Wood v. Henry S. Miller Co.

Decision Date12 March 1980
Docket NumberNo. B-8713,B-8713
Citation597 S.W.2d 332
PartiesHarold WOOD et al., Petitioners, v. HENRY S. MILLER COMPANY, Trustee et al., Respondents.
CourtTexas Supreme Court

Chancellor & Wood, Edmund R. Wood, Roger D. Bush, Dallas, for petitioners.

Kissner & Pappas, Leo A. Kissner and Farrell P. Bolz, Houston, Cooper, Hagner, Miller & Long, Michael R. Cooper, Dallas, for respondents.

McGEE, Justice.

This is a companion case to Smart v. Tower Land & Investment Co., 597 S.W.2d 333, decided today by this court. Like the Smart case, this is a suit for reimbursement for taxes paid by a mortgagee after foreclosure. A personal judgment against the mortgagor in favor of the mortgagees was entered by the trial court, but this judgment was reversed by the court of civil appeals. 584 S.W.2d 302. We affirm the judgment of the court of civil appeals that the mortgagees take nothing on their claim.

The facts of this case are parallel to the facts in Smart v. Tower Land & Investment Co. The Henry S. Miller Company (Miller) purchased property on behalf of a joint venture from Harold and Ruth K. Wood, husband and wife, and Warren and Ruth Ann Wood, husband and wife (the Woods). Miller's notes representing the purchase price were nonpersonal liability obligations. Four deeds of trust were given as security for the purchase price by Miller for the joint venture. Upon default for nonpayment, the Woods accelerated maturity of the notes. They foreclosed under the deeds of trust and purchased the property at foreclosure. After their purchase, the Woods paid ad valorem taxes that had been assessed during the mortgage and sued Miller for reimbursement.

The deeds of trust executed by Miller as mortgagor reiterate the nonpersonal liability provisions of the underlying notes:

"Anything herein to the contrary notwithstanding, the undersigned shall have no personal liability for the payment of the note secured hereby, and in the event of default, the holder of said note shall have the mortgaged property alone as security for the payment of said note . . . ."

The deeds of trust also contain the following provisions with respect to the payment of property taxes:

"THE UNDERSIGNED FURTHER COVENANT with said Trustee that it will . . . pay, before the same shall become delinquent, all taxes and assessments that may be levied or assessed against said premises or any part thereof. And it is especially agreed that if the undersigned shall fail . . . to pay such taxes, . . . said taxes may be paid by the legal holder of said...

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    ...Partnership, 931 S.W.2d 635, 638-639 (Tex.App.1996); Henry S. Miller Co. v. Wood, 584 S.W.2d 302, 305 (Tex.Civ.App. 1979), aff'd, 597 S.W.2d 332 (Tex.1980); Hewey v. Richards, 116 Vt. 547, 80 A.2d 541, 542-543 (1951); National Bank of Washington v. Equity Investors, 86 Wash.2d 545, 546 P.2d......
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    ...and Maker shall have no personal liability to Holder for the Indebtedness herein described") (emphasis added); Wood v. Henry S. Miller Co., 597 S.W.2d 332, 332-33 (Tex.1980) (construing note stating, "... the undersigned shall have no personal liability for the payment of the note secured h......
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