Wynnewood Bank and Trust v. State

767 S.W.2d 491, 1989 WL 37643
CourtCourt of Appeals of Texas
DecidedMarch 8, 1989
Docket05-87-01268-CV
StatusPublished
Cited by11 cases

This text of 767 S.W.2d 491 (Wynnewood Bank and Trust v. State) 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
Wynnewood Bank and Trust v. State, 767 S.W.2d 491, 1989 WL 37643 (Tex. Ct. App. 1989).

Opinion

HOWELL, Justice.

In this condemnation case, appellant Wynnewood Bank and Trust (Bank) contends that the trial court erred in failing to make any provision for Bank in its final judgment. We affirm the judgment of the trial court.

The State of Texas and the County of Dallas (collectively “the State”) brought this action to acquire fee simple title to the subject property, naming both the owner, Raylo Inc. (Owner), and the mortgagee, State Life Insurance Company 1 , as defendants. Commissioners were appointed, and an award was made to Owner and Mortgagee jointly.

The State objected to the award and deposited the amount into the court's registry, subject to the order of Owner and State Life. A few days later, Owner obtained a court order stating that it was entitled to withdraw the award, and the entire amount was paid to Owner. While the case was awaiting trial, Bank filed a “plea in intervention” stating that it had taken an assignment of State Life’s lien. Bank asserted that the lien had not been discharged and sought recovery against the State of the mortgage balance.

The condemnation case thereafter came to trial resulting in a verdict that fixed the value of the property well in excess of the mortgage balance but less than the commissioners’ award. The trial court entered judgment awarding the State title to the condemned property together with judgment against Owner for a refund of the amount by which the deposit exceeded the jury’s verdict. However, the judgment was silent concerning Mortgagee’s claim *493 against the funds withdrawn by Owner, and Mortgagee appeals. 2

In its single point of error, Mortgagee contends: “The trial court erred in failing to render judgment awarding the condemnation proceeds ... jointly to [Owner] and [Mortgagee].” Mortgagee argues that, as a holder of a lien on the condemned property, it was entitled to participate in the condemnation proceedings. Mortgagee asserts that it proved its lien on the condemned property as a matter of law and that, therefore, the trial court erred in failing to recognize its right to a share in the condemnation proceeds.

In response, the State contends that the trial court’s judgment was correct because Mortgagee failed to establish the existence or amount of its lien claim as of the time of trial and because Mortgagee failed to obtain jury findings on these issues. We cannot accept the State’s contentions.

The State’s pleadings admit that State Life held a lien on the condemned premises at the time that the condemnation petition was filed. At trial, the parties stipulated into evidence the deed of trust creating the lien on the condemned property and two assignments which made Mortgagee Bank the owner of the lien and the note secured thereby. The deed of trust recited that the original principal amount of the secured debt was $110,000.00. The assignment to Bank recited an unpaid balance of $73,712.69. Thus, Bank presented submissible evidence of the existence and amount of its lien. 3 Lacking any controverting evidence, no jury issue existed as to the principal balance due on the date that Bank acquired the mortgage debt by assignment.

We hold that it was the burden of the State, if it desired to claim a reduction in such principal balance, to present evidence to such effect. A plea of payment is an affirmative pleading. TEX.R.CIV.P. 94, 95. The record contains no pleading and no evidence that the recited unpaid balance was reduced by subsequent payments. Thus, Mortgagee Bank’s showing was sufficient to support recovery of the amount stated in the assignment. 4 See Miller v. Bank of Commerce, 387 S.W.2d 691, 692 (Tex.Civ.App.-Fort Worth 1965, no writ); Twin City Bowling Lanes, Inc. v. C.I.T. Corp., 376 S.W.2d 94, 96 (Tex.Civ.App.-Fort Worth 1964, no writ).

We agree with Mortgagee’s assertions that a lienholder is entitled to participate in the condemnation proceedings and that it may, under appropriate circumstances, recover a portion of the condemnation proceeds. Buell Realty Note Collection Trust v. Central Oak Inv. Co. 483 S.W.2d 24 (Tex.Civ.App.-Dallas), writ ref'd n.r.e. per curiam, 486 S.W.2d 87 (Tex.1972). We also agree that, under the circumstances of this case, Mortgagee has sufficiently proven its lien interest. Nevertheless, other factors prevent Mortgagee from obtaining the relief which it seeks.

Mortgagee phrases its point of error and argument in terms of the trial court’s failure to recognize its interest in the condemnation proceeds. Of course, at the time of judgment, the condemnation deposit was gone; nothing remained in the court registry. As we understand the brief and argument, Mortgagee desires an order that the State must pay, directly to Mortgagee, the amount of its lien balance before the State may have judgment for the property on an encumbrance-free basis. Such an order would effectively force the State to pay the amount of Mortgagee’s lien twice. Such relief we are unwilling to provide.

There is little Texas authority concerning the rights of a mortgagee in condemnation proceedings. The early case of Aggs v. *494 Shackelford County, 85 Tex. 145, 19 S.W. 1085, 1086-87 (1892), declared that "the mortgagee ... should be made a party,” but went on to hold that the failure to implead the mortgagee did not invalidate the proceedings. See also Nalle v. Eaves, 5 S.W.2d 500, 501 (Tex.Comm’n App.1928, judgm’t adopted) (“[T]he word ‘Owners’ ... embraces the holders of every kind of lien, claim, or equity in the property involved.”).

The cases from other jurisdictions relating to the rights of mortgagees cannot be fully reconciled. There is general agreement that a mortgagee is entitled to notice of condemnation proceedings. There is, however, considerable diversity with respect to the recourse available to a mortgagee who does not receive notice. See Teague, Condemnation of Mortgaged Property, 44 TEX.L.REV. 1535, 1552-63 (1966).

The record in the case before us is far from satisfactory. Mortgagee has given notice of its intention to limit the appeal and has brought before us only a partial record. TEX.R.APP.P. 53(d). Such notice does not relieve an appellant of the obligation to bring forward a sufficient record to demonstrate reversible error. See Rowlett v. Colortek, Inc., 741 S.W.2d 206, 207-08 (Tex.App.-Dallas 1987, writ denied); TEX.R.APP.P. 50(d). We can go no further than to assume that the omitted record is not relevant.

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Bluebook (online)
767 S.W.2d 491, 1989 WL 37643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wynnewood-bank-and-trust-v-state-texapp-1989.