Mann v. Mitchell

241 S.W. 715, 1922 Tex. App. LEXIS 913
CourtCourt of Appeals of Texas
DecidedApril 28, 1922
Docket(2550.)
StatusPublished
Cited by10 cases

This text of 241 S.W. 715 (Mann v. Mitchell) 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
Mann v. Mitchell, 241 S.W. 715, 1922 Tex. App. LEXIS 913 (Tex. Ct. App. 1922).

Opinion

HODGES, J.

On January 11, 1916, J. W. Mitchell, as receiver for the Commonwealth Bonding & Casualty Insurance Company, an insolvent corporation, instituted this suit against “T. J. Mann” 'to recover upon a promissory note. The petition alleged among other things, that on the 30th day of June, 1911, the defendant, Mann, executed.and delivered to the Commonwealth Bonding & Casualty Insurance Company his certain promissory note for the sum of $1,750, due June 30, 1916, bearing interest at the rate of 6 per cent, per annum from date and containing the usual clause for 10 per cent, attorney’s fees if placed in the hands of an attorney for collection. The note was described as due and payable at Fort Worth, Tex., and that defendant promised and became liable to pay to the bonding company the sum of money stated therein, together with the interest and attorney’s fees stipulated. It was also alleged that the note provided that interest thereon should be paid annually, and that in the event of a failure' to pay the same in 10 days after it became due the holder was authorized to bring suit, and that the plaintiff as the holder brings this suit under and by virtue of that stipulation. It was further alleged that at the time the note was | executed and delivered the defendant delivered as collateral security therefor five shares of stock in the Commercial National Bank of Brady.

In a second count it was alleged that the defendant, Mann, on the 30th day of June, 1911, subscribed in writing’for stock of the bonding company, a corporation, of the value of $1,750, and thereby agreed and contracted to purchase from the bonding company *716 that amount of its capital stock and pay therefor in the city of Port Worth the sum of money above mentioned and that defendant thereby promised and became liable to pay the bonding company that amount. In the prayer for relief plaintiff asked for judgment upon the note — principal, interest, and attorney’s fees — and in the alternative for judgment against the defendant for the amount of money due on the subscription contract above referred to. Citation was, issued upon that petition and served upon the appellant, “J. T. Mann,” who in due time filed one or. more answers, the contents of which are not in the record. For some undisclosed reason the case remained upon the docket for several years without final disposition. On April 11, 1921, Mitchell, the receiver, filed an amended original petition, in which he describes his cause of action substantially as follows: That heretofore, to wit, on June 30, 1911, the defendant J. T. Mann, executed and delivered his certain promissory note in writing to the Commonwealth Organisation Company, whereby he 'promised to pay to the order of that company, at Fort Worth, Tex., the sum of $1,-750, together with interest thereon at the rate of 6 per cent, per annum from date until paid; also stipulating for the usual '10 per cent, collection- fees in case' the note was placed in the hands of an attorney for collection. That thereafter for a valuable consideration, the Commonwealth Organization Company transferred and indorsed the note to the Commonwealth Bonding & Casualty Insurance Company. That at the time the defendant executed the note above referred to he also delivered to the payee thereof five shares of the capital stock of the Commercial National Bank of Brady, Tex., being certificate No. 137, in the name of James T. Mann, as collateral security for the payment of the note.

In a second count it was alleged: That if for any reason plaintiff should be denied the recovery upon the note, he should be allowed to recover against the defendant the full amount hereof claimed for this reason: That on September 18, 1915, the Commonwealth Bonding & Casualty Insurance Company, a corporation, was adjudged to be insolvent, and the plaintiff, Mitchell; had been appointed its. receiver. That at and before that time the defendant was a subscriber to the capital stock of the insolvent corporation. That the sum of money sued for was for the purchase price and agreed value of the shares of capital stock subscribed for by the defendant. That the stock had been issued to the defendant and carried in his name upon the books of the company. Defendant had. participated in their meetings, and obtained credit upon the strength of his capital stock, and at the time the corporation became insolvent and .the receiver was appointed defendant had not paid his subscriptions for stock.

The amended petition also contained this further averment:

“This plaintiff would show that the said unpaid subscriptions herein sought to be recovered is the same subject-matter and identical cause of action heretofore pleaded by this .plaintiff in his original petition filed herein, and that the amount of such subscription for unpaid capital stock is identical with the amount of the principal of the note hereinbefore described and sued on. By reason of the facts' herein shown the defendant is precluded and estopped as against this plaintiff representing creditors of said Commonwealth Bonding & Casualty Insurance Company to deny or in any wise defeat his liability for said unpaid subscription to said capital stock of said corporation. Therefore this plaintiff prays in the alternative only that in the event for any reason he is denied a recovery upon the note heretofore sued on, then that he have judgment for the said unpaid subscriptions of defendant to the capital stock of Commonwealth Bonding & Casualty Insurance Company,” etc.

This amendment purports upon its face to be a substitute for the original petition filed on Januafy 11, 1916.

The appellant, J: T. Mann, in a third amended original answer, pleaded limitation of four years, both by special exceptions and in bar. This appears to have been the only defense relied on in the trial court. The exceptions were overruled, and a judgment rendered for the full amount of the debt sued for.

A number of assignments of error are presented, but, with one or two exceptions, they all raise in different forms the same ques-. tion, that of limitation. The contention is that both the pleadings of the receiver and the proof showed, as a njatter of law, that a second and different cause of action was presented* in the amended original petition, which was filed more than four years after the note described and indebtedness had matured. Unless that contention is sustained by the record, then the judgment should be afiirmed.

Logically the first question is: Do the pleadings' disclose two separate and distinct causes of action? Both the original and the amended petitions describe a note for $1,-750, executed on the 30th day of June, 1911, due June 30, 1916, bearing interest at the rate of 6 per cent, per annum, and providing for the usual attorney’s fees. The original petition gives as the name of the payee the Commonwealth Bonding <6 Casualty Insurance Company, and the name of payor as T. J, Mann; while the amended petition alleges that the note was executed and delivered to the Commonwealth Organisation Company and was later transferred and indorsed to the Commonwealth Bonding & Casualty Insurance Company, and that the name of the *717 payor was J. T. Mann.

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Bluebook (online)
241 S.W. 715, 1922 Tex. App. LEXIS 913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mann-v-mitchell-texapp-1922.