C.R. Miller Mfg. Co. v. Coleman

29 S.W.2d 991
CourtTexas Commission of Appeals
DecidedJune 25, 1930
DocketNo. 1386-75550
StatusPublished
Cited by7 cases

This text of 29 S.W.2d 991 (C.R. Miller Mfg. Co. v. Coleman) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.R. Miller Mfg. Co. v. Coleman, 29 S.W.2d 991 (Tex. Super. Ct. 1930).

Opinion

CRITZ, J.

This suit was instituted in the district court of Dallas county, Tex., by E. W. Coleman, defendant in error, and H. M. Rogers, against C. R. Miller individually and C. R. Miller Manufacturing Company, a Texas corporation. Previous to the trial, Rogers compromised and settled his part of the alleged cause of action, and we are not here concerned with him. The case between Coleman and Miller Manufacturing Company was submitted to a jury on special issues in the trial court, and based on the verdict, judgment was entered for Coleman and against the Miller Manufacturing Company "for $1,063.93. Also judgment in the trial court was in favor of C. R. Miller individually. On appeal the Court of 'Civil Appeals at Dallas, in an opinion by Chief Justice Jones, reversed tne judgment of the trial court and remanded the case for a new trial. 19 S.W.(2d) 829. Justice Looney filed a dissenting opinion. 19 S.W.(2d) 839.

The pleadings and issues of this case are very long and complicated, and as the Court of Civil Appeals has made a very correct and comprehensive statement thereof, we refer to and adopt the statement of that court. However, in the course of this opinion we will make such additional statement as we deem proper.

The suit is based on two alleged contracts, one written- and one oral. The written Contract consists of a contract with addendum thereto, executed by C. R. Miller Manufacturing Company on the one hand, and Textile Finance Company, a copartnership composed of Rogers and Coleman, on the other hand, and a letter approved by both parties written by the Miller Company to the Textile Company. It seems to be undisputed that the signed contract witji addendum and the letter form one contract, and were so intended by the parties. The provisions of the written contract as originally signed by the parties provided for the purchase and sale of 14,250 shares of the common stock of the corporation at $100 per share, making a total of $1,425,000, of which sum $75,000 was to be paid in cash and the remainder on or before July 1, 1925. It further provided that the Textile Company was to'resell said stock as their own personal property, and that their contracts of sale should specifically provide that the stock was being sold as the property of the partnership, and not the property of the corporation. The contract also specified that the stock might be sold for one-half cash and one-half on credit, out of which the partnership should pay the corporation $40 per share In cash, and deliver the notes as security for the faithful performance of the contract until the full sum of $1,425,000 should be paid. The contract contained several other provisions not necessary to set out here. This contract is dated September 19, 1924. There is an addendum áttached to this contract dated September 22, 1924, signed by both parties, reciting that the authorized capital stock of the corporation was $1,750,000, divided into shares of the par value of $100 per share, and that the proposed increase of the capital stock to be sold was $1,500,000, divided into shares of the value of $100 per share, said increase to be sold at the par value of $100 per share, and no commission to be paid for the sale of the stock, add .all expense^ connected with the sale thereof should not exceed 5 per cent, upon the sale price thereof, and no amount of such stock was to be issued for promotion, compensation, or other purpose, except for value.

On October 2, 1924, O. R. Miller wrote to Rogers and Coleman the following letter:

“Dallas, Tex., Oct. 2,1924.
“Messrs. Rogers & Ooleman,
“Textile Finance Company,
“205 Magnolia Building,
“Dallas, Texas.
“Gentlemen:
“In connection with your contract with O. R. Miller Manufacturing Company, wish to confirm my personal agreement with you as follows:
“You are to sell your stock in said company at $130.00 per share, paying C. R. Miller Man-[993]*993ufaeturing Company for it $100.00 per share, which gives you a profit on the transaction of $30.00 per share.
“Upon the conclusion of your contract you are to be paid the sum of $20,000.00 from our advertising account covering the benefit we receive from your advertising. By mutual agreement a portion of this sum may be advanced in proportion to the filing of the purchase contract.
“In the event we should determine a misrepresentation of any .character has been made by any member of your organization in their sale of your stock, and we should conclude it necessary, you are to take back all or any portion of such stock.
“Tours very truly,
“[Signed] ■ C. R. Miller.
“The above is correct:
“Textile Finance Company
“By [Signed]' H. M. Rogers “[Signed] F. W. Coleman.”

The above-described written contract of date September 19, 1924, the addendum dated September 22,1924, and the letter dated October 2,1924, all constitute one contract between the parties and they so understood between themselves. In this connection Coleman pleaded that from the beginning the written contract, addendum thereto, and the letter, constituted the true contract, and that the portion thereof embodied in the letter was made separate and apart from the original contract at the request of Miller to enable him to receive his stockholders.

The record shows that on September 22, 1924, Miller Manufacturing Company obtained from the secretary of state of Texas the following instrument:

“ ‘Exemption No. 154:
“ “Department of State, Blue Sky Division, the State of Texas
“ ‘Know all men by these presents:
“ ‘That C.- R. Miller Mfg. Company, Waco, Texas, a domestic corporation chartered under the laws of the State of Texas on the 31st day of May, 1919, under the name of Miller Cotton Mills, having at this time an authorized capital stock of $1,750,000.00, divided into shares of the par value of $100.00 per fhare; 2500 shares of said stock being preferred stock and 15000 shares of said stock being common stock, said corporation being chartered for the following purposes, to-wit: “The transaction of a manufacturing business, to-wit: the manufacture of cotton goods, particularly cotton piece goods, and the purchase and sale of goods, wares and merchandise used for such business,” has filed with the Secretary of State of the State of Texas, an application with its accompanying documents and exhibits, asking for an Exemption from the requirements of the Blue Sky Law of this State for the issuance and sale of 15000 shares of the par value of $100.00 per share, for the purpose of increasing the capital stock of said corporation from $1,750,000.09 to $3,250,000.00, said increase in said st-ock to be sold at the par value of $100.00 per share, no commissions to be paid for the sale of the stock, and all other sales expense for the sale thereof not to exceed 5% upon the sales price' of said stock, and'no amount of said- stock to be issued for promotion, compensation or other purposes except for .value.
“ ‘Now, therefore, I, J. J.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Louisiana & Arkansas Railway Company v. Mullins
326 S.W.2d 263 (Court of Appeals of Texas, 1959)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1944
Smith v. Pacific Fire Ins. Co.
178 S.W.2d 170 (Court of Appeals of Texas, 1944)
Republic Underwriters v. Howard
69 S.W.2d 584 (Court of Appeals of Texas, 1934)
Burton v. Perry
53 S.W.2d 795 (Court of Appeals of Texas, 1932)
Farm & Home Savings & Loan Ass'n of Missouri v. Muhl
37 S.W.2d 316 (Court of Appeals of Texas, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
29 S.W.2d 991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cr-miller-mfg-co-v-coleman-texcommnapp-1930.