Barger v. Brubaker

187 S.W. 1025, 1916 Tex. App. LEXIS 831
CourtCourt of Appeals of Texas
DecidedMay 9, 1916
DocketNo. 7176.
StatusPublished
Cited by3 cases

This text of 187 S.W. 1025 (Barger v. Brubaker) 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
Barger v. Brubaker, 187 S.W. 1025, 1916 Tex. App. LEXIS 831 (Tex. Ct. App. 1916).

Opinions

* Application for writ of error pending in Supreme Court. For the purpose of this opinion the following statement is deemed sufficient:

On the 7th day of August, 1911, A. G. Barger conveyed to W. L. Brubaker 22 acres of land situated near League City, In Galveston county. In part consideration for said land Brubaker executed and delivered to Barger his two promissory notes for $1,000 each, numbered 2 and 3, respectively, due and payable to Barger on the 7th day of August, 1913 and 1914, respectively, bearing 10 per cent. interest per annum until paid. The date of payment of note No. 2 was thereafter extended by Barger to August 7,1914, thus making both of said notes due August 7, 1914. Three hundred forty-eight dollars was paid by Brubaker to Barger on the principal of note No. 2, and also all the interest due on both of said notes up to August 7, 1913, was paid.

On the 6th day of November, 1914, Barger transferred and delivered both of said notes to the Raywood Canal Milling Company of Houston, and indorsed both of them in blank by writing his name on the back of each of them. On the 10th day of November, 1914, the Raywood Canal Milling Company transferred and delivered said notes to Edward H. Bailey, without indorsement. *Page 1026

Edward H. Bailey brought this suit on the 16th day of March, 1915, against W. L. Brubaker, as maker, and A. G. Barger, original payee, and the Raywood Canal Milling Company as indorsers, to recover the principal, interest, and attorney's fees due upon said notes, and for a foreclosure of his lien upon the said 22 acres of land, which was retained by Barger to secure the payment of said notes, when he conveyed said land to Brubaker.

Among other things, plaintiff Bailey alleged the insolvency of Brubaker, the maker of the notes, at all times since Barger transferred and indorsed the same, and that defendant Barger did, at the time he transferred said notes, and at various and sundry times since, up to January 12, 1916, beseech and importune the transferees of said notes not to sue on said notes, but to give defendant Brubaker more time.

The Raywood Canal Milling Company answered specially, denying that it had indorsed either of said notes, or that it was in any way liable to Bailey for their payment.

A. G. Barger, the original payee of said notes, admitted that he had signed his name on the back of said notes at the time he transferred and delivered them to said Canal Milling Company, but says that he was ignorant of the effect of said act in so signing his name on said notes; that it was understood and agreed at the time he so signed that his transfer was to be without recourse on him, etc. He also sets up as a defense that both of said notes became and were due and payable on the 7th day of August, 1914, and that if it be held that he is an indorser of said notes, then he says that said Bailey, the transferee and holder of said notes, did not protest the same, nor did he bring suit on them at the first term of the court having jurisdiction of such suit, after the maturity thereof, nor did he bring suit thereon at the second term of said court and show good cause for not bringing said suit at said first term of court, and therefore he, Barger, is released as such indorser.

W. L. Brubaker, maker of the notes, answered by general denial.

Plaintiff Bailey, by supplemental petition, in reply to the answer of defendant Barger, demurred to so much of said answer as alleged that it was understood and agreed between Barger, and those to whom said notes were first transferred and indorsed, that his indorsement was to be without recourse, and he further specially alleged that, on or about the 1st day of August, 1914, A. G. Barger, the original payee, while still the owner and holder of said notes, entered into a verbal agreement and contract with W. L. Brubaker, the maker of said notes, to extend the time of payment of the interest due thereon to January 1, 1915, with the further agreement that if said interest was then paid he would extend the time of payment of the principal of said notes to August 7, 1915, and therefore said notes were not due until Brubaker had made default in the payment of said interest on the 1st day of January, 1915. He further says that if Barger did not in fact make such extension, he, Barger, told those to whom he transferred said notes, at the time said notes were so transferred and indorsed, that he had made such extension, and that he, Bailey, was in turn told by said transferee that such extension was made at the time he purchased said notes, and that he believed and relied on said statement and information, and that on the 5th day of January, 1915, he received a letter from said Barger, in which he told him Bailey, that such was in fact made, and that, so believing and relying he did not bring suit on said notes earlier than he did, and that such statement in said letter was a ratification by Barger of what he had been told by those from whom he purchased said notes, and that said Barger is now estopped to deny that such extension was in fact made.

The case was tried before a jury. After all parties had closed their evidence the court instructed the jury to return a verdict in favor of plaintiff E. H. Bailey against W. L. Brubaker and A. G. Barger for the sum of $2,045.18, and against all the defendants for a foreclosure of the lien on said 22 acres of land, described in plaintiff's petitions and in favor of the Raywood Canal Milling Company as to liability upon the notes sued upon. The verdict of the jury was in accordance with said instructions, and a judgment was rendered accordingly. From so much of the judgment as refused plaintiff Bailey a recovery against the Raywood Canal Milling Company he has appealed, and from so much of said judgment as was against A. G. Barger he has appealed.

Since the record has reached this court on appeal E. H. Bailey has filed a motion, joined in by the Raywood Canal Milling Company, praying that his appeal from that part of the judgment of the trial court in favor of the Raywood Canal Milling Company be dismissed at his costs, which said motion is here now granted, and plaintiff's said appeal is here dismissed.

Appellant Barger insists by his first and second assignment of error that the court, erred in overruling his demurrer to so much of appellee's petition as alleged that he, Barger, had orally extended the time of payment of said notes, because it affirmatively appears that said notes are secured by a vendor's lien on land, and that it is provided by article 5695, Vernon's Sayles' Civil Statutes, that when the time of payment of vendor's lien notes is extended, such extension must be by written contract, signed and acknowledged, as provided for in the law relating to the execution of deeds of conveyance, by the party obligated to pay such notes, and filed for record, etc., and unless such provisions are complied with, the dates *Page 1027 of maturity of such notes as set forth in the deed of conveyance shall, in all actions on such notes, be conclusive evidence of the dates of maturity of the same.

In this state the liability of an indorser on any promissory note may be fixed by protest, or by bringing suit on such note, at the first term of the court to which such suit can be brought, after the note becomes due, or by instituting suit thereon at the second term of said court after said note becomes due and showing why such suit was not instituted at said first term. If no such liability is so fixed the indorser is released. It would therefore ordinarily become an important inquiry to the parties as to whether the note sued on was in fact past due at the time of the institution of the suit.

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Bluebook (online)
187 S.W. 1025, 1916 Tex. App. LEXIS 831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barger-v-brubaker-texapp-1916.