Biswell v. Gladney

182 S.W. 1168, 1916 Tex. App. LEXIS 83
CourtCourt of Appeals of Texas
DecidedJanuary 26, 1916
DocketNo. 900. [fn*]
StatusPublished
Cited by12 cases

This text of 182 S.W. 1168 (Biswell v. Gladney) 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
Biswell v. Gladney, 182 S.W. 1168, 1916 Tex. App. LEXIS 83 (Tex. Ct. App. 1916).

Opinion

HENDRICKS, J.

On May 19,1905, Charles Brinkman conveyed to Gladney a section of land situated in Potter county, Tex., upon the cash consideration of $1,000 and a deferred consideration of four vendor’s lien notes; the first two for $1,000 each, and the last two for the sum of $740 each, being negotiable in form and recognizing the vendor’s lien, which was also expressly retained in the deed. On the 9th day of October, 1905, Gladney executed a quitclaim deed to Will A. Miller, Jr., to 157.47 acres of said land, which was recorded November 22, 1905. The land was school land, and it was agreed between Gladney and Miller, in the trade producing the conveyance above mentioned, that Miller’s land should be relieved of the vendor’s lien and that the land should be patented, Gladney to furnish the consideration for the patent, which, after the execution of said deed, was obtained in 1906.

The two $740 notes matured, on their face, respectively, the 1st day of January, 1907, and the 1st day of January, 1908. In 1907, probably the latter part of May of that year, W. H. Biswell, the plaintiff in this suit, acquired the possession of the two $740 notes, thereafter transferring the same to one Cooper. When Cooper was in possession of the notes, he executed with Brinkman a release of a part of the land, which, it is agreed, was of the value of $2,400 at the time of the release. At the time Biswell received the notes they were in the possession of the First National Bank of Amarillo, as collateral security for the payment of indebtedness evidenced by Brinkman’s note to the bank, and which provided for the sale of collateral.

[1] When Biswell received the notes there was no transfer in writing from Brinkman, or the bank, assigning the lien. Biswell had no actual notice at that time of the conveyance from Gladney to Miller, executed in October, 1905; nor does this record charge him with any fact by which, on the doctrine of inquiry, notice of said deed could be imputed to him. The only notice of which he could be charged is constructive notice by the record, which will be discussed later. Bis-well reacquired the two notes from Cooper, and we find from his testimony that he knew of ttie execution of the Cooper-Brinkman release of the debt remaining to another portion of the land than Miller’s, of the value as stated,'before he reacquired said notes. The note in suit was indorsed upon the back with Brinkman’s signature, with a further indorsement, “Without recourse,” immediately preceding his name. Biswell asserts that he is an innocent purchaser of the note in suit in due course of trade, paying full value therefor, without any knowledge of the Glad-ney-Miller deed, executed in October, 1905.

In the trial court it was litigated as a jury question whether Biswell, when he acquired the possession of the note, was a transferee or assignee of the same, or whether the money furnished him was used for the purpose of paying said note, thereby operating as an extinguishment of same. The jury found upon special issues that the note sued upon was “paid” while owned by the payee and before plaintiff acquired the same, and further responded that Biswell, the plaintiff, paid the note. Judgment was rendered against Gladney for the debt evidenced by the note, but plaintiff was denied a foreclosure of the lien against any of the defendants.

[2, 3] Plaintiff asserts that the testimony was insufficient to permit the submission of the issue that the note was paid, and not assigned, and considered from the angle that the indorsement upon the back of the negotiable note, with the possession in Biswell, placing the burden of proof upon defendants to show that he was not an innocent transferee of the note, we would reverse and remand this case upon plaintiff’s exceptions, that the testimony was insufficient to show that the note was paid as against his claim of innocent purchase, if we were not of the opinion that the judgment should be affirmed upon another ground.

Appellees say that Brinkman gave the bank no authority to sell the note, and that the president of the bank testified that it was not customary to sell securities to a collateral note unless with the consent of the owner. The president could not recall the transaction, if it occurred, but said, however:

“That sometimes, when we don’t think the party that owes us would 'object, and that it would be agreeable if we would get all of his money and stop the interest, that (meaning the sale of the note) would be all right.”

Appellee asserts that Gladney paid the note and sold it to Biswell, or, further, as we inferred from the argument, that he received the funds from Biswell and paid the note at the bank, and then forwarded it to Bis-well, and that in either event, as between Gladney and the bank, it was a payment, and not a transfer. It is noted that the jury found that Biswell paid the note, which means that he furnished the money, notwithstanding it was found that he paid the note. Brinkman said that he merely placed the notes in the bank for collection. The particular note had not matured. “Payment can only be made before ma *1170 turity by consent of both debtor and creditor.” Daniel, Neg. Inst. vol. 2, § 1233. Of course, it is really true that a sale of a note is a contract requiring the meeting of minds, the same as any other agreement.'

It is asserted that Brinkman’s testimony that he only placed the note in the bank for cancellation, in connection with the testimony of the president of the bank as to the custom of the bank in matters of that kind, precludes the idea of a sale. There is no fact in the statement of facts connecting Gladney with the payment of the note at the bank. Brink-man never testified that he authorized the payment of the note before maturity. The fact that Gladney requested or wrote to Bis-well to carry the notes for him does not justify the inference that Biswell sent the money to him, or that Gladney took his own money to the bank, paid the note before maturity, and then sold the same to Biswell. Who put the indorsement, “Without recourse,” on the back of the note, is not shown. Brinkman said he did not do it; a great many of the letters of Gladney were attached to Biswell’s deposition; we assume the letters were not introduced; neither do we find any attempt to prove that Gladney wrote the indorsement. Gladney was not believed by the jury in regard to a part of the transaction with Miller; but we find nothing to “build to” in the record that Glad-ney or Biswell paid the notes at the bank, except that Brinkman said he placed the notes in the bank merely for collection, and the testimony of the bank president that it was not customary, without the owner’s consent, to sell the collateral, and at that time such a matter would probably have been referred to him, and the further fact that Gladney requested Biswell to carry the note. This transaction was eight years old, and whatever occurred, and whether the note was paid or sold, the president of the bank had no recollection whatever of any such transaction, and the president’s testimony necessarily was opinionative.

There seems to be no question but what the form of collateral note gave the power to sell the paper. He did say that “sometimes,” where they thought it would be agreeable to the owner, for the purpose of getting 'all of his money and stopping the interest, they would sell the paper. If Biswell furnished the money, the question left is how he furnished it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Miller v. Sandvick
921 S.W.2d 517 (Court of Appeals of Texas, 1996)
Spiller v. Woodard
809 S.W.2d 624 (Court of Appeals of Texas, 1991)
Winchester v. Boggs
112 S.W.2d 207 (Court of Appeals of Texas, 1937)
Frazier v. Tankersley
272 S.W. 212 (Court of Appeals of Texas, 1925)
Beeler v. Terrell
245 S.W. 459 (Court of Appeals of Texas, 1922)
Biswell v. Gladney
213 S.W. 256 (Texas Commission of Appeals, 1919)
Magee v. Snell
197 S.W. 364 (Court of Appeals of Texas, 1916)
Newby v. Harbison
185 S.W. 642 (Court of Appeals of Texas, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
182 S.W. 1168, 1916 Tex. App. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/biswell-v-gladney-texapp-1916.