill Westbrooks by the terms of which agreement the defendants, Greely West-brooks and wife, Viola Westbrooks, were to convey the property in question to the defendant, Bill Westbrooks, for the sole purpose of creating a mortgage lien against said property, which was the homestead of the defendants,- Greely West-brooks and wife, Viola Westbrooks, for the benefit of the plaintiff, Roy D. Rivers, and that said deed was not intended to convey title to the land?”

The jury answered this question “Yes.”

It is unnecessary to set out or summarize the testimony here. There was a conflict between that of appellant, and his attorney who drew the original papers, on the one haad; and that of the old negroes involved on the other; suffice it to say that the testimony of the latter, when taken in connection with the undisputed facts and circumstances then known to Rivers, and .with Rivers’ own testimony, was amply sufficient to sustain the jury’s finding.

Nor were the appellees either by said deed, or by the execution of the renewal and extension of said notes, estop-ped to assert their homestead rights. The case of Eylar v. Eylar, 60 Tex. 315, and numerous cases subsequently following the rule there announced do not. apply here. If Rivers had purchased said notes as an innocent purchaser for value, without knowledge that the deed in question was but simulated and a subterfuge to evade the homestead laws, the mere fact that Greely Westbrooks and wife continued to occupy said premises thereafter as their homestead, would not bar him from a foreclosure of his lien. But no such case is here presented. On the contrary the jury found that Rivers himself was a party to the scheme to circumvent the homestead exemption laws and -the attempt to create 'such a lien thereon in the manner stated. This rendered the asserted lien void from .its inception.

Consequently the renewal and extension of the notes in 1933 gave such lien no more Vitality than did the original transaction. Under the undisputed facts, and the finding of the jury, the asserted lien was void under Art. 16, § 50, of the Constitution, Vernon’s Ann.Civ.St., and Art. 3832, R.C.S. Vernon’s Ann.Civ.St. art. 3832. And as stated by the Commission of Appeals in Rich v. Walker Smith Co., 57 S.W.2d 1098, “That which the Constitution declares void cannot be made valid by agreement of the parties.” See also Collier v. Valley Building & Loan Ass’n, Tex.Com.App., 62 S.W.2d 82; Vogel v. Zipp, Tex.Civ.App., 90 S.W.2d 668.

Appellant cites us to numerous cases holding that where a maker who renews an obligation which was originally subject to a defense of fraud, failure of consideration, etc., by such renewal ratifies the original transaction and waives his right to plead such defense to the renewal note. See J. B. Colt Co. v. Ellis, Tex.Civ.App., 293 S.W. 629; Braxton v. Haney, Tex. Civ.App., 82 S.W.2d 984. This rule would apply had appellees set up such defense to the debt sued upon; but manifestly could nof operate to make valid a lien on the homestead made void by the Constitu-tiqn itself.

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126 S.W.2d 46, 1939 Tex. App. LEXIS 457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivers-v-westbrooks-texapp-1939.