Lummus Cotton Gin Co. v. Arnold

151 Tenn. 540
CourtTennessee Supreme Court
DecidedApril 15, 1924
StatusPublished
Cited by10 cases

This text of 151 Tenn. 540 (Lummus Cotton Gin Co. v. Arnold) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lummus Cotton Gin Co. v. Arnold, 151 Tenn. 540 (Tenn. 1924).

Opinions

Mr. Justice Hall

delivered the opinion of the Court.

The bill in this cause was filed by complainant, Lum-mus Cotton Gin Company (a foreign corporation), with its principal office and place of business located in the city of Columbus, State of Georgia, against the defendants W. R. Arnold, H. T. Sansom, J. B. Waldrop, E. D. Cooper, and A. A. Robins, to recover upon two promissory notes mentioned and described in the bill.

The bill alleged that on September 20, 1920, complainant sold and delivered to defendants and the Farmers’ [543]*543Co-operative Gin Company (a corporation), -with its office and place of business located at Pinson, in Madison county, Tenn., one 3/80 Saw Lummus automatic air blast ginning outfit complete; that the consideration for said sale was the sum of $7,539.39, one-third of which was paid in cash; that two notes for the sum of $2,513.13 each, representing the remainder of the purchase price of said machinery, were executed and delivered by defendants and the Farmer’s Co-Operative Gin Company to complainant; that one of said deferred purchase-money notes matured and became due and payable January 1, 1921, and the other January 1, 1922, that the sum of $1,300 had been paid on thé note that matured January 1, 1921, but that nothing had been paid on the other note; that both of said notes contained a provision for the payment of ten per cent, attorney’s fees in the event same were not paid at maturity and were collected by an attorney; that the amount then due complainant on said two notes was $3,726.20, principal and interest and attorney’s fees.

The bill alleged that numerous demands had been made upon defendants for the payment of the balance due on said notes, which were long past due, but defendants had failed and refused to pay said balance. The bill further alleged that said ginning outfit was sold to the defendants and the Farmers’ Co-Operative Gin Company under and pursuant to a certain conditional sales contract, by the terms of which the title to said machinery was retained by complainant until the deferred pur-chaseúnoney notes should be fully paid; that the Farmers’ Co-Operative Gin Company had been adjudged a [544]*544bankrupt by the District Court of the United States for the Eastern Division of the "Western District of Tennessee ; that complainant had filed a petition in said bankruptcy proceeding, setting forth that said ginning outfit, which was scheduled as an asset of the Farmers’ CoOperative Gin Company, was sold under a conditional sales contract, and alleging that it was entitled to repossess itself of said machinery and sell the same to satisfy the balance due' on the purchase price, or to have the trustee in bankruptcy sell the same and apply the proceeds on said notes; that said machinery had been sold by the trustee in bankruptcy, but that no disposition had been made of the proceeds of said sale; that the amount realized from the sale of said ginning outfit by the trustee in bankruptcy would be shown in the proof.

The prayer of the bill was for a decree against defendants for the amount due on said notes, with interest and attorney’s fees, less such sum as might be realized from a sale of the property by the trustee in bankruptcy, and for general relief.

Defendants answered the bill. In their answer they set up the following defenses:

(1) They denied that complainant had qualified to do business in Tennessee.

(2) That defendants signed the contract for the sale and purchase of said ginning outfit and the notes sued on in the capacity of directors of the Farmers ’ Co-Operative Gin Company only, and did not intend to become personally liable on said notes. The answer averred that it was expressly understood between defendants and complainant’s agent, at the time they signed the con[545]*545tract for the sale and purchase of said ginning outfit and the notes sued on, that they were not to be personally liable on said contract and notes.

(3) That said notes, in so far as defendants were concerned, were without consideration, and defendants were not liable thereon.

On the hearing had upon the pleadings and proof, the ^chancellor dismissed complainant’s bill and taxed it with the costs of the cause. From this decree complainant appealed to this court and has assigned errors.

Through its first, second, third, fourth, and fifth assignments of error it is urged that the chancellor committed error in admitting, over the objection of complainant, evidence offered by defendants to the effect that it was expressly agreed and understood between complainant’s agent and defendants, at the time the latter signed said contract to purchase said ginning outfit and the notes sued on, that they were not to be personally liable on said contract and notes.; that this action of the chancellor was erroneous for the following reasons:

(a) Said evidence was irrelevant and immaterial.

(b) That said evidence could not be heard to alter, vary, or contradict the terms of the written contract and notes signed by said defendants. Therefore defendants’ exceptions to same should have been sustained and said evidence excluded.

Though its sixth assignment of error it is urged by complainant that the chancellor committed error in dismissing complainant’s bill and taxing it with the costs of the cause, because there was no competent evidence in the record to the effect that there was an agreement [546]*546that defendants should not become personally liable on the contract and notes sued on; that the notes and contract upon which plaintiff’s action is predicated cannot be altered, varied, or contradicted by parol evidence; that defendants are estopped, by reason of the written contract, to set np or rely upon any alleged verbal agreement which they claimed to have had with the agent of complainant who solicited the contract.

Through its seventh assignment of error complainant insists that the chancellor erred in not holding that complainant was a corporation chartered and organized under the laws of the State of Georgia, and in not holding that defendants were estopped to deny complainant’s corporate existence, because complainant’s corporate existence was properly proved, and the evidence shows that defendants dealt and contracted with complainant as a corporation.

Through its eighth and ninth assignments of error complainant insists that the chancellor erred in holding that there was competent or material evidence introduced to show that complainant had not domesticated or complied with the statutes of Tennessee requiring foreign corporations to file an abstract of their charters with the secretary of State before they can become qualified to do business in Tennessee.

Through its tenth assignment of error complainant insists that the chancellor erred in not' holding that the transaction forming the predicate of complainant’s suit was an interstate transaction, and that it was not necessary for complainant to qualify to do business in this State before entering into said contract with defend[547]*547ants, and in not granting complaiant a decree against defendants fox the amount found to be due upon the notes sued on, including interest and attorney’s fees..

These are, in substance, the contentions of complainant made in this court.

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Bluebook (online)
151 Tenn. 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lummus-cotton-gin-co-v-arnold-tenn-1924.