MECHANIC'S AND MATERIALMEN'S LIENS AND THE IRVING DECISION JOHN KEITHLY . - 'UBIo1: -OF COBDllII8 page I ..IBOEPTION • •. • • • • • • • .• • • • • • • • • II .. BOT ICE "• . • ' • . ' . • . ' . e' ~ III IV • • • • -. ". OWNERSHIP • • • • '• • • • • • • . , • DISTDICTIOli BET..- LIPS ~ • • • ._ '. • • • ~ • .. - • • • • • 2 • • • .. • 4" ••••• 6 • • • • • • • • • 'V. . NEW STATU.Tl!: • . • • •.,. . . . • .. ., • • • • • • • ' . . • • • :':0 l} In the recent case .ot IrvinS Lumber Company v. Alltex ·Morts8fie Company, Inc. 1 the Supreme Court heard a question a concerning the relative status ot materlalmen's and mechanic's 11en, a vendor~s lien, and ·a- deed ot trust. Tbe court handed . .down it.a opinlon 1n 1971, bu.t seyeral months later on rehearlng ~ ltreversed lts posltion; the holdlng ln the latter oplnion turn1sbes the toplctor th1s paper as lt relatee to the pr10rltl ot materialmen's and lIIechanlc' 8 1.l ens ln Texas. A sUIDIII&rY ot the tacts ln Irvlns,supra is as tollows: Merult HOllies, lntendlng to erect bousea, executed a contract tor the purchase ot land; . thereatter on Aprl1 27 and July 2, .. 1964 Merult Homea entered lnto an oral contract with Irvlng Lumber COIllPany to turn1sh labOr and materlal necessary to the oonstruction ot bousea on tour lQta.On July 8. 1964 Meru1t HOllies acqulredt1tle to the lots and s1l11ult~eously arranged tor a loan trom Alltex, mortgagee, to tlnance the cost ot the land :tor .'0,000 wh1le the rema1n1ng .,27,000 was to be used tor contemplated 1~provelllents on the lots; a deed ot trust wae · executted to All tex to ev1dence the . debt and a note . secured by . ·subregation to the seller's vendor's l1en waa taken. Irv1ng ·timely pertecte' a mater1aIlllen';s and mechanic's :L1en by statutory aft1dav1t on ~ovemOer 4, 1964. : material .turn1ahed on July. 1965. Work wasatated and Meru1t thereafter became insolvent and detaults' on 1ts contraot with Irv1ng according · to the note and deed ot trust wlthAlltex. Alltex toreclosed 1ta de.4 of trust by.xere1sing 1ta power ot sale; subsequently · Irv1ngbr1ngsel.l1t to entorce 1ts l.1~n .. 1 . It. pr10rity contest .nsud with the outcome resting on when Irving's lien ha4 its ~1n­ oeption". Irving oontends that .its lOan ha, its inception on the o.at& of its oontraot with Meruit Homes and should be superior tc? Alitex's dee.. of trust; ltfurther argue. that the llen created by the deed Of trust was foreolosed b, the power of sale g1ven by the deed of trust. Irving stlpulates that the vendor's 11en to wh10h AlltWoK was subrogated ls superlor to themechanlo's 11en. Alltex contends that the meohanlo's 11en had ltslnoeptlon subsequent to the reoor~ation of the deed ot trust at the time oonstructlon effort. began, and argues that the deed ' of trust. sale foreclosed both t.he 4eed ot trust. and the vendor's 11en thus ext1ngU1a)dng Irvlng's meohanlo' s and mat":' erialmen '.s 11en. I Artlo1e 54592 is one of the approplate statutes control';;' 1ng prlor1 ty because it controls the time of lnceptlon ot tb.e. meohan1c's and mater1almen's 11en, and prov1des as follows, "The 11en hereln provlded for shall attach to the .house, bul1d1ng, lmprovemer.ts or ral1road for whloh they .ere furn1shed or the work done, ln preference to any pr10r lien or encumbrance or mortgage upon the land upon which the houses, bulld1ngs or 1mprovements, or ral1road have been put. bl'\ ~.labozt~ performed, and the person enforo1ng the same may have suoh house, bu1ldlng or 1mprovement, or any p1eoe of the rallroad property, sold seperately; provlded, anyllen, enoumbrance or mortgage on the .land or lmprovement at the t1me ' ofthe inoeptlon of the 11en herein provided for shall not be affeoted thereby, and holders of ,such lien8 need not. ' be partles ln sults to foreclose 11ens hereln prov1ded tor. 1I . . ' . . . The st&tuteglve • .prlorlty .to· II&terlalmen's ..1I mechanlo's 2 ' 11ens over all '11ens exoept those " on the land or improvement • at. the time ot t.he . incept.1on"ot the meohanic's and material. men's liens.. 