Thomson v. Findlater Hardware Co.
Thomson v. Findlater Hardware Co.
Opinion of the Court
Findings of Fact.
On March 23, 1909, 'appellee Geo. Allen purchased from O. B. Sampson certain real estate, and executed to said Sampson, in part payment, his promissory note for $300, due three years after date; a vendor’s lien being reserved to secure the payment of said note. On April 20, 1909, said Sampson indorsed said note without recourse to S. K. P. Jackson, the father of appellant Hugh Jackson. Hugh Jackson was in fact the owner of an undivided interest in said note. On January 6, 1912, Hugh Jackson indorsed said note in blank, and delivered same to appellant Thomson, with the express agreement that Thomson should hold the same as collateral security for a note of $50, which said Hugh Jackson owed to said Thomson; and with the further agreement that said Thomson should collect said note, and out of the proceeds of same pay one F. T. Scott the sum of $33 owing by said Jackson to said Scott. Prior to the delivery of said note to Thomson, $110 had been paid thereon, and applied on Hugh Jackson’s interest therein. At the time of the delivery of said note to Thomson, Hugh Jackson was indebted to Thomson for various legal services during the past two years, the amount of which he did not know, and he expected that Thomson, when he collected said note, would pay himself out of the proceeds of the same the amount so due him for' such services, though nothing was said in reference to this. The legal services theretofore rendered by said Thomson to said Jackson were of the reasonable value of $75. S. K. P. Jackson died during the year 1911, leaving as his heirs a surviving widow, a daughter, and his son Hugh Jackson. Said note was due March 23, 1912; the last day of grace being March 26, 1912. On that day appellees Findlater & Co., who had theretofore obtained a judgment in the county court of Tom Green county against Hugh Jackson for the sum of $317.17, sued out on said judgment, and had served on said Allen a writ of garnishment. On the 15th day of April, 1912, said Allen filed his answer in said garnishment proceedings, and thereafter, on- July 13, 1912, filed an amended answer, in which he admitted the execution of said note to said O. B. Sampson, and alleged the transfer of said note by said Sampson to S. K. P. Jackson, and the indorsement of said note by Hugh Jackson to appellant Thomson, alleging upon information and belief that said Hugh Jackson was the owner of a one-half interest in said note, and alleging the payment of $110 thereon; the death of said S. K. P. Jackson; the names of his heirs; the transfer by the heirs of said S. K. P. Jackson on April 16, 1912, of their interest in said note to said Thomson; also the transfer by indorsement in blank of said note to said Thomson; also alleging his willingness to pay the balance due on said note to whomsoever it might be due, and praying that said Hugh Jackson and said Thomson be made parties to this proceeding, and said Allen tendered into court the full amount due on said note. We should have stated that said Allen excepted to the jurisdiction of the county court on the ground that the note in question was a vendor’s lien note, and that a lien was retained in the deed to secure the payment of the same.
Appellant Thomson intervened in said suit, claiming that he was the legal and equitable owner of said note by reason of the facts hereinbefore stated, and that he had a lien on said note to secure the payment of the amount due him for attorney’s fees, as here-inbefore stated. He also excepted to the jurisdiction of the court, and protested against the payment of said money into court by said Allen, and denied the power of said court to make application of the funds so paid into court. Appellees Findlater & Co. contested the answer of said Allen and the claim of said Thomson for said $75 for legal services, alleging that said Thomson had no lien on the debt evidenced by said note for such services.
Upon trial of the case before the court judgment was rendered that one-half of the amount of the note, principal, and interest transferred by the heirs of S. K. P. Jackson, less the interest inherited by Hugh Jackson, be paid over to appellant Thomson, and also that he be paid the sum of $50 for which said note was held as collateral, and the *303 sum of $33 due said Scott, and that the balance, principal, and interest of said note, amounting to the sum of $33.36, be paid to Eindlater Hardware Company, plaintiff in said garnishment proceedings.
Opinion.
4. But, where a note has been transferred as collateral security for a debt less than the amount of said note, the payee is still the equitable owner of said note to the amount of the excess over the debt for which the note had been transferred as collateral. Jackson v. Fawlks, supra; Stock Co. v. B. & T. Co., 111 S. W. 420; Huyler v. Dahoney, 48 Tex. 240.
5. By payee is meant the person to whom the debt should be paid. Seastrunk v. P. S. & L. Co., 34 S. W. 466.
7. The court having allowed Thomson out of the money paid into court on said sums of $50 and $33, as well as all of said money due to the heirs of S. K. P. Jackson, other than said Hugh Jackson, and having disallowed Thomson’s claim for said $75, due him by Hugh Jackson, the only issue for us to decide is as to the action of the court in reference to . said $75. That is to say, did Thomson have a lien on said debt for the $75 due him by Hugh Jackson by virtue of said note having been placed in his hands for collection?
12. Thomson was shown to have still been in possession of said note at the time of the trial, and by virtue of such possession he had a lien on said note as to whatever interest his client, Hugh Jackson, had therein. But Jackson could have no interest in said note after the payment of same; and Findlater & Co. having secured a lien on Jackson’s remaining interest in said note by virtue of the service of the writ of garnishment on Allen, the payor in said note, Allen was legally bound to pay the same to Find-later & Co., and the payment of the amount due on said note into court for the benefit of the parties entitled to the same was, in law, the full payment of said note.
Finding no error in the record, the judgment of the trial court is. affirmed.
Affirmed.
Reference
- Full Case Name
- THOMSON Et Al. v. FINDLATER HARDWARE CO. Et Al.
- Cited By
- 11 cases
- Status
- Published