Jacobson v. Kingsbery

398 S.W.2d 584, 1966 Tex. App. LEXIS 2494
CourtCourt of Appeals of Texas
DecidedJanuary 12, 1966
DocketNo. 11354
StatusPublished
Cited by3 cases

This text of 398 S.W.2d 584 (Jacobson v. Kingsbery) 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
Jacobson v. Kingsbery, 398 S.W.2d 584, 1966 Tex. App. LEXIS 2494 (Tex. Ct. App. 1966).

Opinions

ARCHER, Chief Justice.

This suit was brought by appellants, Phil and Dorothy Jacobson, as lessors under a lease contract, against appellee, John R. Kingsbery, one of the guarantors of the faithful performance of the lease. Neither the lessee nor its assign is a party to the suit.

Appellants seek damages in the amount of $9,489.00, being the undisputed amount of delinquent rentals through December of 1964. Appellee’s Second Amended Original Answer, upon which he went to trial, contains a general denial, a plea that “Under the laws of the State of California, which are controlling herein, plaintiffs were required upon demand by defendant, to pursue whatever rights or remedies they may have against Pyramid before any cause of action can mature in their favor against defendant,” and allegations to the effect that appellants released the primary obligors of the lease and accordingly released appellee. By trial amendment appellee further alleged that if the assignment of the lease from Lucky Boy to Pyramid was not approved by plaintiffs, then the lease was thereupon cancelled and all parties, primary and secondary, were released from liability thereunder.

The cause was tried before a court and jury and the jury’s verdict was favorable to appellee. Final judgment was entered that appellants take nothing by their suit against appellee.

This appeal is founded on 15 points and the first seven are grouped and are to the effect that the trial court having found that plaintiffs were entitled to recover as a matter of law, unless barred therefrom by the affirmative defenses raised by defendant; the court erred in overruling plaintiffs’ motion for instructed verdict and for judgment because there was no evidence, or the evidence was insufficient to support any affirmative defenses; that there is no evidence or the evidence is insufficient to support defendant’s alleged theory of a sale or assignment of the lease in question; that any such sale or assignment would not operate to release the defendant from his obligation as a guarantor on the lease; that there is no credible evidence to support a finding that Pyramid Corporation was solvent, and plaintiffs were required to proceed first against such corporation, and if the evidence could support such finding that such would not operate under the law to relieve the defendant, or constitute a valid defense to the suit.

Points numbered 8 to 12 are that the court erred in rendering judgment on the basis of the jury’s answer to Issue No. 4 to the effect that after the premises were vacated plaintiff attempted to relet the same without advising Sorrells that any reletting of the premises would be for the benefit of the lessee because there is no evidence or the great weight and preponderance of the evidence does not support such finding; and even if such were the case this would not constitute a valid defense; that it was defendant’s burden to obtain a jury finding that plaintiffs had elected to “surrender, abandon, cancel and rescind the said lease,” and did not do so.

[586]*586Points Nos. 13, 14 and 15 are directed to the action of the court in refusing to give plaintiffs’ requested issue inquiring whether or not defendant waived any right to complain of the procedure by which plaintiffs attempted to rent the premises after the abandonment thereof by lessee; that the court erred in failing to permit the plaintiffs to prove the insolvent condition of the companies Lucky Boy and Pyramid Corporation, by the introduction of Exhibit 3-A, the bankruptcy schedules, and finally the court erred in allowing the defendant to open and close the argument before the jury.

Appellee has 14 counterpoints to the effect that appellants in attempting to relet, and by reletting the premises without notifying the lessee or its assigns that such relet-ting was for the benefit and account of lessee, released the lessee from further liability and thereby released appellee as guarantor; that the jury’s answer to Issue No. 4 to the effect that Jacobson did not advise Sorrells that a reletting of the premises would be for the benefit of lessee is supported by sufficient evidence; that the question of notice to Sorrells under Issue No. 4 is the only disputed fact issue presented in connection with appellee’s defense of release of the lessee, and such was established; that the question of notice to Sor-rells constitutes at least one basic element of the defense of release of the lessee; that the court correctly refused to submit appellants’ requested issue inquiring as to the waiver, because appellee had no duty to inform appellants of his defenses, and no evidence that appellee in any way misled appellants concerning his position; that by the law of California appellants are first required to exhaust their remedies against the primary obligors under the lease, and is a substantive right; that the answers of the jury to Issues Nos. 1 through 3, collectively find that the lease was assigned by Lucky Boy to Pyramid with the consent of appellants and are supported by the evidence; that the jury’s findings with respect to Issues Nos. 5 and 6 concerning the financial condition of Pyramid on or about July 2, 1963, and on December 23, 1964 are supported by sufficient evidence; that appel-lee’s demand on July 2, 1963 that appellants first pursue their remedies against Lucky Boy, cannot estop appellee from asserting as a defense that appellants are required to pursue Pyramid; that the court did not err in refusing to admit into evidence appellants’ Exhibit 3-A, being the bankruptcy petition filed by Pyramid because it was hearsay, and if error, such was harmless; that the court correctly allowed appellee to open and close the argument to the jury because the entire submission pertained to appellee’s defenses, and if error such is harmless, and under the law of California when appellants found out that the lease had been assigned to Pyramid they had the option to accept such assignment or of cancelling it, and if the assignment was not accepted such was terminated.

In a trial before a jury, the trial court “found and hereby finds as a matter of law that the plaintiffs are entitled to recover herein as prayed for unless such recovery is barred by the affirmative defenses raised by and on behalf of the defendant herein,” and thereafter, submitting the case to the jury on 6 Special Issues, overruled plaintiffs’ motion for judgment and granted judgment for defendant that plaintiffs take nothing. The parties stipulated that California decisions, statutes, etc. would be considered properly proved up for purposes of citation or reliance thereon.

By a lease contract dated September 2, 1959 plaintiffs let their building to Lucky Boy of San Diego, Inc., the stock of which was owned by Kingsbery, and Kingsbery guaranteed the faithful performance of the terms and conditions of the lease. The building was completed and occupied in January 1960. Sometime after taking possession, Kingsbery sold his stock to Pyramid Corporation, both of which corporations became defunct.

The premises were abandoned by the tenant in August-September 1961.

[587]

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398 S.W.2d 584, 1966 Tex. App. LEXIS 2494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobson-v-kingsbery-texapp-1966.