Alexander Trust Estate v. Lindsey Drug Co.

214 S.W.2d 475, 1948 Tex. App. LEXIS 1497
CourtCourt of Appeals of Texas
DecidedOctober 8, 1948
DocketNo. 2655.
StatusPublished
Cited by6 cases

This text of 214 S.W.2d 475 (Alexander Trust Estate v. Lindsey Drug Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander Trust Estate v. Lindsey Drug Co., 214 S.W.2d 475, 1948 Tex. App. LEXIS 1497 (Tex. Ct. App. 1948).

Opinion

COURTNEY GRAY, Justice.

Alexander Trust Estate, appellant, sued Reuben Lindsey and E. G. (Jack) Drake, doing business as Lindsey Drug Company, for rent alleged to be due and unpaid on a certain business house owned by appellant and leased in writing to appellee by contract to begin January 1, 1938, for a period of four years ending December 31, 1941, for a consideration of $6,300.00 to be paid in monthly installments set out in the petition, said original contract bearing date of July 8, 1937. Later, on May 15, 1941, the rental was changed to $200.00 per month. Still later, said, contract was extended to January 31, 1943. Plaintiff alleged landlord’s and mortgage liens to secure the payment of said rentals alleged to be due and unpaid, and prayed for judgment for unpaid rent and certain other items of expense incurred by plaintiff on behalf of the defendants in connection with said business, aggregating $1,833.48, with interest and such additional storage charges as may have accrued to the time of trial of the case, and for foreclosure of said landlord’s and mortgage liens. In their answer, defendants alleged payment of all rentals accruing and due under the contracts, and that they were not indebted to plaintiff in any amount. In addition, they filed a cross-action against plaintiff for conversion of certain property incident to said drug store in the sum of $7,000.00. The case was tried to a jury and submitted on special issues, all of which were answered favorably to the defendants, whereupon the court rendered judgment for appellees in the sum of $3,799.67, from which plaintiff has appealed.

The record is very voluminous and includes much documentary as well as oral evidence. Many objections and exceptions were interposed to the admission and exclusion of evidence and twenty assignments of error are urged. In this opinion, we shall not attempt a detailed discussion of all the questions raised, but confine ourselves to what we consider to be the controlling issues. The defendant Drake was not a party to the original contract, but about *477 May 4, 1942, he bought said business from Lindsey and operated it for a short while under the original lease, said Lindsey guaranteeing the fulfillment by Drake of all the terms and conditions of the original lease. Drake seems to have soon thereafter sold said business back to Lindsey and George Jeter came into the picture. 'The business seems to have been moved into another building owned by plaintiff with George Jeter in charge and guaranteeing payment of the $200.00 per month rental for eight months, with the further provision that if Alexander Trust Estate deemed itself insecure, said mortgagee should have the option to foreclose said- mortgage lien and declare all of said debt matured. Plaintiff alleged that it thereafter did deem itself insecure and declared eight future payments due, followed by suit on September 12, 1942, and sequestration of the mortgaged property. Later, by agreement and without a replevy bond, said property was taken out of the hands of the sheriff and stored in a building owned by plaintiff to minimize expense until trial of the lawsuit. Said property is still in storage in said building.

There is sharp controversy between the parties as to when the alleged conversion occurred, if it did occur. Appellant denies that there was a conversion by the act of sequestration which took place in September, 1942, but that if any wrongful act was done by plaintiff in such connection, it was condoned by defendant agreeing to take said property from the sheriff and allowing it to be stored in plaintiff’s building. On the trial, defendants proved the values of said property as of April, 1943, which appellant contends was error, but the values should have been proven as of September 12, 1942. In answer to this, appellees contend that the taking was not completed until April 26, 1943, when the rental contract having expired, all rentals paid and demand for possession of said property made to appellant, and refused by appellant, the act of conversion thereby became complete and the values were correctly proven as of the latter date. We do not see any conversion in the act of suing out sequestration and levy of the writ. Appellees had expressly by contract conferred upon appellant the right, if appellant felt insecure, to proceed to take over the property, declare the entire amount due, and foreclose the lien. Appellees abandoned their original contention that appellant was actuated by malice. If the taking was wrongful and malicious, appellees undoubtedly condoned it by agreeing that said property be transferred from the custody of the sheriff to the custody of appellant. While the jury found that Lindsey owed appellant nothing at the date of sequestration, there seems to have been a bona fide controversy between the parties as tó same. We hold that the trial court did not err in permitting proof of said values as of April 26, 1943.

The sequestration did not cover the stock and some of the equipment in said drug store, and subsequently, there seems to have been an oral agreement between Dr. J. M. Alexander and Lindsey by the terms of which Dr. Alexander was to take charge of same, including that levied upon, and lease said building to some other tenant for such sum as Alexander might be able to obtain and apply same on unpaid rent due by Lindsey; if so leased for more than $200.00 per month, Dr. Alexander was to have such excess, but if leased for less than $200.00 per month, Lindsey should be liable for the deficiency and for all rents to January 31, 1943, or for any time that said building was not leased. Appellant contends that it was further agreed that Dr. Alexander should take charge of said merchandise and fixtures, including that levied upon, and calculate the same at wholesale cost and credit Lindsey with fifty per cent (50%) thereof and retain the other fifty per cent for himself. Lindsey denied this part of the alleged agreement, and the jury found that such agreement Was not made. Dr. Alexander did take charge of said merchandise and fixtures, sold some of it, stored some and moved nine wall cases to another building belonging to said estate occupied by one Bert Fineg. We may here say that the •building originally leased and occupied by Lindsey Drug Company had been padlocked and Reuben Lindsey had been inducted into the military service. Some of the stock so taken over by Dr. Alexander -was sold for what appellees insist was an inadequate price. We shall not go further *478 into detail, but the jury found in substance that appellees’ indebtedness, by reason of such sales and rentals from Fineg, was fully discharged.

Under the facts as disclosed by the record, was there a conversion of said property by appellant in April, 1943? It is clear that appellant came into possession of same lawfully. But the lease contract expired on January 31, 1943, and the jury found that at said date, Lindsey owed appellant nothing. Lindsey had previously demanded that said property be re-delivered to him, and had indicated an intention to secure a truck and remove it. Appellant not only refused to surrender possession thereof, but had Lindsey enjoined from removing same.

“Conversion may consist in the wrongful detention of chattels under an assertion of right inconsistent with the -owner’s general dominion, particularly when the detention occurs after a demand for possession has been made.” 42 Tex.Jur., pages .521, 522, Sec. 15; American Surety Co. of New York v. Hill County, Tex.Civ. App., 254 S.W. 241, affirmed Tex.Com. App., 267 S.W. 265; Gaw v.

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Bluebook (online)
214 S.W.2d 475, 1948 Tex. App. LEXIS 1497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-trust-estate-v-lindsey-drug-co-texapp-1948.