Holleman v. Halliburton Company

450 S.W.2d 883, 1970 Tex. App. LEXIS 2551
CourtCourt of Appeals of Texas
DecidedJanuary 30, 1970
Docket17083
StatusPublished
Cited by5 cases

This text of 450 S.W.2d 883 (Holleman v. Halliburton Company) 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
Holleman v. Halliburton Company, 450 S.W.2d 883, 1970 Tex. App. LEXIS 2551 (Tex. Ct. App. 1970).

Opinion

OPINION

LANGDON, Justice.

This appeal is from a summary judgment.

The Halliburton Company, appellee, initiated suit against B. J. Holleman on a promissory note and then filed a motion for summary judgment against appellant with attached affidavit and exhibits. Appellant filed sworn pleadings and opposing affidavit.

In its appeal from the summary judgment the appellant asserts that the court erred in failing to find that the following matters were raised as issues of fact: (1) lack of consideration; (2) waiver and estoppel to enforce the alleged note (a) as binding obligation of appellant, and ,(b) against appellant at time suit filed; (3) fraud in securing appellant’s signature ; and (4) the balance due on the note.

We affirm.

The record reflects that the appellant signed three separate legal instruments acknowledging that a just debt was owed to the appellee. The first of such instruments was a guaranty agreement dated April IS, 1965. At this time Comanche Oil, Inc., hereinafter referred to as Comanche, owed appellee $15,765.33 as a valid past due obligation for materials, equipment and services furnished to it for oil field work done in the states of Ohio, Indiana and Michigan. In consideration of ap-pellee temporarily withholding legal action against Comanche and of extending additional credit to it, B. J. Holleman, appellant, and R. A. Sellers (not a party), executed and delivered a letter of guaranty unconditionally guaranteeing the payment of the delinquent account in the sum of $15,765.33, as well as any future indebtedness of Comanche up to a limit of $30,000.-00 whether such indebtedness was in the form of notes, bills or open account. It was recited in the letter of guaranty that Sellers and Holleman, the appellant, were to be primarily liable for the indebtedness assumed by them. At the time he executed the letter of guaranty the appellant, B. J. Holleman, was the President and one of the principal stockholders of Comanche Oil, Inc. He has at no time denied the execution of the guaranty agreement. (Emphasis ours.) *885 The second acknowledgment of indebtedness was in the form of the promissory note.

The appellee, in reliance upon the letter of guaranty, continued to extend credit to Comanche. As of November 30, 1965, Comanche was indebted to appellee in the amount of $30,571.09. To evidence the then existing indebtedness to appellee as per the letter of guaranty, the appellant, Holleman, and R. A. Sellers, each individually, and Comanche Oil, Inc., by and through its President, B. J. Holleman, executed a note dated November 15, 1965, in the principal sum of $30,000.00. Under the terms of this note the makers promised to pay on demand to appellee such amount with interest at the rate of seven per cent (7%) per annum from date until paid. The note provided that the liabilities of the makers shall be joint and several. Appellant has at no time denied the execution of the note. (Emphasis ours.)

On January 31, 1966, the sum of $130.30 was paid on the note leaving a principal balance due in the amount of $29,869.70. On June 30, 1966, appellant, individually, in order to secure payment of the note, executed and delivered to appellee a mortgage on certain oil, gas and mineral leases in Lincoln County, Oklahoma. This was the third acknowledgment of the debt. Therein the appellant, as the mortgagor, stated: “* * * the MORTGAGOR is indebted and hereby acknowledges such indebtedness to the MORTGAGEE (appel-lee) in the amount of Twenty Nine Thousand Eight Hundred Sixty Nine and 7%o ($29,869.70). * * *” (Emphasis ours.) Appellant has at no time denied the execution of this instrument.

On February 21, 1968, the appellee released to one J. D. McQuillen all of its interests covered in the mortgage for $1,000.-00 which sum was applied to the principal of the note. This left a balance due on the note in the amount of $28,869.70 which included principal, interest and attorney’s fees. The latter figure is the amount sued upon by appellee. Appellant signed the instrument which provided that the sum of $1,000.00 be paid to appellee, yet in his affidavit he disclaims any knowledge of it until sometime in 1969. He makes no complaint as to the payment or the fact the note was reduced by such sum. He makes no denial that the $1,000.00 was applied to the note.

In his reply (pleading) to the motion for summary judgment the appellant says that his affidavit raises fact issues in connection with the alleged cause of action including fact issues on want of or failure of consideration, due date of obligation and amount of indebtedness, if any, between the parties. No mention is made in the reply as to fraud, waiver or estoppel which are raised for the first time on appeal. (Emphasis ours.)

An affidavit was filed by appellant in opposition to the motion for summary judgment. He then filed “Defendant’s Supplemental Petition and Cross-Action.” In the latter he claimed the appellee, in attempting to perform a contract to furnish materials and labor in connection with cementing procedures for Comanche on the No. 1 Barker, Milford, Indiana well, failed to perform in a good and workmanlike manner and as a direct result thereof Comanche was damaged by at least $50,000.00 and the charges for material and labor of approximately $8,000.00 were valueless to Comanche.

The judgment appealed from recites that “IT IS FURTHER THE ORDER OF JUDGMENT AND DECREE of this Court that the Cross Action of Comanche Oil, Inc., a corporation, and defendant B. J. Holleman against the plaintiff Halliburton Company be and the same is hereby severed from this cause of action and the Clerk of this Court is hereby ordered to set up a separate docket under a separate heading for the claim of Comanche Oil, Inc. and B. J. Holleman against the Halliburton Company.” No complaint is made on this appeal as to severance of the cross-action.

*886 Appellant’s point on consideration states: “Appellant’s opposing affidavit clearly raises an issue of whether said alleged note was signed by appellant for any reason other than a convenience record-wise for appellee. * * *”

This is not a viable complaint. It is in direct conflict with cases holding that such a note cannot be contradicted by parol representations of the payee that the maker of the note was not to be held liable thereon. Jones v. Hubbard, 302 S.W.2d 493 (Waco Tex.Civ.App., 1957, ref., n.r.e.); Rule 166-A, Texas Rules of Civil Procedure, providing that the affidavits shall set forth such facts as would be admissible in evidence; McPherson v. Johnson, 436 S.W.2d 930, 933 (Amarillo Tex.Civ.App., 1968, ref., n.r.e.) ; Howeth v. Davenport, 311 S. W.2d 480 (San Antonio Tex.Civ.App., 1958, ref., n.r.e.). In the latter case the Court held that the testimony of the maker signing the note on representation that the note would merely serve as a memorandum and would never be presented for payment was inadmissible -under the parol evidence rule. Sanders v. Cloud, 409 S.W.2d 876

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Bluebook (online)
450 S.W.2d 883, 1970 Tex. App. LEXIS 2551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holleman-v-halliburton-company-texapp-1970.