Continental Gin Co. v. Gardner.

248 S.W. 92
CourtCourt of Appeals of Texas
DecidedJanuary 27, 1923
DocketNo. 8709.
StatusPublished
Cited by5 cases

This text of 248 S.W. 92 (Continental Gin Co. v. Gardner.) 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
Continental Gin Co. v. Gardner., 248 S.W. 92 (Tex. Ct. App. 1923).

Opinion

HAMILTON, J.

This is an appeal from a judgment rendered against appellant upon the answer of a jury to a special issue submitted in the trial court.

Appellant sold H. H. Gardner certain gin machinery, and Gardner executed and delivered to appellant his promissory notes secured by a chattel mortgage upon the machinery, the notes representing the purchase price of the machinery. While these notes and the mortgage incumbrance upon the property securing them were in existence appellee sold the property to J. W. Thompson, who assumed as a part of the purchase price -the indebtedness to appellant. After Thompson assumed the payment of the notes they were extended from time to time by appellant, and, finally, after demand for payment, and after Thompson had defaulted, appellant instituted suit against both Gardner and Thompson for recovery upon the notes and for foreclosure of the chattel mortgage. Thompson did not resist the suit, but Gardner answered, and defended upon the ground, among others not necessary to mention, that the contract upon which Thompson’s liability to appellant rested constituted a novation of the orginal undertaking between appellant and appellee by the terms of which appellee became absolved from liability and the whole of the liability was transferred exclusively to Thompson.

The three principal points upon which the appeal is rested may be succinctly stated as follows:

Appellant contends that the answer given by the jury to the special issue submitted is meaningless, and, accordingly, does not express a finding upon which a judgment can be based.

Secondly, appellant contends that all those parts of appellee’s answer to the petition wherein appellee attempts to set forth as a defense a novation of the contract were characterized by the frailties of vagueness and indefiniteness to that extent which renders them wholly impotent to constitute a plea of novation; that they express mere legal conclusions, and supply to appellant no notice of the facts which were to have been relied upon as a defense to this cause of action, and, accordingly, the court committed error in refusing to sustain appellant’s special exceptions to this effect directed against those portions of the answer.

The third principal ground relied upon by appellant is that the record discloses no consideration for a release by appellant of appel-lee, and therefore, even if such contract as appellee asserts to have been made was in fact made, it would for this reason be without any legal effect.

The issue submitted to the jury by the trial court was as follows:

“When Gardner sold and conveyed to J. W. Thompson the gin machinery described in the chattel mortgage given by Gardner to Ennis Munger, trustee, and as part consideration thereof Thompson assumed the payment of Gardner’s two notes to Continental Gin Company, and when he (Thompson) indorsed said notes in plaintiff’s office, then was it or not agreed' by Continental Gin Company, acting through John A. Pope, that Thompson should be the sole debtor on said notes and that Gardner should be released from liability thereon?”

The jury’s answer in response to this question was in .the following language:

“Yes; we, the jury, find in favor of defendant; H. H. Gardner.”

We think the answer made by the jury to the question submitted is clear, distinct, and definite, and that it conveys the idea, and no other, that appellant agreed that Thompson should be the sole debtor on the notes, and that Gardner should be released. It is immaterial what language or form of expression a jury uses to inform the court of its findings upon a special issue, just so the answer, however worded, constitutes a *94 response to the question, conveying a clear ancl definite meaning as to what the jury has found. If an answer constitutes a finding of a disputed fact which the question seeks to settle, it is a finality, and constitutes the basis of a judgment.

The special exceptions which were overruled by the court, and of the overruling of which exceptions appellant complains, it seems to us, comprehended both a general demurrer and special exceptions to that portion of the answer which undertook to plead as a defense novation of contract. They complain of the insufficiency of the allegations on this feature of the case, not merely because of vagueness and indefiniteness of statement, but also because of absence of allegations of facts to be relied upon as a defense. But, considered either as special, exceptions or as in the nature of a general demurrer to the allegations of novation, we do not think the court committed any error in refusing to sustain them. We deem it unnecessary to set out in this connection all that portion of the petition excepted to. We deem it suflicient merely to state, in substance, the elements of fact alleged. Appellee pleaded that after tbe notes sued upon were executed by him he sold all the property mortgaged to secure them to Thompson, and that, as a part of the consideration for the purchase by Thompson, tbe latter specially assumed the payment of the notes according to their terms, tenor, and effect. He alleged that the transaction was well known to appellant, and that it in part was consummated in appellant’s office at its place of business in Dallas, Tex., and that, when appellant was informed of the sale, and requested to, produce the notes so that Thompson might evidence his agreement to pay them by signing his name on them, they were produced by appellant, tendered to Thompson for his signature, and, at appellant’s direction, Thompson signed his name upon the hacks of them, thereby making them his own, and that “plaintiff .(appellant) accepted the said J. W. Thompson’s assumption of the payment thereof, and his agreement with this defendant to pay the same in accordance with their terms, tenor, and effect, and thereby recognized and accepted the said J. W. Thompson as its debtor on said notes in lieu of tbis defendant.”

Tbe effect of the allegation, in pur view, is to declare that Thompson agreed to become exclusively liable for appellee’s indebtedness ; that appellant agreed that appellee’s liability should cease, and that it would look solely to Thompson for payment. If the parties at interest assent to the extinguishment of an old debt by agreeing that a third party exclusively shall assume it, and such third party, acting within the understanding, assumes the sole liability, this is a novation, and the original debtor is discharged. A new obligation is thereby substituted for the existing one, and liability is thereafter against the debtor therein to the exclusion of the original debtor.

Wé bold the view that the allegations readily could have been rendered more full and explicit, and we are constrained to suggest that, although tbe allegations are to be considered as meeting the requirements of the rules of pleading, yet contentions could be obviated and time conserved by the exercise of greater care on the part of members of the bar than that evidenced in this pleading to render their allegations in such cases as this so specific, clear, and definite as to avoid any question or contention on the part of opposing counsel to be disposed, of by appellate courts.

The third above-designated ground of complaint we do not regard as meritorious. It is true that novation is made by contract, and in no other way, and it is subject to all the rults which cover the field of contracts in general.

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Bluebook (online)
248 S.W. 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-gin-co-v-gardner-texapp-1923.