'l'l:l! ori teria tor priori t1 ie the time ot inoepJ;>- tion. In 1.886 the SU'prelle Oourt held in- Fagan & OsgoOd , v. BoyM Ioe Maohine 00.3 that it was not the reoordatlon required by the law but the law ltself which gave a materialmen's and meohanio's 11en; in the language of the court. ~th. record of proP&r,ty~ the oontraot dld not th!Jrefore. newly enoumber the but fixed .and s.e oured upon 1 t. an exlsting 11en.·.' The "relatlon baok" dootrine was first laid down ill.. 18~7 in the oase of Trammell ' y. Mount. 4 and 1 t beoame a fundamental ooncept ln the asslgnment of ' pI'lorl ty. The Supreme Oourt . ' stated the dOctrlne as follows: It The lien of a mechanl.c , though not flxed before record of the oontraot or bill of particulars, when it ls 1'1xed , related back 'to the tlme when the work was performed or the mat'e rlal furnlshed, and hence takes precedence of all claims to the property improved whlch have-been fastened UpoI;l lt sinoe that time. ~' Thus lt 1s obvious that a mechanic's 11en relatee baok 'to the' date :the work was performed or the materlals furniehed, and ha$PI'lorlty overall clalms attaching after that date. The next slgn~tloant oa~e. Or1ental ' Hotel ~ Co. v. Grifflths,5 - ."' •. j extends the "relation back" dootrine when lt dealt with the " . . .I" " 6 legislatlve change of the word uaocural' ' - as lt existed to the ' word "lnoeptlon" ln the ourrent' Btatute; Artlcle 5459. 7 In ' ,' • ,deoiding the quest~on the supreme , Oourt restated its polioy of .. ' iiwral construction ,ot ilt.&tut.eafo.rtlie purpose of protecting la~~~s and lIIa~erl~meD~ and. *&,14 , 'Olm ,t hei 1'o,lloving sign1tl- cant holding: "liens ot laborers and materialmen, when per- fected, will relate back to the date ot their "inoeption"; the date of "inception" is not necessarily the date on which the labor was pertormed or the material was turnished as per . :r~ .. ~~ ~e thediotum in Trammell v. Mount;~the date ot execution ot a · oontraot for ereotion of all lien8 tor labor and material neoe.ssary to oompletion of the building or improvement. The oourt in Oriental Put to rest the question ot when .,the lien at,t aches .with these words: "The word "inception" means "initial stag.e "-- It does :not refer.to a state of actual existence, ·but to a condition of things or circumstances rrom which the .thing -maT develop. When the bUilding has been proJected, and construotion of i ·t entered upon, this i8, contracted for, -- the' circumstances exist out or which all future contracts for labor and material neoessary. to its cOlllpletion may arise, and for.-' e.ll such labor ana material a common lien is given by the statute: and in this state of oiroumstances the lien to seoure each has its "inoeption". The Oriental decision was thought to be:' resti-1oted to the faot situation where a general , as distingUished ·. from a spec' itic oontract, was necessary to support the ' "relation back" doctrine, and the court or civil appeals so held in Irving, ·the first decision by ' the Supreme Court in Irving, although now overturned, dispelled this in holding that a general conUni8 Security Lumber Co . was tract is not neoessary. for appllcaticm of the dootrine. versity Savings & Loan Association y. oited as authority for this oonstruction; this recent decision , held that any oontraot for materials or labor is sUftioient 't o support the "relation baok" lioctrine. The beat evidence for 41aregar41ng. the 1L2!0t contract are the words of the Supreme Oourt ln the lnltla1 lrvlng 4eolalon,9 to wl t: "We dld not hold ln McConnell v. Mort~ase lnvest.ment Co. &1 Paso, 157 Tex. 572, :3 5 S.W.2d 280 (1957), ,t t a general contract between allen :, c1almant. and an owner 1a neceasary for appllcat.lon ot the "re1at.lon back" doctrlne. The , bestevldence that we dld not 40 so ls that we reserved that questlon ln hi II Alltexmlght rely on the rule ln McOalien v. Mesu1 Produclng ' &: Ref. 00. 