Thurber Brick Co. v. Cox

80 S.W.2d 435
CourtCourt of Appeals of Texas
DecidedFebruary 15, 1935
DocketNo. 1380
StatusPublished
Cited by4 cases

This text of 80 S.W.2d 435 (Thurber Brick Co. v. Cox) 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
Thurber Brick Co. v. Cox, 80 S.W.2d 435 (Tex. Ct. App. 1935).

Opinion

LESLIE, Justice.

The Thurber Brick Company, a corporation, filed this suit against Jess Cox and others to recover on a paving certificate issued by the city of Stephenville for paving of Frey street in front of lot 2, block 2, of the Right’s Second addition to the city of Steph-enville. At the time of the paving the lot was owned by C. H. Colvin, one of the defendants, and the certificate was issued to Texas Pacific -Coal & Oil Company, and transferred by it to the plantiff Colvin made default, but the defendant Cox answered setting up, among other defenses, an alleged superior lien against the property, and the two and four years’ statute of limitation (Vernon’s Ann. Civ. St. arts. 5526, 5527). The trial was before the court without a jury. At the conclusion of the testimony, judgment was rendered in favor of the plaintiff for the amount •of the last three installments of the paving debt, together with a foreclosure of the lien on the lot as against both Colvin and Cox The first three installments were held to be barred by limitation, and as to Cox, foreclosure thereon was denied plaintiff. The plaintiff appeals, and the -defendant Cox cross-assigns error. : ■ ■

[436]*436The circumstances out of which the lawsuit developed are substantially as follows: The Stephenville' State Bank formerly lent C. H. Colvin $1,500 with which he purchased said lot. He executed his note to the bank for that amount, together with a deed of trust on the lot dated December 15, 1927. The note and deed of trust lien were later ■renewed between the parties by three notes aggregating about $1,800. These three notes and the deed of trust lien were regularly assigned by the bank to the appellee Cox on March 14, 1930. Prior to that date the city council, of Stephenville passed an ordinance (July, 1929) assessing the cost of paving the s’treet in front of said lot against same, and the assessment .certificate in suit was issued in evidence thereof November 5, 1929. The certificate was for the sum of $717.96, due in six ’ installments. Under Article 1090, Vernon’s Ann. Civ. St., this paving obligation and lien became a charge against the lot, superior to the lien created by said deed of trust.

Nothing was paid on either indebtedness above set out, and while the legal status of each remained the same — except for the effect, if any, of the lapse of time — said C. H. Colvin, owner of the lot and .obligor in the certificate, agreed, in writing, on September 22, 1933, with the owner of the certificate to extend the time of the payment, of .the same, and the indebtedness evidenced thereby, to NóveiÜbef 5; 1933: This original indebtedness of '$717.96 fell due in ■ Six installments of $ll9.66 each, the first, December 5, 1929, the Second November 5, 1930, and one each year thereafter on November 5th, the last falling due November 5, 1934. 'On September 27, 193&, just five days after the abóve éxteffSion' agreement, C. H. Colvin conveyed the said lot by warranty deed to defendant Jess Cox as a‘ settlement in full 'of the original indebtedness of $1,500, which, as before stated, had-been renewed and: extended on December 31, 1929, when’said Colvin executed 'in renewal'thereof the’three notes, twó for $500 each, and' one for $821.29. 1 When Cox ac-ceptéd this "deed, he had no'knowledge, actual or constructive, of the above extension agreement, and the' latter was not recorded until the 15th day of February, 1934.

- . Summarizing, the' original debt and lien to the bank were created December 15, 1927. The certificate evidencing the paving obligation and lien issued November 5,1929. Thereafter, Cox purchased the bank note and lien on March. 14, 1930, becoming the owner of the indebtedness secured by lien second-to ■the said statutory lien securing each and all of the installments constituting that obligation. The conveyance of the lot from Colvin to Cox September 27, 1933, was by deed of general warranty, but contained this lan-gage: “except from this warranty taxes, state, county and school district, or any outstanding paving assessments.” There is no homestead question in the case, and the trial court’s judgment, upon the facts disclosed, is under attack by the appellee, as well as the appellant.

By different assignments, the appellant makes the contention that ■ the court erred in holding, under the facts stated, that the statutory lien created by the assessment and evidenced by the paving certificate could not be extended by the holder of the debt and lien and the party obligated to pay the debt; that the court erred in holding that the extension agreement changed the statutory paving lien to a contract lien without the statutory preference right given the paving lien. Upon these propositions the appellant claims it should have had a judgment for the entire paving debt with foreclosure of its lien -on the lot as against both Cox and Colvin.

The appéllee, by his cross-assignments, attacks that part 'of the judgment in favor of the plaintiff for $423.57, principal and interest of the last three installments, plus $100 attorney’s fees, etc. It' is the appellee’s contention under -the above facts that the court ■ erred in holding that the appellant’s- alleged ;l>en securing-these last three. .installments is superior to the lien of the appellee Cox; .that appellant .should have had no foreclosure in any event without first paying the debt held by Cox against the property. In-other words, the appellee’s contention is that the appellant’s rights to a-foreclosure! are to be determined by the extension agreement, which in itself is nothing more than a contract between the parties, junior and inferior, to the original lien obtained by Cox from the bank, and that,said extension agreement .di.d.not carry with it or renew the lien securing the paving debt, or the' amount covered by ¡the above judgment, and did not have the .effect of extending the priority rights given by the statutes to the paving lien.

It áppears that the -proper answer to the appellant’s contention is likewise an answer to the contentions of the appellee. As noted, Colvin’s deed of September 27, 1933, to Cox excepted from the general warranty “outstanding paving assessments.” The extension agreement made five days theretofore between Colvin (owner of the lot and obligor in the certificate) and Texas Pacific Coal & Oil [437]*437Company (owner of the paving debt and lien) stipulated for an extension of “installments Nos. one to six of said obligation * * * to become due and payable on or before November 5, 1933.” Among other provisions in that contract, Colvin confirmed “the obligation of which said certificate and any renewal thereof is evidenced and granted to said company, a lien upon said property in addition to the lien provided by law to secure the payment of said obligation,” etc. In the pleadings the original lien was asserted, but the plea of limitation of two and four years by the defendant Cox brought forth the plaintiff’s first amended petition, setting up the extension agreement above set out.

Under the facts of this record, could, the superior paving lien and the obligation secured by it be extended at the time ⅛ was and in the. manner indicated, so as to retain its preference nature over the lien owned by Cox and acquired by him from the bank? If it can be, it was so extended, and the'plaintiff would be entitled to a foreclosure against both Cox and Colvin of the lien securing the six installments of the paving debt, rather than for the last-three only. After-a careful consideration of the assignments and ■cross-assignments, we reach the -conclusion that there were no legal.

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Related

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133 S.W.2d 140 (Court of Appeals of Texas, 1939)
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120 S.W.2d 827 (Court of Appeals of Texas, 1938)
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91 S.W.2d 411 (Court of Appeals of Texas, 1936)

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Bluebook (online)
80 S.W.2d 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thurber-brick-co-v-cox-texapp-1935.