Lindley v. Merchants' & Farmers' State Bank

264 S.W. 159
CourtCourt of Appeals of Texas
DecidedFebruary 20, 1924
DocketNo. 6722.
StatusPublished
Cited by9 cases

This text of 264 S.W. 159 (Lindley v. Merchants' & Farmers' State 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
Lindley v. Merchants' & Farmers' State Bank, 264 S.W. 159 (Tex. Ct. App. 1924).

Opinion

McCLENDON, C. j.

This appeal is from an interlocutory order overruling a plea of privilege filed by Dr. R. D. Lindley, in which he sought to have the cause removed as to him to Dallas county, where he resided.

John W. Philp, F. R. Friend, W. H. Browning, Jr., R. S. Carmichael, and Ira J. Russell joined in the appeal, asserting that the trial court committed error in refusing to hear pleas of privilege filed by them, and in continuing such pleas to the next term of court without prejudice. In so far as the appeal of these latter appellant’s is concerned, it should be dismissed, for the reason that the order continuing their pleas of privilege was not one from which an appeal will lie. The trial court had the discretion to continue the pleas until a subsequent term of court. Any abuse of that discretion was not reviewable by appeal, but, if at all, by mandamus.

The original suit was filed December 26, 1921, by La Coste National Bank against Merchants’ & Farmers’ State Bank, upon three noninterest-bearing certificates of deposit, which had been executed by the latter bank in favor of Planters’ Bonded Warehouse Company, and by such company indorsed to the La Coste Bank. On January 10, 1922, Sellstrom Hardware Company, on behalf of itself and about two hundred others similarly situated, intervened, claiming an interest in the fund. They also implead-ed Dr. Lindley and his coappellants. As the case in its present aspects involves only the right of the hardware company and those similarly situated to maintain jurisdiction of the case as to Dr. Lindley, in Bastrop county, we will refer to the interveners hardware company et al. as plaintiffs, and Dr. Lindley and his coappellants as defendants.

The grounds of recovery against defendants will be given below; in connection with the opposition filed by plaintiffs to the plea of privilege. The latter plea was filed by Dr. Lindley on June 19, 1922, and is in general statutory form, denying that any of the exceptions exist which would authorize suit to be brought against him in any county other than that of his residence. No other pleadings were filed by .him until February 13, 1923.

On July .14, 1922, plaintiffs filed a sworn answer or contest to this plea of privilege, in which they alleged various acts of fraud committed by agents of defendants in Bas-trop county, entitling them, as they alleged, to a personal judgment against defendants. The allegations of this answer are somewhat prolix, and for our present purposes may be summarized as follows:

That defendants had associated themselves together under the name of Planters’ Bonded Warehouse Company, to further a scheme to defraud and cheat plaintiffs and others; had caused to be executed, on October 1, 1920, a. declaration of trust, and had employed various agents to represent said company, giving them credentials upon letterheads showing that the company had a capital of $1,060,000; that John W. Philp was chairman of the board, and the other defendants its directors; that during the spring and summer of 1921 defendants’ agents, acting under their authority, had secured subscriptions to stock to said concern from the various plaintiffs in amounts stated in an exhibit to the petition, under representations that the money would be deposited in bank and not used except for the purpose of erecting a warehouse at Elgin, Tex.; that it was never intended to carry out these representations, but that they were fraudulently made *161 for tlie*purpose of obtaining money from plaintiffs.

The plea of privilege was beard and overruled on February 13, 1923, and notice of appeal given.

'Upon tbe bearing Dr. Lindley testified that be bad never bad any connection witb tbe. Planters’ Bonded Warehouse Company; was not a stockholder or otherwise interested, and bad never authorized any one to use Ms name in connection therewith; that about December 21, 1920, be learned that bis name was being used in connection with the concern, and he went at once to tbe office of A. O. Sarvis, who was referred to in some of the agents’ credentials as trustee, and who appears to have been the general manager of tbe company, and objected tp any use of bis name' in this connection ; and that he was then told by Sarvis that .he would not use bis name any more; that later, on March 1, 1921, Sarvis wrote him a letter, which was introduced in evidence, and reads:

“This will acknowledge receipt of your resignation from the organization committee of the Planters’ Bonded Warehouse Company, December 21, 1920. Owing to the fact that the writer has been out of town most of the time, have neglected acknowledging receipt of same befpre now.”

This letter was signed by Planters’ Bond ed Warehouse Company, by A. O. Sarvis, Trustee.

Dr. Lindley denied having any knowledge whatever of the operations of Sarvis or the. company in Bastrop county; or that he knew that any one had been sent there;, that he authorized any one to go to Bastrop county representing him; and generally denied authority of any one to use his name in connection with the concern.

Sarvis testified that he did have authority from Dr. Lindley to use his name in connection with the organization of the company or trust, but stated that Dr. Lindley had come to him on December 21, 1920, and resigned and severed his connections therewith, and the letter of March 1st was written in confirmation of this resignation.

The evidence was sufficient to establish the representations alleged to have been made by the agents of the company; that they were falsely and fraudulently made and relied upon by plaintiffs to their détriment. The evidence showed, however, that these representations were made in the spring or summer of 1921, long after Dr. Lindley had severed his connection with the company, if in fact he was ever connected with it.

On the same day this plea was heard, February 13, 1923, the following pleadings were filed by defendants and orders entered thereon by the court: Motion to quash citation upon defendants, and order overruling it; motion to sever intervention from original suit and dismiss intervention, and order overruling it; answer to the merits- containing general demurrer and various special exceptions, and order overruling demurrer and exceptions; motion ruling plaintiffs for costs, and order sustaining it and continuing the ease upon plaintiffs’ request to the next term of court. The motion to sever and dismiss and the answer to the merits each recited that it was filed subject to the plea of privilege.

Appellees contend that the plea of privilege was waived by each of the following acts of the defendants: Filing motion to quash citation; filing and obtaining ruling upon motion to sever and dismiss plaintiffs’ plea of intervention; invoking the court’s action upon demurrer and exceptions to the merits of the case; and ruling plaintiff for costs.

Whether the mere filing of a motion to quash citation, which is overruled, operates as a waiver of a plea of privilege mav be questioned. It is undoubtedly the rule that a defendant filing a plea of privilege is in duty bound to facilitate its prompt determination, and any substantial delay caused by him in having the plea heard, other than for the purpose of getting ready for trial upon the plea itself, will constitute a waiver.

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Bluebook (online)
264 S.W. 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindley-v-merchants-farmers-state-bank-texapp-1924.