Mercantile National Bank at Dallas v. Hudgens

412 S.W.2d 364, 1967 Tex. App. LEXIS 2803
CourtCourt of Appeals of Texas
DecidedFebruary 10, 1967
Docket16795
StatusPublished
Cited by6 cases

This text of 412 S.W.2d 364 (Mercantile National Bank at Dallas v. Hudgens) 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
Mercantile National Bank at Dallas v. Hudgens, 412 S.W.2d 364, 1967 Tex. App. LEXIS 2803 (Tex. Ct. App. 1967).

Opinion

OPINION

MASSEY, Chief Justice.

Form of the suit was on contract for the furnishing of labor and materials .in connection with a sizeable painting contract, fully accomplished on the part of R. A. Hudgens, plaintiff, and done in connection with the refurbishing of a hotel in Augusta, Georgia.

In connection with the portion of the contract sued upon, same was alleged to be the obligation of Wyatt C. Hedrick, now deceased, for the estate of whom the Mercantile National Bank at Dallas became independent executor. Thus the bank became defendant in plaintiff’s suit.

*366 Following a jury trial judgment was rendered upon verdict in favor of plaintiff, for the full amount allegedly owing under the painting contract. Pursuant to stipulations judgment was furthermore rendered in behalf of the plaintiff for attorney’s fees, if and in the event an award of attorney’s fees were proper under the provisions of Vernon’s Ann.Tex.St. Art. 2226, “Attorney’s fees”.

We hold that plaintiff was justly entitled to the judgment in the amount representing the unpaid balance of his painting contract, but he was not entitled to recover attorney’s fees.

In 1963 there was in existence a corporation called the Bon Air Hotel, Incorporated. Its only property was a hotel building and premises in Augusta,- Georgia. Said building was an old one. The corporation proposed to refurbish and restore it. It was particularly desired by Mr. Wyatt C. Hed-rick that the work be completed for the hotel to be opened in time for the annual “Master’s Golf Tournament” in 1964.

Hedrick was majority stockholder in the Hotel corporation. By March 20th, 1964 Hedrick had also become a substantial creditor thereof. The corporation owed him approximately $65,000.00. It developed that the corporation was under-capitalized, and a few days before March 20th, 1964, the officers thereof had informed plaintiff that it could not pay him the amount of $28,574.95 contractually scheduled to be paid as of March 1, 1964. Plaintiff’s painting contract was with the Hotel corporation. It provided for payments as the work progressed.

Plaintiff prepared to call his workmen off their jobs at the hotel, and to stop deliveries of materials incident to completion of the painting work. Officers of the Hotel corporation discussed with him the probability that something might be arranged by or through Mr. A. B. Cadenhead, a representative of Mr. Hedrick, who was to come to Augusta from Fort Worth, Texas. Plaintiff was aware that Hedrick was the principal stockholder of the corporation and that the corporation had less than $100.00 on hand.

Upon Mr. Cadenhead’s arrival the plaintiff met him on the job site. Plaintiff was then aware that the Hotel corporation could not pay the $28,574.95 for the work he had done under the contract up to March 1, 1964, nor for the work done since March 1, 1964 upon which no bill had been figured, but which would amount to approximately $11,000.00. Plaintiff was also aware that additional work to be done by him to complete the contract would amount to approximately an additional $11,000.00. Plaintiff was in difficulty with financing institutions from which he had borrowed in order to have the funds necessary to pay his employees and purchase materials in connection with his hotel contract.

Cadenhead represented to plaintiff in the presence of the officers of the Hotel corporation that he was Hedrick’s “aide-decamp”, holding the official title of “manager of projects”. His inquiries were directed to ascertaining what was necessary to be done in order to induce plaintiff to finish his contract for work on the hotel. Plaintiff told him that he was badly bent. His financial difficulties were explained. He told Cadenhead that he had to close the job down unless he could get some assurances that his money was forthcoming and that the compensation due him under the contract would be paid when the job was completed. Cadenhead assured him that the bill he had submitted for work up to March 1, 1964 would be paid. Cadenhead made inquiry as'to the percent of completion of plaintiff’s obligations under his contract, and was assured that if the necessary arrangements were made plaintiff’s work could be performed in time for and so that the hotel would be open for the “Master’s Golf Tournament”. Cadenhead stated that Hedrick was particularly interested in expediting the work in order that the hotel would be open at that time since hotel reservations had been “booked solid” in expectation that it would be timely opened. The *367 parties parted, with arrangements made for further communication after Cadenhead had talked by telephone with Mr. Hedrick.

The following morning, after Cadenhead had conversed by telephone with Hedrick, he talked with plaintiff also by telephone. Arrangements and promises were then made by reason of and as the result of which plaintiff alleged that he was induced to and did complete the painting contract upon the hotel building.

The undisputed evidence material to the case is as follows: 1. Hedrick would immediately send cash to the Hotel corporation which would pay over to plaintiff $7,-000.00 in cash; 2. Hedrick would forward for delivery to him two promissory notes, each in the amount of $10,787.48, one of which would be payable on or before fourteen (14) days from March 23, 1964, and the other payable on or before twenty-eight (28) days from March 23, 1964. 3. Hed-rick would forward for delivery to him a financial statement for use in allaying the fears of plaintiff’s financial backers. Hed-rick performed these promises.

The disputed matters are as follows: Plaintiff would complete the job as per his original contract, submitting his bill direct to the Hotel corporation, through the agency of which Hedrick would make payment to plaintiff by sending the balance to be paid to the corporation in order that it would run the account through on its books, but promptly deliver said balance over to him. Nothing was said or arranged in the nature of showing on any billing the segre-gable amount due and owing for the period March 1, 1964 to March 20, 1964. The billing would be as though there had never been any difficulty of any kind. Under the plaintiff’s understanding of the agreement he completed the painting contract. A final bill was submitted by him to the Hotel corporation in the amount of $22,-211.35. It promptly was presented as well to Hedrick. Propriety of the amount is not disputed. The dispute is whether Hed-rick was obligated to pay it.

It was the contention of Wyatt C. Hedrick and A. B. Cadenhead that the latter neither had, nor ever represented that he had authority to bind the former to make compensation therefor to plaintiff. Further, it was their contention that plaintiff had agreed to complete the painting contract under the original contract, wherein the obligor to make payment therefor was the Hotel corporation. It was asserted that Hedrick never promised to be responsible for the payment of the same or any part thereof, either primarily or secondarily. As noted, the case proceeded to trial with the pleading of the defendant to the effect that in the event it be found that there was any promise on the part of Hed-rick to pay the same or any part thereof such would be unenforceable under the Statute of Frauds.

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Bluebook (online)
412 S.W.2d 364, 1967 Tex. App. LEXIS 2803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercantile-national-bank-at-dallas-v-hudgens-texapp-1967.