10 for the propoaltlonthat an lnnocent moJitgagee wl thout notlce wlll out oft the rlghts ot a prlor llenholder;,:. Thls case standa 'for the genel'f.1 rule that i f & prlor llenho1der tal1s to record hls 11en he allowa aubaequent partles to rely tothelr det.rlment on exlat.lng faot.a that. remaln undlscloaed lue :to hia fallure 'to record; the prlor llenho1der ls therefore ' S'sat.opped from assert.lng his auperlor mechanlc's 11en agalnat. -, , , a subsequent. mortgage. wl thout. not.lce:_ 1t Natlona1 Western Life Insurance 'v, Acreman. ,",' ThiB general -ruie does not st.and ' agalnat·,the rule applled t.o the type of altuat.lon present.ed ill the Irvlng caae; ln the case of Keatlng Implement &: Machlng 00. V. Marahall X1ecUrc &: POwer 00. 12 the Supreme Oourt. aald: NWlt.hln the Perlod ot tlme allowed by the atatute . tor the 11en to be flxed by belng recorded, we think that every ' peraon deallng wl th ' the property 18 charge' with notice of the ex18tence of tl,ie llen." tinder thla rille Alltex la oharge" with notloe o'f thematerlallien' a and mechanlo',a' l1en.1he reaaonlng beh1Dd thia rille :aeema 5 to be that slnoe the 11enholder ls dolng all that 1. requ1red by law he should not ~orte1t h1. rlght merely beoause he fa11. to fl1eh1. aft&4avlt before another 11en attaohe •• ~e rule as 1a1d down by the Xeat1M oourt requ1res a mortgagee to asoertaln whether or not any labor or mater1al h". been fUJmlshed; 11'. 1s 10gloal to aply a duty unller the ilre1at10n back" dootr1ne to inqulre lnto the p08s1blllty thIPot a oontraot had beenenterea 'lnto whioh would oreate a 11en. It 18 lnoonoelvable that All- tex d14 not ,have aotual ,notloe ot ' a 11en 81aoe they loanea ' the money for the lmprOvementa. III The established rule in , tlxlng llen prlorl ty betweea dlfferent lnterests ln the property ls the maxim--," tlrat ln In , rlght." tlme~ flrst Hammann v. H.J. MoMullen &: O~.e The 1n1tlal b- , ols10n ln Iry1p6statedl "It was 1Dl111ater1al that no materlal was furnishe, .or work cODllllenceca before the deed. ot trust had ; been recorded. It 1s a180 lDl111ater1al that Alltex mlght not have had notlce of the oontraots. ~I The Supreme Court also sa14 in Sulllvan &: 00. v. Br1quetta ,Coal Co. 14 that, "the r1ghts ot the partles ln this oase are ' f1xe~ , by the statutes, 'and cannot be d18po.ed ot upon any sup- posea. equl table grouni ". , wnen rehear1ng the IrylDS oase the maJorlty op1n1on ln the SUpreme Court makes this statement, to 1111'.: ',' nthe prl0rl ty of a , seour1ty interest ls not .determined on the Ilate of the , "lnceptlon", of an agreement betweell. the oontraotor an' it. prospeot1ve owner". : . , Ho , authorlty 18 eatallliahed tor this proposlt1oll., rather the 6 court ignores long stan4ing authority. trom various Civil Appeals Courts whioh ho14 exaotly oontrary. Do 4ecisions trom these courts mean anything? Texas law'5 has require. that oontraots must ariae between ..a oontraotor and a "owner" ot the land betore a meohanio I • lien will attach: "Any person or firm, lumber dealer o.r oorporation, .artisan, laborer, meohanio or suboontractor who may labor or furn1sh mater1al, machinery, f1xtures, or tools-- or who may furnish any material for the construct1on or repair of any railroad with1n this atate under or by v1rtue 'of a contract w1th the owner, - owners, or h1s or their agents, trustee-upon oomply1ng w1th the