Stephens v. Reik

247 S.W. 627
CourtCourt of Appeals of Texas
DecidedJanuary 4, 1923
DocketNo. 1384.
StatusPublished
Cited by7 cases

This text of 247 S.W. 627 (Stephens v. Reik) 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
Stephens v. Reik, 247 S.W. 627 (Tex. Ct. App. 1923).

Opinion

WALTHALL, J.

This was an action of trespass to try title which was brought by R. W. Reik, appellee, against W. R. Stephens and D. L. Stallings, and in which judgment was rendered in favor of appel-lee. The property involved is lots 5 and 6 in block 81 of the town of Barstow. Stall-ings was dismissed on his answer of disclaimer. Stephens answered by general demurrer, general denial, plea of not guilty, and pleaded the provisions of the following contract:

“The State of Texas, County of Ward.
“Know all men by these presents: This agreement and contract, made and entered into on this the 27th day of February, A. D. 1920, by and between R. W. Reik, of the county of Denton, state of Texas, hereinafter called party of the first part, and D. L. Stallings and Roy Stephens, of Ward county, Texas, hereinafter called parties of the second part, witnesseth:
“(1) Party of the first part hereby sells under this contract to parties of the second part, the following described property, to wit: Lots numbers five (5) and six (6) in block number eighty-one (81), in the town of Barstow, Ward county, Texas, according to the map of the plat of said town on record in Book 1, page 549, Deed Records of said county; álso the building thereon situated, and all tools and machinery now situated and contained on said premises and in said building which belong to the party of the first part, together with all the good will of the garage and repair business conducted and carried on in said building and on said premises, the consideration moving the party of the first part being the sum of two thousand ($2,000.00') dollars, which said sum is paid to party of first part, and secured to be paid by parties of the second part as follows, to wit: One hundred fifty and no/100 ($150.00) cash in hand paid, the receipt of which is hereby fully acknowledged, and the balance evidenced by eleven promissory notes all of even date dated at Barstow, Texas, February 27, 1920, and bearing interest from date until paid at the rate of 10% per annum, and providing that failure to pay one note shall mature all notes at option of holder of same, and providing that the interest on each note being due and payable at the maturity of the note, said notes being described as follows, to wit: The first nine of said notes, being in the sum of one hundred fifty and no/100 ($150.00) each, one of the above-described notes due each three months after date, respectively, the first of said notes being due on the 1st day of June, 1920, and one of each of the other eight becoming due on the 1st day of each third month thereafter. One note in the sum of one hundred dollars ($100.00), bearing date February 27, *628 1920, bearing interest from date at the rate of 10% per annum from date until paid, and due on the 1st day of July, 1922. One note in the sum of four hundred dollars (|400.00), dated at Barstow, Texas, February 27, 1920, bearing interest at the rate of 10% per annum from date until paid, and providing for the usual collection clauses, due November 1, 1922.
“(2) Party of the first part hereby agrees and binds himself, his heirs, executors, administrators, and assigns, to convey to the parties of the second part, their heirs or assigns, when all of the above-described notes are paid in full, together with all interest thereon, by a good and sufficient warranty deed to the property above described, the title to same to be a good and merchantable title, and the conveyance to be made free and clear of all incumbrances, whatsoever, except taxes accruing from the date of this instrument.
“(3) Parties of the second part he'reby agree and bind themselves to pay the notes above described at the time specified; if any of said notes shall remain in default for a period of over 30 days, they will on demand surrender peaceable possession of above-described property and premises to holder of said note; and any sum or sums of money paid on said notes shall be considered merely as rental for said property while in possession of the parties of the second part.
“(4) Party of the first part hereby agrees that he will npt further incumber said property during the life of this contract, and further agrees that if it becomes necessary for the parties of the second part to pay out any sum or sums of money in order to protect themselves against any incumbrance that already exists against the said property, that such sum or sums shall be credited on the first of said notes maturing.
“(5) Parties of the second part agree that they will not remove or permit to be removed from" said premises anything of value covered by this contract until such time as at least half of said notes have been paid off, and that this contract shall and does have the force and effect of a chattel mortgage, in so far as any property covered hereby is concerned.
“(6) It is mutually agreed by and between all parties hereto that this contract shall extend to and bind thfe heirs, executors, administrators, and assigns and legal representatives of all /parties hereto, as well as the parties themselves.
“Witness the execution hereof, by the parties hereto, at Barstow, Texas, the day and year first above written.
“R. W. Reik.
“D. L. Stallings.
“W. R. Shephens.”

Appellant alleged the payment of $150, the ■cash mentioned in the contract, and the first maturing four notes; that the first' note, when paid, was delivered by appellee to appellant,/but that appellee failed and refused to deliver to him or to cancel the other notes when paid, to his damage $495, the amount of the notes and interest paid; that on account of the failure and refusal of appellee to cancel and deliver said paid notes, or to protect appellant in the payment hereof, ap-pellee is not entitled to the possession of the premises or to maintain the action, and appellant is “entitled to offset the amount due on ,said notes by plaintiff to him as aforesaid, against the amount now matured on said notes,” and by reason thereof denied that he was in default. Appellant alleged that the notes were promissory negotiable notes, and that appellee had sold some of said notes, and that by reason of said sale appellee is estopped to maintain this action or recover possession of the said lots. Appellant further alleged' that at the time of the making of said contract for the sale of said property appellee represented same to be clear of liens and incumbrances; that said property is incumbered with two judgment liens in sums, respectively, of $148.40 arid $125.32, each with interest, and one outstanding vendor’s lien note for $475, with Interest, and taxes due on said property in the sum of $100; that appellant, as provided in the contract, offered to pay said indebtedness, provided appellee would apply same on said notes now in default, and upon payment surrender said notes in amounts equal to the amount paid by appellant, but that appellee refused to permit appellant to pay said indebtedness against said property, and refused to apply any payment so made to the discharge of said notes.

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Bluebook (online)
247 S.W. 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephens-v-reik-texapp-1923.