Phillips v. Chapman

288 S.W. 1100
CourtCourt of Appeals of Texas
DecidedNovember 11, 1926
DocketNo. 1907.
StatusPublished
Cited by4 cases

This text of 288 S.W. 1100 (Phillips v. Chapman) 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
Phillips v. Chapman, 288 S.W. 1100 (Tex. Ct. App. 1926).

Opinion

WALTHALL, J. J.

L. Chapman, commissioner of banking, and, as such commissioner, in charge of the affairs of the Security State Bank & Trust Company, for the purpose of liquidating its affairs, brought this suit against W. A. Martin, Wm. F. St. John, and a number of others whose names we need not state here, alleging that on the 25th clay of February, 1920, II. W. Williams executed and delivered to the American National bank of Eastland a certain promissory note for the principal sum of $815, due four months after date, payable to the order of said last-named bank, with interest, and providing for the payment of attorney’s fees. That, coincident with the making of said note, the parties named as defendants executed and delivered to said bank a certain guaranty contract whereby the payment of said note was guaranteed at its maturity, or any time thereafter to which extension might be made, and agreed to any extension of said note, without notice, waiving presentment, notice, protest, and diligence in bringing suit against the principal or any guarantor.

The commissioner alleged the ownership of the note to be in the ¿Security. State Bank & Trust Company, request, and refusal to pay the note. It is alleged that certain of the guarantors, naming them, had been discharged through bankruptcy proceedings, that another was dead and his estate insolvent ; that others, some eight in number, naming them, were guarantors of the payment of said note; that H. R. Williams was maker of said note, and that the plaintiff does not make them parties to this suit for the reason that he does not know their whereabouts.

Plaintiff prayed for judgment, jointly and severally, against those sued. Defendants W. A. Martin, F. E. Day, L. A. Hightower, and Earl Conner answer by general denial, and by special answer say that:

“They nor either of them, nor did the maker of the note, as alleged, H. R. Williams, execute such note ás sued on, nor did they or either of them, authorize any person to sign such note as described in plaintiff’s petition.”

They, allege that the note signed by Williams bore date February 11, 1920, and so believe and charge that since the execution of the note the date of the note has been changed from February 11, 1920, to February 25, 1920, without the .knowledge or consent *1102 of Williams or either of defendants, and that by reason of said change the obligation is without force or effect.

Defendants, by verified trial amendment, allege that they, nor either of them, executed the guaranty as described in plaintiff’s petition in that the guaranty executed by them did not, when executed, bear date of February 25, 1920, but ‘of February 11, 1920, and that such change in date was without their knowledge or consent. The other defendants not named above answered, and each adopted the defensive matters, as above stated.

The trial court, in the judgment rendered, discharged certain of the defendants, but recited therein that said promissory note, “plaintiff’s cause of action,” describing same, signed by H. R.'Williams and made payable to the American National Bank, and the said guarantee, were signed by each of the defendants" and guaranteed the payment of said note, and that said instruments were placed in evidence without objection on the part of defendants, Wm. F. St. John, Robert D. Gordon, Tom W. Crutcher, F. A. Jones, George Phillips, and E. L. Trimble, and for that reason plaintiff ought to recover against each of said defendants, and entered judgment against them jointly and severally for the amount of said note, interest, and costs. The court dismissed as to D. G. Hunt, Jr., and Walter H. Morris, made defendants but not served with citation. Defendants St. John, Crutcher, and Phillips excepted to the judgment and gave notice of appeal; St. John and Phillips assigned error, gave bond, and have filed briefs.

Opinion.

Appellants suggest fundamental error in the rendition of the judgment against them as the record on its face shows that they and their codefendants are sued as not being primarily liable, but as joint guarantors of the payment of the note executed by H. R. Williams, who was not joined in this suit and had not been previouslv sued, and'it was not made to appear that Williams resides beyond the limits of the state, nor in such part of the ■ state that he cannot be reached by the ordinary process of 'law, nor that his residence is unknown and cannot be ascertained by the use of reasonable diligence, nor that he is dead nor actually or notoriously insolvent: the only reason given for not joining Williams, the maker of the note, in the suit was. as stated in the petition, that “his whereabouts” was not known to the commissioner.

Appellants were sued as guarantors upon a contract for the payment of the note executed by Williams and set out in the petition.

It' is insisted by appellee that appellants are primarily and not conditionally liable.

The instrument signed by the defendants, including appellants, is separate and apart from the note and reads as follows:

“Eastland, Tex., February 25, 1920.
“To the American National Bank, Eastland, Tex. — We, the undersigned, hereby guarantee payment of one certain promissory note of even date herewith, signed by H. R. Williams, payable to the order of the American National Bank within four months from date, for the principal sum of eight hundred and fifteen and no/100 ($815.00) dollars.
“We guarantee the payment thereof at maturity or at any time thereafter to which extension may be made, and agree that said note may be extended without notice to us, hereby waiving presentment for payment, notice of non-. payment, protest, and notice of protest. We further waive diligence in bringing suit on this note against the principal thereof or any guarantor; it being understood, however, that the proceeds of this note are to be converted into a certified check, which is to be payable to Walter Norris, President of the West Texas League, to be deposited as a forfeit with the National Baseball Commission for a franchise in the West Texas League.”

The original instrument' sent up with the record shows that the date February 11,' 1920, was written for the ‘instrument and erased, and, February 25, 1920, written therein.

The execution- and delivery of the instrument was alleged to be coincident with the execution and delivery of the note; that is, each part of the one and the same transaction. The trial 'court so tried the case and in the judgment recites that the plaintiff’s cause of action is proved by the promissory note, and its payment guaranteed by said writing. While the two instruments were necessary to and together constituted the cause of action, the note was incidental only to the cause of action' as disclosing the duty assumed by the guarantors as to its payment. . .

Appellants’ liability , was that of guarantors of the payment of the note, and they were sued as such. We think the instrument they executed amounted to a promise to pay the note absolutely and irrespective of the liability of the maker of the note; that is, the promise in the instrument guaranteeing the payment of the note was not conditioned on its payment by the maker.

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Bluebook (online)
288 S.W. 1100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-chapman-texapp-1926.