Blomstrom v. Wells
Blomstrom v. Wells
Opinion of the Court
Appellee sued to recover from appellants the sum of $1,000, deposited in the City National Bank of Corpus Christi as earnest money upon a contract to purchase a tract of land from C. J. Blomstrom, one of the appellants.
It was alleged: That Blomstrom was to furnish a merchantable title, apparent upon the abstract, subject to the approval of the attorneys for appellee, which agreement Blomstrom failed to comply with. That the said money which had been deposited by ap-pellee in the bank as custodian was paid to appellant Garrett who refused to return it to appellee. That the abstract furnished was not in compliance with the contract, nor did it show a merchantable title, but at most a mere limitation title which appellee’s attorney in good faith rejected.
The answer of appellant Blomstrom consisted of general denial, pleas of limitation, and specially averred a compliance with the contract, averring that the .abstract was furnished and the deed and title were accepted by the bank, and the money paid over to him as liquidated damages when appellee declined to accept the title appellant Blom-strom tendered, in all respects as having complied with the terms of the agreement. In the alternative also pleaded he had furnished an abstract showing a merchantable title as agreed, which his attorney examined and at first made no specific objections to, nor pointed out any defects, but,.subsequently, upon appellant’s specific demand, did point out certain objections, but gave appellants no opportunity to remedy. That the abstract was made by appellee’s attorney and accepted by appellee’s attorney, who admitted it showed a limitation title, so appellee was estopped by such admission to assert the title was not merchantable, and by cross-action prayed for the recovery of the $1,000. Garrett and City National Bank adopted the answer of appellant as their own.
The cage was tried by the court without a jury, and after hearing the case the court rendered judgment in favor of appellee against all the defendants for the sum of $1,449 with 6 per cent, interest per annum from the date of the judgment. At the request of appellants the court made and filed conclusions of fact and conclusions of law.
There are a number of assignments challenging the court’s conclusions from the facts and his conclusions qf law, all of which we will consider, but not in the order presented.
The first one we will take up is as to whether under the testimony introduced in connection with the court’s findings, the abstract furnished on its face a merchantable title.
It will be noted that the contract calls for a “merchantable title.” Maupin on Marketable Title to Real Estate, the book above all others devoted to that one subject, nowhere writes on the subject of “merchantable title.” Turning to Words and Phrases Judicially Defined, First and Second Series, it, like Mau-pin, treats of and well defines “marketable title to lands,” and “good and marketable title.” It, unlike Maupin, because it proposes to define legal terms, does define “merchantable,” “good and merchantable cattle,” “merchantable order,” “merchantable quality,” and other like terms, always applying “merchantable title” to personal property, which accounts, no doubt, for the fact that Mr. Maupin does not use that word as applicable to land titles,’ because he is treating solely of title to lands. However, we do find those terms used in some of the decisions synonymously, and as the parties here seem to treat the agreement as providing for a marketable title to land, though designated “merchantable title,” we feel compelled, however, as we view the different terms, to call it “marketable title,” as we believe they so understood it.
There are two prominent grounds presented in the agreement of the parties; that is, was a limitation title to be taken and considered as a merchantable title within the terms of the contract, and was that limitation title to be apparent from the abstract itself, or to be further supported by oral proof? The attorney admitted a title was shown by limitation, but that it did not appear from the abstract itself, and as to it he declined to accept the title because it was not a marketable title.
Examining many of the chains of transfer, to which objection has been made because of defective acknowledgments, it will be noted that the Legislature has passed many curative acts on the subject and actuated by a commendable desire to cure defectively acknowledged instruments that had been on record for years, where no adverse claim was asserted during that period of time, such instruments were made admissible in evidence notwithstanding they were defectively acknowledged and recorded though would not otherwise be admissible- in evidence. Such statute was held valid in George E. Downs, Plaintiff in Error, v. E. A. Blount et al., Defendants in Error, 170 Fed. 15, 95 C. C. A. 289. See 31 L. R. A. (N. S.) p. 1076 and notes cited. The Supreme Court of the United States in that case refused an application for writ of certiorari, thereby approving the ruling of the Circuit Court of Appeals. While this case being one of first impression in the construction of that new statute in the federal court, our own Supreme Court not having construed that statute, an ef *229 fort was made to pass one up to our Supreme Court, in a race of diligence, and when 'it did get there Judge Williams, in Holland v. Votaw, 103 Tex. 535, 131 S. W. 406, speaking for the court, did not take issue with Downs v. Blount; but his refusal of the writ is 'rather by avoidance.
“If the contract provides that the abstract shall show a marketable title, the vendor will not be permitted to show by evidence aliunde that the title is good, nor will the purchaser be required to go outside of the abstract in examining title.” Id., § 289, p. 728.
In Words and Phrases, Judicially Defined, First and Second Series, under the term “Marketable Title,” a well-considered definition is given on page 4389. See, also, Roberts & Corley v. McFadden, Weiss & Kyle, 32 Tex. Civ. App. 47, 74 S. W. 105.
Appellant in his brief says the abstract tendered consisted of some 144 pages of various instruments down to J. E. Garrett from whom appellee Blomstrom had a deed, with the exception of a small tract of 27 acres, without copying or otherwise referring to the numerous objections pointed out by Mr. Todd upon whom appellee was relying for advice, Mr. Todd finally advised him, among a number of things, to wit:
“These are our recommendations as to this title: That Garrett and Stromberg bring suit in the district court here against all the former owners of this land and their unknown heirs, and secure a judgment against them for same, and have the judgment filed in the deed records. This will take some six months to finally close up, and will cost anywhere from $250 to $500, but it would be better for them to do it, and bear the expense of it, than for you to have to do it yourself. Should you accept a deed to the land from Mr. Garret, there are a number of people on warranties before he got the land who are responsible, and could protect you against loss, but unless some one brought suit or otherwise brought the title into question, you would have no cause of action against them on their warranties; hence in order to sell you might have to bring the action I speak of against the former owners and their unknown heirs, and pay the expenses of it yourself, without having any recourse against your warran-tors to make the title good.
“You might take up with these people this matter and ascertain what they will do along the lines mentioned. In my judgment, if they ever try to sell this land with a complete abstract of title on it such as we have prepared, the title will be questioned; and for this reason we would not advise you to accept the title unless they will bring the suit mentioned. We stand ready to assist you in any way we can.”
The conclusion reached by us is that the court’s findings are supported by the evidence. Mr. Todd was selected by appellee as a lawyer learned in the law to determine whether the title offered, shown by the record, was a marketable one. Appellants dealt with him as such with the full knowledge that Mr. Todd’s judgment would control. While, as said in Lieber v. Nicholson, supra, it was as much the duty of the purchaser to point out the objections as it was the duty of the seller to present an abstract showing a marketable title. Appellee did this and demanded that the cloud be removed by a suit, which appellants declined to do. Mr. Todd thought that requisite and was unwilling to pass this as a marketable title. The authorities cited by each party on the subject, and many more read by us as to what constitutes a marketable title to land, are harmonious and without conflict, and support the view of the trial judge, and support, as set forth herein, the views we take of the law.
We have reached the conclusion that there is no substantial error committed, and the judgment is affirmed.
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Reference
- Full Case Name
- BLOMSTROM Et Al. v. WELLS
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- 4 cases
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- Published