Summers v. Silverton Nat. Farm Loan Ass'n

268 S.W. 223
CourtCourt of Appeals of Texas
DecidedDecember 10, 1924
DocketNo. 2394
StatusPublished

This text of 268 S.W. 223 (Summers v. Silverton Nat. Farm Loan Ass'n) 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
Summers v. Silverton Nat. Farm Loan Ass'n, 268 S.W. 223 (Tex. Ct. App. 1924).

Opinion

RANDOLPH, J.

The Silverton National Farm Loan Association, as plaintiff, brought this suit against D. H. Davis, Stella E. Davis, O. L. Cantwell, Mrs. Jessie F. Summers, Eva Knight, Martin S. Ruby, and S. L. Cantwell, as defendants. Plaintiff, in its petition, alleged: That on or about the •16th day of November, 1921, the defendants made, executed, and delivered to the Federal Land Bank of Houston, at Houston, Tex., a certain amortization promissory note for the sum of $5,000, payable to the order of the Federal Land Bank of Houston, at Houston, Tex., with interest at the rate of 6 per cent, per annum, payable semiannually, conditioned for the payment of said sum and interest on the amortization plan in 66 equal semiannual payments, each equal to 3.25 per cent, of the principal, and a sixty-seventh, or final payment equal to 3.23 per cent, thereof, unless sooner matured by extra payment on account of principal as provided therein. Such methods of payment being on the amortization plan and in accordance with amortization tables provided by the Federal Farm Loan Board, which promissory note further provides that all payments not made when .due shall bear interest from the due date of payment at the rate of 8 per cent, per annum; said note also providing that it shall bear interest at the rate of 6 per cent. 'per. annum from date on the principal to the first amortization period, and further' providing for 10 per cent, attorneys’ fees if placed- in the hands of attorneys for collection. That the semiannual payment became due and payable on the first day of November, 1922, and thereafter another of said installments would mature on the first day of May and the first day of November in each and every year, until the entire amount of said note would be paid. The method of payment provided for in said note being on the amortization plan and in accordance with amortization tables provided by the said farm loan board, and that the said defendants D. H. Davis and wife, by reason of the execution and delivery of said note, became liable, and promised' to pay to the Federal Land Bank of Houston the sum of money in said note provided, etc. That in accordance with the terms, conditions, provisions, and requirements of the Federal Farm Loan Act (Oomp. St. Ann. Supp. 1923, § 9835b et seq.) the plaintiff was required to indorse said note and guarantee its payment in accordance with the terms, provisions, and conditions thereof, and that, by reason of such indorsement, the plaintiff became bound to pay to the Federal Land Bank of Houston the sum provided for in said note, and each and every indorsement maturing thereon. Further alleging the making, execution, and delivery of a certain deed of trust by said Davis and wife to M. H. Gossett, trustee for the Use and benefit of the Federal Land Bank of Houston, conveying the land in controversy in this suit to secure the payment of the above-described note, alleging failure and refusal of Davis and wife to pay the semiannual installments on said note, which matured on the lát day of November, 1922, May, 1923, and November, 1923, and that same were paid by plaintiff and duly transferred to plaintiff by said bank, -and also alleging transfer of lien up[224]*224on said land by said bank to plaintiff as a superior lien to all liens except that of tbe Federal Farm Loan Bank to secure tbe residue of tbe $5,000 note, alleging that tbe defendants, other than Davis and wife, are each claiming some kind of right, lien, or equity in said tract of land, that this plaintiff is not advised as to tbe exact nature of tbe claims asserted by defendants, but that they are inferior to tbe liens of plaintiff upon said land. Plaintiff prays for judgment against all of tbe defendants for tbe sum of money due tbe plaintiff, principal, interest, and attorneys’ fees, and costs of suit, and against all defendants for a foreclosure of its lien on tbe land, etc.

Defendant Ruby filed bis answer and cross-action, in which cross-action be alleges indebtedness of D. H. Davis upon certain vendor’s lien notes given by defendant Davis in part payment for tbe purchase of tbe land in controversy from one P. A. Jones and wife; that said notes numbered five, and were each fox, tbe sum of $2,640, dated June 18, 1920, bearing 8 per cent, interest per annum from date until maturity, an'd for interest on past-due interest, and attorneys’ fees, payment thereof being secured by a vendor’s lien upon tbe land in controversy; further alleging that note No. 8 assigned to defendant Ruby in due course of trade, and for a valuable consideration; that note No. 1 bad been paid; that note No. 2 is tbe property of S. L. Oantwell; that defendants Jessie F. Summers and Eva Knight are tbe owners and holders in due course of notes Nos. 4 and 5, and that said notes are of equal series, and are entitled to a lien of equal footing with note No. 3, provided that they establish their claims in this suit; praying for recovery of and from defendant D. H. Davis of a judgment for tbe principal, interest, and attorneys’ fees specified in said note No. 3, less certain credits, and for foreclosure of a lien against all of tbe defendants, and that same be sold according to law, and that tbe proceeds of such sale be first applied to tbe payment of costs of suit, then to tbe payment of tbe judgment and lien as established by tbe plaintiff herein, then to tbe payment of tbe debt of this defendant; but, “if said defendants Jessie F. Summers, Eva Knight, O. L. Oantwell and S. L. Cantwell establish their liens by cross-action or otherwise, then this defendant prays that tbe proceeds of said sale, after plaintiff’s lien, if any it has, has been satisfied, be prorated between this defendant and tbe other defendants as their interest may appear,” and for execution against said defendant Davis for such sum remaining unpaid, etc., and further that bis lien be established against tbe excess proceeds of sale under plaintiff’s foreclosure.

No answers being filed except by defendant Ruby, judgment by default was rendered by tbe trial court against all parties defendant except said defendant Ruby who, as stated above, appeared and answered. Such judgment being in favor of plaintiff against defendant D. H. Davis for $620.76, and for. a foreclosure of its prior lien on tbe land in controversy as against all of tbe defendantSy and providing that any balance remaining after payment of tbe judgment in favor of plaintiff be applied to tbe payment of tbe judgment in favor of R.uby.

On June 2, 1924, defendants Jessie F. Summers and Eva Knight filed with tbe clerk of tbe district court of Briscoe county their petition for writ of-error, making plaintiff tbe Silverton National Farm Loan Association and defendant Martin S. Ruby, as parties adversely interested, parties to tbe writ of error proceedings; also filing ‘writ of error bond payable only to said Farm Association, plaintiff, and defendant Ruby.

Plaintiff and defendant Ruby filed a joint motion to dismiss plaintiff’s writ of error for tbe reasons, first, because tbe petition for writ of error does not state tbe names and residences of all of tbe parties to tbe judgment adversely interested to tbe plaintiff in error, to wit, D. H. Davis, Stella E. Davis; second, because tbe plaintiffs in error have not made D. H. Davis and wife obligees in their bond for writ of error,'nor any other parties to said suit, save and except tbe Sil-verton National Farm Loan Association, plaintiff, and defendant Martin S. Ruby; third, because no citation has been served upon any other party save and except tbe said association and defendant Ruby.

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Cite This Page — Counsel Stack

Bluebook (online)
268 S.W. 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/summers-v-silverton-nat-farm-loan-assn-texapp-1924.