Mason v. Prince

120 S.W.2d 1087
CourtCourt of Appeals of Texas
DecidedSeptember 22, 1938
DocketNo. 3746.
StatusPublished
Cited by1 cases

This text of 120 S.W.2d 1087 (Mason v. Prince) 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
Mason v. Prince, 120 S.W.2d 1087 (Tex. Ct. App. 1938).

Opinion

WALTHALL, Justice.

This is a suit by W. D. Prince, Receiver of the Lloyds of Texas, appellee, filed on May 26, 1934, in the 101st Judicial District Court, and subsequently transferred to the 44th District Court of Dallas County, Texas, against H. B. Mason, appellant, an underwriter of the Lloyds of Texas, to recover on the latter’s subscription contract the sum of $1,220, which sum is appellant’s several and pro rata liability on losses and claims which have accrued against the Exchange on policies issued, from the time he became an underwriter on January 18, 1929, until the cancellation of his power of attorney at a meeting of the underwriters at the Baker Hotel on April 14, 1930. Appellee, in-addition to appellant’s several and pro rata liability on losses and claims which have accrued against the Exchange, sought to recover the sum of $400 as appellant’s part of the expenses incurred in administering the estate in receivership since May 16, 1930, the date on which the estate was placed in the hands of a receiver, upon application of the Attorney General of Texas. Recovery for administration expense was abandoned on motion for judgment.

Appellant answered, setting up plea of privilege, pleas in abatement, pleas to the jurisdiction of the court, and other dilatory pleas and exceptions, defense of fraud inducing the execution of the subscription contract, and failure of consideration, all-of which pleas and defenses were waived.

Appellant defended on the ground that he revoked his power of attorney on May *1088 3, 1929, by letter dated May 2nd, addressed to the attorney in fact, and received by him on May 3, 1929.

Appellee by supplemental petition plead that appellant was prohibited from successfully asserting his plea of revocation by reason of the finding of the Master in Chancery in the original suit, to which appellant was a party. That under proper Orders of Reference the Master in Chancery found appellant did not terminate his subscription contract until April 14, 1930. That appellant did not reserve any exception to the findings of the Master, or to the order of the Court confirming and adopting same. That such finding and approval by the Court constitute an adjudication adverse ' to appellant’s plea, and in the absence of an objection thereto is conclusive upon him, and effectually precludes him from asserting the revocation of his power of attorney on May 3, 1929. Appellee further plead that appellant was estopped to assert that he had revoked his power of attorney on May 3, 1929, and had waived such defense because of his participating as an underwriter in a meeting of the Lloyds of Texas on April 14, 1930, and seconding the motion to cancel the powers of attorney and transfer to the Insurance Commission the assets of the Exchange for immediate liquidation with knowledge of the facts he now pleads to defeat recovery on his underwriter’s contract — to-wit, his alleged revocation on May 3, 1929. Appellee further alleged that the attorney in fact did not comply with the instructions contained in the letters of May 2 and 4, 1929. That the attorney in fact continued to write policies of insurance on the faith of appellant’s subscription to the surplus of the Exchange, continued to list appellant as an underwriter on the books of the Exchange up to the appointment of a receiver on May 6, 1930, listed appellant as an underwriter in the annual report filed on February 8, 1930, with the Insurance Commission at Austin, and on December 31, 1929, represented to the examiner of the Insurance Commission that appellant was an underwriter. That policies of insurance were issued and credit was extended to the Exchange because of his apparent status as an underwriter. That appellant knew he was being held out to the public as an underwriter and contributor to the surplus of the Exchange. That the rights of creditors have intervened. That appellant-neglected to bring suit to cancel and rescind his underwriter’s contract until June 6, 1930, after the Exchange had been adjudged insolvent and a receiver appointed to wind up its affairs, and that by reason of such facts appellant was estopped from asserting that he had revoked his subscription contract on May 3, 1929, and to deny his liability for the debts, claims, losses and expenses which accrued between January 18, 1929, and the termination of his power of attorney on April 14, 1930.

The case was tried before a jury. At the close of the testimony appellee filed its motion for an instructed verdict in the sum of $1,220, defendant’s several and pro rata liability on the unpaid losses due by the estate. This request was overruled by the court, to which appellant duly excepted and same is reserved by proper bill of exception.

The jury found that appellant revoked his power of attorney on May 3, 1929. That he did not thereafter abandon his revocation and that he participated in a meeting of the underwriters on April 14, 1930, as an underwriter of the Exchange.

The undisputed evidence discloses that in the event appellant revoked his power of attorney on May 3, 1929, and such revocation becomes effective upon receipt of notice thereof, appellant’s liability is $51.-44. In the event his alleged revocation does not become effective until three months thereafter, as provided by the terms of the underwriter’s contract, his liability is $488.46. In the event the appellant’s subscription contract was terminated on April 14, 1930, his liability is the sum of $1,220%

Appellant asked that- judgment be rendered on the verdict against him for $51.-44. Appellee filed motion for judgment notwithstanding the verdict, and in the alternative, on the verdict. After notice and hearing the court granted appellee judgment for $1,220.

Appellant duly perfected his appeal.

Opinion

In view of the disposition we have concluded to make of this- case it becomes unnecessary to state the findings of the jury on the facts submitted more than to say that appellant participated as an underwriter in the meeting of the underwriters of the Lloyds of Texas on April 14, 1930 at the Baker Hotel in Dallas, *1089 Texas, the trial court having entered judgment for appellee on appellee’s motion non obstante veredicto for the sum of $1,220, from which judgment this appeal is prosecuted.

In the discussion we make of the case we think the issues submitted in appellant’s several propositions and appellee’s counter propositions are sufficiently made to appear, without stating them severally. There is but little, if any, controversy on the facts.

Dr. Mason’s sole defense, as we view it, consists of a plea of revocation of his subscription contract by his letters of May 2nd and May 4th, 1929.

Appellee by supplemental petition, as stated, plead that appellant was prohibited from asserting his plea of revocation by reason of the finding of the Master in Chancery in the original suit, in which suit - appellant was a party; that under proper Orders of Reference the Master in Chancery found that appellant did not terminate his subscription contract until April 14, 1930; that appellant did not reserve any exception to the finding of the Master in Chancery or to the order of the Court confirming and adopting such finding.

The statement of facts covers about 227 pages and is too extensive to copy, even briefly, the facts therein contained.

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Related

Miller v. Cercy
386 S.W.2d 627 (Court of Appeals of Texas, 1965)

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120 S.W.2d 1087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-prince-texapp-1938.