Shear Co. v. Smith

250 S.W. 727, 1923 Tex. App. LEXIS 813
CourtCourt of Appeals of Texas
DecidedMarch 31, 1923
DocketNo. 8723.
StatusPublished
Cited by6 cases

This text of 250 S.W. 727 (Shear Co. v. Smith) 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
Shear Co. v. Smith, 250 S.W. 727, 1923 Tex. App. LEXIS 813 (Tex. Ct. App. 1923).

Opinion

HAMILTON, J.

On a former day of this term of court the judgment of the trial court was reversed, and judgment was rendered for appellant. The cause is now before us upon a motion for rehearing. The motion will be granted, and the judgment and opinion of the court heretofore rendered will be withdrawn and set aside.

This is a suit in the nature of trespass to try title brought by appellant against appel-lees for the recovery of certain described residential property situated in the city of Waxa-hachie, Ellis county, Tex. The issues were joined by a plea of not guilty in response to the petition and by specific allegations that appellees owned in fee simple the premises described in the petition, and that they were then, and had been for many years, occupied and used as a homestead by appel-lees. They alleged that on or about the 17th day of July, 1915, they executed an instrument to appellant in the form of an absolute conveyance, but which was intended only as a mortgage to secure certain indebtedness pre-existing and to accrue. They alleged this instrument to have been 'intended not as an absolute conveyance, but only as a mortgage or deed of trust. They pleaded that appellant was estopped to deny the invalidity of this instrument as a deed of conveyance for the reason that the notary public who took the acknowledgment of appellee, Mrs. Nannie L. Smith, wife of appellee P. P. Smith, did so as the agent of appellant, and at its request and under its instruction; that said notary, in the capacity of appellant’s agent and representative, represented the instrument to Mrs. Nannie L. Smith to be, in effect and in substance, only a mortgage or deed of trust, and not an absolute conveyance of her homestead, and that such representations made to her by thé notary public, acting under the instriictions of appellant, induced her to sign the instrument for the purpose only of giving the mortgage to secure debts due and to become due appellant.

Appellees alleged the claim of appellant and the deed executed as a mortgage to it *728 %>' appellees on July 17; 1915, to constitute a cloud upon their fee-simple title, and sought as affirmative relief - a judgment canceling the deed alleged by them, as above stated, to be void. In answer to appellees’ pleadings, appellant, by supplemental petition, excepted to various allegations made by appellees, and denied them all.

Appellant was a corporation engaged in the wholesale grocery business. It had conducted such business many years under the name of Rotan Grocery Company, and, at the time of the transaction out of which this litigation arises, it was operating under that name, but, at a subsequent date, by amendment of its charter, the name was changed to that of the Shear Company, under which name this suit- was instituted.

Appellee P. P. Smith was engaged in the retail grocery business in Waxahachie on July 17, 1915, and had been engaged in this business in that city continuously for many years immediately preceding that date. Some time before July 17, 1915, his business affairs had fallen into á precarious condition, and he owed appellant several thousand dollars. According to the testimony, numerous interviews were had between Smith and appellant’s agents in the pursuit of an effort to adjust his past-due indebtedness to appellant. The pursuit of the effort finally culminated in the execution by P. P. Smith and his wife, on July 17, 1915, of a conveyance in the form of an absolute warranty deed which was delivered to appellant and put on record in the deed records of Ellis county. It was testified that at the time Smith signed the deed he also signed a rental contract, agreeing to pay $15 per month rent for the premises. He never paid any rent after signing the deed and this instrument, although the suit involved in this appeal was not filed until February 19, 1919, nearly four years after the execution of the deed and the signing of the agreement to pay rent. Smith’s testimony on this point is more or less confusing, and the effect of it might be said to constitute neither an admission nor a denial thát he signed such an instrument. Our attention is called to no other proof of the existence at any time of a rental contract. There appears to have been no objection made to the parol evidence given in behalf of appellant to. prove the contract and its contents, and, accordingly, the facts are to be regarded as properly proved.

The evidence was sufficient to establish the conclusion that P. P. Smith, himself, and appellant’s agents representing it in' the transaction mutually intended that the instrument should constitute an absolute deed of conveyance, and not a mortgage for the security of indebtedness,, and the jury found such to be the fact.

Mrs. Nannie L. Smith’s intention and purpose in executing the deed and the representations made to her to induce her to execute-it appear exclusively and without contradiction or any equivocation in her testimony and that of the notary public, Thos. N. Herring, who took the acknowledgments to the deed.

Mrs. Smith testified as follows:

“I remember to have signed that deed on that date. When I signed the deed I was at home, out on the back porch, when Tom came, it was in the forenoon, but I would not say just what hour it was, because I cannot recollect, but it was in the forenoon, I suppose somewhere between 10 and 11 o’clock. I did not read the deed. I am not versed in law; I certainly am not. I have never read that deed.
“Q. What did he (Thos. N. Herring) tell you, Mrs. Smith? A. Well; he says, ‘Here is the deed I brought up here to show you, and it is a deed of trust, and to secure Rotan, and secure us, so that we may be able — that Daddy might be able to go on in business, and it won’t involve your home; you won’t have to give up the home; they agreed to just make a deed of trust to us, and won’t have to give up our home, if you sign this deed.’
“Q. Did he, or not, say anything about $3,-500 or anything of that kind? Was there anything said about that by Mr. Herring to you? A. He did not. After Mr. Herring had made his explanation as I have detailed, about the deed, I signed the deed.
“Q. What was it that induced you then to sign the instrument? A. Well, it was just faith; it was just trusting that we might be able to go on and fulfill — do what we could do to help Daddy to stay in business, so we might be able to pay Mr. — might be able to come back, in other words, and I felt like, well, if in the judgment of the others and Daddy, it must be mine; it was my interest as well as his; and I must sign that deed, because it must be right, or they would not have tried — we were trying to fix it right, trying to do what was right by everybody.
“Q. I will ask you this further question, Mrs. Smith: You have testified that Mr. Herring made certain explanations concerning the deed; I will ask you whether or not those explanations made by him to you had any effect in inducing you to sign the deed? A. Well, of course, him telling me what it was — it did have, of course, I could not—
“Q. What was it you started to say, Mrs. Smith? A. What he told me is why I did it.
“Q. You say you remember that you signed that deed in the forenoon between 10 and 11 o’clock? A. I don’t remember just exactly what hour it was, but it was in the forenoon, it seems — I am sure.

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Bluebook (online)
250 S.W. 727, 1923 Tex. App. LEXIS 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shear-co-v-smith-texapp-1923.