Herring v. Houston Nat. Exch. Bank

241 S.W. 534, 1922 Tex. App. LEXIS 863
CourtCourt of Appeals of Texas
DecidedMarch 15, 1922
DocketNo. 8264.
StatusPublished
Cited by10 cases

This text of 241 S.W. 534 (Herring v. Houston Nat. Exch. Bank) 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
Herring v. Houston Nat. Exch. Bank, 241 S.W. 534, 1922 Tex. App. LEXIS 863 (Tex. Ct. App. 1922).

Opinion

LANE, J.

This suit was brought by ap-pellee, Houston National Exchange Bank, against J. A. Herring, Sanford Dean, and Walter Sayles, in their capacity as penitentiary commissioners of the state of Texas, to recover upon three certain promissory notes, each for the sum of $31,250, and payable at Houston, Tex., theretofore executed by the defendants’ predecessors in office, and by them delivered to Ft. Bend Cotton Oil Company in part payment for about three acres of land in Ft. Bend county, Tex.,¡ together with all improvements and appurtenances thereto belonging, consisting of a fully equipped oil mill and certain personal property, and for a foreclosure of the lien given upon said property to secure the payment of said notes.

Plaintiff prayed for the issuance of a peremptory writ of mandamus against the defendants, requiring them to pay the amount due on said notes, or so much thereof as might remain unpaid after the proceeds of the sale of the aforesaid property has been applied toward the payment of said debt, and also prayed for the issuance of a writ of injunction restraining the defendants as such commissioners from in any manner pledging or hypothecating the income of the prison system for the years 1921 and 1922 pending this suit, unless and until said debt shall be paid or payment provided therefor out of said income.

The plaintiff alleged the sale of the oil mill properties to the prison board, the execution by said board of the above-mentioned notes, and the execution of a deed of trust upon said property to secure the payment of the same, the transfer of said notes to plaintiff before maturity, and its ownership thereof.

Plaintiff further alleged that the Thirty-Seventh Legislature of the state of Texas passed an act, which was approved on the 2d day of September, 1921 (Acts 37th Leg. 1st Called Sess. c. - 53), by which all the proceeds arising from the operation of the prison system of the state of Texas were appropriated to the payment of the expenses necessary to operate said system, and by which it was also provided:

“That out of the proceeds there shall also be paid all other debts of the prison commission for which no specific appropriation has been made.”

It alleged that no specific appropriation had been made to pay the debt sued for, and that, by reason of the act of the Thirty-Seventh Legislature above mentioned, it became the mandatory duty .of the defendants, as prison commissioners, to pay the indebtedness sued for out of the proceeds arising from the operation of said prison system during the years 1921, 1922, and 1923; *536 that defendants, as such commissioners, had ample funds arising from the operation of said prison system for the year 1921 to pay said debt; that said commissioners had failed and refused, and still refuse, to pay the indebtedness sued upon, and that they contemplated borrowing money and pledging the crops and income to arise from the operation of said prison system for the year 1922 to the repayment of such borrowed money, without making any provision for the payment of plaintiff’s debt, and that, unless they are restrained from so doing, defendants will pledge such proceeds to the payment of other debts than plaintiff’s debt, to its irreparable damage. The prayer was as here-inbefore stated.

On the 28th day of December, 1921, the defendants, as individuals, filed their plea of privilege to be sued in Walker county, Tex., the county of their residence. This j>lea was in manner and form as required by law, and no contest thereof was filed by the plaintiff, and on the same day — that is, December 28, 1921 — and before their plea of privilege was presented to the court, and without making any reference to said plea, the defendants, answering the plaintiff’s suit against them as prison commissioners of the state of Texas, demurred generally to the allegations of the plaintiff’s petition, upon the grounds that it appears therefrom that plaintiff’s suit is a suit against the state of Texas, without permission of the Legislature of said state, and therefore same could not be maintained, and in no event could it be maintained for the purpose of enforcing payment of the notes sued upon, because the prison commissioners had no lawful authority to execute said notes, but, to the contrary, they were specially forbidden by law to either execute or pay them.

Answering to the merits of the plaintiff’s suit, the defendants denied, first, that the prison commission has ample funds arising from the operation of the prison during the year 1921 to pay the notes sued on; second, that defendants contemplate borrowing money and pledging the crops and income arising and to arise from the operation of the prison system during the year 1922 to the payment of such borrowed money, either with or without making provision for payment of the notes here sued upon; third, that unless restrained from so doing they will pledge the proceeds arising from the operation of the prison system, cither to the payment of indebtedness other than that alleged in plaintiff’s petition, or otherwise: fourth, that they contemplate in any manner, or for any purpose pledging or hypothe-cating the present or future income of. the prison system during the years 1921, 1922, or 1923, or for any period of time, for any purpose; fifth, that the alleged purchase of said land, in part payment for which the notes here sued upon are alleged to have been executed, had been, prior to such alleged purchase, submitted to and approved by the Legislature; sixth, that "aid alleged notes now constitute, or have ever constituted, a valid and subsisting debt or obligation either against these defendants, or against the board of prison commissioners, or against the state of Texas; seventh, that the payment of these notes has been specifically authorized by the Legislature; and alleging that defendants are expressly precluded by law from paying same, either from the proceeds or income arising from and accruing to the prison system, or otherwise.

Replying to the defendants’ answer, the plaintiff filed the following pleading:

“Now comes the plaintiff with leave of the court already had, and files this its trial amendment, and says:
“That the property described in plaintiff’s original petition consists almost entirely of machinery used in the establishment and operation of a cotton seed oil mill.
“That, while there is certain land embraced in the purchase from the Ft. Bend Cotton Oil Company in the transaction described in said petition, the land consists only of one town lot 50 feet by 85 feet in size and 1.44 acres of land and 2.59 acres of land, and being the land on which the machinery and buildings constituting the Ft. Bend Cotton Oil Company’s mill is situated.
“That the value of the land as compared with the machinery and its appurtenances is negligible, the land having a value of, to wit, not exceeding $250, while the machinery and appurtenances were at the time of said purchase by the prison commission, of the reasonable value of $125,000, and the purchase of the land by the prison commission and the conveyance of same to the prison commission by the Ft.

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Bluebook (online)
241 S.W. 534, 1922 Tex. App. LEXIS 863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herring-v-houston-nat-exch-bank-texapp-1922.