McKeever v. Brooks-Davis ChevroLet Co.

74 S.W.2d 311, 1934 Tex. App. LEXIS 826
CourtCourt of Appeals of Texas
DecidedJune 22, 1934
DocketNo. 1294.
StatusPublished
Cited by7 cases

This text of 74 S.W.2d 311 (McKeever v. Brooks-Davis ChevroLet 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
McKeever v. Brooks-Davis ChevroLet Co., 74 S.W.2d 311, 1934 Tex. App. LEXIS 826 (Tex. Ct. App. 1934).

Opinion

HICKMAN, Chief Justice.

This is a suit for rent instituted by appellant A. J. McKeevei-, the landlord, against his tenant, Brooks-Davis Chevrolet Company, a corporation. For reasons hereinafter to be noticed, E. W. Harrell and C. B. Pruet were made parties defendant. Pruet impleaded First National Bank of Anson, which bank in turn filed a plea of intervention. From a judgment awarding appellant a recovery against his tenant, Brooks-Davis Chevrolet Company, for the amount sued for, less certain offsets allowed by the trial court, but denying appellant any recovery against any oth *312 er parties to the suit, this appeal has been prosecuted.

Findings of fact and conclusions of law were filed upon appellant’s request, the substance of which, so far as material to an understanding of the issues presented for decision, is as follows: During the period from February 1, 1930, to March 1, 1933, Brooks-Davis Chevrolet Company was a tenant of appellant; the rented premises being a business house in the town of Anson. The tenancy was by virtue of three rental contracts as follows: (1) A written contract covering the period from February 1, 1930, to February 1, 1931, at a rental of $100 per month. (2) An oral contract entered into between the parties in January, 1931, later reduced to writing in August, 1931, covering the period from February 1, 1931, to February 1, 1932, at a rental of $50 per month. (3) An oral contract whereby said tenant leased said property from month to month beginning February 1, 1932, at a rental of $30 per month, under which contract the tenant occupied said property from February 1, 1932, to March 1, 1933. On December 10,1930, Brooks-Davis Chevrolet Company executed and delivered to appellant its promissory note in the principal sum of $420, covering the balance of the rent due, and to become due, under the first rental contract for the period beginning February 1, 1930, and ending February 1, 1931. This note was also signed by E. W. Harrell “at the instance and request of the plaintiff, without any consideration therefor, and as a matter of accommodation solely in order that plaintiff A. J. McKcever by reason of said Harrell’s signature might, be able to sell said note, or borrow money thereon.”

On September 23, 1930, during the period covered by the first rental contract, Brooks-Davis Chevrolet Company executed and delivered to Anson State Bank its promissory note in the principal sum of $4,000, and in order to secure said indebtedness, and as a part of the same transaction, it executed its chattel mortgage on certain personal property, the description of which will be set out hereinafter. This mortgage was filed for registration in the office of tlie county clerk of Jones county on December 11, 1930. During the month of November, 1950, this note and chattel mortgage were duly assigned by Anson State Bank to First National Bank of Anson, which latter bank thereby became the owner and holder of said note and chattel mortgage in due course. Thereafter, on or about June 2,1932, the mortgagor, Brooks-Davis Chevrolet Company, by a written bill of sale of that date, sold, transferred, and delivered to said First National Bank of Anson, the owner of the $4,000 note and mortgage securing same, the property described in and covered by said chattel mortgage in part payment of its mortgage indebtedness, in consideration for which the bank credited said note with the sum of $3,000. Later, and on about February 20, 1933, the bank sold and delivered said property to one C. B. Pruet for a cash consideration then paid by Pruet to the bank. No question is presented as to the correctness of the judgment in favor of appellant against his tenant, Brooks-Davis Chevrolet Company. The foregoing facts will form a sufficient basis for a determination of the rights of the other parties.

