Wise v. Cecil

135 S.W.2d 235, 1939 Tex. App. LEXIS 10
CourtCourt of Appeals of Texas
DecidedJuly 7, 1939
DocketNo. 1929.
StatusPublished
Cited by3 cases

This text of 135 S.W.2d 235 (Wise v. Cecil) 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
Wise v. Cecil, 135 S.W.2d 235, 1939 Tex. App. LEXIS 10 (Tex. Ct. App. 1939).

Opinions

The opinion of this court on a former appeal is to be found in109 S.W.2d 214, writ refused. The facts of the case are rather fully stated there. The difference, if any, in the material facts on this and the former appeal will be noted as the opinion proceeds.

Essentially this is a suit by C. W. Cecil to establish his right to title and ownership of the North 1/2 of Sec. 634, Certificate No. 487, Block B, John H. Gibson Original Grantee, Yoakum County, Texas. He alleges that Oscar Wise, the defendant, in purchasing said land from the trustee in bankruptcy and taking title thereto in his own name, paid for it with a consideration (a collateral note) owned or furnished by himself. That is, plaintiff seeks "to have impressed upon the land a trust with the effect that the lands stand in lieu of the note, subject to a like lien to secure the indebtedness as the collateral note." Plaintiff also alleged tender of indebtedness due and sought to exercise his right of redemption.

The defendant answered by general demurrer, general denial and specially alleged that in so purchasing the land he had an understanding with the appellee that the indebtedness owing by the latter to him would be canceled, etc. That he in fact acquired an indefeasible title, etc.

The trial was before the court without a jury, and at its conclusion judgment was rendered for the plaintiff Cecil vesting title to the land in him upon his compliance with certain conditions specified in the judgment. On request, the learned trial court made findings of fact and conclusions of law. These, in substance, clearly reflect the facts of the case and applicable rules of law, and will be here set out and adopted:

"1. I find as a fact that there was no agreement between C. W. Cecil and Oscar Wise whereby Wise agreed to purchase the land for C. W. Cecil or to purchase the land as the agent of Cecil, but bought the same in order `to protect himself'.

"2. I further find as a fact that, after receiving notice from the Bankrupt Court of the proposed sale and terms thereof, defendant, Wise, went to John Porter, trustee in bankruptcy, and the said Porter prepared a proof of claim for said defendant and filed same in the estate of Mrs. Neal Mills, Bankrupt, and attached to the claim a copy of the vendor's lien note held as collateral, defendant, Wise, retaining the original; that after advertising said land for sale, of which plaintiff, Cecil, had notice from the Bankrupt Court, and after Wise had talked to Cecil about purchasing the land at said sale, the said Wise attended said sale and bid the sum of One Thousand Dollars for said land, which was paid by crediting the collateral vendor's lien note held by Wise to collaterally secure Cecil's indebtedness to Wise; that thereafter Wise received a trustee's deed to said land, John Porter, trustee of the bankrupt estate being grantor therein and Oscar Wise being grantee therein.

"3. I find as a fact that while such use of the vendor's lien note held by Wise as *Page 237 collateral was with Cecil's consent, nevertheless, there was no agreement between Cecil and Wise whereby Wise agreed to cancel the debt and obligation of Cecil to Wise.

"4. I find as a fact that on April 4, 1934, there was written by Cecil, addressed to Wise, and received by Wise the following letter:

"`April 4, 1934

"`Mr. Oscar Wise,

"`Moran, Texas

"`Dear Mr. Wise:

"`As I will be out of town for a few days, I am writing to see if we cannot settle our deal like Mr. Chaney has suggested. He would like for us to finish our deal so he will know how to finish trading with me.

"`I am enclosing a statement of your merchandise account to deduct from the balance I owe you. I suggest that you give me a deed to the land and you retain first vendor's lien notes for the balance I owe you.

"`I would like to split the balance into two notes — one due in one year and the other in two years with the right to pay them sooner if financially possible.

"`By settling the matter this way, I can handle my part of the financing and it will give you some good first lien notes that you can use for collateral. I will also help you dispose of these notes so that you can get your money. Also by settling this matter, I will know how to settle with Mr. Chaney.

"`If these arrangements are suitable to you, please prepare the papers and I will sign them as soon as I return.

"`Yours very truly,

"`Copy to J. M. Chaney

"`1 enc.'

"5. I find as a fact that Wise made no reply to said letter and did not, after the receipt of said letter, advise Cecil that he claimed the indefeasible fee simple title to the lands in controversy.

"6. I further find as a fact that at the time of the sale by the trustee in bankruptcy Cecil's indebtedness to Wise was approximately $1,000.00, and that Wise credited the notes evidencing the indebtedness from Cecil to Wise with the sum of $1,000.00, but did not return to Cecil either the five notes representing the original indebtedness of Cecil to Wise nor the collateral vendor's lien note held by Wise to secure Cecil's indebtedness.

"7. I find as a tract that Oscar Wise paid the trustee in bankruptcy $30.00 in cash, as fees required in connection with the sale of said land, and since said sale has paid taxes on said land and interest on the state indebtedness, and has been in possession of said land, and has leased same for oil and gas, and has incurred expenses in looking after said land and making said leases, and that in accordance with the stipulation of the attorneys for the respective parties made in open court, taking all of said factors into consideration, the present indebtedness of Cecil to Wise is $1200.00.

"8. I find as a fact that Cecil has not deposited any money into court to pay said sum of $1200.00, but has offered to pay same upon the execution by Wise of a conveyance to Cecil of the lands in controversy, and that Wise has refused to make such conveyance.

"9. I find as a fact that notwithstanding the vendor's lien note was placed with Wise by Cecil solely as collateral to secure Cecil's indebtedness to Wise evidenced by five notes, the said Wise had not instituted any proceeding to foreclose the collateral lien on said vendor's lien note, and that, as between Cecil and Wise, Cecil remained the owner thereof subject to Wise's collateral lien thereon and same was subject thereto at the time Wise received the deed from John Porter, trustee.

"Conclusion of Law
"(a) I conclude as a matter of law that Cecil's obligation to Wise was not canceled and satisfied by force of any agreement between the parties, and that Wise's act in crediting the notes evidencing the indebtedness from Cecil to Wise was unauthorized.

"(b) I conclude as a matter of law that, between Wise and Cecil, Cecil remained the owner of the vendor's lien note held by Wise as collateral to secure Cecil's indebtedness, and that by virtue of the facts hereinabove found the use of such note by Wise as the consideration for the acquisition of the lands in controversy resulted in a substitution of security as a matter of law and impressed said lands in Wise's hands with a trust in favor of Cecil, the lands being subject to a lien similar to that which Wise held against the collateral vendor's lien note.

"(c) I conclude as a matter of law that Cecil is entitled to a judgment in this *Page 238 cause, decreeing the title to said lands vested in the said Oscar Wise in trust for the said C. W. Cecil, subject to a lien to secure the indebtedness of Cecil to Wise amounting to $1200 as agreed in open court.

"M. S. Long

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135 S.W.2d 235, 1939 Tex. App. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wise-v-cecil-texapp-1939.