210 S.W. 731 | Tex. App. | 1919
Lead Opinion
This suit was brought by ap-pellee, Mrs. Sharpe, a widow, against appellant, Edward T. Harrison, to set aside a judgment and all proceedings had thereunder in tax suit No. 3979b in the Forty-Fourth district court of Dallas county, styled the State of Texas v. Mrs. Mary A. Sharpe. This judgment was rendered on November 10, 1910, foreclosing a lien for the taxes of 1907
Trial was had before the court, and the trial judge found that Mrs. Sharpe was not served with any citation in said suit, and that she had no notice whatever of said proceedings until the month of February, 1916, that the property at the time of its sale was of the value of not less than $3,500, and that the said sum of $110 paid 'therefor by the defendant Harrison was grossly inadequate, and that the said Harrison was therefore not-an innocent purchaser of said property for value. Judgment was entered canceling said judgment and all proceedings thereunder upon payment to the defendant of the sum of $110, with interest from the date of his purchase.
These facts suggest the corroboration of Mrs. Sharpe’s testimony in these particulars: First, that she was not away on a visit in the summer of 1909, so that the conversations with some lady detailed by the deputy sheriff were not likely to have occurred; second, that it was more than probable that the mother, if she had been served with citation, would have called the matter to her son’s attention, and the fact that she did not- do this tends to disprove that she was served; third, that all the actions of the parties, mother and son, are inconsistent with a knowledge on their part of ¡he existeriee of this suit and the proceedings which followed it.
As to tjáe second, the relation between the mother a/iid son and the circumstances surrounding; i aeir living together were such as to suggc-.-. that it was highly probable, if not certain,/that if the mother had been served with a ¡citation she'would have consulted her son about it. It is natural to suppose that the motther, under the circumstances stated, would íiave been so excited by the service of citation upon her that she would have inevitably told her son. The trial judge had the partie^ before him and could well judge of this matter. A New York case, Taylor v. Crowinshield, 5 N. Y. Leg. Obs. 209, to which we dp not have access, is referred to by Chamberlayne on Evidence, vol. 4, § 3210, as hotding that—
“Oíd a question whether a testator alleged to have ¡mortgaged certain property borrowed a large isum of money, his habits of living and doing (business may properly be received in the absence of more primary evidence.”
The. footnote discloses that the evidence referred to showed that the mortgagor’s financial condition .was such that he was under no necessity of borrowing the money in question; that he was lending money instead of borrowing, was of retired habits, averse to business, “relying on the advice and agency of others,- to whom it is established he did not apply on this occasion.” Appellant relies on the case of McBride v. Kaulbach, supra, as denying any weight to this character of evidence. The facts in that case were not nearly so strong as in this. There the father was transacting his own business, and not living with the children. So that the conclusion that he would have told such children of having been served with a citation was by n,a -moans necessary, or even so highly propr/tile as that the trial court might not have rightly concluded that such negative testimony was of such slight value as to furnish no admissible evidence of corroboration.
Third, all the surrounding facts and circumstances tend to support the conclusion that Mrs. Sharpe and her son did not know of the tax suit and subsequent proceedings had thereunder. The fact that they paid all taxes for previous and subsequent years, that they put valuable improvements on this property about the time of or after the sale, the utter disproportion in the amount of the taxes and the value of the property, with no reasonable expectation of finally ridding the property of the menace of such proceedings, without the expenditure of sums of money so largely in excess of the small amounts that would have been required to have been paid in the first stages of the proceedings — all these facts tend, ,we think, to corroborate the testimony of the mother and son that they knew nothing of this suit until it was discovered in the manner detailed by them.
“The proceedings in law will, courts of equity, be treated as valid, though thisy may be erroneous, but equity will relieve against their consequences, because the rights thereby acquired cannot be retained in conscience. The purchaser will be treated as a trustee;] and he will not be compelled to surrender untijl equity is done him.” Howard v. North, 5 Tex. 316, 51 Am. Dec. 769.
