Rosenthal v. Rosenthal

107 S.W.2d 641, 1937 Tex. App. LEXIS 707
CourtCourt of Appeals of Texas
DecidedJune 16, 1937
DocketNo. 8447.
StatusPublished
Cited by1 cases

This text of 107 S.W.2d 641 (Rosenthal v. Rosenthal) 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
Rosenthal v. Rosenthal, 107 S.W.2d 641, 1937 Tex. App. LEXIS 707 (Tex. Ct. App. 1937).

Opinion

McCLENDON, Chief Justice.

' Hermann Rosenthal sued William Ros-enthal and- his wife, Lina, to set aside a deed from William to Lina and to subject the property therein conveyed to a judgment debt owing by William to Hermann, on the ground that the deed was executed in fraud of creditors. For brevity we are designating the parties by their given names. The appeal, which is by Hermann from an adverse judgment upon a directed verdict, presents the sole issue whether the evidence was sufficient to support a judgment in favor of Hermann.

The material evidence, substantially stated, follows:

Hermann and William are brothers, and two of five children of Doretta and Christian ■ Rosenthal, both of whom died intestate, the former in 1930 and the latter in 1934. May 26, 1931, William was served with citation in a suit brought against him by Hermann upon a promissory note. Judgment (that in issue) was rendered September 8, 1931, in favor of Hermann against William for $3,829.88 and costs. An abstract of this judgment was promptly filed and indexed in Comal county. On the day William was served with citation in this suit (May 26, 1931), he made- two conveyances to Lina. In the first (that here in issue), for a recited cash consideration of $1,700, he conveyed his ½ interest in his mother’s estate, and his expectancy in his father’s estate. In the second he conveyed residence property in New Braunfels “in consideration of love and affection,” the deed reciting that the property was the homestead of William and Liña.

At the time these conveyances were made William owned a vendor’s lien note which was a second lien upon 112 acres in Caldwell county, which tract he had traded for 73 acres in Comal county, against which latter was a vendor’s lien note which he had executed in the trade. There had been some negotiation between William and Hermann regarding settlement of the debt sued on, in which William had offered Hermann the note on the Caldwell county land, the 73 acres, and the New Braunfels residence property. Hermann testified he declined these offers, because there was no equity either in the Caldwell county note security or in the 73 acres, and he was unwilling to allow William $3,000 which he. demanded for the residence property, but offered to take it at $2,000, which he claimed was all it was worth.

William testified that the real consideration for the first deed was $1,700 which he owed Lina. The substance of this testimony will be set out later.

The directed verdict was predicated upon the theory that the evidence conclusively showed that William was indebted to his wife in the sum of $1,700, and since the property conveyed in the first deed did not exceed in value that amount, the conveyance could not be set aside. This upon the correct proposition of law that a debtor has a right to prefer one creditor over another.

Upon this issue Hermann asserts that the evidence did not establish conclusively a bona fide indebtedness to Lina; nor the amount of such debt, if any; nor that the conveyance was a bona fide transaction in settlement thereof. In this we agree. All the evidence upon this subject came from William, an adverse party and interested witness. The applicable rule of evidence is stated and illustrated in the following cases: Stefka v. Lawrence (Tex.Civ.App.) 288 S.W. 1092, 1093; Luling Oil & Gas Co. v. Edwards (Tex.Civ.App.) 32 S.W.(2d) 921; and Gardner v. Wesner (Tex.Civ.App.) 55 S.W.(2d) 1104, 1107. We quote from the last-cited case: “The rule that the uncorroborated testimony of an interested witness, although not controverted, does not conclusively establish a fact, is applicable, except when the nature of the testimony is such that it might readily be discredited, if not true, and there are no' circumstances in evidence which would throw doubt or suspicion upon it.”

This rule was applied in Stefka v. Lawrence to a state of facts closely analogous to those at bar. The limitations of the rule are illustrated in the Edwards Case, in which it was held that where the uncorroborated testimony of an interested witness is of such character that it might readily he disproved if untrue, it will be held conclusive if the adverse party offers no disparaging or discrediting proof.

*643 William’s testimony upon this subject was in substance: He and Lina were married in 1916. He then owned the 112 acres in Caldwell county, subject to an encumbrance of about $2,000. They lived on that place until 1929, when they moved to the 73 acres. Lina’s mother died in 1924; her father died later, but the date was not given. William testified Lina got $1,700 from her father’s and mother’s estates. His testimony upon this point, however, is unsatisfactory and in some respects contradictory. He testified in one place that she got $1,000 in cash from her mother’s estate. In another, “I stated that my wife got this $1000 in cash. It was the same as cash; we took this car in for the amount, and it was just the same as cash. We used this car for a family car for a little while, and then we sold it right away.” What it brought at the sale he did not state. As to his getting the money from his wife, the following excerpts from his testimony are illustrative: “I never kept any dates when I borrowed this money from her. I don’t suppose anybody else was present when I got that money; I never got it all at one time; I got it from time to time.” “I can’t tell you approximately when I got the money; I didn’t get it all at one time, but just from time to time.” “I did not give her a note for it. We did not keep a separate account of her money and mine. I was not to pay it back at any fixed time, just whenever she might need it.” “I was to pay this money that I borrowed from her whenever she needed it, I was to pay her back. We never agreed on any rate of interest, and no date was set for me to pay it back, except that I was to pay it whenever she' needed it. It was not an on or before transaction.” “I have in my pleadings that I owed my wife $1700; that is what we figured it. I don’t know what date it was that the total amounted to that sum. We just figured it as near as we could.” “My wife used to be sick a lot before we married, and when I borrowed this money from her I was to pay it back to her whenever she- got sick and needed it.” To the question, “But she needed it on June 26th, 1931, at the time you deeded her the ½ interest in your parent’s estate?” there was “No audible answer.”

Comment upon this character of testimony is unnecessary. Coming as it did from one of the parties and relating as it did to transactions solely within the knowledge of the parties, it was manifestly not of that quality as to require its acceptance as conclusive proof, even though not con-, tradicted by any other witnesses. In addition to the above authorities, see 17 Tex., Jur., pp. 893-904, §§ 405 and 406, where, the subject is treated at length.

Appellees urge that appellant is estopped to question the validity of the first deed upon two grounds:

1. Hermann joined in a p.ower of attorney with his other brothers and sisters and Lina, in which it was recited that! the property conveyed in the first deed belonged to Lina in her own separate right. No action was taken under this power of attorney, and Lina afterwards revoked it. Hermann testified that the purpose of the power of attorney was for convenience in managing the estate.

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Bluebook (online)
107 S.W.2d 641, 1937 Tex. App. LEXIS 707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenthal-v-rosenthal-texapp-1937.