Green v. American Refining Properties

22 S.W.2d 343
CourtCourt of Appeals of Texas
DecidedNovember 14, 1929
DocketNo. 2325.
StatusPublished
Cited by12 cases

This text of 22 S.W.2d 343 (Green v. American Refining Properties) 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
Green v. American Refining Properties, 22 S.W.2d 343 (Tex. Ct. App. 1929).

Opinion

PELPíIREY, O. J.

There being no dispute as to the correctness of the findings of fact by the trial eouTt, we will here quote them as a statement of facts of the ease:

The court found as follows:

“1. On August 25, 1922, R. M. Waggoner, J. S. Dickey, J. A. Bobo, and Ben Neal, signed as makers, a $3500.00 note, payable to J. I. Staley, who advanced to Ben Neal thereun *344 der, $2500.00; upon learning that his note was being discounted, Waggoner paid J. I. Staley $2500.00 and Ben Neai $650.00 and took the note in September, 1922.

Up to this time W. J. Green was a stranger to the transaction.

“2. Thereafter in February, ⅜>23, without consideration, W. J. Green agreed with R. M. Waggoner, to be responsible for a fourth of any loss to R. M. Waggoner occasioned by his (Waggoner’s) being unable to make the debt out of Neal for whose accommodation the original note as between the parties to it had been executed.

“This agreement by W. J. Green to be responsible for a portion of the debt of another, which debt was incurred originally without request from Green was without consideration.

' “3. Thereafter on November 1, 1923, J. S. Dickey and J. A. Bobo executed their $2625.00 note, payable to Wichita State Bank and Trust Company, due six months from date, said note representing ¾ of the original $3500.00 note above described, and same made payable to the Bank who was acting only as agent of R. M. Waggoner who had turned over to the bank the $3500.00 note for collection.

“This $2625.00 note dated November 1,1923, was executed and accepted by the agent of Waggoner without request from W. J. Green.

“4. Thereafter on November 2, 1923, W. J. Green delivered to Lester Jones, an active officer of the Wichita State Bank and Trust Company, the following instrument in writing:

“ ‘November 2, 1923.

“ ‘Wichita State Bank and Trust Company, ■ Wichita Falls, Texas — Gentlemen: This is, to advise you that I am responsible for the payment of ⅝ of a certain note dated November 1, 1923, in the amount of $2625.00 due six months after date, signed by J. A. Bobo and J. S. Dickey.

“ ‘[Signed] W. J. Green.’

⅝<5. Thereafter on May 1, 1924, J. A. Bobo and J. S. Dickey, executed their renewal note in the principal sum of $2625.00 payable to the Wichita State'Bank and Trust Company, as agent for R. M. Waggoner, due ninety days from date.

“This note was executed and accepted without any request from Green.

“6. Thereafter on May 13,1924, Green wrote on the„J.etter which he had delivered to the Wichita State Bank and Trust Company on November 2, 1923, .the following:

“ ‘May 13, 1924.

“ T agree that this note may be renewed or extended for a period of ninety days from May 1, 1924.

‘“[Signed] W. J. Green.’

“7. Thereafter on July 31, 1924, J. S. Dickey and J. A. Bobo execute^ their $2625.00 note, payable to the Wichita State Bank and Trust Company as agent of R. M. Waggoner, due 120 days from date in renewal of their former note dated May 1, 1924. This note wias given and accepted without any request from W. J. Green.

“8. Thereafter on September 5, 1924, Green wrote on the bottom of the letter, signed by him to the Wichita State Bank and Trust Company, dated November 21, 1923, as follows:

“ ‘September 5, 1924.

“ T agree that this note' may be renewed 120 days from July 31, 1924.

“ ‘[Signed] W. J. Green.’ ,

“9. Thereafter on January 24, 1925, J. S. Dickey and J. A. Bobo executed their $2625.00 note due ninety days from date, payable to the Wichita State Bank and Trust Company, as agent for R. M. Waggoner, which note was given and accepted without request from W. J. Green, and in renewal of the note dated July 31, 1924, which last renewal note dated January 24; 1925, is still an outstanding unpaid obligation.

“10. Thereafter on May 7,1925, W. J. Green executed a note payable to R. M. Waggoner in the principal sum of $942.00 dated May 7, 1925, due ninety days after date with interest from date at the rate of eight per cent per annum, and providing for ten per cent additional upon principal and accrued interest as attorney’s fees if placed in the hands of an .attorney for collection, or if suit be brought thereon, which note was given as evidence of W. J. Green’s obligation to pay ¾ of Wag-goner’s loss, if any, occasioned by Ben Neal’s failure to pay the original $3500.00 obligation.

“11. The American Refining Properties became the owner of the note last above described after its maturity, and under such circumstances as that in its hands said note is subject to all defenses that it would be in the hands of R. M. Waggoner, which note has never been paid.

“12. There was no consideration to support the obligation sued upon herein other than the matters and things above set out.”

The American Refining Properties filed suit on the note in question praying for judgment for principal, interest, and attorney’s fees.

W. J. Green in his answer pleaded both total and partial want of consideration; that the agreement evidenced by the note was a contract of indemnity under which Green agreed toi pay a portion of the debt of a third party in the event Waggoner was unable to collect from the third party; and that the note having come into the hands of the American Refining Properties after maturity was subject to all the defenses it would have been subject to in the hands of Waggoner.

The ease was tried without jury, and the court rendered judgment in favor of the American Refining Properties for the sum of $787.50.

W. J. Green has appealed.

*345 Opinion.

Appellant’s brief contains four assignments of error with three propositions thereunder.

The three propositions present the following questions: (1) That the execution of a note as evidence of a party’s suretyship or guarantyship by one who is not a party to the original transaction, after the original contract has been fully executed and delivered, requires a new and independent consideration and without which there is a total want of consideration and consequently no liability; (2)that an instrument of indemnity is unenforceable and is no consideration for the execution of a note pursuant thereto, subsequently executed, unless the obligee sustains some loss against which the instrument of indemnity protected himand (3) that the court erred in allowing attorney’s fees in the case in the absence of proof that the amount allowed as being agreed upon .to be paid by the holder of the note or as to the reasonable value of such services.

We are of the .opinion that the first proposition is sound and supported by the authorities. King v. Wise (Tex. Com. App.) 282 S. W. 570 ; Jones v. Ritter, 32 Tex. 717; Simmang v. Farnsworth (Tex. Civ. App.) 24 S. W. 541; Baker v. Wahrmund, 5 Tex. Civ. App. 268, 23 S. W. 1023; People’s State Bank v. Fleming-Morton Co. (Tex. Civ. App.) 160 S. W. 648.

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22 S.W.2d 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-american-refining-properties-texapp-1929.