Cleveland State Bank v. Lilley

260 S.W. 324, 1924 Tex. App. LEXIS 269
CourtCourt of Appeals of Texas
DecidedMarch 13, 1924
DocketNo. 1054.
StatusPublished
Cited by8 cases

This text of 260 S.W. 324 (Cleveland State Bank v. Lilley) 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
Cleveland State Bank v. Lilley, 260 S.W. 324, 1924 Tex. App. LEXIS 269 (Tex. Ct. App. 1924).

Opinion

HIGHTOWER, C. J.

This te a suit by the appellee, Mrs. Y. L. Lilley, for herself and as administratrix of the estate of Y. L. Lilley, her deceased husband, against the appellant, Cleveland State Bank, and other defendants, to recover damages, both actual and exemplary, and also for attorney’s fees incurred .in the prosecution of the suit, amounting, in the aggregate, to $2,500. In substance, the material allegations of the plaintiff’s petition' are: That V. L. Lilley, deceased, departed this life on January 28, 1921, leaving surviving him the plaintiff and their six minor children; that Y. L. Lilley, at the time of his death, was insolvent, as was his estate after his death; that in August, following her husband’s death, plaintiff was appointed administratrix of his es>-tate, and that such administration is still pending; that upon her husband’s death plaintiff and the minor children were left without means of support for the year following, nor was there left to them the kind and amount of personal property exempt from forced sale to which they were entitled under the law; that upon her application duly made, the probate court, by its order and judgment duly entered, set aside to plaintiff and said minor children out of said estate the sum of $500 for one year’s allowance and support, and also the further sum of $250 in lieu of exempt personal property, to which she and the children were entitled under the law. Plaintiff further alleged that defendant Cleveland State Bank and the other defendants acting for it on June 1, 1921, unlawfully and wrongfully took from her possession and control 31 head of cattle that belonged to the community estate of herself and deceased husband, and unlawfully and wrongfully converted said cattle .and their value to the use and benefit of defendant Cleveland State Bank; that the value of the cattle so converted was in the aggregate $600; that an)ong the 31 head of cattle were 5 mileh cows, and that the value of their use to plaintiff from the date of conversion was $600; that plaintiff was put to trouble and was annoyed and worried and put to expense by reason of such conversion; that such conversion was not only wrongful, but was also malicious, and that therefore plaintiff was entitled to recover her attorney’s fees in this ease, which she alleged was $500, and that this was a reasonable fee; that because of such malicious conversion of the cattle by defendant Cleveland State Bank, she ought to recover an additional $800 as exemplary damages.

All .defendants duly answered, but it is not necessary to' show what any of them were, other than that of the Cleveland State Bank; it being the only defendant cast by the judgment, and the only one appealing therefrom. The Cleveland .State Bank an *325 swered by general demurrer, a number of special exceptions, a general denial, and then specially interposed, among others, in substance, the following as its defense: That at the date of the death of V. L. Lilley, the bank held his note for borrowed money, on which there was due and unpaid the principal sum of $370 and accrued interest; that to secure the payment of this note, Lilley, at the date of its execution, also made and executed a chattel mortgage to the bank, and that the mortgage expressly provided that in the event the note should not be paid when due, the bank might, at its option, take charge and possession of the property thereby mortgaged and sell the same and apply the proceeds to the payment of the note; that the 31 head of cattle, the conversion of which is charged against it by the plaintiff, were included and covered by the mortgage, and that defendant bank, long after said note became due and was unpaid, took charge and possession of 29 head of the cattle covered by the mortgage, with a view to selling them and applying the proceeds to the payment of its note, and that being authorized to do this by express provision contained in the mortgage, defendant only did that which it had the legal right to do, and was therefore not guilty and could not be guilty of conversion of the cattle, nor liable to plaintiff in any way. There were other specially pleaded defenses, but they are not material.

The trial was to the court without a jury, and the judgment was in plaintiff’s favor; the items making up the whole amount being stated in the judgment as follows: $290', same being the value of 29 head of cattle at the date of their conversion on June 1, 1921, with interest on that amount at the rate of 6 per cent, per annum from the date of conversion; $250, same being a reasonable attorney’s fee to be allowed plaintiff in this suit; “and the sum of $100, the same being the reasonable value of the use of said cattle to plaintiff, the loss of time, expenses incurred in attending court, and other things occasioned by reason of the conversion of said 29 head of cattle by defendant.”

The trial court did not file findings of fact and conclusions of law, apart from those stated in the judgment, as we have shown them. We find, however, that the evidence, as shown by the record, was clearly sufficient in all respects to wárrant the trial court’s conclusion that the appellant was guilty of the conversion of 29 head of cattle belonging to the community estate of plaintiff and her deceased husband, and that they were of the value of $290 at the time of conversion, as recited in the judgment.

It is appellant’s first contention that since it was authorized by the chattel mortgage covering the cattle to take possession of and sell them to. pay the note of V. L. Lilley, it acted within its legal rights in taking and selling them, and that therefore there could be no conversion in what it did.

[1] It is true, and we find as a fact, that the chattel mortgage given to secure the note expressly provided that appellant might take and sell the cattle, as it did, in the event of Lilley’s failure to pay the note when due; but Mrs. Lilley, who was at that time the wife of Y. L. Lilley, did not sign either the note or the chattel mortgage. This being true, upon Lilley’s death, his estate being insolvent, which fact the evidence was sufficient to show, the right of the widow and the minor children to the cattle covered by the mortgage was superior to the lien claimed by appellant under the mortgage, and Lilley’s death, under such circumstances, revoked the authority conferred upon appellant by the mortgage to take possession of and sell the cattle in payment of its note. Article 3422, Revised Statutes; Hedeman v. Newnon, 109 Tex. 472, 211 S. W. 968.

Appellant being without authority to take from Mrs. Lilley the cattle and sell tfiem as it did, it was guilty of their conversion, and was liable to appellee for their value at the time of the conversion, with interest on that value, as was held by the trial court, and all of appellant’s contentions to the contrary are overruled.

[2] This brings us to appellant’s assignment which challenges the action of the court in allowing appellee recovery of attorney’s fees in the sum of $250. Ordinarily, attorney’s fees incurred by a party to a litigation are not recoverable against his adversary, either in an action of tort or one upon contract, unless so provided by statute, or by contract of the parties themselves. In Sherrick v. Wyland, 14 Tex. Civ. App. 299, 37 S. W. 345, it was said:

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Bluebook (online)
260 S.W. 324, 1924 Tex. App. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-state-bank-v-lilley-texapp-1924.