Merchants' Ice Co. v. Scott & Dodson

186 S.W. 418, 1916 Tex. App. LEXIS 651
CourtCourt of Appeals of Texas
DecidedApril 26, 1916
DocketNo. 5604. [fn*]
StatusPublished
Cited by12 cases

This text of 186 S.W. 418 (Merchants' Ice Co. v. Scott & Dodson) 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
Merchants' Ice Co. v. Scott & Dodson, 186 S.W. 418, 1916 Tex. App. LEXIS 651 (Tex. Ct. App. 1916).

Opinion

SWEARINGEN, J.

Appellees sued appellant, a corporation, to recover $7,300 for professional services rendered in behalf of appellant, and alleged in the alternative an express or an implied contract, or on a quantum meruit. Appellees alleged that the president of the corporation incurred the liability for attorneys’ fees, and that all the stockholders concurred therein; that their services were necessary and resulted in substantial benefits to the corporation; that all the stockholders and the president accepted all the benefits for the corporation, with full knowledge of appellees’ professional services, and this appropriation of the fruits of appel-lees’ services was made with full knowledge of appellees’ services and claims for compensation ; and, further, that at the time of this appropriation appellees were neither stockholders, nor directors, nor otherwise connected with the company in any official capacity.

*419 Appellant pleaded a general exception, that the petition was insufficient in law because no promise to pay, express or implied, was averred in such way as to render the appellant liable to appellees. After denying appel-lees’ cause of action, appellant affirmatively answered that it paid appellees for all services rendered. That at the time the services were rendered appellees were officers and directors of the corporation, and it was their duty as such officers to render all the services for which compensation is claimed by appel-lees. Further, that appellees had claimed only $300 for professional services which appellant had paid. That the contract of employment, if any, was made by the board of directors, consisting of three members, of whom appellees were two. That such a contract so made was null and void.

After appellees had testified as witnesses at the trial, appellant filed a trial amendment, answering in effect that appellees’ evidence showed that the liability for attorney’s fees was contrary to public policy, and therefore void. At the close, of appellee’s testimony the case was submitted to a jury upon special issues. The jury rendered its verdict in favor of appellees for $6,500, upon which verdict, and law and facts found by the court, judgment was rendered for appellees. Appellant’s amended motion for new trial was overruled.

[1] Appellant, in its first assignment, on page 6 of its brief, says the court erred in overruling the following exception:

“It generally and specially demurs and excepts to all of said petition and says that same is insufficient in law and shows no cause of action against this defendant, because no agreement or promise to pay, express or implied, is averred therein as made by this defendant in such way as to render this defendant liable unto plaintiffs, either upon a special contract of employment for attorney’s fees or upon an implied contract of .employment for attorney’s fees.”

This assignment is overruled, because we are of the opinion that the petition sufficiently alleged a legal cause of action.

Appellant’s assignment numbered “5a” assigns that the trial court erred in its refusal to peremptorily instruct a verdict for the defendant (appellant) as requested, as follows:

“The court erred in refusing to submit to the jury special charge No. 1, asked by defendant prior to the submission of the cause, and to the refusal of the court to give said charge, defendant excepted at the time of such refusal and prior to the submission of the cause to the jury, viz.: ‘The jury are instructed that there is no evidence in this case legally sufficient to support a verdict for plaintiffs, and you are therefore instructed to render your verdict herein in favor of defendant.’ ”

The assignment is submitted as the only proposition. Whether required by this proposition or not, we have made a very careful examination of the record evidence, and find therefrom the facts to be:,

Appellees were experienced practicing lawyers, and were partners. On September 11, 1912, the stockholders of the Merchants' Ice Company met in room No. 316, Alamo Bank Bldg., San Antonio, Tex., at which all the stock of 1,400 shares was voted, and resolved to execute bonds for an amount not to exceed $1510,000, and to secure payment of same to execute a deed of trust on all its property. The stockholders present in person or by proxy were the following: Adam Vogt, in person; E. H. Wedekind, in person; George B. Marshall, in person; C. W. Eichtner, in person; J. H. Kirkpatrick, by proxy; Henry Vogt, by proxy; Soren Thurs-tensen, by proxy; W. S. Montz, by proxy; Gi A. Heuser, by proxy; B. Wedekind, by proxy; George G. Montz, by proxy.

On the same day, September 11, 1912, the directors of the company held a meeting and resolved to execute the bonds for $150,000 and to secure the payment of same by executing a deed of trust upon all corporate rights, franchises, and physical properties of the corporation. The directors were E. I-I. Wedekind, Chairman, C. W. Fichtner, Adam Vogt, and Geo. B. Marshall.

On the 15th day of January, 1913, the Merchants’ Ice Company, by E. H. Wedekind, vice president, executed the deed of trust, the Central Trust Company of San Antonio, Tex., being the trustee. The certificate of acknowledgment of the deed of trust .was dated January 15, 1913. The deed of trust was filed for record in the deed of trust records of Bexar county, Tex., January 15, 1913.

On January 18, 1913, all the persons who owned stock on January 15, 1913, sold all their stock to Mr. Eugene Nolte and Chas. A. Zilker and to friends or associates of Nolte and Zilker, in the following proportions :

Eugene Nolte. 41 per cent
Postlewaite . 3.15
Zilker . 22.75
Cable . 10.5
Mrs. Castleman . 5.25
Dodson . 10.
H. L. Guenther. 6.15
Freeborn. 1.2
100 per cent.

The capital stock purchased was $140,000, though there was $20,000 unissued stock for which some of the selling stockholders had subscribed. Mr. Zilker was the experienced owner of ice companies, who, through agents, negotiated the purchase of the stock by himself and Nolte and their friends. Without money consideration Zilker transferred one share of stock to appellee Scott, who immediately indorsed and delivered the certificate to Zilker. Dodson borrowed the money for his stock from a bank, on a note signed by Zilker. Postlewaite, Freeborn, and II. L. Guenther were associated with Zilker in other ice plants. Zilker represented Cable and Mrs. Castleman.

The price paid by the buyers for the $140,-000 stock to the selling stockholders was *420 $50,000 cash. The sellers represented to the buyers that the value of the property of the corporation was $200,000, and that its annual net earnings had been and were at the date of sale $40,000, and to verify the statement of value and earning capacity promised to furnish the boohs of the corporation. The domicile of the corporation was San Antonio, Tex., and the books should have been in San Antonio, Tex.

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Bluebook (online)
186 S.W. 418, 1916 Tex. App. LEXIS 651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-ice-co-v-scott-dodson-texapp-1916.