Rector v. Evans

288 S.W. 826
CourtTexas Commission of Appeals
DecidedDecember 8, 1926
DocketNo. 672-4564
StatusPublished
Cited by10 cases

This text of 288 S.W. 826 (Rector v. Evans) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rector v. Evans, 288 S.W. 826 (Tex. Super. Ct. 1926).

Opinion

SHORT, J.

The opinion of the Court of Civil Appeals, affirming the judgment of the' district court rendered in favor of the defendant in error, is to be found in 278 S. W. 924. This is a suit based upon a promissory note executed by the defendant in error, payable to the plaintiff in error, for the sum of $1,033.54. There are nine assignments of error in the application, all of which refer to-two matters; one being the alleged error of the Court of Civil Appeals in holding that the-trial court did not err in permitting the defendant in error to testify to the defensive matters set out in his answer, and the other that the Court of Civil Appeals did not err in, holding that the trial court correctly permitted the defendant in error to open and. conclude the argument.

It appears from the record that the parties to this litigation with others were joint ob-ligors on certain notes executed in winding up the affairs of the Gordon Gin & Milling. Company, a corporation, and that this particular note represented the pro rata portion as claimed by the plaintiff in error due by the defendant in error of the aggregate of these obligations. It also appears from the record that the plaintiff in error was the manager of the corporation and had exclusive control of the affairs of the corporation, which, having become insolvent and its property had been sold, the plaintiff in error and! the defendant in error, together with two-others, having purchased it for cash, distributed the proceeds among the creditors of the corporation. However, these obligations; of the corporation had been underwritten by some of the parties interested in the corporation, among whom were the parties to- this-litigation, and were liable as individuals. It further appears that some of these individuals had denied their personal obligation on the ground that the plaintiff in error had not truly represented the assets of the corporation but had appropriated the same to his own use. The defendant in error was not one of these, but knew about this contention. The special defense to the note, filed by the defendant in error to the demand of *the plaintiff in error, is to the effect that he executed this particular note at the suggestion- and request of the plaintiff in error with the understanding that it should not be a binding obligation against him unless the plaintiff in error should recover judgment against these other parties, which it was alleged the plaintiff in error had failed to do, and that therefore, according to the agreement between the parties, he was not liable on the note. The answer, after pleading in detail the facts as claimed by the defendant in error, among other things, uses this language :

“That the note sued on having been executed to become due and payable and binding on this [827]*827■defendant only upon the happening of a certain event which has never happened, and which cannot and will not happen, that the note «ued on never became effective or binding, and “was never delivered in .contemplation of law.”

After alleging the refusal of the other parties to the original obligation to pay their pro rata portions and their determination •to resist any suit brought to enforce pay•ment thereon, the answer proceeds in the following language:

“And thereupon plaintiff agreed with this defendant that, if this defendant would execute his note for defendant’s proportionate part as ¡aforesaid, the same would not be binding upon ■this defendant until such time as plaintiff had ••sued' on and recovered a judgment against said •other parties signing said note, and that, if plaintiff failed to recover a judgment against ■said other parties signing said note with this ■defendant, said note sued on herein would not be binding, and would not be effective, and the same would thereupon be destroyed or returned to this defendant.”

The answer then proceeds to allege that the plaintiff in error did not intend to prosecute said suit to judgment at the time he made the promise and thereby secured from the defendant in error the note sued on here, and that, by reason of said promise and agreement and the failure to comply therewith and the fraudulent, intent with which the defendant’s signature to said note was secured, the defendant is in no manner liable to the plaintiff. The trial court, after overruling special exceptions to this answer, permitted the defendant in error to introduce ■oral evidence in support of the allegations, and, after refusing to instruct the jury to render a verdict in favor of the plaintiff-in error, submitted the following special issue, which the jury answered in the affirmative, to wit:

“At the time of the execution and delivery of the note, sued on herein by the defendant, Evans, to the plaintiff, Rector, was it the agreement of the said Evans and Rector that said note would not be paid and would not become a binding obligation on the defendant, Evans, until such time as the plaintiff, Rector, should procure judgments against Yaden, Ball, Rix, ■and others for the joint benefit of defendant, plaintiff, Miller, and Garter? Answer ‘Yes’ •or ‘No’ just as you find.”

The plaintiff in error objected to the submission of this issue, on the ground that the effect of it is to permit a contradiction and variance of the terms of the note sued upon by parol evidence, and because the uneon-■tradicted evidence is to the effect that the note sued on was executed and delivered to the plaintiff to evidence an admittedly due and unpaid obligation of the defendant, and the-■same cannot be varied by parol evidence of ■an agreement not in writing that it should 'be paid only in the event plaintiff should procure judgment in his own and defendant’s behalf against other parties. This objection was overruled. The Court of Civil Appeals held that the special answer set up a complete defense to the note in question, and that the testimony offered in support of this defense was sufficient to sustain it and to justify the verdict of the jury. This situation under the assignments of error presents to this court purely a question of law.

The first and second assignments of error in the petition for the writ of error challenge the correctness of the judgment of the Court of Civil Appeals in holding that the defense pleaded by the defendant in error in the court below was in the nature of a confession and avoidance, and in holding that the trial court did not err in refusing to give a peremptory instruction to the jury to return a verdict for the plaintiff in error on account of the fact that the defendant in error had admitted in writing and in due time plaintiff in error’s cause of action in accordance with rule SI. This rule is stated in the following language:

“The plaintiff shall have the right to open and conclude, both in adducing his evidence and in the argument, unless the burden of proof of the whole case under the pleadings rests upon the defendant, or unless the defendant, or all of the defendants, if there should be more than one, shall, after the issues of fact are settled and before the trial commences, admit that the plaintiff has a good cause of action as set forth in the petition, except so far as it may be defeated, in whole or in part, by the facts of the answer constituting a good defense, which may be established on the trial, which admission shall be entered of record, when the defendant, or the defendants, if more than one, shall have the right to open and conclude in adducing the evidence and in the argument of the cause.”

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Cite This Page — Counsel Stack

Bluebook (online)
288 S.W. 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rector-v-evans-texcommnapp-1926.