Ellis v. Lamb-Mcashan Co.

278 S.W. 858, 1925 Tex. App. LEXIS 1078
CourtCourt of Appeals of Texas
DecidedJune 13, 1925
DocketNo. 11435.
StatusPublished
Cited by6 cases

This text of 278 S.W. 858 (Ellis v. Lamb-Mcashan 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
Ellis v. Lamb-Mcashan Co., 278 S.W. 858, 1925 Tex. App. LEXIS 1078 (Tex. Ct. App. 1925).

Opinions

This is an appeal from an order of the Seventy-Eighth district court of Wichita county, dated May 1, 1925, granting the prayer of the appellee, Lamb-McAshan Company, for the issuance of a temporary writ of injunction to restrain the sale of certain property situated in the city of Houston, Tex., known as the Beaconfield Apartments. The injunction was granted without a hearing and without notice to appellant G. R. Ellis, upon an amended petition filed by appellee on May 1, 1925. A like writ of injunction was issued in the same case upon the original petition of the Lamb-McAshan Company filed on December 18, 1923, from which an appeal by appellant G. R. Ellis was duly prosecuted, and which was duly considered and determined by us in April, 1924, as will appear from our opinion reported in 264 S.W. 241. In both petitions it appears that, prior to the 3d day of October, 1922, the appellant Ellis had secured a judgment against J. L. Wilkin and R. H. Wilkin and others for the sum of $33,751, and upon that date had caused a writ of garnishment to be issued out of the district court of Wichita county for the Seventy-Eighth judicial district, upon allegations that appellee, the Lamb-McAshan Company, a private corporation, was indebted to said J. L. Wilkin and R. H. Wilkin and others, and had effects belonging to them and each of them, and that each of said judgment defendants were owners of shares in said company and had an interest therein. It further appears in both petitions that the writ of garnishment was served on October 9, 1922, and returned to the district court of Wichita county, after which a judgment by default was entered in favor of G. R. Ellis against the garnishee, the Lamb-McAshan Company. The object of appellee, Lamb-McAshan Company, in both the original and amended petitions mentioned is to set aside the judgment against it by default, on the ground of fraud and for want of proper service, the particulars of which may be ascertained by reference to our said opinion reported in 264 S.W. 241.

On the former appeal, we reversed the order of the district court and vacated the temporary writ of injunction, on the ground that the Lamb-McAshan Company in its answer to the writ railed to sufficiently show a meritorious defense to the judgment by default, and this opinion was affirmed on a writ of error by Section A of the Commission of Appeals and approved by the Supreme Court. See Lamb-McAshan v. Ellis, 270 S.W. 547.

The writ of garnishment, which the judgment by default recites had been duly served upon the Lamb-McAshan Company, commanded that company to appear before the court at its next term to be held at Wichita Falls on the 12th day of March, 1923, then and there to answer upon oath what, if anything, "it was indebted to said judgment defendants or had effects belonging to them in its possession, or what number of shares, if any, any one of defendants had in said Lamb-McAshan Company," etc.

In its petition to set aside said judgment by default, after recitation of the facts constituting the alleged fraud in the procurement of the judgment and of the insufficiency of service of the writ of garnishment, it was alleged that, on the date of service of the writ, to wit, October 9, 1922, the Lamb-McAshan Company was not "indebted" in any manner to J. L. Wilkin or R. H. Wilkin, and the other defendants against whom judgment had been rendered, but failed to deny that the said Wilkins were holders or owners of shares of stock in the Lamb-McAshan Company, alleged to be a corporation. It was because of this failure to so allege and to fully answer the command of the writ of garnishment that we held that the original petition failed to authorize the temporary writ of injunction.

The amended petition now under consideration on the present appeal contains the following matter that was not presented in the original petition upon which the former writ of injunction issued, to wit:

"That on the said October 9, 1922, and March 12, 1923, and May 5, 1923, nor at any time intervening therein, this plaintiff, Lamb-McAshan Company, was not in any manner indebted to said defendants in judgment, J. L. Wilkin and R. H. Wilkin, either or both of them, and that this plaintiff, Lamb-McAshan Company, did not have any effects in its hands of said J. L. Wilkin and R. H. Wilkin, either or both of them, upon any one of said dates, nor at any time from October 9, 1922, to May 5, 1923. That upon all of said dates, October 9, 1922, and March 12, 1923, and May 5, 1923, this plaintiff, Lamb-McAshan Company, did not know of any one who was indebted to said J. L. Wilkin and R. H. Wilkin, either or both of them, or who had effects of said J. L. Wilkin or R. H. Wilkin in their possession. That on the 9th day of October, 1922, the stock book of this plaintiff, Lamb-McAshan Company, showed on its face that the defendant J. L. Wilkin appeared to own 324 shares of stock, evidenced by certificates Nos. 23 for 216 2/3 shares, and 26 for 107 1/3 shares, and that the defendant R. H. Wilkin appeared on said stock book to own 108 shares, evidenced by certificate No. 27, and that the said J. L. Wilkin and R. H. Wilkin had no other or further interest in the plaintiff, Lamb-McAshan Company, than as evidenced by said shares of stock and the certificates therefor.

"This plaintiff would show that, in point of *Page 860 fact, the said J. L. Wilkin and R. H. Wilkin had no real or substantial interest in said shares of stock, and that they were on October 9, 1922, and from and after June 28, 1922, only the nominal owners of said stock, and that they ceased entirely to be even such nominal owners on or about the 5th day of January, 1923, because of the following facts, viz.: That the Wilkin-Hale State Bank, of which said J. L. Wilkin was president, and in which he was a stockholder to the extent of stock of the par value of $69,500, and in which the said R. H. Wilkin was the owner of the capital stock of the aggregate par value of $19,000, had failed and closed its doors some time in March, 1922, and that the banking commissioner of the state of Oklahoma had found it necessary to and had assessed against said J. L. Wilkin, as owner of such stock, and required that he pay the sum of $69,500, and made an assessment against the said R. H. Wilkin of $19,000, both of said assessments having been made by said banking commissioner under and by virtue of the banking laws of the state of Oklahoma, for the purpose of paying off and discharging the indebtedness due by said Wilkin-Hale State Bank to its creditors; and on the 28th day of June, 1922, the said J. L. Wilkin executed in favor of Roy Wolcott, bank commissioner of the state of Oklahoma, his promissory note of said date for the sum of $69,500, payable on October, 2, 1922, with 6 per cent. interest per annum thereon from date, and providing for 10 per cent. attorney's fees if collected by an attorney, with or without suit, if not paid at maturity, and said Wilkin deposited, as security for the payment of said note, said 324 shares of stock in the Lamb-McAshan Company, at Houston, Tex., being the said certificates numbered 23 and 26, and giving the payee in said note the power to sell said stock at public or private sale upon failure to pay the note at maturity, a copy of which note is hereto attached and marked Exhibit 1, and made a part hereof.

"That on the said June 28, 1922, the said R. H. Wilkin executed his note in favor of said Roy Wolcott, bank commissioner of the state of Oklahoma, for the sum of $19,000, payable October 2, 1922, with interest per annum, and with the same conditions and provisions as in the note executed by said J. L. Wilkin, and putting up as collateral said 108 shares of stock in the Lamb-McAshan Company, being certificate No. 27, a copy of which note is hereto attached, and marked Exhibit J and made a part hereof.

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278 S.W. 858, 1925 Tex. App. LEXIS 1078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-lamb-mcashan-co-texapp-1925.