Kidd v. Sparks
Kidd v. Sparks
Opinion of the Court
J. R. Sparks brought this suit against W. M. Kidd in the county court of Coleman county, to recover the sum of $425, alleging that it was a balance due upon an agreed consideration for the sale of certain lots in the town of Talpa, in that county, conveyed by Sparks to Kidd by deed dated October 27, 1911.
In his answer the defendant, Kidd, denied that he owed the plaintiff anything, and alleged that the deed referred to was, in fact, a mortgage, and was given for the purpose of securing an indebtedness from Sparks to him, the consideration being $250 owing by Sparks to Kidd upon a promissory note, and $21 due upon an open account and Kidd’s agreement with Sparks to permit him, on the faith of the deed, to purchase goods, wares, and merchandise from Kidd, and that it was the understanding between the parties that *800 when Sparks paid all of Ms indebtedness then owing and subsequently to accrue, that Kidd would reconvey the property to Sparks. He also disclaimed any title to the land.
Plaintiff, Sparks, filed a supplemental petition, specially denying the facts alleged in Kidd’s answer.
The ease was submitted to a jury upon special issues, and the jury found: (1) That the deed referred to was made for the purpose of securing an indebtedness from Sparks to Kidd; (2) that at the time of the execution of the deed it was agreed between the parties that the consideration was to be $750; and (3) that it was provided by written agreement executed at the same time that the plaintiff, Sparks, should have the right to repurchase the property within one year, for the consideration of $750. Upon those findings the court rendered judgment for the plaintiff for $425, and interest thereon from the 1st day of January, 1912, at the rate of 6 per cent, per annum, and the defendant, Kidd, has appealed.
In Harrison v. Hogue, 136 S. W. 118, the court says:
“It seems. clear that, where the consideration of a deed is a pre-existing debt, unless it is shown that the debt, to the extent of such consideration, is extinguished and the evidence of it surrendered, the instrument will be declared to be a mortgage.”
So we hold that the conduct of Sparks in not demanding the surrender of the $250 note, which he now claims he paid when he executed the deed, and his subsequent conduct in executing another note to Kidd for $250 and securing the same by a chattel mortgage, at a time when, he now claims, Kidd was owing him $425, are so utterly inconsistent with that contention as to render his evidence in support thereof incredible and untrustworthy.
Error is assigned upon that portion of the court’s charge which instructed the jury that the burden was upon the defendant Kidd to show that the deed referred to was intended as a mortgage. We' are not disposed to sustain that objection, but suggest that, upon another trial, the court frame its charge upon that subject in conformity with the suggestion of the Supreme Court in Howard v. Zimpelman, 14 S. W. 59.
For the reason given, the judgment is reversed, and the cause remanded.
Reversed and remanded.
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