European Import Co., Inc. v. Lone Star Co.

596 S.W.2d 287
CourtCourt of Appeals of Texas
DecidedFebruary 28, 1980
Docket17439
StatusPublished
Cited by11 cases

This text of 596 S.W.2d 287 (European Import Co., Inc. v. Lone Star 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
European Import Co., Inc. v. Lone Star Co., 596 S.W.2d 287 (Tex. Ct. App. 1980).

Opinion

DOYLE, Justice.

This appeal results from a suit on a sworn account. Lone Star Company, Inc., appel-lee, brought suit to recover the price of certain liquor and alcoholic beverage merchandise sold to appellant, European Import Company. Appellee also sued appellant, Rose Marie Bagnoli, individually, to recover on her personal guaranty for the company indebtedness.

In answer to the suit, appellant European filed a sworn denial and counter-claimed for damages and statutory penalties for violation of the Texas Liquor Control Act. Appellant Bagnoli denied execution of the guaranty agreement and in the alternative alleged fraud and duress were used in securing execution of the instrument. Trial was to a jury who answered six special issues. Judgment was awarded in favor of appellee against both appellants and European’s counter-claim was denied.

We modify and affirm.

Testimony elicited during the trial showed European Import Company was a package liquor retailer operating several stores in Houston in 1974. Lone Star Company is a liquor wholesaler and entered into numerous transactions with European during 1974 to supply European with alcoholic beverage. During the trial, appellee introduced into evidence unpaid invoices covering these transactions. Mr. Raymond Haired, testifying on behalf of appellee, explained the invoices and the accounting procedures for Lone Star. These invoices totaled $98,621.99 which was the amount set forth in appellee’s pleadings and found by the jury to be due.

Evidence showed that Rose Marie Bagno-li was the president and major stockholder of European during 1974. In February or March of 1974, Mrs. Bagnoli was having financial problems with European. She hired one Dr. William L. Blachman in an effort to revive the failing company. Although there was testimony that after several weeks disagreement arose between Mrs. Bagnoli and Dr. Blachman concerning the operation of European’s business, it appears that some progress was made toward getting the business “back on its- feet.” This prosperity was shortlived, however, and amid arguments of who had the authority to place orders for European with appel-lee and the signing of a guaranty agreement, the company was finally closed by *289 the Internal Revenue Service because of unpaid taxes in November, 1974.

At the conclusion of the testimony six special issues were submitted to the jury which found (1) that European Import Company never ordered the disputed merchandise; (2) that Lone Star delivered the merchandise to European; (3) that European accepted the goods; (4) that the amount due for these goods was $98,621.99; (5) that Rose Marie Bagnoli did execute the guaranty agreement; and (6) that appellee should be awarded attorney’s fees. Based upon these answers the court rendered judgment for appellee and both appellants filed motions for a new trial which were overruled by operation of law.

Appellants bring seven points of error. By points of error one, three, four and five, appellants complain of the trial court’s finding that a sale was consummated between Lone Star and European.

Appellants first complain that ap-pellee failed to prove the elements of a sale. In a suit on a sworn account when a defendant files a sworn denial of the account, a plaintiff must prove his claim by competent evidence without the use of the sworn account. Burrus Mills, Inc. v. Hein, 399 S.W.2d 950 (Tex.Civ.App.-Houston 1966, writ ref’d n. r. e.). Two essential elements of proof in a suit on a sworn account are sale and delivery of the merchandise. Blue Bell, Inc. v. Isbell, 545 S.W.2d 563 (Tex.Civ.App.-El Paso 1976, no writ); Boucher v. City Paint & Supply, Inc., 398 S.W.2d 352 (Tex.Civ.App.-Tyler 1966, no writ).

Appellants contend that delivery does not necessarily prove a sale. Atlas Torpedo Co. v. United States Torpedo Co., 15 S.W.2d 150 (Tex.Civ.App.-Amarillo 1929, no writ). It is their contention that a sale is a contract and as such must comply with certain provisions of the Texas Business & Commerce Code contained in chapter two on Sales. Pursuant to § 2.204 thereof, a contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties; and under § 2.206, an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances.

The jury in answer to special issue number one found that European Import Company did not order the merchandise made the basis of this suit. If the goods were not ordered, then the conduct of the parties must be examined to see if there was an acceptance of appellee’s shipment of the goods so as to constitute a contract by the parties’ conduct.

Appellants cite two cases for their argument that if the goods have not been ordered there is no sale. Johnson v. Gattegno, 267 S.W. 740 (Tex.Civ.App.-El Paso 1924, no writ); Farley v. Clark Equipment Company, 484 S.W.2d 142 (Tex.Civ.App.-Amarillo 1972, writ ref. n. r. e.). In neither of these cases are the facts parallel to the facts'in our case. However, both cases set forth the general rule pertaining to liability for the retention of unordered goods. In the Johnson case the court stated that:

“. . . it must be shown that, after learning of the unauthorized delivery, he in some manner evidenced an intention to appropriate them or ratify the delivery. This may be shown by the retention of the goods after he learned of their receipt and in various other ways.”

In the Farley case the court found that Farley delivered some trailers to Clark Equipment Company under the belief a check from Farley implied an acceptance of the offer to build such trailers. The court held that since the check had been sent to the equipment company by error, no meeting of the minds occurred forming a contract and hence Clark was not bound to accept the trailers.

In every case examined by this court addressing the issue of liability for unordered goods, the courts have held the defendants liable for such goods if they were received and appropriated to their use and were of the value specified in the account. Masterson v. F. W. Heitmann & Co., 38 Tex.Civ.App. 476, 87 S.W. 227 (San Antonio 1905, writ ref’d); Johnson v. Gattegno, supra.

*290 Appellants complain there was no evidence or insufficient evidence to support the jury’s finding to special issue number three that appellant accepted the merchandise which is the basis of this suit.

Evidence in the instant case showed that numerous deliveries were made to European, and many invoices for these deliveries bear a stamp from European showing their acceptance. Although Mrs. Bagnoli denies knowing of the goods, Dr.

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596 S.W.2d 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/european-import-co-inc-v-lone-star-co-texapp-1980.