Christie v. Brewer

374 S.W.2d 908, 1964 Tex. App. LEXIS 2242
Court of Appeals of Texas·Decided January 22, 1964·No. 11139·Published·Cited by 19 cases

Opinion

HUGHES, Justice.

This suit is brought to rescind purchases of stock in Ambrosia Minerals, Inc., by Morris W. Brewer from B. V. Christie and Co., made during the period April 12, 1957 through February 21, 1958, and to recover the purchase price paid therefor and 6% interest thereon from the purchase dates, less certain dividend receipts.

The persons sued were Katherine Abbey Christie, a feme sole, who was sued individually and as Independent Executrix of the Estate of Byron V. Christie, deceased, Mrs. E. A. Millar, a feme sole, and Calvin L. Allen.

B. V. Christie and Company was at the time of the transactions involved in this suit a proprietorship, owned by B. V. Christie and wife Katherine Abbey Christie. Upon the death of Mr. Christie all interest in B. V. Christie and Company became vested in Mrs. Christie, subject to the administration of his estate.

Mrs. E. A. Millar, a sister of Mrs. Christie, held an executive position with B. V. Christie and Company during the period in which the presently involved transactions occurred.

Calvin L. Allen was a salesman for B. V. Christie-and Company when the purchases complained of were made.

Liability of Mrs. Christie is sought solely on the ground that she is the owner of the assets of B. V. Christie and Company.

The liability of Mr. Allen and Mrs. Mil-lar was sought to be predicated upon their alleged violation of the Texas Securities *910 Act 1 and the Federal -Securities Act of 1933. 2

Trial was to a jury. Based upon the jury verdict, judgment was rendered for ap-pellee for the sum of $20,139.08, plus interest as sued for, against the persons sued, jointly and severally. These persons, appellants here, seek reversal and rendition of judgment in their behalf or, in the alternative, that the cause be reversed and remapd-ed for a new trial.

Appellants seek rendition of ■ judgment in their favor because of. their contention that appellee did not make a tender of stock in compliance with;Art, 581-33, Vernon’s Ann.Civ.St., which provides, in part:

“Every sale or contract of sale of any security made in violation of any provision of this Act shall be voidable at the election of the1 purchaser, who shall be entitled to recover from the seller in ah action at law, upon tender -to’ 'the seller of the-security sold, in-, proper .form'for transfer, togéther with the amount of all dividends, interest, and other income and distributions received by the purchaser from or upon such- security, the full amount paid by. such purchaser for such security, with interest from the date of purchase; * * . * and provided further, that no purchaser shall bring any. vaction under this Act against the seller unless (1) at least fifteen (15) days before filing suit, he shall have made a written demand on the seller for a refund of the full amount' paid' by the purchaser for the security, with interest from the date of purchase, less the amount of any income from such secur- . ity that may have been received by the purchaser, and he shall have tendered to the seller the securities sold in proper form for transfer, and (2) the seller shall not have made such refund and accepted such tender within the said • fifteen (15) days.”

In making demand- upon appellants for a refund of the amount paid for the 13,000 shares of Ambrosia stock purchased from B. V. Christie and Company, appellee erroneously stated that the amount paid for them was $24,279. Appellee concedes that the correct amount should have been $22,-325.97.

The statute, supra, does not require that the- demand for refund state the amount paid for the- stock. Appellee in making demand did more, albeit inaccurately, than was required of him. We do not believe that he thereby forfeited his rights under the Securities Act. The excessive demand caused no harm. It was a matter concerning which the truth was peculiarly known to appellants, as well as to appellee, hence the error was equally palpable to them, and they were not misled.- In Athans v. Jones, 277 S.W.2d 192, Fort Worth Civil Appeals, no writ history, it is stated, “We think the true rule is that an exorbitant demand does not excuse a tender of the amount actually due.”

Appellants have waited for more than three years before complaining'that the demand was excessive. They do not now say nor have they ever indicated that they would have made refund had the proper amount been demanded.

We hold that this point is without legal or equitable support, and it is overruled.

Appellants have several other-points upon which they rely for a reversal and remand of this case. We have concluded that the first three points which relate to-the failure of the Court to quash "the jury panel or grant a mistrial because of remarks made by counsel for appellee to such jury panel on th-eir.voir dire examination should be sustained. . Accordingly, we will, discuss such points and only such other points as may arise upon re-trial.

*911 Prior to the voir dire examination of the jury panel appellants made and presented a motion in limine requesting that the Court instruct counsel for appellee not to mention to such panel, either directly or indirectly, that defendant (appellant) Calvin L. Allen was at that time under indictment by the United States of America or the fact that the defendant (appellant) Mrs. E. A. Millar had been named in an indictment as a co-conspirator with Calvin L. Allen. This motion was overruled, after which counsel for appellee stated to the jury panel:

“Now, we think the evidence will show in this case that one of the parties who is a defendant is under indictment by the Federal Grand Jury for matters arising out of these same transactions, and that another one of the defendants is named in the Federal indictment as a co-conspirator in connection'with matters arising out of this lawsuit.”

Appellants objected to these remarks when made. They also filed a motion to strike the jury panel and, in the alternative, for a mistrial based on the improper and inflammatory remarks of counsel for appel-lee. This motion was overruled. On the following day the Trial Judge announced that he was changing his previous order on appellants’ motion in limine and was sustaining their request for the instructions mentioned above. Upon this occurrence, counsel for appellants again moved for a mistrial, stating:

“In light of the ruling of the Court sustaining my first two paragraphs in the motion in limine, the defendants again would like to move for a mistrial in this case on the ground that plaintiff’s remarks to the jury during the voir dire examination to the effect that one or more of these defendants were under indictment would be so prejudicial as to make it impossible for these defendants to receive a fair jury trial from the jury selected from that jury panel, especially in the light that this matter would be just sort of suspended in the air now and they will be wondering which of the defendants were indicted and on that ground we move for a mistrial.”

This motion was overruled.

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Christie v. Brewer, 374 S.W.2d 908, 1964 Tex. App. LEXIS 2242 (Tex. Ct. App. 1964).

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