“The general rule is believed to be ¡that a purchaser at execution sale wh6 looks to the record and finds there was a valid subsisting judgment authorizing the execution undeiji which the officer proceeds and who in good faitih buys, pays the purchase money, and receives a deed,*735 takes a title which is valid until the sale is set aside. * * * If the officer has either willfully or negligently proceeded to sell in violation of instructions, and as a result the property is sacrificed, the parties are not without remedy. By motion in the court from which the execution issued, with notice to the purchaser, the sale may be, for good cause, set aside. The same end may be accomplished by an application to the equitable power of the court in which title under such a sale is set up showing good equitable grounds for relief, and of course proffering to do equity, whilst the remedies are thus ample to protect the parties to the judgment, and at the same time protect the bona fide purchaser.” Owen v. City of Navasota, 44 Tex. 522.
Again:
“A court of equity, in dealing with the subject would strip it of all technicalities and go directly to the real and substantial justice of the case, and will, in decreeing that the sale be vacated, so far as substantial justice requires, restore the parties as well as may be done to their former status.” Allen v. Pierson, 60 Tex. 609.
See, also, Northcraft v. Oliver, 74 Tex. 162, 11 S. W. 1122, and authorities there discussed; French v. Grenet, 57 Tex. 273; Freeman on Void Judicial Sales, § 49a; and 16 R. C. B. pp. 103, 104.
The cases we have referred to deal largely with irregularities in the process of the sale, and not in the rendition of the judgment itself. The judgment is the basis of the execution or order of sale, and if the wrong consists in the entry of the judgment, and this itself results in the wrongful sale, we see no reason why the courts would not on the same principles grant relief in. such cases. In the case of Allen v. Pierson, 60 Tex. 607, it is said:
“If by reason of the failure to demand a levy, etc., appellee’s land was sold without his knowledge and this failure of the officer, as a matter of fact, in any degree conduced to the inadequacy of consideration, it would entitle him to a decree vacating the sale.”
It is a reasonable conclusion in this case that the want of service of citation in the suit and the failure of the plaintiff to receive any notice whatever of the proceedings and of the sale was the cause of the predicament in which the owner of the property is now placed, so that as a direct result of this wrong the appellee is about to lose her property without receiving practically anything therefor, and we cannot think that there is any rule of public policy or law that would prevent a court of equity from setting the sale aside where the purchaser may be placed in statu quo.
We have discussed this matter on general principles at this length because of’ the fact that there seems to be some confusion in the decisions as to the rights of the purchaser in such cases. In the case of Scanlan v. Campbell, 22 Tex. Civ. App. 509, 55 S. W. 501, decided by the Court of Civil Appeals for the Fourth District it was distinctly held in the opinion on motion for rehearing that a sale made under order of sale issued on a judgment rendered without service of process on the defendant, though the return and judgment showed service, might be set aside as to an innocent purchaser upon return of the consideration paid by him on such purchase. A writ of error was denied by the Supreme Court in such case. This holding was severely criticized by the Court of Civil Appeals for the First District in the case of Carpenter v. Anderson, 33 Tex. Civ. App. 484, 491, 77 S. W. 291, in which writ of error was also denied, and it was asserted that the contrary rule had been established by a long line of decisions. A reference to the decisions cited shows that it appears in each of them, with the exception of the case of Lawler’s Heirs v. White, 27 Tex. 251, that the attack on the judgment was in a collateral, and not a direct, proceeding, and it is inferable from the opinion in the case of Lawler v. White that the court considered the attack as being collateral. The learned judge who wrote the opinion in the case of Carpenter v. Anderson, in explaining why he thought the Supreme Court denied a writ of error in the case of Scanlan v. Campbell, stated that this must have been done on the theory that the purchaser was not an innocent purchaser, since it was found that the purchase was first made by the city of Houston, the plaintiff in the suit, and the claimant jmder the sale bought the property from the city under* “a quitclaim deed.” He appears to have over, looked the opening paragraph of the opinion on motion for rehearing in said case of Scanlan v. Campbell, in which it was stated, under an authority cited:
“That the deed in question from the city to Scanlan is not a quitclaim deed. We withdraw what is said to the contrary in the opinion.”
