Northern Texas Traction Co. v. Clark & Sweeton

272 S.W. 564, 1925 Tex. App. LEXIS 411
CourtCourt of Appeals of Texas
DecidedApril 20, 1925
DocketNo. 3049.
StatusPublished
Cited by9 cases

This text of 272 S.W. 564 (Northern Texas Traction Co. v. Clark & Sweeton) 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
Northern Texas Traction Co. v. Clark & Sweeton, 272 S.W. 564, 1925 Tex. App. LEXIS 411 (Tex. Ct. App. 1925).

Opinion

LEVY, J.

(after stating the facts as above).

The result of the appeal depends, we conclude, upon the one point of whether or not the plea of privilege of the Traction Company to be sued in the county of its principal office should have been sustained. And the decision of the question entirely depends upon whether or not it appears from the face of the petition that there is an improper joinder bf defendants in the action. For subdivision 4 of article 1830, Rev. Stat., expressly provides that where there are two or more defendants residing in different counties, the suit may be brought in any county where any one of the defendants resides. In case, therefore, that the Williamses, residents of Hunt county, were necessary or proper parties to the cause of action as it appears from the face of the petition, the plea was properly overruled ; otherwise, the plea should have been sustained. ■

It is a primary law, in determining the joinder of defendants, that the contractual obligation sued on, as defined by law, is in its nature joint or several, or joint and several. If the obligation, as defined by law, is several, in all such cases the plaintiff’s claim, if any, against each defendant is in the nature of a separate claim, and no joinder of defendants is permitted; for there is no entirety of obligation "as against the several defendants. “It is not sufficient,” quoting from Danciger v. Smith (Tex. Civ. App.) 229 S. W. 909, “as contended by appellants, to show a valid cause of action against each defendant, or to show a liability in the alternative. The rule is that: ‘Causes of action brought upon different contracts cannot be joined unless each affects all of the defendants alike, and it is not sufficient to authorize a joinder that the several contracts of the different defendants relate to the same subject-matter.’ If there is not a joint liability, the statutory rule that where two or more defendants reside in different counties, suit may be brought in any county where any of the defendants reside, does not apply, and, in such case, it is error to permit the plaintiff to prosecute his separate causes of action against all of the defendants as if same were joint.”

As these fundamental rules must be applied in each case according to the action pleaded, it becomes necessary to consider the particular petition in this case and give it proper legal effect. While the prayer of the petition was for'“judgment against the defendants jointly and severally,” the language of the prayer would not be conclusive that the obligation sued on was joint and several, if the facts alleged do not have that legal effect attaching to them. The petition first sets out facts showing personal injuries suffered by Mrs. Williams through the negligence of the traction company, and the contract of employment of the attorneys by which they were to have one-third of any sum of money realized or received as a compromise of the claim without trial, or 40 per cent, of the amount of the judgment rendered in the trial of the case. The suit was filed in court, prepared and set for trial on May 10, 1923. The petition then sets up “that the defendant, Northern Texas Traction Company, on or about May 1, 1923, fraudulently settled with the defendants F. M. Williams and wife, Lula L. Williams, said suit without notice of any character to, or without conferring with, said Clark & Swee-ton ; that said traction company, acting by and through its agents, and with full knowledge of the assignment and transfer by the defendants F. M. Williams and Lula L. Williams to plaintiffs of a portion of said cause of actionj paid to said defendants F. ,M. Williams and Lula L. Williams the sum of $1,500 in settlement of said claim, and obtained their release therefor.”

Standing, as the allegations show, upon the compromise settlement in the amount of $1,500 being reasonable and correct, the plaintiffs in the suit then assert the right to have one-third of the sum of money in virtue of an assignment to them by Williams of that designated portion thereof. The entire action is predicated upon the assignment as well as the compromise being valid and effective as to all parties, and being an en-forcible obligation existing in favor of the assignees as to a one-third portion of the money.- The default in respect thereto, as alleged, was that “the Traction Company" *567 “fraudulently” or wrongfully “settled with” and “paid” to “F. M. Williams and Lula L. Williams the sum of §1,500.” In other words, by intendment, the averments are to the effect that the Traction Company, “with full knowledge of the assignment,” and-“without notice to” or consent of the attorneys, at a date after the compromise, wrongfully paid the attorneys’ portion to Mr. and Mrs. Williams, who were persons not entitled or authorized to collect and receive it. It would appear to be a cause of action only against the Traction Company, unless the petition should be construed, in view of the prayer, as by intendment, as meaning to make claim also against Mr. and Mrs. Williams for having, “without notice” or consent, wrongfully collected and received the one-third portion in defeat of the right of the plaintiffs to their portion of the sum of money. But either construction placed upon the petition would present the question of proper joinder of parties defendant. Hence, in the special facts alleged, (1) were the attorneys, being the only assignees of a portion of the particular sum of money, legally required or not to join both the assignors and the Traction Company in the action on the assignment; and (2) was there or was there not a tort pleaded legally classed as a joint tort?

The legal effect of the assignment, which is the basis of the suit, is material to consider; for no ground of action would remain if the allegations as to the contract of assignment were stricken out or not considered. As between the attorneys and their client, one-third of the particular sum of money belonged, without doubt, in' good conscience and equity, to- the attorneys. It is within the fixed rule that an agreement between client and attorney, by which the attorney is to have for his services a fixed portion of whatever amount of money shall be realized or received, whether on settlement or without settlement, on account of such claim as shall be put in suit, whether of tort or contract, constitutes an equitable assignment pro tanto. The doctrine is fully laid down in Story Eq. Jur. § 1040, and in 3 Pomeroy Bq. Jur. § 1280. The rule is followed in this state. Harris Co. v. Campbell, 68 Tex. 22, 3 S. W. 243, 2 Am. St. Rep. 467; Clark v. Gillespie, 70 Tex. 513, 8 S. W. 121; Railway Co. v. Vaughan, 16 Tex. Civ. App. 403, 40 S. W. 1065; Railway Co. v. Miller, 21 Tex. Civ. App. 609, 53 S. W. 709; Railway Co. v. Stubbs (Tex. Civ. App.) 166 S. W. 699; Railway Co. v. Wood (Tex. Civ. App.) 152 S. W. 487; Electric Co. v. Chancellor & Bro. (Tex. Civ. App.) 229 S. W. 649; Wheeler v. Fronhoff (Tex. Civ. App.) 270 S. W. 887. Being, as it is, an “equitable assignment pro tanto” of the particular sum of money, the interest therein is not merely a lien or charge, but in the nature of property vesting absolutely in the assignee attorneys. As laid down in Pomeroy, supra:

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272 S.W. 564, 1925 Tex. App. LEXIS 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-texas-traction-co-v-clark-sweeton-texapp-1925.