R. A. Brown & Co. v. Chancellor

61 Tex. 437, 1884 Tex. LEXIS 121
CourtTexas Supreme Court
DecidedApril 25, 1884
DocketCase No. 4981
StatusPublished
Cited by26 cases

This text of 61 Tex. 437 (R. A. Brown & Co. v. Chancellor) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. A. Brown & Co. v. Chancellor, 61 Tex. 437, 1884 Tex. LEXIS 121 (Tex. 1884).

Opinion

Stayton, Associate Justice.—

This action was brought by the appellants against Tom Chancellor, Thos. White, and M. L. White, his wife, on the 8th day of January, 1884, on a note executed by Tom Chancellor, on the same day, in the name of Tom Chancellor [439]*439& Co. The note was payable on demand,, to the order of the appellants, at their office in the city of Galveston. It was claimed that the appellees composed the firm of Tom Chancellor & Co. at the time the note was executed.

Writs of garnishment were sued out and served on several persons on the same daj' the suit was filed, which on motion were quashed, npon the ground that the note was entitled to days of grace, and therefore not due at the time the writs of garnishment were sued out. The petition was also demurred to on the ground that the suit was prematurely brought. This objection, however, was obviated by an amendment, permitted on payment of all costs due to the time the amendment was filed.

Mrs. M. L. White pleaded her coverture in bar of the action, and Thomas White answered under oath, denying that he ever was a member of "the firm of Toin Chancellor & Co., or that he executed or authorized any one for him to execute the note sued on, and he alleged that the firm of Tom Chancellor & Co. was dissolved on January 5, 1884.

It appeared that from sometime in the year 1877, to the time of her marriage to Thomas White in 1879, Mrs. M. L. White, nee Chancellor, and Tom Chancellor were partners in the mercantile business carried on in the firm name of Tom Chancellor & Co., and that after her marriage with Thos. White the business was carried on in the same manner as before, under the same firm name, and that Thos. White gave his attention largely to the business in whicli his wife was interested, until January 5, 1884, when the entire business was sold out to satisfy creditors, and, as he alleges, it was then dissolved. All the evidence tends to show that there was no express agreement or understanding that Thos. White should become a member of the firm of Tom Chancellor & Co., but' he seems to have participated in the management of the business in the interest of his wife, consulting about the business, staying in the store, selling goods and waiting on customers.

It further appears that there was no new arrangement or partnership agreement between Tom Chancellor and Mrs. White after her marriage, but that the business went on as before, Mrs. White being the owner of two-thirds of the stock and Tom Chancellor the owner of the residue.

The indebtedness for which the note sued on was given accrued in October, 1883, and thereafter; but the action is based on the note and not on the matters which were the consideration for the indebtedness for which the note was given. The cause was tried without [440]*440a jury and a judgment was rendered for the appellants against Tom Chancellor, and against them as to White and wife.

The statute permits a writ of garnishment to issue only when the debt sued for is due (B. S., 183), unless in a case in which an original attachment has been issued.

This action having been instituted and the writs of garnishment sued out on the same day the note was executed, the questions whether the suit was prematurely brought, and the writs of garnishment prematurely issued, depend on whether or not a note payable on demand is entitled to days.of grace. "Under the law merchant such paper is not entitled to days of grace. Daniel on Neg. Inst., 617; Edwards on Bills, 523; Byles on Bills, 162; Story on Promissory Notes, 224. Suit may be brought on such paper under the law merchant without any demand for payment being first made (Cook v. Cook, 19 Tex., 437; Field v. Nickerson, 13 Mass., 137); and on such paper suits have been maintained which were instituted on the same day the paper was executed. Cammer v. Harrison, 2 McCord, 246; Smith v. Blythewood, Rice, 246; 1 Parsons, on Notes and Bills, 270, 415.

Prior to the act of January 11, 1862 (Pasch. Dig., 234; R. S., 276), and subsequently to the act of March 20, 1848, there could have been no doubt on this question, unless the paper evidenced a contract between merchant and merchant, their factors and agents; for, from the passage of the last named act, days of grace were allowed only on paper between such persons. O. & W., 99; Oliphant v. Dallas, 15 Tex., 141; Moore v. Hollomans, 25 Tex. Sup., 82; Campbell v. Lane, 25 Tex. Sup., 94.

Under the act of March 20, 1848, which was as follows: “Three days of grace shall be allowed on all bills of exchange' and promissory notes assignable and negotiable by law; provided, that the-fourth, fifth and sixth (the section in question) sections of this act shall extend only to contracts between merchant and merchant, their factors and agents,” we have no decision whether a note payable on demand and evidencing a contract between merchant and merchant, their factors and agents, would have been entitled to days of grace.

The act of January 11, 1862, is the same as the act of March 20, 1848, of which it is amendatory, except that the proviso in the-earlier act, which limited its effect to contracts between merchant and merchant, their factors and agents, is stricken out; thus making the last act to operate on negotiable bills and promissory notes between all persons, as had the former act only on such paper as [441]*441evidenced a contract between merchant and merchant, their factors and agents.

Such being the state of the law at the time the act of January 11, 1862, was passed, it is evident that the leading, if not the sole, purpose of the amendment, was to place on the same footing such negotiable paper as was therein contemplated, whether made between merchant and merchant, their factors and agents, or between other persons, in so far as allowing days of grace thereon was concerned ; as it is evident that one of the leading purposes of the act of March 20, 1848, was to restrict the operation of the law merchant, in reference to days of grace, to such paper as was between merchant and merchant, their factors and agents, rather than to particularly prescribe the particular classes of negotiable paper which should be entitled to grace.

The act of March 20, 1848, was not strictly a remedial law, save to such extent as it was restrictive of the law merchant; but was only declaratory as to negotiable bills and promissory notes between merchant and merchant, their factors and agents, of a rule so long established by custom among merchants, and so long enforced by the courts, as to become a part of the common law of England.

In reference to such laws it is said: “These (in England) are made where the old custom of the kingdom is almost fallen into disuse, or become disputable, in which case the parliament has thought proper, in perpetuum, rei testimonium.^ and for avoiding all doubts and difficulties, to declare what the common law is and ever hath been. And such statutes are expressed affirmatively or in negative terms. A statute made in the affirmative, without any negative expressed or implied, does not take away the common law. It follows that it does not affect any prescriptions or customs clashing with it which were before allowed; in ocher words, the common law continues to be construed as it was before the recognition by parliament.” Dwarris, 68.

There is another rule of construction which is thus expressed:

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Bluebook (online)
61 Tex. 437, 1884 Tex. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-a-brown-co-v-chancellor-tex-1884.