Dyson v. Motors Securities Co.

17 S.W.2d 141, 1929 Tex. App. LEXIS 589
CourtCourt of Appeals of Texas
DecidedMay 10, 1929
DocketNo. 1812.
StatusPublished
Cited by4 cases

This text of 17 S.W.2d 141 (Dyson v. Motors Securities 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
Dyson v. Motors Securities Co., 17 S.W.2d 141, 1929 Tex. App. LEXIS 589 (Tex. Ct. App. 1929).

Opinion

HIGHTOWER, C. J.

This suit was filed in the county court of Sabine county by the ap-pellee, the Motors Securities Company, Inc., to recover a balance of $433.25 due on a prom-, issory note that was executed by S. G. Dyson in favor of the Stringer-Richardson Motor Company, a copartnership, which note was indorsed by the Stringer-Richardson Motor Company and sold by that partnership to the appellee herein. The defendants in the suit were the makers of the note, S. G. Dyson, the Stringer-Richardson Motor Company, W. O. Stringer, and J. H. Richardson, who compose the partnership Stringer-Richardson Motor Company, and also Josh Thorpe. The note was made payable to the Stringer-Richardson Motor Company at Shreveport, La., and the original amount of the note was $1,-083.75.

Appellee’s petition alleged in substance the execution of the note by Dyson, the indorsement of it by the Stringer-Richardson Motor Company, and its purchase from that company by appellee at its office in the city of Shreveport, state of Louisiana. The petition showed several amounts that had been paid on the note at different times and prayed for judgment for the balance due as against Dyson and the Stringer-Richardson Motor Company, and the members of that partnership individually, and also for interest, as *142 provided in the note, at the rate of 10 per cent, per annum, and for attorney’s fees, as stipulated in the note.

The petition further alleged in substance that the note sued on was secured by chattel mortgage lien on a certain Hudson automobile, which was described definitely, and in that connection the petition alleged that the defendant Josh Thorpe was setting up some character of claim to the automobile on which a chattel mortgage lien was asserted, and as against him it was prayed, only, that the chattel mortgage lien asserted by appellee be foreclosed.

The case was tried to the court without a jury, and resulted in a judgment in favor of the appellee against Dyson, the Stringer-Richardson Motor Company, and the members of that partnership individually, for the full amount claimed by appellee to be due on the note, together with interest and attorney’s fees, as prayed.

In due time, after the suit was filed, all defendants answered and among other things, in due order of pleading, interposed a plea in abatemertt of the suit on the ground that appellee was a private corporation domiciled in the state of Louisiana, and that it was without a permit to do business, or to solicit business, in the state of Texas, and prayed that the suit be dismissed. The defendant Josh Thorpe further answered that he was a purchaser of the automobile on which appel-lee asserted a chattel mortgage lien and that he .paid valuable consideration for the automobile without knowledge or notice that there was any chattel mortgage on the automobile, and that there was no such mortgage of record at the time he purchased the automobile.

The trial court, after hearing the evidence touching the plea in abatement, overruled that plea and rendered judgment, as we have stated above, against the maker and indorsers of the note, as prayed by the appellee, but found that the defendant Josh Thorpe was a purchaser, for valuable consideration, of the automobile on which appellee asserted a mortgage lien, and that at the time of his purchase he had no notice of the existence of the asserted chattel mortgage, and therefore did not foreclose appellee’s asserted chattel mortgage lien.

All defendants, with the exception of Josh Thorpe, have appealed from the judgment against them and challenge its correctness on two grounds. The first ground is that the ap-pellee, never having been issued a permit to do business in the state of Texas, as required by the law of this state -(article 1529, R. S. 1925), said corporation was without authority to do business in the state of Texas and could not, therefore, maintain this suit against appellants, and that therefore the trial court was in error in overruling their plea in abatement. The second ground upon which the judgment is challenged is in substance that the undisputed evidence adduced upon the trial showed that appellee was engaged in intrastate commerce when it purchased the note herein sued on and was soliciting business and doing business in the state of Texas without lawful permit, and that therefore the trial court erroneously overruled the plea in abatement. Both of these contentions are earnestly and vigorously urged by learned counsel for appellants, and they are denied with equal earnestness by counsel for appellee.

The trial court, upon request, prepared and filed findings of fact and conclusions of law upon which the judgment rests, and these findings and conclusions are challenged by appellants only in so far as the trial court found that the purchase by appellee of the note sued on did not constitute doing business by appellee in the state of Texas, and that appel-lee did not solicit business in Texas, as claimed by appellants in their plea in abatement. '

We shall dispose of both of appellants’ contentions together without treating them separately.

The strongest evidence offered in support of the plea in abatement by appellants was that of the witness R. T. Lippard. Mr. Lippard testified in substance that he was a resident of the city of Dallas in the state of Texas,' and that he was the wholesale representative of the Dickson Motor Company, a private corporation domiciled in the city of Shreveport, state of Louisiana; that the duties of his employment required him to enter into contracts for his corporation with automobile retail dealers in the state of Texas to handle Hudson-Essex automobiles; that in pursuance of his duties he entered into a contract for his corporation with the Stringer-Richardson Motor Company of Hemphill, in Sabine county, Tex., by the terms of which that partnership agreed to handle, that is, purchase and sell, Hudson-Essex automobiles; that after he had entered into this contract with the Stringer-Richardson Motor Company he inquired of the members of that partnership as to any arrangement they had, if any, for financing the business of the partnership, and was informed that the partnership, up to that time, had no arrangement for financing its business, and he thereupon told the members of that partnership that the appellee in this case was engaged in the business of purchasing automobile paper, that is, notes and securities, for the price of automobiles of the Hudson-Essex make, and that appellee would be glad, he was sure, to handle all automobile paper and securities that the Stringer-Richardson Motor Company might care to turn over to appellee; that he (witness) had in his possession at the time blank contract forms and rate sheets that were used by appellee in the transaction of its business and showed these blank contracts and rate sheets to one of the members of the Stringer-Richardson Motor Company and in fact delivered some of *143 them to this member of the firm. This witness further testified in substance that he got his information touching the business of appellee from a Mr. Phillips, who, the witness stated, was “an officer” of appellee corporation; that Mr. Phillips, in the office .of appellee at Shreveport, La., “suggested” to witness that he try to get business for appel-lee in Texas, and the witness stated that he did, on two or three occasions, try to get business for appellee in Texas, once at Nacog-doches and once at Lufkin and once at Hemp-hill. In fact, Mr.

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

Related

Bahlke v. Byram
78 A.2d 384 (District of Columbia Court of Appeals, 1951)
Leake v. Equitable Discount Corporation
234 S.W.2d 114 (Court of Appeals of Texas, 1950)
W. O. Stringer v. Motors SEC.
17 S.W.2d 144 (Court of Appeals of Texas, 1929)
J. B. Mann v. Motors SEC. Co.
17 S.W.2d 144 (Court of Appeals of Texas, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
17 S.W.2d 141, 1929 Tex. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyson-v-motors-securities-co-texapp-1929.