Baker v. Coleman Abstract Co.

248 S.W. 412
CourtCourt of Appeals of Texas
DecidedDecember 20, 1922
DocketNo. 6533.
StatusPublished
Cited by15 cases

This text of 248 S.W. 412 (Baker v. Coleman Abstract 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
Baker v. Coleman Abstract Co., 248 S.W. 412 (Tex. Ct. App. 1922).

Opinion

BRADY, J.

The suit was brought in the justice court, and later tried in the county court on appeal. Appellee as plaintiff sued F. L. Wade, W. M. Hooper, and G. Wm. Baker, the appellant, as members of the firm of Mid-Continent Oil Lease Exchange, for a balance on account for abstracts furnished such firm. Defendants Wade and Hooper suffered judgment by default. Appellant defended on the ground that he had paid to ap-pellee the sum of 173.17 as his proportionate one-third of the account, with the understanding and agreement with appellee’s agent and general manager, E. P. Scarborough, that such sum was accepted in full of all claims against appellant arising out of the account. He further alleged that Wade and Hooper were solvent at the time he made such payment, and that appellee failed to bring suit against them until they were insolvent, which condition existed at the trial; and that appellee had retained the amount paid by appellant, had never repaid nor offered to repay, the same, and was therefore estopped. There was no sworn denial of the partnership. By supplemental petition, ap-pellee pleaded want of consideration for tho agreement and release, if it was ever made, and also pleaded that its general manager had no authority to make such agreement.

The case was submitted to a jury upon special issues, and the answers were, in substance, as follows: That the general manager of appellee agreed with appellant to release him from further liability, upon the payment of one-third of the account, which was paid by appellant in reliance upon such agreement, and was accepted by the general manager as full payment of appellant’s liability. That appellant would not have paid such sum if the general manager had not promised to accept it in full settlement as to him, and that Mr. Scarborough was the general manager and in sole charge and control of the business of the company. That appellee has never returned nor of-ferred to return the check or proceeds. That, at the time of the delivery of the check by appellant, the other defendants had money or property out of which the indebtedness could have been collected, and did not have money or property sufficient to satisfy the same at the date of the filing of the suit. Both parties moved for judgment on the verdict; The motion of appellant was denied, and the court, upon such findings and upon the facts and evidence in the case, rendered judgment for appellee.

It is manifest that the court did not base the judgment upon the findings of the jury, as they were practically all favorable to appellant, but upon the theory that the agreement and release found by the jury was without consideration, or that the general manager was without authority to release appellant, or upon both such grounds. The evidence supports the findings of .the jury, but, as will be hereafter indicated, it also supports the conclusion that there was no consideration, ,and that the agent had not the authority to release appellant, at least without a consideration. Neither party requested that either of these last two issues be submitted to the jury, although appellant did ask an instruction defining what would constitute consideration.

In Simmons Hardware Co. v. Adams (Tex. Civ. App.) 147 S. W. 1196, this court recognized the following rule:

“The payment of the part of a debt which is * * * undisputed is not a sufficient consideration to support a promise to accept the same in full payment of the debt. In such a case the creditor has done no more than he was already legally bound to do” — citing numerous authorities.

It is true that in the later case of Schulze v. Waco Land & Trust Co. (Tex. Civ. App.) 177 S. W. 157, the doctrine was criticized, and very respectable authorities cited denouncing the rule. However, this court again recognized that such was the rule generally prevailing, although finding it unnecessary to decide the question.

In the case of Rotan v. Noble, 36 Tex. Civ. App. 226, 81 S. W. 586, it was said:

“The least consideration, however, in such a case [where the creditor has agreed to accept part in payment of the whole] is sufficient to make the agreement binding.”

In. that case the court found that there was ample consideration.

In Ferguson v. Garrett (Tex. Civ. App.) 235 S. W. 245, the court recognized the general doctrine, but found that there were legal considerations to support the agreement. Cases cited by appellee are: Bergman Prod *414 uce Co. v. Brown (Tex. Civ. App.) 150 S. W. 1102; Id. (Tex. Civ. App.) 172 S. W. 554; Simmons Hardware Co. v. Adams (Tex. Civ. App.) 147 S. W. 1196; Rotan Grocery Co. v. Noble, 30 Tex. Civ. App. 226, 81 S. W. 586; Bowdon v. Robinson, 4 Tex. Civ. App. 620, 23 S. W. 816; Clifton v. Foster (Tex. Civ. App.) 20 S. W. 1005; Schulze v. Waco Land & Trust Co. (Tex. Civ. App.) 177 S. W. 157; First Texas Prudential Ins. Co. v. Connor (Tex. Civ. App.) 209 S. W. 417; Franklin Ins. Co. v. Villeneuve, 25 Tex. Civ. App. 356, 60 S. W. 1016; Graham v. Kesseler (Tex. Civ. App.) 192 S. W. 299; 1 C. J. 539, 540; 1 Elliott on Contracts, §§ 217, 2070; 1 R. C. L. 184, § 15.

Whatever may be said of the justice or logic of the rule in question, it is undoubtedly recognized in this state, and must be enforced in a proper case. In tlie instant case we have not been able to find in the evidence any proof of a consideration valuable or good in law. Appellant was originally liable for the entire debt as one of the partners. Ilis payment of one-third of the amount was nothing more than he was already legally bound to do. There was thereby no disadvantage to him, except as is always present when a debtor pays out money. Appiellee received only a part of what was legally due from appellant, and there was no advantage to it thereby, except as is always the case when a creditor receives payment of part of a debt. So far there was not, in the legal sense, any advantage to the creditor or disadvantage to the debtor which would furnish a consideration.

It is argued, however, that at the time the check was given by appellant his copartners were solvent and had property subject to execution, and that at the time the suit was filed, and at the date of the trial, they had become insolvent, and that this change of situation furnished a legal consideration. We cannot assent to this proposition. The question of consideration must be determined as of the date of the agreement, and there could be no binding accord and satisfaction because of a subsequent change in the financial condition of the copartners, especially so since appellant testified and the jury found that he would not have paid the debt at the time he did pay a part, or prior to the institution of the suit, but for the agreement to release him. He would have had no cause of action against his copartners, at the time of the payment, for contribution, since he had not and would not have paid the whole debt. There is no evidence to show that if appellee had not made the agreement to release appellant would have paid the entire debt, and would have sued his partners for contribution. Therefore it follows’that he lost nothing by the change in the financial condition of his co-obligors between the date of the payment and the date the suit was instituted. Appellee had the legal right to forbear suit so long as it pleased; and was not under obligation to appellant to sooner bring an action.

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Bluebook (online)
248 S.W. 412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-coleman-abstract-co-texapp-1922.