Continental Supply Co. v. Mack

238 S.W. 247, 1921 Tex. App. LEXIS 1328
CourtCourt of Appeals of Texas
DecidedNovember 5, 1921
DocketNo. 9961.
StatusPublished
Cited by3 cases

This text of 238 S.W. 247 (Continental Supply Co. v. Mack) 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 Supply Co. v. Mack, 238 S.W. 247, 1921 Tex. App. LEXIS 1328 (Tex. Ct. App. 1921).

Opinions

On August 4, 1921, an order was entered by the Seventeenth District Court of Tarrant County, directing Theodore Mack, receiver of the Cosbrook Petroleum Company, to advertise the property of said company for sale, and receive written bids therefor, and to submit his report in writing on September 2d. On said last-named date the receiver filed his report of sale, setting forth that one bid received was from D. G. Brown for $65,250 cash, and a second bid was from appellants for $43,000 cash, and the cancellation of $13,884.01 of the receiver's indebtedness incurred during the receivership and an aggregate indebtedness to the bidders due by the Cosbrook Petroleum Company of $58,825.91. The hearing on said bids was passed until September 8th, at which time the judge of the court considered the two bids and said:

"The court thinks that the properties of the Cosbrook Petroleum Company ought to be sold; that it is a very difficult matter, on account of the liens not having been classified, for the court to arrive at a just and true judgment, but, having heard the matter discussed, the court is of opinion that the bid of the Continental Supply Company et al. is the best bid, and that I will accept the bid"

— and instructed the counsel for the receiver to draw up the order of the court to that effect. During the noon hour the court became convinced that he had erred in concluding that the Continental Supply Company's bid was the best bid, and ought to be accepted and confirmed by the court, and that afternoon, upon a further hearing and before a written order had been signed by the court or any order entered on the docket with reference thereto, withdrew his expression of opinion, and declined to accept either bid, and ordered the property to be readvertised. It was subsequently sold to a third bidder for $75,000. The Continental Supply Company, the Atlas Supply Company, and R. R. Weed have appealed.

Two questions present themselves for our consideration, to wit:

(1) Did the action of the judge of the court with reference to the bids on the forenoon of September 8th amount to a judgment, or was it merely the expression of an opinion on his part, which did not bind the court?

(2) If the first question be answered that it was a judgment, then is it such a judgment as the court could set aside and hold for naught during the term in which it was entered?

In determining these questions, it is our *Page 248 duty to give full force and effect to the testimony supporting the judgment. Judge R. E. L. Roy, judge of the Seventeenth district court, testified in answer to the following questions propounded by Mr. Thompson, counsel for appellants:

"Q. I would like to ask the court, when the court made the pronouncement on September 8, 1921, at the conclusion of the hearing on the bid, did not the court mean by his pronouncement that he did accept the bid of the Continental Supply Company and its associates and that he —

"A. The Court: I meant that I would accept it, but didn't have any intention that it would be binding. The remark I made was: `I will accept the bid of the Continental Supply Company. Mr. Trammell, you get up the order of the court, and I will sign it at the proper time. I, of course, did not have — I did not intend to have it go into effect until I signed the order."

The court further testified in answer to Questions propounded by Mr. Wade, of counsel for appellants:

"Q. I would like to ask the court a question. If in making the pronouncement from the bench on September 8th, if it was not the intention of the court at the time he made that pronouncement to then and there accept the bid of the Continental Supply Company and others subject to reducing that order to writing?

"A. The Court: No; no.

"Q. At that time it was your opinion that it was the best bid?

"A. The Court: Of course when I said I would accept the bid — Mr. Trammell, you get up the order — of course in my mind, if between that time and the time the order was presented to me I was satisfied I had made a mistake, I did not intend to sign that order.

"Q. But at that time it was your intention that such an order should be entered?

"A. The Court: At that time it was my intention to accept the bid and confirm it — at the time they presented the order to me, if 1 had not changed my mind, because at that time it was bothering me, and I told you from the bench it was bothering me.

"Q. At that time you had no intention of changing your mind?

"A. The Court: Not when I left this bench.

"Q. You said the property ought to be sold, and that you thought the bid was the best bid, and that you accepted it and told them to prepare an order?

"A. The Court: That is what I have already stated, I can't make it any different.

"Q. (propounded by Mr. Smith, of counsel for receiver). I will ask the court, with the court's permission, this question: If before any order was ever presented to you, I will ask you whether it is or is not a fact that you did change your mind in regard to the matter?

"A. The Court: Before what?

"Q. Before any order was ever presented to you to sign, whether or not you had changed your mind?

"A. The Court: Yes: I had.

"Q. And if you had had in mind the facts and the law as you understood them later, at the time you said what you did from the bench, would you have made the statement from the bench in the first instance?

"A. The Court: I certainly would not have."

There is some testimony tending to show that the appellants did not comply with the order of the court as to depositing with the receiver, prior to the report of the bid to the court, the full 25% of the bid made, and a variance in several other respects, but we will consider the case as if the appellants had made their bid in full compliance with the orders of the court, except that the order of sale provided the bids should be strictly for cash.

In the case of Kidd v. McCracken, 105 Tex. 383, 150 S.W. 885, it appears that the plaintiffs were seeking to enjoin a sale of certain property, and to have declared a mortgage an instrument which upon its face purported to be a deed. The defendant had not prayed for affirmative relief. After the evidence was in, and in a trial before the court, the court expressed his ruling with reference to admission of certain testimony, and thereby indicated that he would give a judgment for defendants. Whereupon the plaintiffs asked leave to withdraw their announcement of ready for trial and take a nonsuit, but the court concluded that he had already announced his decision and denied plaintiff's motion. The court in discussing the matter said:

"It seems to us to be immaterial to the exercise of the right to take a nonsuit, that the plaintiff is made aware of the court's view of the case from the expression of the court's opinion, or from any other source. Such knowledge may serve as the vital reason why the party desires to get his case out of court. His information of how the court will decide cannot affect the plaintiffs' right to a nonsuit, where the decision has not been announced. * * * The word, `decision,' as used in the statute, means the court's judgment which is made a part of the record immediately upon its rendition, but the court's opinion of the different phases of the case is nothing more than an expression of the judge's views. In the case at bar the judge, at the time the nonsuit was demanded, had done nothing more than to express his opinion of the case. He had not announced his decision or judgment."

See, also, Adams v. Railway Co. (Tex. Civ. App.) 137 S.W. 437. In Magee v. Risley, 82 Wn.

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Bluebook (online)
238 S.W. 247, 1921 Tex. App. LEXIS 1328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-supply-co-v-mack-texapp-1921.