York Division, Borg-Warner Corp. v. Security Savings & Loan Ass'n

485 S.W.2d 327, 1972 Tex. App. LEXIS 2328
CourtCourt of Appeals of Texas
DecidedSeptember 14, 1972
Docket15771
StatusPublished
Cited by10 cases

This text of 485 S.W.2d 327 (York Division, Borg-Warner Corp. v. Security Savings & Loan Ass'n) 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
York Division, Borg-Warner Corp. v. Security Savings & Loan Ass'n, 485 S.W.2d 327, 1972 Tex. App. LEXIS 2328 (Tex. Ct. App. 1972).

Opinion

ON MOTIONS FOR REHEARING

COLEMAN, Justice.

This case involves claims for debt arising out of construction contracts, and financial arragements pursuant thereto, the foreclosure of mechanics and materialmens liens, and the respective priority of the liens established. Of particular interest is a question of the validity of an execution issued on an interlocutory judgment, and of the sale made pursuant thereto, where the judgment was made final by severance after the sale.

Mr. and Mrs. M. H. Ferris and Dr. E. M. Ammons (hereinafter called “Ferris and Ammons”) entered into a construction contract with J. L. Stover and L. C. Loper d/b/a Construction Associates (hereinafter called “Stover & Loper”) on August 16, 1963, in which Stover & Loper were to build certain improvements upon the property owned by Ferris & Ammons. On August 20, 1963, Ferris & Ammons executed both a contract with deed of trust amd a mechanic’s and materialman’s lien promissory note to J. L. Stover d/b/a Construction Associates. The note was for the principal amount of $378,654.00 plus interest at the rate of 6% per annum. This note was endorsed to League City State Bank by J. L. Stover and later was endorsed to appel-lee, Security Savings and Loan Association (hereinafter called “Security”).

*329 Stover & Loper borrowed money for construction from the League City State Bank by giving their own promissory note dated August 29, 1963 for the principal amount of $378,654.00. The security given for this note was the promissory note from Ferris & Ammons and the mechanic’s lien contract of August 20, 1963. Subsequently on June 18, 1964, the note from Stover & Loper to League City State Bank and its collateral security were assigned to Security.

The general construction contract specifically provided for air conditioning and duct work, but allowed owners to contract for such materials and work themselves. Ferris & Ammons contracted with York Division, Borg-Warner Corporation (hereinafter “York”) to furnish air conditioning units to Ferris & Ammons to be installed in the project being constructed on their property. The air conditioning units were delivered, and on June 3, 1964 York filed a mechanic’s lien.

Security filed suit against Ferris & Am-mons and Stover & Loper for the amount due on the promissory note which was in default and for foreclosure of the mechanic’s and materialman’s lien. Security also sued York and others to establish the priority of its lien. Stover & Loper and York filed actions against Ferris & Am-mons for amounts due under their respective contracts.

On November 25, 1964, the trial court granted Security’s motion for summary judgment. The judgment gave recovery on the notes against Ferris and Ammons and Stover & Loper and held that Security’s lien was prior and superior to all other liens. The court ordered sale of the property owned by Ferris & Ammons to satisfy Security’s money judgment and on February 2, 1965 the Sheriff of Galveston County, Texas, J. B. Kline, sold the property to Ray Diamond who in turn sold to Newton Schwartz.

York appealed the judgment of November 25, 1964, which judgment was found to be interlocutory by this court, and appeal was dismissed for want of jurisdiction. York Corp. v. Security Savings and Loan Ass’n, 391 S.W.2d 830 (Tex.Civ.App., Houston 1965, no writ).

The trial court then modified its judgment of November 25, 1964 by eliminating the adjudication concerning the priority of liens, and on August 17, 1965 severed and rendered final Security’s cause of action against Ferris, Ammons, Stover and Loper. That same order of August 17, 1965 dismissed with prejudice the cause of action by Stover & Loper against Security and severed York’s cause of action against Ferris & Ammons. Thereafter, the trial court on September 28, 1965 rendered an interlocutory money judgment in favor of York against Ferris and Ammons and also held the liens of York to be valid and ordered foreclosure of those liens. On October 22, 1965, the trial court ordered such September 28, 1965 judgment to be severed from other causes in the action and rendered final judgment in favor of York against Ferris & Ammons for the sum of $43,239.33 plus interest at 6% per annum and for foreclosure of its material-man’s lien. An order of sale of the property owned by Ferris & Ammons issued, and such property was sold on March 4, 1969 by sheriff’s deed to York.

We find that the judgment is erroneous in the following respects:

1) in decreeing that the summary judgment of November 25, 1964, in favor of Security be confirmed, ratified, re-instated and carried forward;

2) in decreeing that the order of sale pursuant to the November 25, 1964, summary judgment was a valid order of sale and that the sheriff’s sale to Security was a valid sale;

3) in decreeing that the deed from the sheriff to Security conveyed fee title;

4) in decreeing that the levy and sale by the sheriff under York’s summary judg *330 ment, and sheriff’s deed to York, are null and void;

5) in decreeing that Newton Schwartz have title to and possession of the property in question;

6) in permanently enjoining York from selling the property in question;

7) in decreeing that York’s summary judgment be confirmed, ratified, re-instated, and carried forward;

8) and in decreeing that since the lien of Security has been foreclosed on the property in question, the lien of York is null and void.

The case must be considered without the benefit of a statement of facts because the official court reporter lost her notes and was unable to prepare one. Under the established rule we are required to presume that there was evidence to support such findings of fact on part of the trial court as are necessary to support the judgment entered. W. G. Tufts & Son v. Hender Farms, Inc., 461 S.W.2d 257 (Tex.Civ.App., Tyler 1970). However, we find that error is shown on the face of the record requiring that the case be reversed. Since the rights of the parties are interrelated and interdependent, the errors probably resulted in an improper judgment on other matters adjudicated and a proper judgment cannot be rendered in the absence of a statement of facts. The judgment will be reversed and remanded for a new trial as to all parties.

The judgment of November 25, 1964, in that it failed to dispose of all parties and issues before the court, was not a final judgment. The trial court retained the power to set it aside, or to amend it. It was amended by an order entered August 9, 1965. The amended judgment became a final judgment on August 17, 1965, when the cause of action adjudicated thereby was severed from the case. On the 30th day of December, 1964, the Clerk of the District Court issued an order of sale as directed by the judgment of November 25, 1964, and delivered it to the sheriff. On January 5, 1965, the sheriff levied the writ on the property in question in this case, and on February 2, 1965, sold the property to Security, and credited the sum of $293,395.05 on the judgment.

In Swanson v. Holt, 126 Tex.

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Bluebook (online)
485 S.W.2d 327, 1972 Tex. App. LEXIS 2328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/york-division-borg-warner-corp-v-security-savings-loan-assn-texapp-1972.