provisions of th1s Chapter shall have . .a 1:ien on suohhousEi--~ . (emphas1s added) . In the Schultz! v. Alamo Ice &: Brewims 00. '6 ~l!I.se ~ the tem "ownElr"' waa 'oonstrued, an4 it was held that a meohanic' s . . and materialmen's' oontraot made before the "owner" has acquire4 title crea,t ee' a. me'ohan1o's and mater1almen I s lien i t title is later acquired in the land. The C.C.A. made the following observat1on in .Breckenridge City Club v. Hardin: 17 "There can be no reasonable oontention that the .purohase of . the ,lots was not 1n oontemplation at the time of the Ordero! the mater1al, and 1nequ1ty, the final aoquiei.t ion oftitle . related back ··aiiIiCexlst.ed at ' the 'time of the contract for , the purchase of ' the material-.. " · It is well , recognized authority in Texas ,t hat. ·a ' lien may be subsequently . perfetited even thoUgh at the time '.. the contract for the construction is made , thE! purohaser1s ,not the .' . of the.,land • • but is onl y a p~spective owner. Also.' see Enlow 20 ' · . . -. " ' 9' v. B~wn 18 and Sprowles v . YoungblOOd. . The oase of Nasterson v. BUrnett. . ' .~ . i'owner~' "- relied on by the . maJoritY ' oEl ' the owership question. ia , distinguishable on the , facts; it involved a Judgement debtor. the loan and the deed of trust wers given ae partial consideration for the exchange of property. and the holding :Of the court related to a vendor'. lien -- not a deed of trust. There is another line of cases that must be distinguished from the Schultze type case. , 21 In Sheer v. Cummings the court held that a prospeotive or optional purchaser of land 'who contracts for improvements and then does not later acquire the land oannot be an "owner" via the statute; a materialmen's and • meohanic's lien wi11 attach to a transaotion when the prospective owner does in fact become the owner late~ because he has the 'status of "owner u • but the lien will not attach to a prospective owner who does not complete the purohase,lmea eQmplete \he transaotiea. in Irvins cite~ ss aeee ftet later The majority opinion on rehearing Macallan v. MegulPr9ducing & Refining Co. as authority; ths problem arises becB;uae the ,Macailen court cited the Sheer case line of casea for the proposition that a per,son , I with an option to purchase 'can never be an "owner" under the statute. The MaCallen case holding pertained to a fact situ- ation where the person did acquire the land la,~ 'Elr, , .. while in the ~ ", Sheer case the person did not aoquire the land later. In the MaOallen case the liens held to be prior to the alleged ' mechanio • 8' llens were purchase money vendor's liens, not deeds ot trust. The majority opinion in the second Irving opinion also relied heavily on National ~estern Life Insurnace Co . v. Acreman; the Acreman court made, the same mistake by . '- miscons~ruing the ~. Oriental holdi"ng. whl.oll"lI&e squarely grounded on the SchultZe, . ;" ~: '-:<:" : . ,.~ . "i- in- that the Oriental '; oa,s e "claas1fied the per80n as an " "owner~' 8 under the Schultze rule which stated that if the prospectlve ' owner later acquired title to the lana he could. be a "owner" under the statute. The Acreman case is also distinguishable on the facts; 1n that oase !!! the money borrowed was to be app11ea to the purchase prioe of the land alone. At the ver, least the reason1ng 1n the MoCallen ana Acreman aec1sions leave something to be des1red. The McCallen oase oited Galveston , Exhibition ,Associat10n v. Perkins 2 to support the oontention that a person holding an option to purohase land is not an "owner" unaer the law of Texas. Again, the GalVeston oase only held that a person oould 'not be treated as an he did not thereafter purchased the land. "owner~' only if On rehearing the Supreme Court should have