Hay v. Behrens Drug Co.

214 S.W. 940, 1919 Tex. App. LEXIS 1000
CourtCourt of Appeals of Texas
DecidedJuly 5, 1919
DocketNo. 6108.
StatusPublished
Cited by8 cases

This text of 214 S.W. 940 (Hay v. Behrens Drug 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
Hay v. Behrens Drug Co., 214 S.W. 940, 1919 Tex. App. LEXIS 1000 (Tex. Ct. App. 1919).

Opinion

BEADY, J.

This suit was filed by appellee in the justice court, precinct No. 1, of Mc-Lennan county, Tex., on an account for the sum of $171.33, for merchandise sold to E. E. ¡Hay. It was alleged that Hay sold his business and stock in bulk to W. C. Reddell, who promised and agreed to pay the account of appellee; that Reddell thereafter, and in about two weeks, sold the business to the appellant, L. A. Bletch, who, in turn, promised and agreed as a part of the consideration to pay the debt of appellee. It was averred that the provisions of the Bulk Sales Law (Rev. St. arts. 3971-3973) were not complied with by either R. E. Hay in the sale to Reddell, nor in the sale by Reddell to L. A. Bletch, and that the promises to pay the debt of appellee were expressly made for its use and benefit.

Appellant, L. A. Bletch, pleaded in abatement that he was not a proper party to the suit, and could not be held individually liable for a violation of the Bulk Sales Law, but could only be held in garnishment. He also ifieaded failure of consideration and the statute of frauds, and alleged that Hay had sold the stock of goods to Reddell and took $500 worth of negotiable promissory notes therefor; that Hay had sold the notes to his brother, Albert Bletch, before maturity and for value; and that Albert Bletch, in turn, sold the notes to appellant before maturity and without notice of any indebtedness against the stock, and that he took the stock and fixtures from Reddell at his request, and only as a last resort to collect his notes.

Judgment was rendered in the justice court for appellee against all the defendants, • R. E. Hay, W. C. Reddell, and L. A. Bletch, and with judgment over in favor of Hay against Reddell, and in favor of Reddell against L. A. Bletch, and for cancellation of a note then outstanding. On appeal the case was tried in the county court without a jury, and a similar judgment rendered in favor of appellee, from which L. A. Bletch has appealed.

Findings of Fact.

The trial court filed the following findings of fact:

“(1) I find that the defendant R. E. Hay was engaged in business as a retail druggist in the town of Eddy, Tex.; that he purchased of and from plaintiff, Behrens Drug Company, certain goods, wares, and merchandise, and became indebted to it in the amount of the itemized verified account herein sued upon.
“(2) That the defendant R. E. L. Hay, during the early part of January, 1918, took charge of said business as the agent of and for his son, R. E. Hay; that on or about January 25, 1918, R. E. L. Hay, acting with authority as such agent, and for and upon behalf of R. E. Hay, sold said stock of merchandise and fixtures, etc., to the defendant W. C. Reddell, who in payment therefor executed a series of five notes, payable to R. E. Hay, aggregating the sum of $500, and agreed and promised as a part of the consideration for such transfer to pay off and dischar-ge the indebtedness due by R. E. Hay to Behrens Drug Company, in the sum of $171.33.
“(3) That the notes in question were by the said R. E. Hay transferred and delivered without recourse to one Albert Bletch, who, in turn, sold and assigned same to the defendant L. A. Bletch for value and before maturity.
“(4) That on or about the 10th day of February, 1918, the defendant W. C. Reddell sold and delivered said stock of merchandise and fixtures to the defendant L. A. Bletch; the consideration being the cancellation and delivery of said notes aggregating the sum of $500, and the express promise of the defendant L. A. Bletch to pay off and discharge the indebtedness due plaintiff, Behrens Drug Company; that the defendant L. A. Bletch immediately went into possession of said merchandise and fixtures and disposed of same.
“(5) That the stock of merchandise and fixtures, at the time of the respective sales, were of the reasonable value of between $1,000 and $1,400; that at the date of the sale and transfer from Reddell to Bletch none of the notes in question were due.
“(6) I further find that neither the defendant W. C. Reddell nor L. A. Blotch demanded or received from their respective transferror a written list of names and addresses of the creditors of such seller or transferror, with the amount of indebtedness due and owing to each and certified by the seller or transferror under oath to be a full, accurate, and complete list of his creditors and of his indebtedness, and that neither did, at least 10 days before taking possession of such merchandise and fixtures, or paying therefor, notify personally or by registered mail any of the creditors, nor plaintiff, Behrens Drug Company, of the 'proposed sale, of the price, terms, and conditions thereof, as required by articles 3971 and 3972* of the Revised Statutes of 1911, state of Texas, as amended by the Acts of the Regular Session of the Thirty-Fourth Legislature, and commonly known as the ‘Bulk Sales Law,’ nor in any other way attempt to comply' with the Bulk Sales Law.”

These findings are supported by the evidence.

The court also filed the following conclusions of law:

“(1) That the respective sales or transfers were null and void under the terms of articles 3971. and 3972 of the Revised Civil Statutes of 1911, as amended, and that the defendants W. C. Reddell and L. A. Bletch became receivers, and are to be held accountable to creditors for all goods, wares, and fixtures that went into their possession by virtue of such sale or transfer.
“(2) That the defendants W. C. Reddell and L. A. Bletch having taken charge of said merchandise and fixtures, without complying with *942 the terms of the above enumerated statutes, and disposed of same, the value of which was far in excess of the plaintiffs claim, the plaintiff is entitled to recover as against them the full amount of its said claim.
“(3) That the defendants W. 0. Reddell and L. A. Bleteh are each liable to the plaintiff for the full amount of its claim upon the express promises .of each, respectively, to pay off and discharge the claim of plaintiff; said promises having been made for the use and benefit of the plaintiff.
“(4) That judgment should be rendered against the defendants R. E. Hay, W. O. Reddell, and L. A. Bleteh, jointly and severally, for the full amount of plaintiff’s daim, with 6 per cent, per annum interest from date of judgment and all costs; the case having been appealed by defendant Bleteh from justice court; that judgment should also be rendered in favor of plaintiff against the sureties, as such, on the appeal bond of defendant Bleteh; that defendant W. O. Reddell should have his judgment over and against defendant Bleteh, and the sureties on his appeal bond, for any amount he may be compelled to pay hereon, and that the sureties on said appeal bond should have judgment against defendant Bleteh for any amount they may be forced to pay herein; that the defendant R. E. L. Hay should go hence without day and recover his costs in this behalf expended, and judgment has been accordingly so entered —to all of which defendant L. A. Bleteh, in open court, excepts and gives notice of appeal to the honorable Court of Civil'Appeals for the Third Supreme Judicial District of Texas, at Austin, Texas.”

Opinion.

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Cite This Page — Counsel Stack

Bluebook (online)
214 S.W. 940, 1919 Tex. App. LEXIS 1000, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hay-v-behrens-drug-co-texapp-1919.