Associates Development Corp. v. W. F. & J. F. Barnes, Inc.

614 S.W.2d 876, 1981 Tex. App. LEXIS 3431
CourtCourt of Appeals of Texas
DecidedMarch 26, 1981
DocketNo. 6268
StatusPublished
Cited by2 cases

This text of 614 S.W.2d 876 (Associates Development Corp. v. W. F. & J. F. Barnes, Inc.) 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
Associates Development Corp. v. W. F. & J. F. Barnes, Inc., 614 S.W.2d 876, 1981 Tex. App. LEXIS 3431 (Tex. Ct. App. 1981).

Opinions

OPINION

JAMES, Justice.

This is a venue case involving Subdivisions 5 and 29a of Article 1995, Vernon’s Texas Civil Statutes. W. F. & J. F. Barnes, Inc. (Barnes), Plaintiff-Appellee, filed suit against Associates Development Corporation and Joseph F. Chesley, Defendant-Appellants, alleging causes of action based upon a verified account and quantum meru-it, fraud, alter ego and sham corporation theories. Both Defendant-Appellants timely filed Pleas of Privilege which were heard on June 6, 1980. After such hearing the court overruled both Pleas of Privilege. For purposes of this appeal Associates Development Corporation will be referred to as “the Corporation”.

[878]*878Barnes brought suit against the Corporation and Chesley alleging causes of action based upon a verified account and quantum meruit, fraud, alter ego and sham corporation theories. Chesley is a resident of Travis County, Texas, and the Corporation is a resident of Williamson County, Texas. Both Chesley and the Corporation timely filed their Pleas of Privilege to have the suit transferred to the counties of their respective residences. Barnes controverted such pleas on the basis of Subdivision 5 of Article 1995 V.A.T.S. and Subdivision 29a of Article 1995 V.A.T.S.

On June 6,1980, a hearing on the Pleas of Privilege was held, in which hearing John Nottingham, Vice President, Treasurer and Assistant Secretary of Plaintiff-Appellee W. F. & J. F. Barnes, Inc., was the only witness that testified for Barnes. Certain invoices were introduced through Nottingham as evidence of a contract between Barnes and the Corporation for the sale of certain goods. Such invoices were admitted over the objections of Appellants that a proper foundation had not been laid and Nottingham had no personal knowledge of the transactions involved. Nottingham testified that he was personally familiar with the invoices and that such invoices were kept in the ordinary course of business at Barnes Lumber Company. Later Defendant-Appellants stipulated that all of the invoices reflected material that was sold to the Corporation.

Nottingham testified that the invoices were prepared by Barnes’ Lampasas lumber yard and showed sales to Associates Development Corporation. Although the personal guaranty of Defendant-Appellant Joseph Chesley was not part of the invoices, Nottingham testified that Chesley had represented to Barnes that everything he personally owned was available for paying the indebtedness owed Barnes.

The invoices provided that “at Seller’s option all merchandise sold to the above named customer shall be payable in Waco, McLennan County, Texas.” Defendant-Appellant Joseph Chesley testified that Barnes had asked Chesley to come to Waco to discuss resolution of his failure to timely pay this account. Two letters, one to each of the Defendant-Appellants, from the law firm retained by Barnes to accomplish collection, were offered as evidence that payment was demanded in Waco and were admitted over Appellants’ objection that the witness, Nottingham, had no personal knowledge of them.

Nottingham related that Chesley, as President of the Corporation, entered into an agreement with Barnes that involved nine deeds of trust that attempted to provide a method of paying the account. Although Nottingham testified that Chesley never actually agreed individually to guarantee or pay the debt, Plaintiff-Appellee Barnes contends that his testimony clearly shows that Chesley made representations regarding the availability of personal assets to pay the debt owed Barnes. Barnes accepted the deeds of trust and agreed not to record them in reliance upon Chesley’s promise to pay at the time of closing any job. Later, however, Barnes learned that the properties covered by the deeds of trust had been sold without Chesley advising Barnes of the sales and without payment having been accomplished as agreed.

The trial court entered its order overruling both Appellants’ Pleas of Privilege and made findings of fact and conclusions of law which may be summarized as follows:

Defendants, acting by and through agents and/or employees, contracted in writing to purchase and pay for certain goods in accordance with the following terms: “At Seller’s option all merchandise sold to above named customer, shall be payable in Waco, McLennan County, Texas.” When written demand for payment was made upon both of the Defendants in the cause, such demand made separately to each, by Plaintiff’s attorneys hired for the purpose of effecting collection of the amounts expressly agreed to be paid in the written agreements, demand for payment was again restated as being payable in Waco, McLennan County, Texas.

[879]*879John R. Nottingham, who was Vice President, Treasurer and Secretary of Plaintiff, W. F. & J. F. Barnes, Inc., was personally familiar with the agreement of Plaintiff and Defendants and with the written documents evidencing same. Mr. Chesley represented to Plaintiff that Mr. Chesley had personal assets and income which could be utilized to pay the account which is the subject of this suit.

Chesley came to Waco to discuss a payment proposal and giving of security. The signatures on the invoices designating Waco, McLennan County, Texas, as place of payment were the signatures of Defendant Chesley’s wife and two employees of Defendant Associates Development Corporation.

CONCLUSIONS OF LAW

“Within the meaning of Subdivision 5 of Article 1995 of the Revised Civil Statutes of the State of Texas, Defendants contracted in writing to perform an obligation in McLennan County, and therefore, venue is proper in McLennan County.”
“Associates Development Corporation and Joseph F. Chesley are both necessary parties to this suit.”

Appellants are before this Court on the following points of error, to wit:

1. The trial court erred in admitting the invoices over hearsay objections because there was an insufficient business records foundation.

2. The trial court erred in admitting the attorneys’ letters over a hearsay objection because the witness had no personal knowledge and could not identify the exhibits.

3. The trial court erred in overruling Appellants’ Pleas of Privilege because:

a. There is no evidence and factually insufficient evidence to support any exception under Subdivision 5 of Article 1995.

b. There is no evidence and factually insufficient evidence to support any exception under Subdivision 29a of Article 1995.

We overrule all of Appellants’ points and contentions and affirm the trial court’s judgment.

By their first point, Appellants urge that the invoices admitted as Plaintiff’s Exhibit One through Nottingham were inadmissible as hearsay since Nottingham did not personally prepare the invoices or personally participate in any of the transactions described in the invoices and could not properly authenticate them. Appellants contend that if the invoices were admissible at all, it was necessary that they be authenticated and proved up as business records pursuant to Article 3737e, V.A.T.S. They further claim that Barnes totally failed to establish the facts necessary to prove this exception to the hearsay rule.

Appellee Barnes claims that the invoices were properly admitted as they were proved up as business records under Article 3737e, V.A.T.S.

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Bluebook (online)
614 S.W.2d 876, 1981 Tex. App. LEXIS 3431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associates-development-corp-v-w-f-j-f-barnes-inc-texapp-1981.