distinguished the Sheer line of cases, or ignored or overrule,a the MoCallen and Acreman oases; the court's failure to ao so has left the law unolear in this important area. The Schultze oase was citea by the MaCallen court as authority on an notio~issue, . and correctly so, but the court.. " " failed to mention :..the Schultze rule,-- a person with an 'ppt10n to purchase land who, as a matter of faot, later does 80 meets the definition of "owner" in a manner suffioient to establish a materialmen's . an~ . mechanic's lien in Texas. It is true that Texas courts have not helcl. that a lien arises with the acquisition of the land, but only that prospective owners were to .. be t.reated as ""owner,s " at the ' tiine the contract was "ntered into;, this seems to be the manner in whioh tne and Brechenridse C1tY Club v. Hardin :O &S86 Enl~w v. Brown were conetrued" This would necessarily lead to the conclusion- that Irving Lumber Compal!lY' s mechanic's and materialmen' 8 lien was pr~or in time to the dee4 of trust. The Schultze, Enlow, and Breok- enridge reason1ng areln oomplete aooord. IV Alltex (lender) is subrogated to the original vendor's , lien by operatlon of law when purohase money 1s furnished. case also holds that Harveson v. toungblOOd. 23 The Haryeson ; a claimant who contracts with a mere prospective owner cannot obtain priority over a vendor's lien which encumber's the property wben transferred. Irving Lumber Company recognized that a mechanic's or materialmen's endeaver is charged with notioe of a vendor's lien at the inception of the meohanio's and materialmen's lien in accordanoe ' with Schamberger Lumber Co. v. Holbert,24 and does not contest that the vendor's lien has priority over their mechanio's and ma~erialmen's lien. This ls ,r easonable slnoe the vendor's llen is part of the , or19inal owner's title and was on the lana at the time the materialmen ' or meohanic entered into his contraot; oonsequently a vendor's lien is always superior to a subsequent meohanic's and materialmen's ' lien In accoraanoe wlth Article 5459, but can the same be- satt a deed of trust? On rehearing the !£I- ing court refused to recognize money borrowed was secured 1n part by a purchase _money 'ebt, and in part for the improvement, thue creating two distinct lians. The oourt 1n9laas y. Pallas Homesteaa & Loan Aseooiation25 Sl. Recognized 'a difference between a mort,sage wbich the mortgagor . uses partly as purchase money ani a purchase money mortgage. Tiffany, The Law of Real Property. 26 In the Irvina oase the loan was only partly used a8 purchase money, ani this jlth the ol!lvlous knOWledge of Alltex. Tho elaes court said that . a me- chanio's lien has priority over a mortgage that is exeouted after the liens inceptlon; the mere faot that the purohase price of the reallty was pald out of the loan does 'not give the mortgage priority • . . The majority oplnion in the seoond op.1.nlon ill the IrvinS oase".r elied hBav1ly on the Aoreman decision to support the holdlng that -the deed of trust has superior1ty over the materialmen • sand mechanio I s l1en slnce the deea 0 .1' truat was given to S8cure the payment of the purohaBe money. In Acreman the entire loan was deliverei as purchase money so, of oourse, the deed of trust haa status as a pa»ohase money lien; 1n Irvina the oourt quoted thls portion of the Acreman opinion: "The lien created 'by the deed of trust is im.pressed by the character of the iniebtedness for which it was given to secure. This is the general~ule in this sta.e as well as elsewhere" • . (other portion 01' quotation omi tt.ed) • It must be correot thon to say that the .127,500 used for improvement is attac~4 follows that the to the ieeal. of trust.; necessar1ly it 'l~,OOO ueed for purohase money oonnects to the