Dillon v. Kauffman & Runge

Citations

• 58 Tex. 696
• 1883 Tex. LEXIS 87

Syllabus

<p>1. Subrogation.— One who is induced to pay a debt secured by deed of trust, for the benefit of copartners who owed it, under circumstances showing that it was intended that he should be entitled to the benefit of the security afforded by the trust deed, will be subrogated to the rights of the original creditor before payment, and to the security; nor is this right of subrogation affected by the fact that the trustee named in the trust deed executed a release to the original debtor at the time of payment.</p> <p>2. Same.— Neither was subrogation to the rights of the original creditor affected by the fact that a new note and a new deed of trust, embracing additional property, were executed after payment, by one partner only, to him who advanced the money. The lien on the property liable for the original debt reaches back to the date of the original deed of trust, and remains through every change in the character of the security, until the money advanced to satisfy the original debt is repaid, or the claim on the mortgaged property for its repayment is released.</p> <p>3. Subrogation —Homestead.— The homestead right, acquired after the execution of a deed of trust, but before the making of a new one, on the same property, to secure to a third party the repayment to him of money advanced to satisfy the lien, derives no protection from the constitution, but is subordinate to the subrogated lien of such third party. As against the rights of the subrogated lien holder, the wife of the debtor, claiming exemption from sale of a homestead, first designated as such after the original trust deed on the property was given, cannot he heard to complain of any disposition of the property made by agreement between the debtor and subrogated creditor.</p> <p>4. Cases followed.— Shepperd v. White, 16 Tex., 163, and Clements v. Lacy, 51 Tex., 150, followed.</p>