Langley v. Texas Bank & Trust Co.

454 S.W.2d 815, 1970 Tex. App. LEXIS 2007
CourtCourt of Appeals of Texas
DecidedMay 1, 1970
DocketNo. 17428
StatusPublished
Cited by3 cases

This text of 454 S.W.2d 815 (Langley v. Texas Bank & Trust 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
Langley v. Texas Bank & Trust Co., 454 S.W.2d 815, 1970 Tex. App. LEXIS 2007 (Tex. Ct. App. 1970).

Opinion

DIXON, Chief Justice.

Appellants Dr. W. J. Langley and the brokerage firm of Weber, Hall, Cobb & Caudle, Inc. (the latter hereinafter called Weber, Hall), have appealed from a judgment non obstante veredicto in favor of Texas Bank & Trust Company of Dallas (hereinafter called the Bank) in the sum of $39,050.49 against Langley only and the further sum of $77,344.13 jointly and severally against Langley and Weber, Hall.

Weber, Hall filed a cross-action seeking judgment over against Langley and Weber, Hall’s former employee, Leslie L. Stewart, in the event judgment should be rendered against Weber, Hall in favor of the Bank. The court denied recovery on the cross-action.

Langley obtained loans from the Bank and signed notes in these amounts and on these dates: for $63,000 on September 30, 1965; for $44,000 also on September 30, 1965; for $55,000 on October 25, 1965; and for $130,000 on December 13, 1965. The first two loans were secured by real estate, the third loan by oil property. There is a controversy about the security offered for the fourth loan — that of $130,000 on December 13, 1965. It was secured, or at least was supposed to be secured, by a pledge of 1900 shares of Collins Radio Company and 1000 shares of Trans-World Airlines.

Langley made substantial payments on the first three loans, which provided for installment payments, but he did not complete payment in full'."'- He did not pay anything on the fourth loan, which was due in full on January 13, 1966.

The suit against Langley is for the balance alleged to be due on the four notes following Langley’s bankruptcy. It is undisputed that he made many other loans and signed many notes, but only the four above described are involved in this case.

[817]*817The suit against Weber, Hall is concerned only with the $130,000 loan. It is based on a letter typed on a letterhead of Weber, Hall and signed by Leslie Stewart, who at that time was a licensed stock broker’s agent employed by Weber, Hall. The letter is with reference to the shares of stock in Collins Radio Company and Trans-World Airlines. The Bank alleges that it relied on the letter from Weber, Hall, otherwise it would not have made the $130,000 loan to Langley. We copy the letter in full:

Mr. Newell Johnston
Texas Bank & Trust Company
Dallas, Texas
Dear Mr. Johnston:
This letter is to inform you that Dr. W. J. Langley owns 1000 shares of Trans World Airlines and 1900 shares of Collins Radio and has asked us to send these stocks to you. We will have these transferred into his name and send them to you as soon as we receive them from the transfer agent.
Please let me know if you need any additional information.
Sincerely, /s/ Leslie L. Stewart Leslie L. Stewart”

Langley filed a voluntary petition in bankruptcy on October 3, 1966. He received a discharge in bankruptcy on March 16, 1967. His only defense to appellee’s suit is that, having been discharged in bankuptcy, he has been discharged from the payment of his debts, including that of the Bank.

In answer to Langley’s asserted defense the Bank alleges that he obtained the loans in question through fraud in that he induced the Bank to make the loans by making a false financial statement, and also made false representations as to the purpose for which the proceeds of the $130,000 loan were to be used.

JURY VERDICT AND JUDGMENT OF COURT

A jury returned a verdict favorable to Langley and Weber, Hall. Special Issue No. 1 inquired whether the jury found from a preponderance of the evidence that the financial statement delivered by Langley to the Bank was materially false. The jury answered, “It was not materially false.”

Special Issue No. 4 inquired whether the jury found from a preponderance of the evidence that prior to the making of the $130,000 loan of December 13, 1965 Langley represented to the Bank that the proceeds of the loan would be used to develop mining properties and to purchase over-the-counter securities. The jury answered, “No”.

Special Issue No. 8 inquired whether the jury found from a preponderance of the evidence that the Bank made the $130,000 loan of December 13, 1965 to Langley in reliance upon the letter of December 13, 1965 from Weber, Hall addressed to the Bank. The jury answered, “They did not rely.”

Other issues were conditionally submitted, so were not answered.

Langley and Weber, Hall filed motions for judgment in their favor based on the jury verdict. Their motions were overruled. The Bank filed a motion for judgment non obstante veredicto. Its motion was sustained and a judgment signed September 9, 1969 was rendered against Langley and Weber, Hall as stated in the first paragraph of this opinion.

IN RE LANGLEY’S APPEAL

Appellant W. J. Langley rests his appeal on six points of error. In substance they are as follows: (1) there was competent evidence to support the jury’s answer to Special Issue No. 1, (2) and the answer to Special Issue No. 4; (3) there was no competent evidence that would have justified a jury finding favorable to appellee [818]*818to Special Issue No. 3, (4) or to Special Issues Nos. 6 and 7; (5) there was competent evidence that would have supported jury findings favorable to Langley in answer to Special Issues Nos. 2 and 3; and (6) there was competent evidence that would have supported jury findings favorable to Langley in answer to Special Issues Nos. 5, 6 and 7.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Voskamp v. Arnoldy
749 S.W.2d 113 (Court of Appeals of Texas, 1988)
Home State Bank v. Cavett
518 S.W.2d 584 (Court of Appeals of Texas, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
454 S.W.2d 815, 1970 Tex. App. LEXIS 2007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/langley-v-texas-bank-trust-co-texapp-1970.