In Hexter v. Pratt, 283 S.W. 653 (Tex. Civ. App.--Dallas 1926), aff'd, 10 S.W.2d 692 (Tex. Comm'n App. 1928, judgm't adopted), Tennie Pratt held title to the property in controversy. Clarence Pratt claimed title to the property and filed a lis pendens in the real property records. Id. The trial court ordered the case dismissed for want of prosecution on July 28, 1919. Id. at 657. On November 19, 1919, Tennie sought a loan from J. K. Hexter. Id. In negotiating the loan, Tennie gave Hexter an abstract of title which contained a copy of the lis pendens filed on each lot by Clarence and the order of dismissal by the trial court. Id. at 658. Hexter gave the abstract to his attorney who examined them and reported back. Id. The attorney and Hexter relied upon the order of dismissal to terminate the effect of the lis pendens, and Hexter gave Tennie the loan secured by a deed of trust on November 21, 1919. Id. On November 4, 1920, Clarence filed a motion to set aside the order of dismissal and reinstate the causes of action, which the trial court granted on November 16, 1920. Id. at 654-55. On January 17, 1922, Hexter filed suit against both Tennie and Clarence to recover on the note and sought to foreclose on the land pursuant to the deed of trust. Id. at 655. In his answer, Clarence argued he was the owner of the lots Hexter sought to foreclose, and he argued Hexter had actual notice of his claim of title, therefore, Hexter was not an innocent lienholder for value. Id. Clarence further argued whatever rights Hexter acquired were those of a lis pendens creditor since the order of dismissal was void. Id. In response, Hexter argued he was a lien creditor for value and without notice of the claim of title by Clarence. Id. Hexter also argued the suits had been properly dismissed and the effect was the destruction of the lis pendens at the time he obtained the deed of trust. Id. The trial court determined Hexter had actual notice of Clarence's claim of title and refused to allow the foreclosure. Id. at 654. Hexter appealed and the Dallas Court of Appeals affirmed the trial court. Id. at 659. The Dallas court only addressed one issue: Whether Hexter, before and at the time of the execution of the deed of trust in question, had actual knowledge of the existence of the facts constituting the claim of title asserted by Clarence or knowledge of such facts in reference to such claim sufficient to put a reasonably prudent man upon inquiry, which if pursued, would have disclosed to him the existence of the claim. Id. at 655. The court held that "although the lis pendens filed by Clarence had by reason of the dismissal of the consolidated suit ceased to be of effect as a lis pendens, as against the rights of Hexter acquired in the lots after the order of dismissal had been entered and before the cause was reinstated, knowledge of the contents of the lis pendens and the other recitals of fact in the abstract was sufficient to constitute actual notice of the existence of the facts constituting Clarence's claim of title." Id. at 659. The Court went on to say the filed lis pendens did not constitute constructive notice because of the dismissal order, but it did constitute actual notice because the facts stated in the lis pendens were undoubtedly sufficient to put Hexter on inquiry, and if such inquiry had been pursued, Hexter might have ascertained full knowledge of all the facts. Id. at 658.