Schoellkopf v. Bryan

284 S.W. 339, 1926 Tex. App. LEXIS 466
CourtCourt of Appeals of Texas
DecidedApril 28, 1926
DocketNo. 7552.
StatusPublished
Cited by7 cases

This text of 284 S.W. 339 (Schoellkopf v. Bryan) 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
Schoellkopf v. Bryan, 284 S.W. 339, 1926 Tex. App. LEXIS 466 (Tex. Ct. App. 1926).

Opinion

SMITH, J.

On March 23, 1911, G. H. Schoellkopf, the owner, sold a certain busi *340 ness lot in tlie city of Dallas to M. G. O’Neil for a consideration of $1,000 cash, and three notes for $2,000, $6,000 and $35,000, respectively. The notes bore interest, payable semiannually, and were secured by the vendor’s and deed of trust liens. On September 26, 1911, O’Neil sold the lot to W. L. Spence, who assumed payment of the several notes mentioned. On February 17, 1913, Spence in turn conveyed the lot to E. P. Bryan, subject to the notes for $6,000 and $35,000; the one for $2,000 having been' previously paid. Subsequently Bryan paid the note for $6,000, and assumed the payment of the remaining one for $35,000.

It appears that the interest on the outstanding obligations against the property was paid up to March 23, 1914, at which date the note for $6,000 was also paid. But no further interest payments were made during the ensuing two years, and .the taxes for the years 1914 and 1915 were not paid. These items, as to which Bryan was in default, amounted to nearly $6,000 on March 23, 1916, at which date the note for $35,000 matured. Bryan was unable to discharge these obligations or any part of them, and at his request Schoellkopf advanced to him an amount sufficient to pay the delinquent taxes on the Dallas property, aggregating nearly $1,000, as well as the taxes owing by Bryan upon a farm belonging to him in Anderson county, aggregating $445.95, and took Bryan’s note for these amounts as well as for the ensuing year’s interest on the Dallas obligation. These several amounts aggregated $9,560.56, and the note covering them was dated March 23, 1916, to mature a year later. This note was secured by Bryan’s deed of trust upon his 1,900-acre farm in Henderson county, upon which there was an existing deed of trust lien to secure a debt of $20,000 owing to a mortgage company. The note for $9,560.56 matured on March 23, 1917, but Bryan was unable to pay it, and, upon his promise to sell either the Henderson county property or the Dallas lot, and with the proceeds pay off all of his obligations to Schoellkopf, the latter did not force an issue.

Nothing had been paid by Bryan on the principal or interest on either obligation up to July 1, 1918, and the taxes were delinquent for the years 1916 and 1917 on both the Henderson county and Dallas city properties. Moreover, the note for $20,000 against the Henderson county property, with $1,600 interest, was shortly to mature. Bryan was unable to meet any of these obligations, or to refinance them. In this crisis, on July 1, 1918, the parties entered into a written contract, in which it was provided, after reciting Bryan’s default in' the payment of the $9,560.56 matured note, the early maturity of the $20,000 debt against the Henderson county farm, and the delinquency of the taxes thereon—

“that in consideration of the premises, and for the purpose of making payment of the said $9,560.56 note and interest thereon accrued to July 1, 1918, viz., $1,004.94, total $10,565.56, described in said trust deed recorded as aforesaid, and to satisfy and cancel the indebtedness thereby evidenced, tlie said parties * * *• have now mutually contracted and agreed as follows:
“(1) That the said Bryan and wife shall now execute to the said G. 'H. Schoellkopf a valid warranty deed conveying the said 1,900-aere tract of land unto him absolutely as his sole property, subject only to the first deed of trust lien securing the said $20,000 note above mentioned, and subject to the lien of delinquent taxes.
“(2) That the said G. H. Schoellkopf shall receive such conveyance of said lands in full and absolute payment of said $9,560.56 note and all indebtedness evidenced thereby, and will deliver the said note to the said E. P. Bryan duly canceled.
“(3) And whereas the said E. P. Bryan is indebted to the said G. H. Schoellkopf in the principal sum of $35,000, evidenced by vendor’s lien note on March 23, 1911, executed by M. Griffin O’Neil to the order of G. H. Sehoell-kopf, due at five years, and secured by vendor’s lien and trust deed lien on a lot of land 40x100 feet on the north line of Commerce street in Dallas city and county, Tex., t'he same property conveyed by E. W. Morten, Jr., and wife to G. H. Schoellkopf by deed recorded in book 433, page 482, of the Deed Records of Dallas county, Tex., the payment of which was assumed, for a valuable consideration, by the said E. P. Bryan in his purchase of that property:
“Now, therefore, whenever the said 1,900-acre tract of land in Henderson county, Tex., shall be sold and conveyed by the said G. H. Schoellkopf, his heirs or legal representatives, then he, the said G. H. Schoellkopf, or his heirs or legal representatives, shall apply as a credit on the said $35,000 note executed by said O’Neil and assumed by Bryan as aforesaid, the excess, if any, of the purchase price of said 1,900-acre tract of land, whether in cash or vendor’s lien notes, over and above:
“(1) Tlie $20,000 first lien indebtedness thereon secured by the trust deed to R. G. Patten, trustee, as aforesaid, including all interest, taxes and other charges, if any, owing thereon.
“(2) All taxes which G. H. Schoellkopf may have paid or may have become liable to pay assessed against the said 1,900-acre tract of land.
“(3) Eight per cent, interest computed upon G. H. Schoellkopf’s entire investment in said 1,900-acre tract of land from date of his purchase thereof up to date of his conveyance thereof — such interest to be compounded annually in the event that conveyance of the land is not made by said Schoellkopf within one year from date of Bryan’s deed to him.
“It is distinctly and clearly mutually understood and agreed that said conveyance of the Henderson county tract by Bryan and wife to said Schoellkopf as aforesaid shall be an absolute, bona fide conveyance of said lands to him, and the relation of debtor and creditor between the parties to the extent of said $9,- *341 560.66 note shall be thereby absolutely ended, and the deed, which is of even date herewith and is executed with reference hereto, is declared to be an absolute, bona fide conveyance in fee simple of said .land to the said G. H. Schoellkopf, subject only to the encumbrances above stated, and this instrument is executed to declare and make manifest the true agreement of the parties to that effect. And it is hereby expressly declared by the parties that there are no reservations, mental or otherwise, and no conditions and no verbal agreements or understandings except as herein clearly expressed and set out; and the acceptance by the said'6. H. Schoellkopf of the deed from Bryan and wife conveying said Henderson county land to him and his placing same of record shall he conclusive evidence of the full satisfaction and cancellation of the said $9,560.56 note, and that same has been delivered to the said E. P. Bryan duly canceled.”

In pursuance of this agreement, Bryan executed and delivered to Schoellkopf a general warranty deed conveying to the latter the Plenderson county farm, and reciting the consideration therefor to be the cancellation of the $9,560.56 note and deed of trust to secure it.

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Bluebook (online)
284 S.W. 339, 1926 Tex. App. LEXIS 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schoellkopf-v-bryan-texapp-1926.