Commercial Credit Corp. v. Patterson

248 S.W.2d 965, 1952 Tex. App. LEXIS 2128
CourtCourt of Appeals of Texas
DecidedApril 30, 1952
Docket10028
StatusPublished
Cited by6 cases

This text of 248 S.W.2d 965 (Commercial Credit Corp. v. Patterson) 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
Commercial Credit Corp. v. Patterson, 248 S.W.2d 965, 1952 Tex. App. LEXIS 2128 (Tex. Ct. App. 1952).

Opinions

HUGHES, Justice.

This suit was brought by appellees, C. W. and H. N. Patterson, against appellant, Commercial Credit Corporation, for damages, actual and exemplary, for conversion of personal property.

Appellees claimed a prior landlord’s lien, statutory and contractual, on the property and appellant claimed under a chattel mortgage lien.

The acts upon which the alleged conversion is based were committed by appellant’s agents on December 29, 1949, when they, with the consent of the lessee, M. R. Watson, but over the protest of appellees, took from the leased building certain of the items, listed below,1 described in appellant’s chattel mortgage. At this time delinquent rents were'due the landlord in'the sum of $1,000.

Mr. Watson, a married man, the owner of the personal property involved and ap-pellee’s lessee, wa,s a party defendant who, while he appeared upon the trial, filed no answer and has not appealed.

Following a nonjury trial judgment was rendered for appellees for $1,094.67 ($1,000 plus $94.67' interest from 'December 29, 1949) actual damages against appellant and Watson, jointly and severally, and for $500 exemplary damages against appellant. Other relief was also awarded appellees against Watson.

Appellant’s principal contention, raised by his first point, is that the court erred in holding that appellees were entitled to a landlord’s lien on the property removed from the building by appellant because such property is exempt under Section 5 of Article 3832, V.A.C.S., which exempts from forced sale “all tools, apparatus and books belonging to any trade or profession.”

[968]*968•On January 15, 1949, appellees by written agreement, leased to M. R. Watson a building in Taylor, Texas, for the purpose of lessee conducting therein “an automobile sales agency and automobile repair shop.” The term of the lease was from January 15, 1949, through January 14, 1952.

The lease contained this provision:
“Lessors shall have a Landlord’s Lien on the stock and fixtures located in said building provided by the Statutes of the State of Texas to secure the rents due hereunder and all obligations of the Lessee.”, ... .

On February 28,, 1949,3V1, R. Watson borrowed $12,500 from appellant. At such time a written agreement was .executed by Mr. and Mrs. .Watson in. which they promised that they, would; “cause, to be executed by all persons necessary a chattel mortgage covering machinery, equipment, furniture and fixtures owned by” Mr. Watson.

On April 19, 1949,, Watson gave appellant a -chatteí mortgage on numerous items consisting of tool's and equipment, then in ap-pellee’s building, which were incidental to Watson’s garage and automobile business.

The trial court njade full findings of fact including the following:

“Of the property listed on said Exhibit A all items, except items fourteen, ■' fifteen, eighteen, nineteen and twenty, were tools and apparatus belonging to the trade of a motor vehicle mechanic, but Watson, the owner of said items, was not a motor vehicle -mechanic and never, during the time involved in this lawsuit, did any work in said business in the nature of the work of a motor vehicle mechanic.
“9. Items fourteen, fifteen, nineteen and twenty of the property listed on said Exhibit A were suitable for use in the office of said business and in keeping the books and records of said business and were so used while they were in said building.
“10. The parts -bins, listed on said Exhibit A as item eighteen, were suitable and convenient for use in keeping motor vehicle parts and exhibiting them for sale, were so used while they were in said building, such merchandise was sold therefrom to the public during said time, and during said time motor vehicle parts kept in them were taken therefrom and used in repair work done by 'said business, but said parts bins were not essential or necessary to said business.”

The reasonable market value of all items in Exhibit A except items 1, 14, 15, 18, 19, and 20, was found • to be not less than $1,000 and the reasonable market value of items 14, 15, ■ 18, and 20 was found to be not less than $1,000.

We believe that Mr. Watson was a person entitled to the exemption provided in Section 5, Article 3832.

Mr. Watson owned the garage business in which the: tools and other apparatus was used and he was its general manager, devoting all of his time to his automobile business.

In Smith v. McBryde, Tex.Civ.App., 173 S.W. 234, 235 (Sain Antonio C.C.A.), Judge Fly in discussing Section 4 of Article 3832 (then Art. 3785, Vernon’s Sayles’ Stats.), exempting “all implements of husbandry” said "This would include all implements used by the farmer in conducting his farming operations, not only those that he might use directly, but those used by' his tenants and employes.”

This construction given Section 4 is equally applicable to Section 5 and, in our opinion, is correct as applied to both sections under the familiar rule of agency that what one does through an agent one does himself. Any other construction of the statute would render it of little value and would be contrary to the rule of liberal construction so often applied to this statute.

The following quotation from Howard v. Williams, 2 Pick., Mass., 80, 83, as quoted in the dissenting opinion of Hawkins, J., in McFarland v. Hammond, 106 Tex. 579, 173 S.W. 645, is an excellent expression of what we consider the law to be:

“The exemption is not limited merely to the tools used by the tradesman with his own hands, but comprises such, in character, and amount, as are necessary to enable him to prosecute his appro[969]*969priate business in a convenient and usu- ’ al manner; and the only rule by which it can be restricted is that of good sense and description in reference to the circumstance of each particular case. It would be too narrow a construction of a humane and beneficial statute to deny to tradesmen, whose occupation can hardly -be prosecuted at all, much less to any profitable end, without the aid of assistance, as journeymen and apprentices, the necessary means of their employment.” 106 Tex. 579, 173 S.W. 659.

Appellees cite the case of Willis v. Morris, 66 Tex. 628, 1 S.W. 799, as holding to the Contrary. We have carefully read this case and while it does say that 'a person who does mechanical work with his hands is entitled to claim his tools as; exempt, it does not say that the exemption may not -be claimed by one who actively manages his own mechanical shop but whose employees alone actually úse the tools and. apparatus.

Since the lien given a landlord by Article 5238, V.A.C.S., does not extend- to exempt property we hold that appellees had had no statutory lien upon the iteihs which were found by.the trial court .and conceded by appellees to be tools or apparatus belonging to the trade of a mechanic. Hamberlin v. Aston, 114 Tex. 263, 267 S.W. 684.

We also hold that some of the items referred to in the preceding paragraph-such as items 2, 3, 4, 6, 8, 9, 10, 11, 12, 13,' 16, 21, 23, and 24 were not “stock” or “fixtures” within the meaning of the provisions of the lease contract, set .out above, and hence that appellees had no contractual landlord’s lien on such items.

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Commercial Credit Corp. v. Patterson
248 S.W.2d 965 (Court of Appeals of Texas, 1952)

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248 S.W.2d 965, 1952 Tex. App. LEXIS 2128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-credit-corp-v-patterson-texapp-1952.