Carla Land & Irrigation Co. v. Dimmit County State Bank

165 S.W. 897
Court of Appeals of Texas·Decided March 25, 1914·Published·Cited by 2 cases

Opinion

MOURSUND, J.

The Dimmit County State Bank sued G. W. Vaughn and Arthur Ivy for a balance due upon a promissory note, dated February 13, 1912, and to foreclose a chattel mortgage, executed by Yaughn to said bank, for the purpose of securing the payment of the note, on four mules, one Jersey cow, two Studebaker wagons, and an entire stock of farming implements and accoutrements of every kind in the possession of Yaughn in Dimmit county at the date of the mortgage. Plaintiff alleged that Vaughn failed and refused to déliver the property to plaintiff when demanded for the purpose of selling the same, and that said property was in the possession of the Carla Land & Irrigation Company, which was withholding possession thereof. Plaintiff prayed for judgment on the note against Vaughn and Ivy, and for foreclosure of the chattel mortgage against Yaughn and the Carla Land & Irrigation Company. The Carla Land & Irrigation Company answered by general demurrer, general denial, and a special answer, denying that the property described in the chattel mortgage was owned by Vaughn when he executed such instrument, and alleging that the mules, wagóns, hack, and farming implements, tools and accoutrements, except one turning plow and one disc harrow were then and are now the property of said company, and never belonged to Vaughn; that Vaughn had no right or authority from the company to execute said mortgage. Vaughn and Ivy answered with a general denial and a special answer in which Vaughn admitted the execution of the mortgage, but claimed that he was the sole representative of the said Carla Land & Irrigation Company at that time in Texas, and that the money was procured and used for the benefit of the said company. He alleged further, by way of cross-bill against said company, that about October 24, 1911, he entered into a contract with said company, acting by C. A. Albrecht, treasurer, who was acting within the scope of his authority, by the terms of which agreement said company bound itself to do and perform certain things and to furnish certain moneys, but violated its contract, necessitating the expenditure of $500 by Vaughn, which he would not have expended if said company had not violated its contract; that said company contracted to clear additional land, but failed to do so, and Vaughn had the same cleared at his own expense, in order to have enough land to plant his onions, paying therefor $67; that the company contracted to build a flume, but failed to do so, and Vaughn had such flume constructed at a cost of $122; that under said contract he was to pay for feed when he used the mules, but during four months he did not use them, and was compelled to feed them during said time at an expense of $240, for the benefit of said company; that in feeding guests of the company he was forced to expend $116; that the company owed him $121, one-fourth of the cost of delivering 4,866 crates of onions at Asherton and $15 for three days’ work in replacing and repairing windmills; that during the term of his contract the company rented its entire premises, including the part rented to him, to pasture a large number of cattle, and the fence around the 30 acres cultivated by him was in bad condition, so that the cattle broke the same and damaged him in the sum of $450 by destroying his crop and preventing him from planting and raising crops; further that in order to get out of the farm, he was forced to make a mile of road which the company agreed to build, which road cost him $37; that by reason of such wrongful acts and breach of contract by the company he was damaged in excess of $1,000. The Carla Land & Irrigation Company, in answer to Vaughn’s pleading, filed a general demurrer, a special exception, a general denial, and a special answer, denying that Vaughn executed the mortgage as the representative of said company, or that he got the money from plaintiff for the benefit of said company, or used same, or any part thereof, for the benefit of said company, and alleged • that it did not know, at the time Vaughn executed the mort *899 gage and borrowed the money, that he had done so. Said company further denied that Yaughn was its sole agent in 'Dimmit county at the time the mortgage was executed, and that Vaughn had any right or authority to bind it by the’ execution of any such mortgage or note, and alleged that if Vaughn executed such mortgage and note, he exceeded his authority, and was acting outside of the apparent scope of his authority, and such acts, if performed as agent of said company, were ultra vires and not authorized, ratified, or confirmed by the company; that said company is a corporation formed under the laws of Texas for the purpose of the erection or repair of any building or improvements and the accumulation and loaning of money for such purposes, and for .the purchase, sale, and subdivision of real property in towns, cities, and villages and their suburbs, not exceeding two miles beyond their limits, and for the accumulation and loaning of money for that purpose, and the alleged mortgaging of the company’s property to plaintiff by Vaughn to secure the payment of the note sued on was beyond the scope of the power conferred by said company’s charter, and therefore void. A verdict was returned in favor of the bank for $358.38 and foreclosure of lien on one cow, one disc harrow and two turning plows, and in favor of Vaughn as follows: Clearing land, $83.50, building flume, $122, feeding mules, $120, feeding prospectors, $111, hauling windmill, $15, hauling onions, $72.84, and damage by cattle, $450, aggregating $924.34, from which the jury deducted a credit of $450.34, due the company for supplies and interest, although no such credit was pleaded, leaving $474.34. Judgment was entered in accordance with the verdict, from which the company appealed.

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Carla Land & Irrigation Co. v. Dimmit County State Bank, 165 S.W. 897 (Tex. Ct. App. 1914).

165 S.W. 897 (Carla Land & Irrigation Co. v. Dimmit County State Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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