Texas Land and Loan Co. v. Watkins

34 S.W. 996, 12 Tex. Civ. App. 603, 1896 Tex. App. LEXIS 243
CourtCourt of Appeals of Texas
DecidedFebruary 15, 1896
DocketNo. 1070.
StatusPublished
Cited by8 cases

This text of 34 S.W. 996 (Texas Land and Loan Co. v. Watkins) 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 Land and Loan Co. v. Watkins, 34 S.W. 996, 12 Tex. Civ. App. 603, 1896 Tex. App. LEXIS 243 (Tex. Ct. App. 1896).

Opinion

LIGHTFOOT, Chief Justice.

The statement of the case by appellant is adopted, as follows:

This is a suit brought by J. B. Watkins against the Texas Land and Loan Company, the Ellis County Land and Cattle Company, W. C. Gana and Clara B. Gano. The cause of action alleged is, that on June 1, 1887, C. W. and John T. Gano, the latter being now deceased, and Clara B. Gano, being a widow and sued as survivor in the community, made, executed and delivered to one Ann King an instrument in writing known as a real estate and mortgage coupon bond, by the terms of which an indebtedness was acknowledged to Ann King of $10,000, payable five years after date, with interest at the rate of 6 per cent per annum, interest payable semi-annually. That the interest was represented by ten coupon notes attached to said bond; that if not paid at maturity the coupons should draw interest at the rate of 12 per cent per annum from date, and 10 per cent as attorney’s fees, if suit be instituted. That said bond and interest coupons were secured by mortgage or trust deed upon 23,040 acres of land described in the petition. That on the same date, C. W. Gano and John T. Gano executed and delivered a deed of trust or mortgage upon the same land to secure Watkins in the payment of ten notes, representing the difference between 6 per cent interest and 10 per cent interest per annum, the real rate at which the Ann King loan was made. That plaintiff had become the purchaser and owner *604 for a valuable consideration of all of said coupons attached to the Ann King mortgage, and that he was entitled to all the securities incident to the same. (It is not deemed necessary to describe specifically the land mortgaged to secure these indebtednesses; it will be referred to hereafter as the 20,000 acres, and the balance of the land in suit as the 40,000 acres.)

The petition next alleged that, after the date of the execution of the bonds and coupons and deed of trust, that is to say, January 28, 1888, ■C. W. and John T. Gano, being the owners of the land (the 60,000 acres), sold and conveyed unto the Ellis County Land and Cattle Company the 23,000 acres and the 40,000 acres. That the consideration for said lands, paid and to be paid for the same, as stated in said deed, by the Ellis County Land and Cattle Company to said C. W. and John T. Gano, was “the sum of $122,000, paid as follows: $112,000 cash in hand, and $10,000 paid and agreed to be paid by the assumption of an incumbrance upon the lands herein conveyed in blocks G-4, G-5 and G-6 by the Ellis County Land and Cattle Company,” — the grantee in said deed. The lands in blocks G-4, G-5 and G-6 were the 23,040 acres ■specifically mortgaged by the Gano Brothers for the security of the Ann King and Watkins debts.

The petition next charged that by such assumption the Ellis County Land and Cattle Company agreed and promised to pay Ann King the above described bond and mortgage, as a part of the consideration of the 60,000 acres, and that the said bonds and coupons became thereby •and are now a vendor’s lien upon the same. Default and non-payment were next alleged.

The petition next alleged the death of John T. Gano, the qualification of Mrs. Clara B. Gano as survivor in community, and the failure and refusal of the surviving partner and the survivor in community to pay and discharge the Ann King and Watkins debt.

The petition next charged that the Texas Land and Loan Company was asserting some claim or title to the lands, or a portion thereof, hereinbefore described in the petition, and alleged that if said company had any right or title to the land it was subsequent to plaintiff’s mortgage and subject to the vendor’s lien.

The next allegation of the petition was that W. L. Williams, the plaintiff’s attorney, was an attorney at law, and that the bond and mortgage had been placed in his hands for the collection of the debt and interest due thereon.

The petition prayed for citation, judgment against the Ellis County Land and Cattle Company and the Ganos, interest at the rate of 6 per cent on the bond and 12 per cent on the coupons, 10 per cent on the. aggregate as attorney’s fees, judgment against all the defendants foreclosing the vendor’s lien upon the 61,040 acres of land, for an order of ■sale directing the sale of all land for the purpose of paying off the debt; and, in the alternative, that should the court hold that the plaintiff was not entitled to foreclosure of the vendor’s lien upon the entire body of *605 land, and that the vendor’s lien does not attach to the 40,000 acres, then for judgment for the debt, interest, attorney’s fees,' and foreclosure of' the mortgage on the 20,000 acres.

The Texas Land and Loan Company answered; general and special demurrers were filed, all of which were overruled; and it pleaded that it was the owner in fee simple absolute, in possession and entitled to the possession, of the 40,000 acres. That on April 24, 1889, it had loaned, the Ellis County Land and Cattle Company large sums of money, to-secure which the latter company had executed a deed of trust on the 40.000 acres now claimed by the Texas Land and Loan Company. (The-Ellis County Land and Cattle Company will be hereafter called the-Ellis Company; and the Texas Land and Loan Company, the Texas-Company; the other defendants will be termed the Ganos.) That the loan of the Ellis Company matured, default was made, suit brought, judgment taken, and foreclosure of these lands had, the lands duly sold, and the Texas Company became the purchaser thereof for the sum of $25,000. That the Ellis Company purchased the lands from the Ganos,, and derived title thereto from the deed of conveyance containing full, covenants of general warranty. That the mortgage assumed by the-Ellis Company was specifically declared to be a lien only upon the lands, in blocks G-4, G-5 and G-6. That said lands were no part or parcel of the land claimed by the Texas Company. That the lands conveyed to the Ellis Company, except the lands in blocks G-4, G-5 and G-6, were so-, conveyed by the Ganos free and clear of all liens. That a part of the-consideration for said purchase by the Ellis Company was that no part, of the lands except those in G-4, G-5 and G-6 should be incumbered or affected by the deeds of trust of the Ganos. That the purchase was for the sum of $2 per acre. That the purchase money, except $10,000, being the mortgage on the land in blocks G-4, G-5 and G-6, was paid. TMt. the Ellis Company assumed the indebtedness, which was only an incumbrance upon the lands in blocks G-4, G-5 and G-6. That by the terms, of the deeds of trust on these lands in favor of Watkins, they did not become and could not become a charge or lien on the other lands. That this was expressly understood by the parties to the transaction; that the purchase would not have been made had not this been thoroughly understood. That there was an agreement between the parties to the transaction as to the lands, except those in blocks G-4, G-5 and G-6, and that said agreement was a material and valuable consideration. Defendant then pleaded that if it be held that the deed from the Ganos to the Ellis Company carried a vendor’s lien, then that this was the result of accident or mistake; and prayed that if the court should hold that the-40.000 acres were incumbered, the deed should be reformed and corrected to express the true intention; and the Texas Land and Loan Company denied every allegation of plaintiff’s petition.

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Bluebook (online)
34 S.W. 996, 12 Tex. Civ. App. 603, 1896 Tex. App. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-land-and-loan-co-v-watkins-texapp-1896.