Hume v. Perry
Hume v. Perry
Opinion of the Court
The appellee, Mrs. Lucy Perry, a feme sole, instituted this suit in the district court of Fannin county against Henry G. Evans, J. L. Hume, and Mrs. Winfred Hume, the latter as the executrix of the estate of Geo. L. Hume, deceased. The petition alleges, in substance, the execution and delivery of seven promissory notes by Henry G. Evans to Geo. L. Hume in 1904, aggregating $5,200, due in seven annual installments thereafter; that the notes were given in part payment for land described in the petition; that they were afterwards transferred by indorsement by Geo. L. Hume to the ap-pellee, Mrs. Lucy Perry; that upon the failure of Evans to pay the first of fhe notes to mature, an agreement was "entered into, on April 1, 1908, by which the time of the payment of the past-due notes was extended to the 1st day of the following December; that upon the same date a written contract was made, by which Geo. L. Hume and J. L. Hume bound themselves to guarantee the payment of the past-due notes on the date to which they had been extended, and of the remaining notes as they matured. The agreement further provided that the parties thereto waived notice and protest of every nature and description, except notice of default, to be given 90 days in advance of bringing any suit on the notes. This agreement was signed by Evans also. It is further alleged that on the same date, and as additional security for the payment of all the notes, Evans executed a deed of trust on certain lands situated in Collin county. It is also alleged that after the execution of the above-mentioned instruments, and before the maturity of the notes according to their terms, Geo. L. Hume died, and Mrs. Winfred Hume was appointed executrix of his estate. The specific allegations relative to those facts are as follows: “And whereas the said Geo. L. Hume has died, and the said Winfred Hume has been appointed executrix of his estate and is acting as such executrix under the orders of the probate court of Travis county, Texas; and whereas more than 90 days’ notice in advance of bringing this suit has been given to said Mrs. Winfred Hume and J. L. Hume; and whereas this claim against the estate of said Geo. L. Hume has been presented to Mrs. Winfred Hume, executrix of said estate, and the said Mrs. Winfred Hume did, on, to wit, the 13th of October, 1909, refuse to approve said claim,” etc. The petition then closes with a prayer for judgment against all of the defendants for the amount of the principal and interest due on the notes, together with 10 per cent, attorney’s fees, according to their tenor and effect, and for the foreclosure of the vendor’s lien and the lien created by the deed of trust executed by Evans.
Evans answered, admitting the execution of the notes, and that they were unpaid, except as to a portion of the interest claimed. He also admitted the execution of the deed of trust, and asked that the judgment be so framed as to require the property covered by it to be first sold and the proceeds applied to the payment of the amount found to be due. J. L. Hume and Mrs. Winfred *596 Hume, the latter as executrix of the estate of Geo. L. Hume, filed a joint answer, in .which each separately demurred generally to the petition. They also denied generally the facts alleged. They further answered specially as follows: “These defendants deny all the allegations of plaintiff’s petition. These defendants further answering say that plaintiff should not recover against them in the form, of suit as now presented, for the reason that she is not exhausting all of her primary security for the payment of the debt sued on in this : That defendant Evans, prior to the institution of this suit, sold in various tracts the entire lands situated in Eannin county mentioned in the petition, upon which plaintiff has a vendor’s lien, to various persons whose deeds have been placed of record in the county clerk’s office in Eannin county, prior to the filing of this suit,. and of which the plaintiff had notice, and none of the said purchasers, all of whom reside in Eannin county, have been made parties defendant to this suit, and therefore this court cannot foreclose the vendor’s lien upon such lands in such form as would exhaust the same and place it heyond the right of such purchasers owning or in possession thereof to redeem the same, and therefore it is inequitable to compel these defendants to pay any sum to the plaintiff as indorsers or guarantors, until the plaintiff has exhausted the aforesaid securities; such sales having been made on the dates and in the amounts as follows.” Then follow in detail the names of the parties which they claim should have been joined in this suit, together with the number of acres of the land described in the plaintiff’s petition which each claims to own. The answer closes by asking to be discharged with their costs.
' By a supplemental petition • the plaintiff demurred generally to the portion of the answer copied above. This demurrer was sustained, and the appellant's general demurrer to the plaintiff’s petition was overruled. These rulings are the errors assigned. Mrs. Winfred Hume, the executrix, alone has appealed.
The ground upon which it is contended that a general demurrer should have been sustained to the petition is that it shows upon its face that more than 90 days have elapsed between the rejection of the claim evidenced by the notes and contract of guaranty and the institution of this suit. The petition alleges that the approval of the claim was refused on the 13th day of October, 1909, and the indorsement on the petition shows that this suit was filed January 15, 1910, thus disclosing an interval of more than 90 days. The argument in support of the demurrer assumes that the petition shows upon its face that Mrs. Hume is not an independent executrix, and that the claim sued on is one which, under the provisions of chapter 19 of title 39 of the Statutes (Rev. St. 1895), should have been presented to her for allowance as a condition precedent to the institution of any suit thereon. If these assumptions are correct, there would be much force in the contention here made that the general demurrer to the appellees’ peti-tioñ should have been sustained.
