General Motors Acceptance Corp. v. McCracken

48 S.W.2d 480, 1932 Tex. App. LEXIS 314
CourtCourt of Appeals of Texas
DecidedApril 7, 1932
DocketNo. 2659.
StatusPublished
Cited by4 cases

This text of 48 S.W.2d 480 (General Motors Acceptance Corp. v. McCracken) 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
General Motors Acceptance Corp. v. McCracken, 48 S.W.2d 480, 1932 Tex. App. LEXIS 314 (Tex. Ct. App. 1932).

Opinion

PELPIIREV, C. J.

The statement of the nature and result of the suit presented in appellant’s brief will, in the absence of briefs for appellee, be here substantially adopted.

“Appellant, General Motors Acceptance Corporation plaintiff below, filed this suit in the El Paso County Court at Law. Plea of privilege was filed by the defendant, and the case thereafter transferred to the County Court of Ector County, Texas.

“Plaintiff’s original petition alleges that plaintiff, General Motors Acceptance Corporation, is a corporation incorporated under the *481 laws of the State of New York, and doing business in Texas under a permit duly and legally issued by tbe Secretary of State, and for cause of action states: That on or about December 5, A. D. 19S0, M. L. McGratli sold to the defendant one Tappan range, one Delco gas generator and one Delco gas storage tank, and executed a written conditional sales contract in payment of a deferred balance • of $317.50; that under the terms of such written contract defendant promised to pay to M. L. McGrath, or order, the sum of $317.50, in monthly payments, with interest on past due installments at ten per cent, per annum, and containing a clause for acceleration of maturity in event of default. That the contract was transferred and endorsed for a valuable consideration by M. L. McGrath to plaintiff. That defendant failed and refused to make the payment due Eebruary 5, 1931, and has failed and refused to make any payments thereafter. That plaintiff has exercised its option and declared the entire contract due, being $290.50 principal, $7.93 interest, and $44.76 attorney’s fees, a total of $343.17. That the personal property is located in Ector County, Texas, in possession of defendant, and is of the reasonable value and actual market value of $325.00, and that the above mentioned contract has the effect of a chattel mortgage under the laws of the State of Texas. Plaintiff prayed for judgment on the contract and for foreclosure of the chattel mortgage lien and for general relief.

“Appellee, Ella McCracken, defendant below, filed a general demurrer and general denial, and thereafter filed an amended answer containing a general demurrer, general denial and plea that M. L. McGrath was the agent, servant and employee of the plaintiff, and special denial that plaintiff was an innocent purchaser of the contract, and then pleaded allegations constituting a breach of warranty and concluded with a cross action for $92.00, the same being the cash payment made on the property.”

“Appellant, plaintiff below, then filed its first supplemental petition containing general demurrer, special exception to the plea of agency and general denial, followed by pleading to the effect that the instrument sued upon was a negotiable instrument, and that plaintiff was the holder in due course thereof. This pleading also contained a special denial of the agency, and set out a confession of judgment clause in the contract, with a plea of estoppel.”

A jury having been waived, appellant offered in evidence the original contract involved in the suit. Appellee then moved to dismiss appellant’s suit for failure to prove appellant’s permit to do business in Texas.

The trial court, thereupon, refused to permit the introduction of further evidence, until proof was made of the permit to do business in Texas. Appellant refusing to introduce proof of such permit, the court sustained the motion of appellee and dismissed the cause without prejudice to the rights of either party and adjudged the costs against appellant.

. Opinion. ••

, The only question presented for our consideration here is the correctness of the court’s action in dismissing the cause.

The errors complained of by appellant are presented in its brief in two propositions, viz.:

“1. When plaintiff, a foreign corporation, does not show by its pleading that business out of which the suit arose was transacted in Texas, non-compliance with the Statute requiring permit for a foreign corporation is a defense to be pleaded by defendant, and if not pleaded is waived.
“2. The pleadings in this case do not show that plaintiff was engaged in business- in the State of Texas. Consequently the allegation that plaintiff was a foreign corporation doing business under a permit was surplusage, and unless the issue was properly raised by defendant through plea in bar or abatement, such defense was waived, and the court erred in dismissing plaintiff’s suit.”

Article 1529, Revised Statutes, reads: “Any corporation for pecuniary profit, except as' hereinafter provided, organized or created under the laws of any other State, or of any territory of the United States, or of any municipality of such State or territory, or of any foreign government, sovereignty or municipality^ desiring to transact or solicit business in Texas, or to establish a general or special office in this State, shall file with the Secretary of State a duly certified copy of its articles of incorporation ; and thereupon such official shall issue to such corporation a permit to transact business in this State for a period of ten years from the date of so filing such articles, of incorporation. * * * ”

Article 1536, as amended by Acts 42d Leg., (1931) c. 158, § 1 (Vernon’s Ann. Civ. St. art. 1536), reads: “No such corporation can maintain any suit or action, either legal or equitable,- in any court of this State upon any de-: mand, whether arising out of contract or tort, unless at the time such contract was made, or tort committed, the corporation had filed its articles of incorporation under the provisions of this chapter. * * * ”

The petition of appellant here shows that it is a corporation duly incorporated under the laws of the state of New York; that it is doing business in Texas under a permit duly and legally issued by the secretary of state; that it has an office in El Paso county, Tex.; and that appellant, by virtue of the provisions of the contract between McGrath and appellee, has designated its office in El Paso as the *482 place for tlie payments to be made. Under such allegations, we think, it became necessary for appellant to prove the existence of a permit to do business in Texas, before it would be entitled to recover in this suit. Chapman v. Hallwood Cash Register Co., 32 Tex. Civ. App. 76, 73 S. W. 969, 970; King v. Monitor Drill Co., 42 Tex. Civ. App. 288, 92 S. W. 1046, 1047; Rexall Drug Co. v. Butler Bros. (Tex. Civ. App.) 185 S. W. 989; First State Bank of Bangs v. Jannellen Oil Co. (Tex. Civ. App.) 275 S. W. 210.

In the first ease the Court of Civil Appeals set aside a default judgment in favor of the corporation because its petition failed to contain an allegation that it had secured a permit after alleging that it was a foreign corporation, had an office in Texas, and that all sums of money to be paid by defendant were to become due and payable at Dallas, Dallas county, Tex. The court said: “We conclude that the petition did not entitle plaintiff! to recover, and the action of the court in rendering judgment thereon in favor of plaintiff was fundamental error.”

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Bluebook (online)
48 S.W.2d 480, 1932 Tex. App. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-acceptance-corp-v-mccracken-texapp-1932.