Texas Bank & Trust Co. v. Smith

195 S.W. 617, 1912 Tex. App. LEXIS 1411
CourtCourt of Appeals of Texas
DecidedJune 26, 1912
DocketNo. 5949.
StatusPublished

This text of 195 S.W. 617 (Texas Bank & Trust 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
Texas Bank & Trust Co. v. Smith, 195 S.W. 617, 1912 Tex. App. LEXIS 1411 (Tex. Ct. App. 1912).

Opinion

McMEANS, J.

During the year 1909, George W. Smith had possession under leases of certain parts of sections No. 16 and 13, H. T. J & B. R. R. surveys in Jefferson county, which for the year 1909 he and R. A. Davidson were cultivating in rice with the agreement that Smith should furnish the land, seed, and water, and that Davidson should do whatever else was necessary to make the crop, and they should divide it equally. Smith’s farm consisted of the following parcels of land on section 16, which were leased to him by the respective owners and for which he agreed to pay money rent, viz.: 80 acres belonging to Sadie C. McDonald; 120 acres owned by R. W. Flournoy; 80 acres owned by H. Heard and Thomas Ross.; 120 acres belonging to J. F. Cooper; and 80 acres owned by H. Harding; also, 80.8 acres owned by E. L. Bacon on section 13 — -making in all 560.8 acres. 1-Ie had in cultivation in rice on this farm 423 acres on section 16 and 80.8 acres on section 13. On May 26, 1909, the Texas Bank & Trust Company lent Smith certain money to enable him to comply with his part of the contract with Davidson to furnish seed rice, etc., and agreed to make other advances thereafter, and on the date mentioned the bank took from Smith a mortgage on his one-half of the crop that should be grown on section 16, which mortgage was duly filed for registration May 29, 1909. On July 19, 1909, Smith signed a contract with the Beaumont Irrigating Company, whereby the latter agreed to furnish water to the former at a stipulated price per acre to irrigate the lands cultivated by himself and Davidson. There is testimony in the record that justifies the finding that this contract was really made between Smith and the irrigating company on May 12, 1909, but not reduced to writing and signed by Smith until July 19th; but in the view we take it is immaterial whether this contract was made before or after the execution of the mortgage to the bank. The landowners knew at the time they leased to Smith that he intended planting and cultivating the land in rice, and the bank knew this at the time it took the mortgage from Smith. Rice cannot be successfully grown without water, and on the land in question could not be grown without irrigation, and the only water accessible to the Smith farm was that in the canals of the irrigating company.

On October 28, 1909, default having been made in the payment of rent, Sadie C. McDonald filed suit in the district court of Jefferson county, Fifty-Eighth judicial district, against Smith, to recover judgment for the rent due her and prayed for foreclosure of her landlord’s lien upon the rice crop grown on her land, and at her instance a receiver was appointed to take charge of the rice on hand. Afterwards, the Beaumont Irrigating Company filed suit in the district court of Jefferson county, Sixtieth judicial district, praying judgment for the amount due, under *618 its water contract with Smith, and .asking a foreclosure of its lien upon the entire crop. This case and the case then pending in the Fifty-Eighth district court were consolidated, the same receiver having been appointed in both, and the receiver’s powers were enlarged so as to authorize him to take charge of the entire crop, so far as the same could be located, which he did. The other landlords and claimants against the rice, including the Texas Bank & Trust Company, intervened in one or the other of the respective suits, or in the consolidated suit. No question is made of the amount found by the court to be due the various landowners by Smith for rent, nor the amount of Smith’s debt to the bank, which was secured by the mortgage, nor as to the amount due the irrigating company for water rates, and the judgment establishing Smith’s liability to each of such creditors is not complained of. Upon trial by the court, a jury having been waived, judgment was rendered against Smith establishing the debt of each claimant as alleged, and declaring a first lien extending to the entire crop existed in favor of the various landowners and their assignees, a second lien likewise extending to the entire crop in favor of the Beaumont Irrigating Company, and a third lien extending to Smith’s half of the crop only, in favor of the Texas Bank & Trust Company. To this judgment both the bank and the irrigating company excepted, and bring this case before us for revision and correction; the former by appeal, and the latter by writ of error.

The principal, and we may say the only important, question presented for our determination by the Beaumont Irrigating Company, is whether the lien of the landlords for rent is superior to its lien for water rates, and the important questions presented by the Texas Bank & Trust Company are: (1) Whether the irrigating company had any lien upon the crop at all; and (2) if so, Was its lien for water rates superior to the mortgage lien of the bank?

We will first dispose of the contention of the bank that no lien existed under the facts of this case in favor of the irrigating company. This contention is based upon the language of article 3130, Sayles’ Civil Statutes, which reads as follows:

“Every person, corporation or association of persons which has heretofore constructed or which may hereafter construct any ditch, canal, dam, lake or reservoir for the purpose of irrigation, and who shall lease or rent the water from said ditch, canal, dam, lake or reservoir to any person or association of persons or corporation owning any lands subject to irrigation from any such ditch, canal, lake, dam or reservoir, such person, corporation or association of persons owning such ditch, canal, lake, dam or reservoir shall have a preference lien, superior to every other lien, upon the crop or crops raised upon the land thus irrigated under such lease or contract.”

[1] 'The evidence shows without contradiction that Smith was the lessee and not th,e owner of the land irrigated by the irrigating company, and the bank argues that the statutory lien in favor of the company did not exist unless the contract for irrigation is made by, or the water for irrigation is furnished to, the lan'downer.

This question recently arose in this court in the case of Dunbar v. Texas Irrigation Co., 195 S. W. 614, and was decided adversely to the bank’s contention. Upon this point we copy the following from the opinion in that case:

“Under the third assignment of error, it is contended that the preference lion given by this statute is only given when the water contract is made with the owner of the land, and that a tenant is not the owner of the land, and therefore no lien is created when the contract to supply water is made only with the tenant.
“The primary meaning of the word ‘owner’ as applied to land is one who owns the fee and who has the right to dispose of the property; but the term also includes a person having a pos-sessory right to the land, or the person lawfully occupying and cultivating it,. and this is the sense in which it is used in the article before quoted. 29 Cyc. 1549; Turner v. Cross, 83 Tex. 227, 18 S. W. 578, 15 L. R. A. 262.
“As we have seen, this statute expressly gives the tenant the right to compel the irrigation company to furnish him water, and the Legislature certainly intended that the lien given the company should protect it in all contracts which the statute obligated it to make, and this evident purpose rand intent of the act would be disregarded if the term ‘owner of the land,’ as used in article 3130,.

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Related

Dunbar v. Texas Irr. Co.
195 S.W. 614 (Court of Appeals of Texas, 1912)
Turner v. Cross and Eddy, Receivers
60 F. 179 (Texas Supreme Court, 1892)

Cite This Page — Counsel Stack

Bluebook (online)
195 S.W. 617, 1912 Tex. App. LEXIS 1411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-bank-trust-co-v-smith-texapp-1912.