San Antonio Cattle Loan v. Blalack Son

256 S.W. 974
CourtCourt of Appeals of Texas
DecidedNovember 21, 1923
DocketNo. 7033. [fn*]
StatusPublished
Cited by8 cases

This text of 256 S.W. 974 (San Antonio Cattle Loan v. Blalack Son) 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
San Antonio Cattle Loan v. Blalack Son, 256 S.W. 974 (Tex. Ct. App. 1923).

Opinion

FLY, C. J.

This is a suit instituted by ap-pellees, a partnership, against Lichte & Thompson for pasturage in the sum of $7,-371, due on certain cattle, and a statutory lien for the pasturage was claimed on 460 steers in their possession, in a certain pasture in Zavalla county. Appellees, as plaintiffs, alleged that the San Antonio Cattle Loan Company and Central Trust Company, of San Antonio, Tex., were claiming an interest in said cattle, and made them parties-to the -suit. The suit was instituted in Zavalla county, but, by agreement, was transferred to Uvalde county, where it was tried. By agreement a bond was given by appellants, *975 •and the cattle were placed in their possession. The surety on the bond, ¿Etna Casualty & Surety Company, was made a party to the suit. The cause was tried without a jury, and judgment rendered, in substance, that, although certain liens held by Evans-Snider-Buel Company and the Central Trust Company had been superior to the statutory lien of appellees, for pasturage on the cattle, appellants were not, by payment of the claims forming the basis for the superior liens, sub-xogated to such superior liens, and that ap-pellees should recover as against Lichte & 'Thompson, the San Antonio Cattle Loan Company, the Central Trust Company, and the ¿Etna Casualty & Surety Company the sum of $8,135.11.

The facts are that on July 1, 1920, appel-lees and Lichte & Thompson entered into a written contract by which appellees bound themselves to pasture 800 or more steers for the other party for 12 months, in a pasture in Dimihit and Zavalla counties, known as the East and Tortuga pasture, for a consideration of $9 a head, and appellees also .agreed to drive the cattle from the railway station to the pasture, and deliver again at such station without any additional expense to the owners. Permission was given to sell off the original cattle and substitute others for them. The cattle were placed in the pasture under the terms of the contract. After-wards, Lichte & Thompson were permitted .by appellees to move 359 of the cattle out of the Tortuga pasture, leaving in appellees’ pastures about 460 head of steers. The last-named cattle remained in the pastures for the full year of the contract, which expired on July 21, 1921. On September 27, 1921, a contract was made between appellees and the' San Antonio Cattle Loan Company, whereby the pasturage for the cattle was to continue and be paid for by the latter. The pasturage has been paid since July 1, 1921.

The cause was tried on an amended petition, which does not, as it should, disclose the date of the filing of the pleading it sought to displace, so doubt is created as to the date of the suit The contract last named, however, shows that the suit was begun prior to September 27, 1921. A bond was given in connection with the contract to protect appellees in case appellants desired to remove the cattle.from the pastures. . It was proved that Evans-Snider-Buel Company and the Central Trust Company had liens on the cattle ’ of Lichte & Thompson for debts due them prior to the time that the cattle were placed in the pastures of appellees on July 1, 1920, and that said liens were given to secure certain debts and were superior to .any lien for pastura ge afterwards acquired by appellees and that such debts were fully paid off and discharged by the San Antonio Cattle Loan Company. On July 21, 1920, Lichte & Thompson executed and delivered to the San Antonio Cattle Loan Company a mortgage on cattle, covering those in controversy, to secure them for money which was used in taking up the prior mortgages. The contract of pasturage between appellees and the owners of the cattle was not recorded. There was nothing in writing referring, in terms, to the matter of subrogation.

The only substantial question in this case is, Do the facts, under the law, show subrogation in favor of the San Antonio Cattle Loan Company, which admittedly paid off and discharged the debts due by Lichte '& Thompson to the two firms, which were secured by liens superior to all others?' Sub-rogation, in- a broad sense, is the substitution of one person in the place of another with reference to a lawful claim or right. It is purely an equitable right, and is subject to the rules affecting equitable rights. The, person entitled to subrogation must work through the creditor whose rights he claims, and can only enforce such rights as the creditor could enforce. That is, the subrogee, as a general rule, stands in the shoes of the creditor, and can enforce -every right which the creditor could have .enforced which were necessary to secure reimbursement or contribution. As said by Mr. Pomeroy (6 Equity Jurisprudence, §920):

“When an obligation is discharged by one not primarily liable for it, but who believes himself to be acting either in the performance of a legal duty, or for the protection of a legal right, or at’the request of the party ultimately bound, and even in certain other cases, favored by public policy, where none of the above circumstances may be present, the party thus discharging the obligation is entitled in equity to. demand,' for his reimbursement, and subject to any superior equities, the performance of the original obligation, and the application thereto of all securities and collateral right's held by the creditor.”

It is the general rule that, where a stranger pays the debt of another, which is secured by a mortgage, and it is agreed between the party who pays the debt and the one who owes it, that the first party shall have the first lien, the payer of the debt will be subrogated to all the rights of the original creditor. Some courts have held that there must be an express agreement between the parties that the security shall be kept alive, and that was the rule under the civil law. Wilkins v. Gibson, 113 Ga. 31, 38 S. E. 374, 84 Am. St. Rep. 204. The generally accepted rule at the present time, however, is that an express agreement is not necessary, but, if such agreement can be implied from the surrounding facts and circumstances, equity will hold that the agreement was made. 25 R. C. L. Subrogation, p. 1340, § 24.

Of course one, who, acting upon his own initiative, pays the debt of another without invitation, compulsion, or for self-protec *976 tion, is not entitled to subrogation; He is one known as a volunteer. 6 Pom. Eq. § 921.

Tbe doctrine of subrogation bas not been carried to a greater or more comprebensive extent than in tbe decisions of tbe state of Texas, and it has been held that, where money was advanced to pay off a valid lieh on tbe homestead and the money was applied to that purpose, tbe lender was subrogated to tbe rights of tbe original lienholder, although no assignment of tbe lien was taken. Tbe subrogation did not depend upon a written agreement between tbe debtor and tbe lender of tbe money, but on a verbal agreement. No notes or liens were transferred. Hicks v. Morris, 57 Tex. 658; Dillon v. Kauffman, 58 Tex. 696; Joiner v. Perkins, 59 Tex. 300; Eylar v. Eylar, 60 Tex. 315; Faires v. Cockerell, 88 Tex. 428, 31 S. W. 190, 639, 28 L. R. A. 528; Railway v. Investment Co. (Tex. Civ. App.) 201 S. W. 718; Sanger v. Ely & Walker (Tex. Civ. App.) 207 S. W. 348; Harrison v. First Nat. Bank (Tex. Com. App.) 238 S. W. 209. In all of these cases, where tbe subject is mentioned, it is held that discharge of tbe debt and cancellation of tbe superior lien would not destroy tbe right of subrogation.

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Bluebook (online)
256 S.W. 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-antonio-cattle-loan-v-blalack-son-texapp-1923.