The decision in the case of Carpenter v. Andersdn was not finally rested on the court’s position on this matter, but on another proposition. It also appears that the plaintiff in said case did not offer to reimburse the purchaser for his payment made on acquisition of the property. In Williams v. Young, 41 Tex. Civ. App. 212, 90 S. W. 940, a decision also by the Court of Civil Appeals for the First District, the holding in the case of Carpenter v. Anderson was referred to with approval. In this case “the vendee of the purchaser at the tax sale bought the land in good faith, paying full value therefor, believing that he was getting a good title,” and there was no offer on the part of plaintiff- attacking the sale to do equity by repaying him. The same may be said of the facts in the case of Dean v. Dean, 169 S. W. 90. Rowland v. Klepper, 189 S.
“As it was intended, however, that defendants should have the benefit of personal notice to give them further opportunity for protecting their interests to be affected by intended sales, it may be true that the failure to get the notice might furnish the basis for setting aside a sale, although regular, where, as, the result of the miscarriage, great and irreparable loss is threatened, and a harsh and unconscionable advantage is being taken; and if the result of the sale were to be the loss to plaintiff in error of his title to the property for the small sum paid for it, the facts would present a strong appeal for the exercise by the court of its inherent power to control its processes, and to prevent undue advantage being taken of them. But the only right acquired by the purchaser at this sale is subject to that of the plaintiff in error to redeem at any time within two years by paying double the amount of the bid, and this takes away a reason for interfering that might otherwise be sufficient.”
<©3^For other eases see same topic and KEY-NUMBER in all Key-Numbered Digests and Indexes
Rehearing
On Motion for Rehearing.
We have before us a copy of the notation made by the committee of judges from the Courts of Civil Appeals in granting the application for writ of error in the case of Rowland v. Klepper, 189 S. W. 1033, referred to in the opinion. This notation was as follows:
“Application granted. The Court of Civil Appeals erred in holding that the judgment could be annulled without the state being a party and without a meritorious defense.”
We do not doubt that, if this proceeding had been brought to set aside the judgment before there was any sale thereunder and before it had been discharged, plaintiff could only have maintained the suit by alleging that she had a meritorious defense. The reason for this would be that, if the defendant had no defense to the suit, another trial would produce the same result, no real damage was inflicted by the rendition of the judgment without service of citation, and a court of equity will not interfere to set aside a just judgment, though it may have been irregularly secured. But when property has been sold under the judgment for a grossly inadequate consideration, and this result was due to the lack of notice by the defendant of the pendency of the suit, which she otherwise would have had had citation been served upon her as required by law, then it certainly is true that “injury and damages have resulted,” and we believe that a court of equity can grant appropriate relief. It may be, as we shall hereafter state more particularly, that such relief would not require the setting aside of the judgment itself.
“The tender of the purchase money obviates the necessity of the presence as a party of the state, the nominal plaintiff in execution. This is in accordance with the decision in Miller v. Koertge, 70 Tex. 162, 7 S. W. 691 [8 Am. St. Rep. 587].”
In the said case of Miller v. Koertge, which was also a suit to set aside the sale in a case in which the state was a party, it was said:
“The plaintiffs in this suit tender the bid to the purchaser, and this may relieve them of the necessity of making the state a party.”
If a court of equity has the power to set aside a sale because of some irregularity in the manner of conducting it or in issuing the process, we can see no reason why, if the judgment itself was obtained without notice, and this resulted in a sale of property for an inadequate price, the court may not for this reason set aside the sale, though it may, if the equities of the case demand it, leave the judgment itself undisturbed.
While it was recited in the preface to the judgment in this case that the plaintiff was entitled to a decree annulling the judgment, the judgment as actually rendered only sets aside the sale and conveyance of the premises to the defendant. If the judgment did improperly set aside the former tax judgment, we do not think the defendant in this case is in any position to complain of such matter as that portion of the judgment does not injuriously affect him. However, we will modify the judgment heretofore rendered so as to only annul the sale itself and the sheriff's deed made to the defendant thereunder, and the motion for rehearing will be overruled.