The solution of the question here presented may be materially aided by analyzing the conditions with which the appellee as a creditor was confronted at the time this debt matured, or when this suit was filed. She then held an indebtedness for which three different parties were liable, and against whom she had the right to proceed to enforce payment. One of the parties, Evans, was liable primarily; the others, the Humes, being guarantors, or sureties, were only conditionally so. In order to avail herself of the right to subject the property belonging to the estate of Geo. L. Hume to the payment of her claim, she was required to adopt one of the three following methods of procedure: (1) Present her claim to his executrix and prosecute it to judgment through the probate court, without reference to any previous or contemporaneous proceedings against Evans, the principal obligor; or (2) proceed against Evans in the district court, and, after having there obtained a personal judgment against him, then present and prosecute her claim in the probate court against the estate of Geo. L. Hume; or (3) adopt the course she did — join all of them in one action in the district court. Unless the claim is one which should be prosecuted to judg-. ment in either the first or the second method above indicated, it would seem that rejection by the executrix was not made by the statute a condition upon which suit could be instituted to establish the liability of the estate of the deceased party. In determining whether or not either of those methods should have been pursued, we should inquire into the relations of the parties toward each other as disclosed by the pleadings; ascer *597 tain their relative rights and the equities which the court would be called upon to adjust in the final decision of the controversy; and, if it is found that the probate court is not authorized for any reason to award the full measure of relief to which they would be entitled, that fact would furnish a strong reason for concluding that the district; court was the proper forum. The provisions of the statute relating to the prosecution of claims against the estate of a decedent were not intended to compel creditors to split up causes of action, otherwise indivisible, or to resort to tribunals whose powers are inadequate to render complete justice between the parties.
The first inquiry is, Could the appellee have proceeded in the county court against the estate of Geo. L. Hume alone, without reference to any contemporaneous or previous proceeding against Evans’ If so, she was required to first present her claim to appellant as the executrix of that estate. This would necessarily imply that appellant might either reject or allow the claim, for it would be folly to require its presentation where this discretion did not exist.
This, then, brings us to the consideration of the second alternative before referred to, Was the appellant required to proceed in this manner against Evans, either alone or in conjunction with J. U. Hume, before she was authorized to proceed in the county court against the appellant?
Article 1340 of the Revised Civil Statutes provides that judgments for the foreclosure of mortgages and other liens shall be that the plaintiff recover his debt, damages, and costs, with the foreclosure of his lien on the property subject thereto, and (except in judgments against executors, administrators, and guardians) that an order of sale shall issue to the sheriff or any constable of the county where such property may be, directing him to seize and sell the same as under execution in satisfaction of the judgment; and if the property cannot be found, or if the proceeds of such sale be insufficient to satisfy the judgment, then to make the money or any balance thereof remaining unpaid out of any other property of the defendant, as in ease of ordinary executions. In a recent case (Bailey v. Block, reported in 134 S. W. 323) the Supreme Court holds that no valid execution can be issued on a judgment foreclosing a lien for any deficiency, until there has been a compliance with the requirements of this provision of the statute. Article 3813 provides that, when any suit is brought against two or more defendants upon any contract, any one or more of the defendants being surety for the other, the surety may, upon a written statement of the matter being set *598 ou$ in Ms answer, cause the question 0f suretysMp to be tried, etc. Article 3814 provides that if the finding of such issue be in favor of the surety the court shall make an order, directing the sheriff to levy an execution, first, upon the property of the principal, subject to execution, situated in the county in which the judgment was rendered, before a levy shall be made upon the property of the surety, if so much property of the principal can be found as will, in the opinion of the sheriff, he sufficient to make the amount of the execution; otherwise the levy to be made on so much property of the principal to be found, if any, and upon so much property of the surety as may be necessary to make the amount of the execution, and the clerk shall make a memorandum of such order on the execution. Article 2341 provides that, if it appear upon the face of an execution, or by the indorsement of the clerk, that of those against whom it is issued any one is surety for another, the levy of the execution shall first be made upon the property of the principal, subject to execution, and situated in the county in which the judgment is rendered; that, if a sufficient amount of the property, subject to execution, belonging to the principal cannot be found in such county, he shall levy upon such as is found, and upon so much property of the surety as may be necessary to make the amount of the execution.
From the foregoing statutory provisions it is clear that upon the -facts shown by the pleadings in this case it is a controversy in which the representative of the estate of Geo. L. Hume had equitable rights which should be recognized and adjusted in a suit against the principal obligor, Evans, to which she was a party, or which was intended to furnish a basis for subjecting the assets in her hands to the payment of any deficiency found to exist. But, unless she is a party to the suit against Evans, how can she secure the protection of those rights? It is no answer to say that she might interven^ for that purpose, because if she might thus voluntarily become a party to such a suit against Evans she might, upon the same principle, be made one over her objection. The propriety of her connection with such a suit is questioned upon the ground that the court has no authority to adjudicate her liability, until other preliminary requirements of the law have been complied with.
If neither the first nor the second method of procedure was available to the creditor in this instance, then it logically follows that she had the right to join them all in this proceeding in the manner she did in the district court, where all the issues could be adjudicated, and complete justice done to all parties.
There is no statement of facts in the record, and our only means of ascertaining whether or not the judgment is correct is by an examination of the pleadings. According to our view, if the evidence was sufficient, the pleadings were ample.
The judgment is accordingly affirmed.
Reference
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- Hume v. Perry [Fn&8224]
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