Ramsey v. Hurley

12 S.W. 56, 72 Tex. 194, 1888 Tex. LEXIS 1264
CourtTexas Supreme Court
DecidedDecember 4, 1888
DocketNo. 6024
StatusPublished
Cited by38 cases

This text of 12 S.W. 56 (Ramsey v. Hurley) 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
Ramsey v. Hurley, 12 S.W. 56, 72 Tex. 194, 1888 Tex. LEXIS 1264 (Tex. 1888).

Opinion

Acker, Presiding Judge.

This suit was brought by appellees on the twenty-fourth of December, 1883, in the County Court of Johnson County, and transferred to the District Court because of the disqualification of the county judge.

Appellees alleged in their petition that in 1882 they were the owners of a note for $1200, executed by T. D. Farris with J. S. Dougherty as surety, bearing interest at twelve per cent and to become due January 17, 1883; that about the last of November or first of December, 1882, Farris transferred and delivered to them certain claims (describing them) for the purpose of securing the paying of said note; that thereafter Farris as their agent collected a portion of said claims and took notes in settlement of the balance; that in 1883, and before bringing this suit, appellant wrongfully and -without their consent got possession of said notes, aggregating the sum of $619.30, and which were worth that sum, and appropriated them to his own use and benefit, to appellees’ damage in the sum of seven hundred dollars; that appellant had collected three hundred dollars or more of said notes. Prayer for judgment for the notes, for money collected on them, for costs, and for general relief.

Appellant pleaded specially that Farris made an assignment on January 4, 1883, for the benefit of his creditors, and he qualified as assignee, by virtue of which he alleged that the title to the notes was vested in him as assignee and he received them as such; that at the time he so received them nearly all the makers were and still are insolvent; that by great exertion and expense he had collected $231.15, which he had appropriated to the payment of debts established against Farris, and the remainder of said notes are wholly worthless; that appellees were cognizant of these facts, and informed him that they did not look to him or said notes; that the transfer of the notes to appellees, if ever made, was made in contemplation of an assignment by Farris, and for the purpose of giving an unlawful preference to appellees; that Farris was wholly insolvent, and if the accounts were ever transferred by him to appellees, the transfer was voluntary and without consideration, and made with intent to hinder, delay, and defraud creditors, of "which appellees had notice; that the transfer from Farris to appellees was in writing and was made on January 2, 1883, and was not made in November or December, 1882; that the original transfer is on file with the papers in this cause, and is the only transfer made by Farris to appellees, and the same delivered by Farris to appellant, together with said notes. Prayer, if appellees should recover, that they be required to take the uncollected notes at their face value.

Appellees filed supplemental petition consisting of general denial, and [196]*196specially denying that the claims were insolvent when appellant received them, and alleging that they could then have been collected by reasonable efforts; that appellees could then have collected them, and that the claims were of the value alleged in the original petition, though now worthless; that appellant did not take possession of said notes as assignee; that the creditors for a very small amount of the debts of Farris accepted under the assignment,- and that before appellant received said notes he had in his hands money and property of said assignor far in excess of the amount of debts accepted for; that he had long since paid off all acceioting creditors; that appellant unlawfully converted the notes to his own use and benefit to their damage $750.

Appellant filed supplemental answer alleging that at or about the time allowed by law for creditors to accept under said assignment he was garnished by creditors of Farris holding valid claims against him far in excess of the value of assets received by him as assignee, including the notes and proceeds thereof sued for in this case, and judgment was rendered on said garnishments against him for the entire estate remaining in his hands after paying the claims of consenting creditors, including the notes and the proceeds now in controversy. .

The trial was by jury and resulted in verdict and judgment against appellant for $738.28 and costs, from which this appeal is prosecuted.

The facts proved upon the trial, about which there seems to be no controversy, are substantially as follows:

That in 1882 T. D. Farris was a general merchant at Grandview, in Johnson County, and appellees Hurley and Smith held his note for $1200, with J. S. Daugherty as surety thereon, to become due on the 17th of January, 1883. In November, or early in December, 1882, Daugherty informed appellees that he expected to leave the county, and requested them to obtain from Farris other security on the note they held. Some time after this and prior to the 4th day of January, 1883, Farris transferred to appellees a number of claims due to him by persons residing in Johnson County, as security for the note. Most of these claims were in the form of accounts, and it was understood between the parties that they were to be collected, or converted into notes payable to appellees, at the expense of Farris.

By agreement the claims were placed in the hands of one Noah, to be collected or converted into notes, the proceeds to be paid to appellees to be credited on the Farris and Daugherty note held by them. Noah held the claims for about two weeks, made some collections which he paid over to appellees, but obtained no notes, because the debtors refused to execute notes to appellees. The claims were returned by Noah to appellees, and by them delivered to Farris to collect or convert into notes. Farris made some collections on the claims and paid the collections to appellees, and they were credited on the note, Farris removed from Johnson [197]*197County after he secured notes for such of the claims as he had not collected, and left the notes with W. D. Farris to be turned over to appellees, which he failed to do. In May, 1883, appellees brought suit on their note, and T. D. Farris then learned in August thereafter that the notes had not been delivered to appellees. Appellant was of counsel who brought suit on the note for appellees. Farris procured the notes he had left with W. D. Farris and turned them over to appellant.

T. D. Farris made a general assignment for the benefit of his creditors on the 4th day of January, 1883, under which appellant qualified as assignee. The inventory of Farris did not contain the claims transferred to appellees, nor did his schedule of debts contain the note held by them. Farris's indebtedness amounted to about $17,000, but $600 or $700 of which was accepted for under the assignment. Appellant, as assignee, at the expiration of six months from the assignment paid off the accepting creditors in full and was discharged by order of court, leaving in his hands about $3500, proceeds of the assigned estate, which was garnished by non-accepting creditors a day or two thereafter. The writs of garnishment were issued from the District Court of Nolan County, to which appellant answered consenting that judgment be entered against him for assets of the assigned estate remaining in his hands, including $231.15 which he had collected upon the notes turned over to him by T. D. Farris, plaintiffs in garnishment indemnifying him against further liability for the assets covered by the judgment against him, which included the uncollected notes received from Farris and the money appellant had collected on a part of them.

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Bluebook (online)
12 S.W. 56, 72 Tex. 194, 1888 Tex. LEXIS 1264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramsey-v-hurley-tex-1888.