vendor's lien, and the l1ens are seperate. I don't see how, in' the next breath, the oourtoan merge the l1ens when, by operation of law Alltex la subrogated to the existing . venal.or' e/llen turnishiJigpurohase money &ooorcl1ng .to Haneson, 11 ~upra. The only thing the Acreman case held was that & dee~ of trust given to seoure the payment ot purchase money tor land gives pr10rity to mechanic's ani material~en'8 liens by way of subrogatlon to the vendor's 11en. The minority opinion in the Irvins case oontends, and rightly so, that the appllcable rule ls stated in W.O. Becher 27 Land &,Mortsase Co. v. Taylor, to wit: "The rule is famlliar and well settled that .one paylng on behalf ot another the price of land or part thereOf, & llen exlstlng in ,favor of the vendor, is entl tleli to be sub.. rogated thereto; where the payment is made ' under agreement wlth the vendee and , upon . a~ , understandlng express (deed of trust) or J .mpl;ied, , that the ~ lien shall;)be retained as securlty for the money advanced; and where , the amount is in excess of that securei by the vendor's llen, ~he party is subrogated to the extent of the amount of the llen." The general rule as quoted above from Acreman was first set down in the lanamark case of Thompson v. Litwood 011 & 28 Supply Co. ; ln that oase the deeliof trust 11en arose solely ,trOin purohase money. It is oontrary to' this rule to hold that a 'deed of trust arislngfrom the 1127,500 used to pay for lmprovement would be lmpressed as a purohase money dee4 of trust, but the Irvlns oourt held that the deed of trust is lmpressed wlth the , $10,000 portion ot the loan out of a total of $137.500 . Under the lrvlns rationale an lmprovement llen can never galn initlal prlorlty simply beoause ".t ls oreateli at the same instant title is acquired as 1s the vendor ' s llen; the IrvinS deolslon seems unJust. , A P.OO,OOO loan , . o:a.n gain initial .. priorlty if tlO is us•• torpurohase money 80 long as the loan l~ is made ln conjuctlon wlth and 10n of the land. e1multane~usll ~ ,-tk . . the acqlslt- lrvlns also results ln the lnterests of the materlalmen and mechanlcs 10slng secirity in favor of finance lnstitutions; many courts have state' a po11cy of l1beral il:Qnstructlon of the statutes for the · purpose of protectlng laborers and materlalmen as a matter of publlc pollcy. The slmple and equltable solutlon ln IrvlnS ls to deal wlth the questlon of splltt1ng prlorltles ln 11ens created by a slngle transactlon ln a slngle lnstrument; the court care. fully sklrts thls solutlon, to wlt: "thls case does not justlfy seperatlon anei ass.l gn.ment of cllfferent prlorltles between a v.enilor' .s 11en and the llenhol'er's rlghts unaer a deed of trust where they come lnto belng by a slngle 1ns trument-- " • With~ut explanatlon the Supreme court, and all Texas courts, refuse to sanction splitting under any clrcumstance. The majOrity of other states do, in fact, allow splitting as demonstrated by the court in Joseph v. Donovan 29 whlch recognized splitting as necessary and fun'amenta1 ln holding that to glve ' prioritywhen money 1s a4vancecl tor both purchase ani lmprovement for a mortgage gives an unjuat preterence to one pa·r ty . over the other. v It appears, at least to thls wrltter, that the first decision in Irvlns was legally and technically correct, but the outcome caused great turmoil and specu1at1on in Texas land transactlons, thus necessitatlng a seconi decision and eventually a bl11 passed by the legislature re-ordering anc! clarlfing the statuI ot mechanic's and materla1men's liens in Texas. Ar.new b111 was enacted suppl1mentlng .A rtlcle 5459 30 0n May 17, 1971; thls artlcle provlde' that "lnceptlon" shall take plac~ ·a ccordlng to one of three thlnga, whlchever shall happen flrst: (1) commencement of vlalble constructlon or dellvery of materlals whlch ~e vlslble on the job slte, (2) racor.atlon of a wrltten agreement for the constructlQn of lmprovement or part of lmprovement or a wrlttenagreement to perform labor, furnlsh materlal, or provldeapeclally fabrloated materlal, or (3) 11' the cont~act ls oral the recordatlon of an affldavlt statlng , that the clalmant haa entered lnto an oral contraot. Thls stat- ute places a auty on the cODstractor to provlde for the lnceptlqn of hls 11en under (2) ana (3) to fl1e a wrltten agreement oraffalill '11 t pr10r to work-, but 1 t also provldes for a more iefinate seOllrlty agalnst the sort of fraud that could be .perpe;" trated ln an Irv1nS sl tuatlon. In the future 1 t wl11 be far ." easler to determlne whether a mechanlc's and materlalmen's 11en exlsts at any glven tlme on any glven tract of land. The amenam.at left ~o problems unsolved. the statute dld not speak on the questlon of whether one contractor's 11en wl11 relate back to the date of h1s own contract or to the date of . the flrst contract on the land, ani wl11 this also apply to subcontractors. The ,second crl.t lsm of the statute ls that lt does not answer the queatlon of whether a recordatlon of a contract . wlth a prospectlve owner wl1l allow a 11ento attach; lt may be lmplled that slnce the amenament does · not· requlre a contract wlth an 'owner i that the leg1s1a~lve intent 1a ln harmony with the flrst oplnion ln the Irvins case; thia interpretatlon aeems to produce the most des1reable ' result. 14 1 • ~ o. v Alltex Mort Tex. Clv. App.-- Da on other grounds 468 • • Inc. , , writ 341 · 2 • • • • Iex. Rev. Civ. Stat. Ann. art. 5459 (1958) - - &: OsSood v. Boyle Ice Maohine 00., 65 Tea • (1886) Fa~an . 3 •• • • 32 2l~ 4 • • • • Trammell v. Mount, 68 Tex. 4 B.W. 377 (1887) .5 • • • • Oriental Hotel v. Gtltfiths, 88 Tex. 574, 33 S.W • 652 (1696) . . 6 • • • • Tex. LaWB 1885, ch. of Texas 683(1898) I 1, at 64, 9 H. Gammel, Laws = = = 7 • • • • Tex Lawa1889, ch. 98 I 8, at 112, 9 H. Gammel, Laws of Zexas 1138 (1898), amended as Tex. Rev. C1v. Stat. ~~. art. 5459 (1958) - '.' v. Se urit 8 • • • • £2.. • 9 • IrvinS Lumber Co. v. Alltex MortSase Co., 14 Tex. · ..• Sup. Ct.J. 3, 1971) 212 (Feb 10. • • • MoCallen v. Mosal Producins &: Refinins Co •• 257 S.W. 91B (Tex. C1v. App.-- Calveston 1923. dsm'd w.o.J.) 11. • • • 12. • • • Keati S &: ower Co •• 13. • • • Hammann v. H.J. McMullen &: Co., 122 Tex. 476, 62 S.W.2a 59 (1933) . 14. • • • Sullivan &: Co. Vi Briquette Coal Co •• 94 Tex. 307. 63 S.W. 307 (190) , .. . 15. e· • e Tex. Laws 1889, cb. 98, R 1, Law of Texas 1138 (1898), at 111, 9 t'X' a. ~ammel, ~v. :iV • .!tat~~n. art. 5452 (1959) 16. • • • Schultze v. Alamo Ice &: 236, 21 s.W. 160 -(1893, Br.Wl~ .:AO wr t) 00 •• 2 Tex. elv. App. 17 • . • • • Breckenridge City Club y. Hardin, 25' S.V. 873 (Tex. Clv. App.-- 1923, No writ) 18. • •• Enlow v. Brown, 357 S.W.2d 608 (Tex. Oi'9'. App.-1962, no wrlt) 20. • • • ~~~~~~~~~1.:.+.~2:~ ..S.W.2d ' 879 (Tex. C1v.. groun4e) . ' Ii • Masterson v. Burnet~, 27 Tex. Civ. App. 370, 66 s.W.go (1901, error ref'd) . 21 • • • • Sheer v. Cumm1nSs, 80 Tex. 294, 16 S.W. '7 (1891) 22. -• • 23. • • • Harveson v. Youngblood, 38 S.W.2d 781 (Tex. Comm'n App. 1931, Jdgmt adopted) 24. • • • ~~~~~~~~~~~~~o~l~b~e~r~t, 34 S.W.2d 614 1 31, no writ) v. Dallas Homestead & Loan Association, 83 · '. . Claes Tex. 50, 18 BoW. 421 (1892) 461 (3rd ed. 1939) 27. • • e. WtC. Becker Land & MortSage Co. v. Taylor, 212 S.W. 6 7 (Tex. Comm'n App.-- 1919, Jdgmt ailoptec1) 28. • • • Thompson v. Litwood Oil & Supply CO.( 287 S.W. 279 (Tex. Clv. App.-- Waco 1926, no writ) 29 • • • • JosePh v. Donovan, 118 COIlm. 80, 171 A. 24 (1934) - 30 • • • • Iu. Rev-. C1v.Stat. Ann. art. 5459 I 2 (aupP. 1972) - - -