City of Electra v. American LaFrance & Foamite Industries, Inc.

133 S.W.2d 223
CourtCourt of Appeals of Texas
DecidedOctober 20, 1939
DocketNo. 13968.
StatusPublished
Cited by3 cases

This text of 133 S.W.2d 223 (City of Electra v. American LaFrance & Foamite Industries, Inc.) 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
City of Electra v. American LaFrance & Foamite Industries, Inc., 133 S.W.2d 223 (Tex. Ct. App. 1939).

Opinion

SPEER, Justice.

American LaFrance & Foamite Industries, Inc., a foreign corporation, with a permit to do business in Texas, sued the City of Electra, a municipal corporation, for debt. For convenience, we shall give the parties the same designation as that carried by them in the trial court.

From the pleadings of plaintiff, it appears that it sold to defendant 1,200 feet of water hose for the agreed price of $1,-320. A written contract, of date September 19th, 1934, was entered into between the parties, setting out the terms of the sale. . This contract was executed in the name of plaintiff, acting through Horace Coker, as its agent, and by defendant, signed “City of Electra, by John Houser, City Sec.” That by the terms of the contract, plaintiff was to deliver the hose within thirty days from' the approval of the contract by plaintiff, and payment was to be made by defendant in instalments as follows: $345 within sixty days from date of delivery of the hose, and the remainder to be evidenced by ten notes, nine of which were to be for $65 each and one for $390, all payable within twelve months; each to bear six per cent interest per annum. That all of said notes were executed and signed in the same manner as the contract shown above. The nine notes for $65 each were made due and payable on the 19th day of the months of January to September, both inclusive, 1935. The $390 note was made due and payable on September 19th, 1935. The notes provided for interest at six per cent per annum from December 19th, 1934, and that all past due interest should bear interest at ten per cent per annum, and that if default was made in payment and they should be placed in the hands of an attorney for collection, an additional amount of ten per cent of the principal and interest unpaid should be added as collection fees.

Plaintiff further plead that it had delivered the hose according to the terms of the contract, the payment by defendant of the cash instalment of $345 and the two $65 notes maturing January and February 19th, 1935, respectively; that defendant had made default in payment of the remaining seven notes for $65 each and the $390 note; that all had been placed in the hands of its attorneys for collection under promise to pay the amount provided in the notes as collection fees. Plaintiff asked for judgment for the amount of principal and interest due, a foreclosure of its lien and for general and special relief.

Alternative pleas were made by plaintiff to the effect that if no valid sale of the hose was made, then an implied rental contract was made between the parties. However, viewing the appeal as we do, all alternative pleas have become unimportant.

Defendant answered with general denial and special pleas that (a) the notes sued on were not the obligations of the City of Electra and that their signing by the City Secretary was unauthorized by the City; (b) that no resolution or ordinance was passed by the defendant authorizing the purchase of the hose, as required by the City’s charter, and that no legal authority was ever granted by the defendant to the secretary to execute the contract and notes set out in plaintiff’s petition. Pleas of limitation were interposed by defendant to plaintiff’s claim for rentals, and as against any implied promise to pay.

By supplemental pleadings, the plaintiff plead ratification by plaintiff and estop-pel to deny the purchase and obligation to pay.

No jury being demanded, the court heard and passed upon the evidence and entered judgment for plaintiff in the sum of $1,228.-97, recited to be “based upon instruments in writing executed by defendant, together with a foreclosure of lien”, described in other parts of the judgment. Further judgment was entered for the small sum of $5.-33 on open account, about which there seems to be no controversy.

Since the court rendered judgment based on the written instruments sued on, alternative pleas by plaintiff that defendant subsequently ratified the sale and purchase, and thereby impliedly promised to pay, as well also the defenses plead by defendant of limitation, necessarily go out of the case, insofar as they affect this appeal. We are concerned only with the judgment as entered based on the written instruments.

Defendant, City of Electra, appellant here, predicates its appeal upon ten assignments of error and presents them under three propositions, the first one of which reads:

*225 “The written contract and notes signed merely ‘City of Electra, by John Houser, City Sec.’ does not constitute a valid binding obligation of said city because same was neither authorized nor ratified by any act of the City Commission of the City of Electra.”

The substance of the second proposition is that since it was indisputably established by the evidence that the duty of the City Secretary was to attend the meetings of the City Commission, keep accurate minutes of the proceedings and enroll all resolutions and ordinances passed; and it being further established by uncontradicted evidence that the City Commisson could act in such matters as those under consideration only by ordinance, upon which a majority had voted favorably, it was error for the trial court to admit parol testimony over defendant’s objection, to prove that such ordinance and resolution were in fact passed by the City Commission, when none was shown to exist in the minute books.

The third proposition is to the effect that the judgment of the court, based on the written instruments sued on, is not sustained by parol testimony that the City Commission did, at a regular session, pass an ordinance or resolution to purchase the equipment from plaintiff and to authorize the City Secretary to execute the instruments in writing relied upon by plaintiff, when the minutes of said meeting did not disclose that such ordinance or resolution Was in fact passed by the City Commission.

The nature of these propositions is such that they may be best discussed together. The first one considered alone, presents a sound principle of law. No one would seriously contend that a City Secretary could bind the municipality by an attempt to make a contract such as this one, without proper action being taken by the governing body. It therefore becomes essential to ascertain (1) did the City Commission, by a majority vote, while in business session, pass the ordinance or resolution to purchase the plaintiff’s goods and authorize the secretary to execute the necessary papers in the name of the City, and (2) if in fact the Commission did pass the necessary resolution and the Secretary failed to record it in the minutes, was it error for the trial court to admit parol evidence to prove that the ordinance was passed purchasing the goods and authorizing the secretary to do the ministerial act of preparing and executing the papers?

There is little or no conflict in the evidence which is material to this appeal. E. W. Presson, who was secretary of defendant at the time of trial, and who was custodian of the records of the City, testified that there was nothing in the minute books kept by his predecessor showing a resolution or ordinance passed by the City pertaining to the sale and purchase of plaintiff’s merchandise.

John Houser, who was the City Secretary at the time of the alleged sale and purchase, testified that he remembered the transaction.

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Bluebook (online)
133 S.W.2d 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-electra-v-american-lafrance-foamite-industries-inc-texapp-1939.