Miller v. American Mortgage Corp.

78 S.W.2d 721
CourtCourt of Appeals of Texas
DecidedJanuary 3, 1935
DocketNo. 3102
StatusPublished
Cited by4 cases

This text of 78 S.W.2d 721 (Miller v. American Mortgage Corp.) 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
Miller v. American Mortgage Corp., 78 S.W.2d 721 (Tex. Ct. App. 1935).

Opinion

WALTHALL, Justice.

We accept the statement of the nature and result of the suit contained in appellants’ brief. It is substantially as follows:

This suit was filed in the district court of Dallas county, Tex., on December 19, 1933, by the American Mortgage Corporation against A. H. Miller, Jesse R. Smith, and M. E. Daniel.

The-ca.use of action asserted against A. H. Miller was one for debt alleged tó have arisen under the terms of a certain contract entered into on the 19th day of April, 1929, between American Mortgage Corporation and A. H. Miller., -It was alleged in plaintiff’s petition that the said American Mortgage Corporation had agreed to purchase from the defendant Miller promissory notes secured by real estate liens to the extent of $25,000, average outstanding, and to remit to the defendant Miller the net proceeds of such notes upon receipt of same and acceptance by it. I-t was further alleged that the said Miller for $1 and other valuable considerations agreed and bound himself to pay to the American Mortgage Corporation the amount of any loss or losses on notes accepted by it in the year 1929 under said contract, and further agreed tp pay any loss or losses on notes accepted by it during any calendar year thereafter, provided, however, that the defendant Miller should not be required to pay sums aggregating more than $1,000 for losses on loans accepted by it in the year 1929, and not more than that amount for losses during any calendar year thereafter.

The cause of action asserted against Jesse R. Smith and M. E. Daniel was upon a contract of guaranty executed by them on the 19th day of April, 1929, and delivered to the American Mortgage Corporation, wherein they agreed to pay said corporation any and all indebtedness not exceeding $1,009, which the defendant Miller might at any time thereafter owe to the corporation, provided said indebtedness arose in connection with the'eon-tráct of Miller with said corporation above mentioned.

The plaintiff corporation then alleged that it had sustained certain losses on a list of notes set out in said petition which had been purchased by it from the defendant Miller, amounting to the sum of $1,000 for the year 1929, and the sum of $518.98 for losses sustained on notes accepted during the calendar year 1930. Judgment was asked against the defendant Miller for the sum of $1,518.98, with interest, and against the defendants [723]*723Jesse R. Smith and M. E. Daniel, jointly and severally, for the sum of $1,000, with interest, and for general relief.

Within the proper time, the defendant Miller filed his plea of privilege in proper form to be sued in Stephens county, Tex., the county of his residence.

On the same date, the defendants Jesse R. Smith and M. E. Daniel filed their plea of privilege in due form to he sued in Stephens county, Tex., the county of their residence.

On January 29, 1934, the plaintiff corporation filed its controverting affidavit to both pleas of privilege.

Upon hearing on said controverting affidavit, both pleas of privilege were overruled, to which action of the court all defendants then and there gave notice of appeal to the Court of Civil Appeals.

Opinion.

. Appellants filed assignments of error, incorporated them in their brief, and based thereon submit propositions upon which their appeal is predicated.

Appellants submit, first, that appellee had failed to prove that the contract of appellant Miller was performable in Dallas county, as alleged in its controverting affidavit, and for that reason the plea of privilege should have been sustained; second, that the contract with Miller, sued upon, did not provide the place for the payment of any sums that might become due thereunder by reason of a breach thereof, but only provided that the provisions of said contract should be enforcible in Dallas county, which provision is an attempt to fix by contract the venue of any action arising on the breach thereof is void, and, for that reason, appellant Miller’s plea of privilege should have been sustained.

The portion of the contract material to the consideration of the two propositions is as follows:

“1. In consideration of the covenants and agreements hereinafter set out, the said American Mortgage Corporation, Party of the First Part, agrees to purchase from Party of the Second Part, Promissory Notes secured by real estate to the extent of Twenty-five Thousand ($25,000) Dollars average outstanding, and to remit net proceeds promptly as papers are received, provided said notes are in accordance with the plans, rates and requirements regularly in use by said ■ First Party at the time such notes are offered for discount, by said Second Party, all, however, subject to the exceptions and provisions hereinafter named. So long as this contract is m force, said First Party agrees to confine its purchases of such .paper exclusively to the said Second Party, as applies to the City of Breckenridge.
“7. For One Dollar, and other valuable considerations said Party of the Second Part agrees and binds himself to pay said Party of the First Part the amount of any loss or losses on notes accepted in the year 1929 under this contract, and agrees to also pay any loss or losses on notes accepted in any calendar year thereafter. Said payment to be made with the following conditions: When, as and if losses to said First Party shall occur, said Second Party shall, on demand, pay over in cash to said First Party, the amount of said losses, but Party of the Second Part shall not be required to pay sums aggregating more than $1,000.00 on the loans accepted in the year in which this Contract is signed, and shall not be required to pay sums aggregating more than that amount on the losses of any single year thereafter.
“9. No written or verbal representations, statements, or promises other than stipulated herein, or authorized in writing by the President of said American Mortgage Corporation, shall be binding on the said First Party. It is agreed that all of the provisions herein named are inforcible in Dallas County, Texas.”

Appellant Miller’s plea and the undisputed evidence shows that at all the times involved in this controversy Miller’s residence was in Stephens county.

Appellee’s controverting affidavit, after referring to the original petition and quoting-paragraphs 7 and 9 from the contract above set out, contained the following allegation: “Plaintiff would therefore show that under the facts alleged in the pleadings of plaintiff herein referred to,'and the truth of the facts so alleged, this court has venue over the cause of action as against the defendant A. H. Miller for the reason that the plaintiff’s cause of action as against such defendant is based upon a contract in writing executed by said defendant and by him expressly performable in Dallas County, Texas, and therefore comes within the purview of the Revised Civil Statutes of Texas of 1925, Article 1995, subdivision 5.”

The evidence is sufficient, prima facie, to show that appellant Miller signed the contract sued on. The written contract was produced in evidence. Subdivision 5 of article 1995, of the Statute, reads: “If a person has [724]*724contracted in writing to perform an obligation in a particular county,” suit may be brought in such county.

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Related

Southwestern Transfer Company v. Slay
455 S.W.2d 352 (Court of Appeals of Texas, 1970)
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94 S.W.2d 1235 (Court of Appeals of Texas, 1936)

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Bluebook (online)
78 S.W.2d 721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-american-mortgage-corp-texapp-1935.