Land Title Company of Dallas, Inc., Petitioners v. F. M. Stigler, Inc., Respondents

Summary

The Texas Supreme Court affirmed the trial court's judgment that Floyd M. Stigler, Inc. ratified its agent's unauthorized subordination agreement by retaining the down payment after learning of the transaction, thereby making the agreement binding and rendering Stigler's lien superior to HNC's lien. The court reversed the Court of Civil Appeals, which had held otherwise, and upheld Stigler's recovery of the purchase price from Hogg while allowing it to take nothing against HNC.