Blair v. Smylie

155 S.W.2d 958
CourtCourt of Appeals of Texas
DecidedOctober 16, 1941
DocketNo. 11263
StatusPublished
Cited by1 cases

This text of 155 S.W.2d 958 (Blair v. Smylie) 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
Blair v. Smylie, 155 S.W.2d 958 (Tex. Ct. App. 1941).

Opinion

GRAVES, Justice.

This much of the statement of the nature and result of the suit — considered to be substantially correct — is taken from the ap-pellee’s brief:

“This was a suit by W. R. Smylie against the executors of the estate of Dr. J. M. Blair, deceased, on two promissory notes, each dated February 20, 1932, each due five years after date and bearing interest at six per cent per annum from date until paid; Note No. 1 being in the principal amount of $7,000.00 and Note No. 2 being in the principal amount of $6,500.00. The pleaded defenses were (1) that the notes were without consideration, (2) that the consideration for the notes was illegal, (3) that the notes were forged.
“By supplemental petition plaintiff pleaded the agreement regarding certain bonds which is more particularly described here-inbelow, pleaded the estoppel of Dr. Blair’s executors to deny the title of Smylie to the bonds and pleaded that Smylie acquired title to the bonds by gift and by the two year statute of limitation.
“No effort was made by the defendants to substantiate the sworn plea of forgery. * * *
“On February 13, 1932, Dr. Blair and Mr. Smylie entered into a written contract the execution of which each acknowledged before B. W. Lakenmacher, a notary, who was a vice-president of Houston National Bank. It recited that Smylie owned bearer Liberty Bonds of the face value of $13,500.-00 and bearing 4%% interest, and Blair owned certain lands in Terry County, Texas; that Blair was in a position to make a loan using the bonds as security and ‘has arranged with the First Party to use the above described bonds in securing said loan under the terms hereinafter set forth’; it provided that Blair should execute and deliver to Smylie his 6% notes for $13,-500.00, due five years after date, secured by a deed of trust on the Terry County lands, and Smylie should deliver to Blair the bonds and permit their use as collateral by Blair for a period not to exceed five years. Smylie was to retain the interest-coupons and as he cashed them was to credit the proceeds to interest accruing on the notes.
“The contract further provided:
“‘Fourth: On or before Five (5) years after date of said notes, the Second Party agrees to return to the First Party the government bonds and at such time as the bonds are returned, to pay to the First Party a sum of money equivalent to One and Three Quarters (-1-¾%) per cent from date of notes until date returned.
“ ‘Fifth: At such time as the government bonds are returned to the First Party, the notes, together with the deed of [960]*960trust herein provided, shall become null and void and without force and First Party agrees to release the Second Party from the obligations therein assumed.
“ ‘Sixth: If for any reason Second Party fails to return the government bonds to the First Party on or before maturity date of notes, First Party has the right to proceed to collect the amount due under the terms of the notes and deed of trust herein provided.
“ ‘Seventh: The Second Party agrees and binds himself, his heirs, administrators, and assigns, to fully indemnify and save harmless the First Party against any and all loss of every nature whatsoever, including suits, court costs, and attorney’s fees, as a result of the use of the government bonds' for collateral as provided in this agreement.’
“Pursuant to this contract Smylie delivered to Blair the described negotiable bearer bonds of the face value of $13,500.-00. He did not detach the coupons as provided by the contract, but delivered the bonds with the coupons attached. Blair delivered to Smylie his notes for $13,500.00 as provided by the contract, and the deed of trust on the Terry County land. By agreement, Smylie did not record the deed of trust.
“Blair cashed the bonds, thus rendering it impossible for him to return them to Smylie. They were redeemed by the U. S. Treasury. There is no evidence that any third party ever asserted any claim to them. Blair paid Smylie interest upon the notes, the last payment being $700.00 on August 28, 1936.
“The notes matured February 20, 1937. Smylie called at Blair’s home to collect them, but Blair was seriously ill and Smy-lie was unable to see him. Blair died April 2, 1937.
“Just prior to Dr. Blair’s death, to-wit: on January 2, 1937, Dr. Blair conveyed the Terry County lands to his brother, Guy L. Blair, for a recited consideration of $4,-000.00 cash. Guy Blair testified that the actual consideration was his cancellation of a debt of $4,273.00 previously owing him by Dr. Blair. On February 15, 1937, Guy Blair sold the land to Joe Johnson for $12,000.00, all of which Johnson had paid at the time of the trial. Since Johnson was thus an innocent purchaser, Smy-lie did not seek to foreclose the deed of trust in this suit. When Smylie learned, after Dr. Blair’s death, of the conveyance of this land, he recorded his deed of trust, on advice of counsel.
“After Blair’s death Smylie caused the notes to be presented to the executors for payment, and same being refused, brought this suit.
“Trial was to a jury, who found that a preponderance of the evidence showed:
“1. The bonds were delivered to Smylie by one Ferrara on June 22, 1926.
“2. When he delivered them, Ferrara told Smylie that the bonds were to belong ⅜0 Smylie if Ferrara did not return for them.
“3. The bonds, when so delivered, were stolen property.
“4. Smylie did not know the bonds were stolen property.
“5. Ferrara never returned to demand the return of the bonds.
“6. A reasonable time within which to demand the return of the bonds elapsed.
“7. Dr. Blair executed the contract with Smylie dated February 13, 1932.
“8. Dr. Blair executed the two notes sued on.
“9. Smylie delivered the bonds to Dr. Blair after execution of the contract.
“10. Dr. Blair did not know the bonds were stolen at the time they were delivered to him.
“Upon receipt of this verdict the defendants moved the court to enter judgment in their favor. They did not move for judgment notwithstanding the verdict.
“The plaintiff, upon receipt of the verdict, filed a motion for judgment non ob-stante, on the theory that the finding of the jury (special Issue No. 3) that the bonds were stolen, was not supported by any evidence. This motion was overruled, to which plaintiff excepted, and to this action of the trial court appellee has cross-assigned error here. Subject to the said motion, the plaintiff filed a motion for judgment on the verdict, which the trial court granted.”

Appellants’ sole propositions for reversal, in his verbis, are these:

“1. The jury having found that the bonds which plaintiff claims he delivered to J. M. Blair were stolen property, plaintiff could not recover therefor.
“2.

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Bluebook (online)
155 S.W.2d 958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blair-v-smylie-texapp-1941.