Hughes v. Sanders

243 S.W.2d 211, 1951 Tex. App. LEXIS 1696
CourtCourt of Appeals of Texas
DecidedOctober 24, 1951
DocketNo. 12361
StatusPublished
Cited by5 cases

This text of 243 S.W.2d 211 (Hughes v. Sanders) 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
Hughes v. Sanders, 243 S.W.2d 211, 1951 Tex. App. LEXIS 1696 (Tex. Ct. App. 1951).

Opinion

POPE, Justice.

This is an original proceeding brought under Article 1824, T.R.C.S., Vernon’s Ann. Civ.St. art. 1824, seeking a writ of mandamus ordering the Hon. P. C. Sanders, District Judge, and others to proceed with the trial of a case which by the trial court’s order has been abated pending the trial of another suit that was filed earlier. Both suits are pending in the same -court. The nature and history of the two actions will be briefly summarized.

First suit: Leonard Hyatt sued William E. Hughes, the Mercury Life and Health Company, and others, and alleged that on July 28, 1944, they breached his ten-year general agency contract dated September 10, 1943. It was further alleged that on May 6, 1944, Mercury executed a second general agency contract with Hughes, and that Mercury in its actions of breaching the Hyatt -contract and in making the new Hughes contract had no corporate power or authority to do either. The power of the corporation concerns both Hyatt’s and Hughes’ contracts. However, the pleadings allege the date of the breach of Hyatt’s contract to be in July and the date of the execution of the Hughes’ contract to be in May, about two months earlier, and the power of the corporation may be some different on those two dates. Yet the issue [213]*213bearing on which of the two contracts was effective, rested on the powers of the corporation’s officers and directors to do what they did as to each contract.

Subsequent events resulted in a realignment of parties. Hyatt was ousted from the operation of Mercury’s affairs as general agent when the Hughes contract was made, but on January 7, 1947, was reinstated through the action of an annual policyholders’ meeting. Hyatt v. Mercury Life & Health Co., Tex.Civ.App., 202 S.W.2d 320. Hughes, following that meeting, was ousted. Hyatt then, as general agent, •took over the office and affairs for Mercury, and dismissed Mercury from his suit. Hughes on the other hand had been Mercury’s ally in defending the Hyatt action, but now became the actor against Mercury ■as well as Hyatt by way of a cross-action. The cross-action alleged the invalidity of the election of officers in the meeting on January 20, 1947, by reason of a conspiracy and a fraudulent election, and sought damages by reason of the breach of the Hughes general agent’s contract. It is seen that Hughes now was asserting an action against his former ally, Mercury.

Second Suit: About one year after filing the cross-action and while the Hughes •cross-action was still pending in the Hyatt suit, Hughes commenced a separate action in the same court against both Hyatt and Mercury, and others. That second suit alleged the Hughes general agency contract dated May 6, 1944, its wrongful cancellation in January, 1947, and prayed for damages against both Mercury and Hyatt for breach of the contract. This suit also sought damages against Hyatt for tortiously inducing its breach. Mercury and Hyatt answered by saying that the officers and directors of Mercury did not have the power to make the Hughes contract in the face of the pre-existing Hyatt contract, and also that Hughes had breached his contract. Hughes obtained a setting for his second-filed suit and Mercury and Hyatt urged their plea to abate the suit until the first-filed Hyatt suit was tried. This plea was sustained and the case abated until the former suit was tried. Immediately before the plea in abatement, filed in the second suit, came on to be heard, Hughes sought and obtained leave to dismiss his cross-action against Mercury in the first suit. The granting of this dismissal effectively cut Mercury loose as a party, and it ceased to be a party in that action, though, at different stages of that proceeding, it had been aligned first with Hughes and later with Hyatt. Mercury did continue as a joint defendant along with Hyatt in the second suit.

From the standpoint of parties, Mercury is a stranger to the first suit and is a defendant in the second. From the standpoint of the causes of action, the issue of Mercury’s power to cancel the Hyatt contract and execute the Hughes contract thereafter is common to both suits. The first suit is a claim by Hyatt for damages arising between May 6, 1944, the date Hy-att’s contract was . cancelled and he was ousted, and January 7, 1947, the date he was reinstated. It also asserts tort liability of Hughes. The second suit is a claim by Hughes for damages arising after January 7, 1947, the date his contract was can-celled and he was ousted. The second suit, unlike the first, contains the pleading that Hyatt tortiously induced the breach of Hughes’ contract.

The theory of Hyatt’s and Mercury’s plea in abatement is that the issue of Mercury’s corporate authority lies at the bottom of both the Hyatt and the Hughes contract, that it was first raised in the first suit, and that should it be proved that Mercury had no authority to cancel the Hyatt contract and also no authority to execute the Hughes contract, Hughes’ second suit would be defeated. Upon such theory the lack of authority to make the Hughes contract would decide the issue not only in the first case but also in the second suit. Hyatt and Mercury state that the first suit should be tried and, in the event of a finding that the Hughes contract was executed without corporate authority, the second suit would be avoided. On the other hand, if there should be a finding that Mercury did have authority to make the Hughes contract, then Hughes could proceed with his second suit, so Mercury could assert its defense that Hughes was the one who breached the contract.

[214]*214Mercury, if this could be accomplished, would be in the enviable position of being able to win the second suit in which it is a party, by compelling' a trial of a case between two other parties and in which case it is not a party.

In other words, Mercury, though not a party to the first suit, could win in a suit in which it is a party. Hughes, on the other hand, would be put to two trials to win against Mercury. We do not think a rule sound that permits Mercury to win without a trial and requires Hughes to try two cases in order to prevail against Mercury. At bottom this is the reason for the rule that the parties to the two suits should be substantially the same when a plea in abatement is sustained. Otherwise, as in this instance, Mercury can win without a trial, but can lose only after its adversary has been put to two trials.

A non-party ordinarily protests the bind-ingness of any finding upon him in a proceeding in which is is not present, can not adduce evidence within its knowledge, can not be represented, or perhaps not even know when the tidal is conducted, all of which are good reasons for the rule that the parties must be substantially the same in order to abate an action. Here, however, Mercury desires that the first suit be abated, not for these reasons, but, upon analysis, because an adverse judgment can be no judgment against it; whereas a. favorable judgment can wipe out the claim against it. Mercury would receive all advantages with no risks, possibly a judgment without Mercury ever submitting to a trial, a victory without a contest. We do not think this is the office of a plea in abatement. We think the true situation for a plea in abatement would be illustrated better were Mercury to get into the first suit as a party where it would then present an instance of similar parties disputing similar issues.

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Related

MacWhyte Co. v. Gonzalez
688 S.W.2d 205 (Court of Appeals of Texas, 1985)
McFarling v. Lapham
489 S.W.2d 435 (Court of Appeals of Texas, 1972)
Mercury Life & Health Company v. Hughes
271 S.W.2d 842 (Court of Appeals of Texas, 1954)

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Bluebook (online)
243 S.W.2d 211, 1951 Tex. App. LEXIS 1696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-v-sanders-texapp-1951.