Farmers State Bank of Meridian v. National Fire Ins. Co. of Hartford

169 S.W.2d 545, 1943 Tex. App. LEXIS 208
CourtCourt of Appeals of Texas
DecidedMarch 4, 1943
DocketNo. 2535
StatusPublished
Cited by11 cases

This text of 169 S.W.2d 545 (Farmers State Bank of Meridian v. National Fire Ins. Co. of Hartford) 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
Farmers State Bank of Meridian v. National Fire Ins. Co. of Hartford, 169 S.W.2d 545, 1943 Tex. App. LEXIS 208 (Tex. Ct. App. 1943).

Opinion

RICE, Chief Justice.

Ben K. Green, the named assured in a wool policy issued by the National Fire Insurance Company of Hartford, Connecticut, on October 17, 1940, brought suit in one of the district courts of McLennan County, Texas, against the Insurance Company, seeking recovery, under the terms of his policy, for the value of wool allegedly destroyed by fire. On June 6, 1941, Farmers State Bank of Meridian, Texas, intervened in the case, alleging that Green, by instrument in writing dated October 10, 1940, had assigned to it the entire amount owing him by the Insurance Company under the terms of the policy of fire insurance, and prayed that judgment be rendered in its favor against the Insurance Company for the sum of $2,100 with interest from October 10, 1940, at six per cent per annum. The Insurance Company answered, denying any liability under the terms of the policy.

On September 13, 1940, the Insurance Company was served with a writ of garnishment issued out of the District Court of Erath County, Texas, in cause No. 7468, [547]*547styled Dublin National Bank v. Ben K. Green, defendant, and the National Fire Insurance Company, garnishee. The garnishment proceedings were ancillary to an action for debt brought by the Dublin Bank against Green in the District Court of Erath County.

On September 23, 1940, the Insurance Company filed its answer in said garnishment proceedings, admitting the execution and delivery by it to Green of a policy of wool insurance; that the latter was contending that the Insurance Company was liable to him under the terms of the policy because of the alleged destruction by fire of the wool covered thereby; and denied that it was liable in any amount under or because of said contract of fire insurance.

Thereafter, the suit brought by Green in the District Court of McLennan County against the Insurance Company proceeded to trial, and on June 27, 1941, judgment was rendered therein in favor of the inter-vener, Farmers State Bank of Meridian, that it recover of the Insurance Company the sum of $2,172.90, with legal interest from date of judgment, and that Ben K. Green recover of said Company the sum of $30.04.

The Insurance Company perfected its appeal to this court, wherein the judgment of the District Court of McLennan County was affirmed and judgment here rendered in favor of intervener and against the Insurance Company, as principal, and the Fidelity & Deposit Company of Maryland, as surety on its supersedeas bond, for the amount of said judgment and costs.' The Supreme Court, on September 30, 1942, denied the Insurance Company’s petition for writ of error, and the judgment appealed from became final. Mandate was issued by this court to the District Court of Mc-Lennan County.

On October 24, 1942, the Insurance Company filed in the District Court of Erath County its amended answer in garnishment and its interpleader, by which it tendered into said court the amount of money, together with interest thereon, adjudged against it by the District Court of McLennan County; alleged that it had deposited with the Clerk of the District Court of Erath County a cashier’s check for the sum of $2,386.66, and requested the court to determine to which of the various claimants thereto the same belonged; impleaded the Farmers State Bank of Meridian, Texas, Dublin National Bank of Dublin, Texas, and Ben K. Green; prayed that it be allowed an attorney’s fee of $250 out of the funds so deposited by it, and that it be discharged from further liability. The cashier’s check above referred to was in fact deposited as alleged. In its interpleader the Insurance Company pleaded that judgment had been rendered against it in the District Court of McLennan County in favor of the Farmers State Bank of Meridian and Ben K. Green, that said judgment had become final, and that it desired to pay the amount due under said judgment to whoever was legally entitled thereto.

Thereafter and on November 6, 1942, the Farmers State Bank, having been served with process issued out of the District Court of Erath County on said interpleader, filed its plea of privilege in said cause, asserting its right to be sued in Bosque County, Texas, and subject to said plea, filed its original answer.

On November 13, 1942, the controverting affidavit of the Insurance Company to the Meridian Bank’s plea of privilege was filed, and the Court set same for hearing on January 21, 1943. On November 28, 1942, the Dublin Bank’s controverting affidavit to the Meridian Bank’s plea of privilege was filed, and the hearing thereon was set for January 21, 1943. Likewise, on November 28, 1942, the Dublin Batik filed its answer to the Insurance Company’s interpleader, asserting the priority of its claim to the deposited proceeds of the insurance policy issued to Ben K. Green and on which judgment had been rendered in favor of Farmers State Bank of Meridian, Texas.

On January 22, 1943, the hearing on the Meridian Bank’s plea of privilege was reset, without prejudice, for February 8, 1943, by agreement of counsel.

On February 2, 1943, the Farmers State Bank of Meridian filed in this court its' original application, setting up the substance of the facts hereinabove set forth, and praying that the Insurance Company and the Dublin Bank be enjoined and prohibited from taking any proceeding in the garnishment and interpleader suit in Erath County designed to prevent the collection and enforcement by Relator of the judgment rendered in its favor against the Insurance Company by the District Court of McLennan County, and that the Honor-, able Ernest Belcher, Judge of the District Court of Erath County, be commanded to dismiss said garnishment and interpleader [548]*548proceedings from the docket of his court insofar as the same affects or will interfere with the collection and enforcement of said judgment by Relator.

The Honorable Ernest Belcher, Judge of the District Court of Erath County, has answered in this proceeding, stating that he has taken no action in said garnishment and interpleader proceedings pending in his court, that he has passed and postponed the hearing on the Meridian Bank’s plea of privilege to an indefinite date pending the action of this court in this cause, and praying that this court enter whatever judgment in this matter that is proper and that he be discharged with his costs.

The Insurance Company and the Dublin Bank have each, in their respective answers, challenged the jurisdiction of this court to issue any order of injunction or prohibition affecting or interfering with the jurisdiction of the District Court of Erath County in cause No. 7468, pending in said court, being the garnishment and interpleader hereinabove referred to. Said respondents contend that relator’s application shows on its face that the jurisdiction of the District Court of Erath County attached to matters connected with said pending cause No. 7468 prior to the acquiring of jurisdiction of the District Court of Mc-Lennan County in the case of Ben K. Green against said Insurance Company. They further contend that relator’s application shows upon its face that the Insurance Company is not undertaking in said cause pending in the District Court of Erath County to relitigate any question of fact or law involved in the trial of the suit of Ben K. Green against the Insurance Company in the District Court of McLennan County; that on the contrary such Insurance Company has tendered into the District Court of Erath County the full amount of money adjudged against it by the District Court of McLennan County.

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169 S.W.2d 545, 1943 Tex. App. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-state-bank-of-meridian-v-national-fire-ins-co-of-hartford-texapp-1943.