We shall first consider the question of the correctness of the judgment denying 'appellant any recovery against the appellee E. W. Harrell. He pleaded want of consideration, and in the findings of fact the trial judge concluded that he signed the note without any consideration therefor and for the accommodation of appellant. This finding is well supported by the evidence. An accommodation party is not liable to the original payee for whose accommodation the note was signed. Negotiable Instruments Act, § 29, art. 5933, R. S. 1925; Brady v. Cobbs (Tex. Civ. App.) 211 S. W. 802; Austin v. Sisk (Tex. Civ. App.) 283 S. W. 535; Central Nat. Bank v. Lawson (Tex. Com. App.) 27 S.W.(2d) 125.

The judgment in favor of Harrell was correct for another reason. It will be borne in mind that the only liability asserted against Harrell was as the maker of the note for $420 evidencing the balance due and to become due as'rent for the first period. The tenant, Brooks-Davis Chevrolet Company, pleaded certain credits and offsets to the indebtedness alleged by appellant, and in open court it was agreed that such credits be allowed to the amount of $353.50. In addition to those credits, the note upon which I-Iarrell’s name appeared bore credits of $320. The trial court concluded that these additional credits, amounting to $353.60, should be applied to the indebtedness which first accrued. No objection was made below, nor is there objection made here, to such application. The balance duo on the $420 note at the time of the trial, including interest and attorney’s fees, was $178.61. The court, by the application of the credits of $353.50, satisfied and discharged this balance, and applied the remainder of said credits upon indebtedness accruing during the second period. In other words, the note executed by Harrell had been fully paid prior to the trial and no judgment could, therefore, have been rendered against him thereon, even though he were not in fact an accommodation party.

*313 Considering the correctness of the judgment as between appellant and the other parties, Pruet and the First National Bank, the controlling question is one of the priority of liens. By the application of the payments ahoye noticed, all indebtedness owing by the tenant to appellant for rents during the period covered by the first contract was discharged. The bank’s chattel mortgage, as above noted, was executed on September 23, 1930, and filed with the county clerk on December 11, 1930. The second rental contract between appellant and Brooks-Davis Chevrolet Company was entered into in January, 1931, for a term beginning on February 1st, thereafter. It is, therefore, made to appear conclusively that the chattel mortgage was registered before the commencement of the second year. The statute, article 5238, provides that the landlord’s lien shall not continue, or be in force, for a longer period than the current contract year. This preferred lien of the landlord is subordinate to a pre-existing, registered chattel mortgage lien. American Type Founders’ Co. v. Nichols, 110 Tex. 4, 214 S. W. 301; Hempstead, etc., v. Cochran, 60 Tex. 620; H. O. Wooten Grocer Co. v. Wade Meat Co. (Tex. Civ. App.) 37 S.W.(2d) 1090; Radford v. Bacon Securities Co. (Tex. Civ. App.) 18 S.W.(2d) 848; Gray v. McFaddin (Tex. Civ. App.) 8 S.W.(2d) 293.

The fact that the bank failed to file its chattel mortgage “forthwith” is unimportant. It was filed prior to the commencement of the period during which the rental accrued, and a failure to file it “forthwith” cannot be availed of by persons acquiring rights in the property subsequently to its registration. Cave v. Talley Co. (Tex. Civ. App.) 298 S. W. 912; Radford v. Bacon Securities Co. (Tex. Civ. App.) 18 S.W.(2d) 848; McCarty Motor Co.

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

Related

Bank of North America v. Kruger
551 S.W.2d 63 (Court of Appeals of Texas, 1977)
Darden v. Harrison
511 S.W.2d 925 (Texas Supreme Court, 1974)
Rees v. Hemisphere Publishing Corp.
11 Conn. Super. Ct. 403 (Connecticut Superior Court, 1943)
Rust v. Rust
117 S.W.2d 59 (Texas Supreme Court, 1938)
Gosdin v. Montgomery
92 S.W.2d 463 (Court of Appeals of Texas, 1936)
West Development Co. v. Crown Bottling Co.
90 S.W.2d 887 (Court of Appeals of Texas, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
74 S.W.2d 311, 1934 Tex. App. LEXIS 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckeever-v-brooks-davis-chevrolet-co-texapp-1934.