Hall v. Conine
Hall v. Conine
Opinion of the Court
The appellants Hall and Morgan, as trustees mentioned in an instrument hereinafter fully described, instituted this suit against W. E. Conine, W..T. Buchanan, L. C. Sturdivant, and Eugene E. Harper. The purpose of the suit was to secure a personal judgment against each one of the defendants on promissory notes theretofore executed and certain assumptions of payment of the purchase price of two tracts of land described in the petition, and also to foreclose the vendor’s lien. After the suit had been instituted the National Bank of Grand Saline intervened, alleging that it had a lien on the land, which is more fully stated in the findings of the court which follow. In a trial before the court the following are, in substance, the facts found:
On November 14, 1916, Conine purchased from Mrs. Wilderspin the two tracts of land *824 involved in this suit. As a part of the purchase price he executed a number of vendor’s lien notes, three of which were unpaid and are described in the plaintiffs’ original petition. On October 17, 1917, Conine conveyed the land to W. T. Buchanan; the latter as: suming the payment of the three notes mentioned. On November 23, 1917, Buchanan sold and conveyed the same land to L. O. Sturdivant, who also assumed the payment of the same three notes, and as a further consideration executed four other notes, which are described in plaintiffs’ petition. On November 20, 1918, Sturdivant conveyed the land to Harper, .who assumed the entire indebtedness outstanding, consisting of the three notes of Conine to Mrs. Wilderspin and the four notes of Sturdivant to W. T. Buchanan. On February 24, 1919, Harper executed and delivered to Hall and Morgan, the appellants, a deed of trust, conveying his entire stock of goods, wares, and merchandise, book accounts, furniture, and fixtures, and, besides other land, all of his right, title, and interest in the two tracts described in the transfers mentioned. The consideration expressed in the deed was an extension of time granted to Harper for the payment of his indebtedness. The trustees were authorized to take possession of the stock of merchandise, and, if they thought proper, continue the business for 90 days. At the expiration of that time they were to sell both the goods and the land and make a distribution of the proceeds among a list of 17 creditors named. Sixteen of those creditors were put in class A and were to be first paid. The bank alone was placed in class B. It was also provided that, if the funds realized from the sale of the property were not sufficient to pay the entire amount of the indebtedness, • each creditor was to share pro rata according to the size of his claim, but that, if any surplus remained, it was to be returned to Harper.' No notice was given to the creditors generally as is1 required by article 3971 of the Revised Civil Statutes when the merchandise is to be sold in bulk. On March 2, 1919, and in another suit which had been filed against Harper, the bank caused a writ of attachment to be issued and levied on the two tracts of laud above mentioned. A few days later it secured a writ of garnishment, which was served upon the appellants after they took charge of the merchandise. In that suit the bank secured a judgment against Harper for $1,339.42 and an order foreclosing its attachment lien on the land. The judgment, however, had not been executed at the time of the trial of this case. After the service of the two writs above mentioned the appellants as trustees sold the stock of merchandise, and with the proceeds acquired all of the purchase-money notes executed by Conine and Sturdivant, the payment of which had been assumed by Harper. On March 20, 1920, before settlement ■ was made with the creditors, this suit was filed. The petition alleged a history of the various relevant transactions, including the appointment of the appellants as trustees and the powers conferred. They claimed in their petition to be acting solely in their capacity as trustees. They alleged that after making proper deductions for credits to which he was entitled, Harper still owed the creditors listed by him the sum of $2,000. They asked judgment for that amount against him, and for a foreclosure of the vendor’s lien on the land. They also sought personal judgments against the other defendants. On April 22, 1920, the bank filed its plea of intervention, alleging that the deed of trust was void because of the failure of the parties to comply with the Bulk Sales Law, and claiming a prior lien upon the funds in the hands of the trustees by virtue of the writ of garnishment, and a prior lien upon the land by reason of the levy of its writ of attachment. All of the defendants except Harper answered, denying any personal liability to the trustees on the notes. Harper filed no answer and made no appearance. Judgment was rendered against him for the full amount sued for and the foreclosure of the vendor’s lien upon the land. Judgment was also rendered in favor of the intervener bank for the amount of its claim, and an order entered directing that from the proceeds of the sale of the land the bank’s claim be first paid in full, and the remainder distributed among the creditors in proportion to their respective claims. Judgment was rendered that the trustees take nothing by their suit against Conine, Buchanan," and Sturdivant.
The judgment against Harper, not having been appealed from, will remain undisturbed.
It is further ordered that one half the cost of this appeal be taxed against the intervener bank, .and the other half against the appellants.
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Reference
- Full Case Name
- HALL Et Al. v. CONINE Et Al.
- Cited By
- 7 cases
- Status
- Published