Davis v. National Acceptance Co.

233 S.W.2d 321, 1950 Tex. App. LEXIS 1617
CourtCourt of Appeals of Texas
DecidedOctober 6, 1950
Docket14247
StatusPublished
Cited by19 cases

This text of 233 S.W.2d 321 (Davis v. National Acceptance Co.) 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
Davis v. National Acceptance Co., 233 S.W.2d 321, 1950 Tex. App. LEXIS 1617 (Tex. Ct. App. 1950).

Opinion

BOND, Chief Justice.

This is an appeal from judgment of a district court of Dallas County. The National Acceptance Company, assignee of Chicago Heat-Master Company, instituted suit against A. B. Davis, d/b/a A. B. Davis & Company, on an open account which had been assigned to it. Trial was to a jury, the stated account not being controverted, and only special issues in defense and cross action or set-off were submitted. On findings -that the account in suit was a part of a prior and more extended purchase order or contract made by the defendant with plaintiff’s assignor for goods of like kind and character, but not honored by its assignor, as shall hereinafter be related, and because of failure of said assignor to so honor the order and because the sum of $1,491.88 was found to be a reasonable compensation for defendant’s damage, the trial court, on motion non obstante veredicto, entered judgment in favor of plaintiff against the defendant for the full amount of the account in suit,— $2,488, with 6% interest from January 1, 1949 until paid; and, on express findings by the court that -the verdict of the jury is not supported by the record, denied defendant any recovery on account of the alleged dishonor of its purchase order by plaintiff’s assignor. In this opinion the parties will be designated as in the court below.

The suit was filed August 4, 1949. The plaintiff alleged in its petition, pertinent here, that on January 13, 1948, at the special instance and request of the defendant, its assignor (Chicago Heat-Master Company) sold and delivered to the defendant in regular course of business, the goods. *323 wares, and merchandise, as shown in plaintiff’s stated itemized account, consisting of air conditioning units and parts in the sum of $2,488; that on January 16, 1948, for valuable consideration then paid by plaintiff to Chicago Heat-Master Company (the then owner and holder of said account), the said Company transferred and assigned the account to plaintiff; and on February 18, 1948 the plaintiff gave full and accurate notice of such transfer to the defendant and made timely demand on him for payment of same, — which was refused. Such is the basis of plaintiff’s suit, and, in the main, it is not controverted.

In due time the defendant filed answer, and, on April 7, 1949, filed his “First Amended Original Answer” in which he alleged, pertinent here, that in the month of September 1947 he and the Chicago Heat-Master Company entered into an agreement whereby defendant was to become the exclusive wholesale outlet in the State of Texas for certain air conditioning equipment manufactured by Nevenger Manufacturing Company of Greenville, Illinois; that the said Heat-Master Company by Mr. Owens, its agent, servant, and employee, represented to him that it was the exclusive outlet of all products manufactured by the said Nevenger Company, and that “they were in a position and guaranteed to fill all orders for said air conditioning equipment that would be placed by defendant with them.” Further, that the defendant in reliance on said agreement and representations, instituted at its own expense a sales campaign; promoting said campaign by newspaper advertisements, leaflets, and pamphlets, extolling the merits of said products and by employing salesmen to advertise and sell said products at an outlay expense of $10,000; that its salesmen took orders from various persons, firms, and corporations in the State of Texas for more than $100,000 worth of said equipment and sent such orders to the Chicago Heat-Master Company at Chicago, Illinois, with request that such orders be filled; which the said Company failed and refused to do, to defendant’s damage in the sum of $10,000. Thus, on account of such failure, defendant sought judgment in the form of a set-off claim against plaintiff’s account, to wit, $10,000.

Consistent with the congested condition of the trial court docket, the cause was set for trial to a jury on November 1, 1949. During the interim, in preparation for hearing of the cause on date assigned, depositions of witnesses residing in Chicago were taken by the parties and thereafter, on October 26, 1949, less than seven days before trial and without leave of the 'court, the defendant filed a “Second Amended Answer” not materially different from the defense and cross action as set out in his “First Amended Petition,” — particularly as to the contract, or agreement, alleged to have been entered into with Chicago Heat-Master Company to the effect that the Company could furnish and “funnel through defendant” an unlimited supply of Nevenger air conditioning units, and as to the breach thereof and defendant’s damage; but, in addition, made new allegations challenging the transfer of the account in suit by Chicago Heat-Master Company to the plaintiff, in that, “Southmoor Bank of Chicago had taken a prior assignment of the account in good faith, for valuable consideration, and at a time prior to the assignment to plaintiff. That if anybody has a claim to said account, the Southmoor Bank of Chicago has the claim and that plaintiff’s claim, if it took an assignment of said account, acquired no interest in said account by reason of said facts here alleged.” Also, the defendant elusively alleged that on October 7, 1947, the Chicago Heat-Master Company agreed to sell 101 units to defendant to be delivered to the defendant at Dallas, Texas, as follows: 5 units to be shipped immediately; 29 units on November 10, 1947 ; 30 units between January 1 and February 10, 1948. That the Chicago Heat-Master Company further agreed to sell defendant any additional units defendant shall order, together with any and all supplementary and auxiliary equipment needed for the proper installation of such units. That defendant placed his order for the 101 units with Chicago Heat-Master Company and that Company accepted said order and shipped some of the merchandise to defendant in *324 accordance therewith. That said contract was an indivisible contract and, if assignable a.t all, was assignable only in its -entirety and not in part, but if it was assigned, then the assignee took the same subject to all the obligations, liabilities and equities existing under said contract.

To aforesaid “Second Amended Answer” the plaintiff, in limine, presented to the court- motion to strike said answer from the record on the ground, first, that same was filed without leave of the court; second, same came too late to advise plaintiff of the defenses alleged, — pleading surprise. The trial court, over defendant’s objection, sustained plaintiff’s motion and struck from the record defendant’s Second Amended Answer, which action is the basis of defendant’s first assignment of error in this appeal.

Rule 63, Texas Rules of Civil Procedure, provides: “ * * * any amendment offered for filing within seven days of the date of trial or thereafter shall be filed only after leave of the judge is obtained, which leave shall be granted by the judge unless there be a showing that such amendment will operate as a surprise to the opposite party.” See, Jungerman v. Security State Bank, Tex.Civ.App., 170 S.W.2d 252. This rule allows the trial judge to exercise his discretion in such matters, especially so where the filing will or will not operate to deny the opposite party an opportunity to meet the new issues raised for the first time in the amended petition, or operate -as a surprise to the opposing party.

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Bluebook (online)
233 S.W.2d 321, 1950 Tex. App. LEXIS 1617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-national-acceptance-co-texapp-1950.