National Bank of Commerce v. Gilvin

152 S.W. 652, 1912 Tex. App. LEXIS 1305
CourtCourt of Appeals of Texas
DecidedDecember 14, 1912
StatusPublished
Cited by9 cases

This text of 152 S.W. 652 (National Bank of Commerce v. Gilvin) 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
National Bank of Commerce v. Gilvin, 152 S.W. 652, 1912 Tex. App. LEXIS 1305 (Tex. Ct. App. 1912).

Opinion

PRESLER, J.

This suit was upon a promissory note for the principal sum of $554.50, dated November 30, 1906, due one month after date, executed and delivered by one McKinstry and appellee, payable to the order of appellant bank. Upon the trial thereof before the court without the intervention of a jury, judgment was rendered for appel-lee on the ground that appellee sighed the note merely as surety for said McKinstry and that, appellant having pursued the estate of McKinstry for four years, in an effort to collect said debt, and having permitted appellee to believe that he was relieved from said debt, and having placed appellee in such position that he could not probably now collect said debt or any part thereof or reimburse himself thereon from said estate, appellant is now estopped from maintaining said debt against said appellee.

Appellant, under various assignments, here complains of the action of the court in overruling its general demurrer and several special exceptions to appellee’s second amended answer (on which trial was had), and contends that none of the allegations therein contained are sufficient to warrant the discharge of a surety (the appellee). The material allegations of said amended original answer are substantially as follows:

“That therefore on the 30th day of November, A. D. 1906, this defendant executed the note described in plaintiff’s petition, as surety, for one J. T. McKinstry. That at the time of the execution and delivery of said note said McKinstry was solvent, owner of an estate of the value of at least $15,000 in excess of his debts and obligations. That the defendant merely executed the note as surety ’for said McKinstry, and it' was so understood and agreed by the plaintiff’s president. That said note matured 30 days from its execution, at which time said McKinstry was solvent and able to pay said note and had an estate sufficient from which the plaintiff could have compelled the payment ■of said note, but that plaintiff at maturity of said note permitted said McKinstry to extend the time of payment thereof and continued permitting such extensions without knowledge or consent of the defendant, and from said time has continued to permit the said note to be extended, thereby relieving and releasing this defendant from liability thereon. That said note was not sued upon at the first term of court after its maturity, and no ground or reasons are set up by plaintiff for failure so to do. That, if plaintiff failed to collect said note from the estate of the said McKinstry, its failure so to do was its own carelessness and negligence.
“By further pleading defendant pleads: That he is not now, nor has he ever been at any time since the 30th day of November, 1906, primarily responsible for the payment of said note, but has at all times been only a surety for the said McKinstry. That at the time of the execution and delivery of said note the said J. T. McKinstry was the possessor and owner of property, both real and personal, situated in Amarillo, Potter county, Tex., and vicinity, of the real value of from $8,000 to $15,000. That said J. T. McKins-try conducted a real estate business and deposited with the plaintiff moneys collected and received by him in said business and owned by him, and that after the execution of said note the said McKinstry continued to do a banking business with the plaintiff, and at numerous and frequent dates after the maturity of said notes and prior to May, 1907, had on deposit with said plaintiff sum or sums of money more than sufficient to pay off and discharge said note. That plaintiff negligently and carelessly permitted the said J. T. McKinstry to withdraw said moneys and to expend the same and extended the time for the payment of said note without the knowledge or consent of this defendant. That at some time in May, 1907, long after the maturity of this note, said McKinstry was adjudged insane, and a guardian of his estate was appointed and took possession and charge of the property. That at the time the estate was solvent and was more than sufficient to pay off and satisfy all obligations owing by the said McKinstry, *654 including the note upon which this suit is based. That shortly after the appointment of the guardian the defendant gave the plaintiff notice in writing to present said claim to said guardian for payment, and to sue thereon in the event payment was refused. That plaintiff presented this note to said guardian, that the same was duly allowed, and that there were ample funds then on hand to pay the same, together with all other indebtedness against the estate of the said J. T. McKinstry; hut by negligence, carelessness, and inattention plaintiff permitted said claim to go unpaid, and thereby this defendant was relieved and discharged from further liability thereon. That, if plaintiff had given the matter attention and care, said guardian could and would have paid said indebtedness. That, if defendant be mistaken as to said estate being able to pay all of said indebtedness, a large portion of it could and would have been paid had the plaintiff given the matter the care and attention of an ordinary prudent person under similar circumstances.
“Defendant further shows to the .court: That after the appointment of said guardian, and some time in the year 1908, the said Mc-Kinstry died, and that thereafter Mrs. Ella McKinstry was appointed administratrix of said estate, and at such time the estate was still solvent and owned sufficient property to discharge and pay off all obligations. That this defendant was informed that said plaintiff herein had failed to get the said note paid by the guardian, and that thereafter he again on the 17th day of November, 1909, gave the plaintiff herein notice in writing to present said claim for allowance and payment to said administratrix, and in the event payment was refused then to bring suit thereon and collect said debt. That when such notice was given said plaintiff then elected to proceed against said estate of the said J. T. McKinstry and did file said claim with said administratrix, and said administratrix did allow said claim, and that at this time the said estate was solvent and able to discharge all of the obligations of the said J. T. McKinstry. That, if said estate was not entirely solvent, it was nevertheless able to pay a large portion of this claim, together with other claims of said class in said administration proceeding ; but the plaintiff negligently and carelessly permitted the administratrix of said estate to appropriate said moneys belonging to said estate to her own use and benefit, and, if plaintiff failed to collect said indebtedness, it was through said want of care and attention on the part of said plaintiff. That, had plaintiff given the matter careful attention, said administratrix could have been compelled 'to have paid said debt out of the property belonging to the estate of the said McKinstry, and that, if plaintiff failed to collect said indebtedness from said admin-istratrix, it was due and chargeable to plaintiff’s own carelessness and inattention.

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Bluebook (online)
152 S.W. 652, 1912 Tex. App. LEXIS 1305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-bank-of-commerce-v-gilvin-texapp-1912.