Threadgill v. Federal Land Bank

• Decision Date: 25 January 1930
• Docket Number: No. 12257.,12257.
• Parties: THREADGILL v. FEDERAL LAND BANK OF HOUSTON et al.
• Court: Texas Court of Appeals

Page 345

26 S.W.2d 345

THREADGILL v. FEDERAL LAND BANK OF HOUSTON et al.

No. 12257.

Court of Civil Appeals of Texas. Fort Worth.

January 25, 1930.

Rehearing Denied February 22, 1930.

Appeal from Wichita County Court; Irvin J. Vogel, Judge.

Suit by the Federal Land Bank of Houston against N. W. Threadgill, and another. Judgment for defendant R. L. Riner, and defendant Threadgill appeals.

Affirmed.

Fitzgerald & Hatchitt, of Wichita Falls, for appellant.

Harris & Martin, of Wichita Falls, for appellees.

BUCK, J.

The facts in this case involve the purchase of a tract of land of some 2,586 acres, in Hartley county, by L. L. Amason. Loans had been made on the tract by the Federal Land Bank of Houston and by the American Life Insurance Company, and probably by the Wichita State Bank. N. W. Threadgill, of Henrietta, Clay county, Tex., bought all of the tract, except 200 acres retained by Amason. During the latter part of the year 1925, Threadgill proposed to sell to R. L. Riner, the latter of Wichita Falls, all of the tract theretofore purchased by Threadgill. Threadgill offered to sell the tract for $14.50 an acre, or for a total of $36,952.34, all cash. Both of the parties went to Channing to talk with a Mr. Collins, agent for the Federal Land Bank, about getting a release from the Federal Land Bank, upon the completion of the sale to Riner. Collins told them to go ahead with the deal, and to take up that part of the loan made on the tract owned by Threadgill, and to have Mr. Amason make an application for another loan on the 200 acres retained by him. That when such second loan was perfected, and the loan on the tract involved in this deal was paid, the Federal Land Bank would release the loan so paid. The bank had an abstract of title to the whole tract, and Collins told Riner that Threadgill could borrow the abstract for examination. Threadgill did get the abstract from the Federal Land Bank, and put up as a pledge $208 for the safe return of the abstract after the deal was made. The deal was completed and Riner went into possession of the land, and he, probably acting for Threadgill, paid off the incumbrances owing to the Federal Land Bank and to the Insurance Company, and probably any indebtedness due the Wichita State Bank. A controversy arose between Threadgill and Riner as to the latter's right to keep the abstract which Threadgill had theretofore secured from the Federal Land Bank.

In the contract of sale between Threadgill and Riner, Threadgill obligated himself to convey to Riner said land by a "good and sufficient warranty deed, and in consideration of the sum of $37,502.80," and to furnish said abstract showing "a good and marketable title" in Threadgill. He further agreed "to secure at the earliest practical date, not exceeding fifteen days from and after this day, a complete, certified abstract of title covering the above described land, said abstract of title to show a good and marketable title to the party of the first part to said land, same to be free and clear of liens, including the taxes for the year 1925, and submit same to the party of the second part for examination; and the party of the second part shall have ten days from and after the date said abstract of title is submitted to him in which to have same examined by his attorney, and if any objections are found," etc.

Thus it will be seen that in the contract of sale, according to the strict wording of the same, Threadgill agreed only to furnish Riner an abstract of title for examination. But Riner claimed that under the custom prevailing in Texas, and especially in the part of the state where the deal was made, where one agreed to convey a tract of land for cash, and where the grantor agreed to convey a good and marketable title, and especially where there was a loan on the land which had to be released, that the grantor's duty was to furnish to the grantee an abstract of title free of charge. The controversy between Threadgill and Riner continued until August 15, 1927. Threadgill had written to the Federal Land Bank for the return of the money deposited with it, but the bank insisted that Threadgill would have to return the abstract before he would be entitled to the return of the money. Riner refused to surrender the abstract. Finally Riner had an abstract made, at a cost of $84.75, covering the 200 acres still retained by Amason, and on which the Federal Land Bank had made another loan. Finally the Federal Land Bank filed suit against Threadgill and Riner in the county court of Wichita county, alleging practically the facts heretofore set out. In the petition, plaintiff alleged that in connection with the payment of the pro rata part of a loan due on the land purchased by Riner from Threadgill, it became necessary for Amason to make application for a new loan on the 200 acres still retained by him. That upon request of the plaintiff to Threadgill and Riner to return the abstract theretofore loaned Threadgill, and to secure the return of the $208 deposited with the bank by Threadgill, that a new abstract covering the 200 acres still retained by Amason had been sent by Riner, which was satisfactory to the bank. That the Federal Land Bank had in its hands the sum of $206, which was the amount theretofore deposited by Threadgill, less a fee of $2, which plaintiff alleged to be a reasonable and proper fee and the regular fee charged by plaintiff under like circumstances to cover expenses in connection with the return of the abstract. That said $206 is claimed by Threadgill and by Riner, but the plaintiff does not know the nature of the claim of each of said defendants to said fund except as heretofore set out. That plaintiff stands ready, willing, and able to pay the said amount to whomsoever it is legally due. That defendants have each demanded payment of such sum to himself and have threatened to sue plaintiff to recover the sum, and that the plaintiff believes they will do so. That plaintiff does not know to whom said money is due, and that there is a matter of doubt as to whom the money should be paid. That plaintiff has no interest in said sum except to see that it is paid to the person legally entitled to the same, and to save plaintiffs from vexatious suits. That there is no collusion between plaintiff and any other party to the suit, and that plaintiff is impartial, as between the claimants, being merely a disinterested stakeholder and being willing to abide the judgment of the court as between the claimants. Plaintiff prayed that the defendants be cited and the court determine the ownership of said fund, and that plaintiff be discharged with its...