Seedig v. First Nat. Bank of Clifton

168 S.W. 445, 1914 Tex. App. LEXIS 1163
CourtCourt of Appeals of Texas
DecidedApril 18, 1914
DocketNo. 7958.
StatusPublished
Cited by4 cases

This text of 168 S.W. 445 (Seedig v. First Nat. Bank of Clifton) 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
Seedig v. First Nat. Bank of Clifton, 168 S.W. 445, 1914 Tex. App. LEXIS 1163 (Tex. Ct. App. 1914).

Opinion

CONNER, O. J.

This suit was instituted by the appellant against the First National Bank of Clifton and against J. W. Butler, its president, and G. F. Boone and W. H. Randell, the sheriff of Bosque county, for damages because of an alleged wrongful levy and sale under execution of certain personal property owned by the plaintiff and claimed by him to be exempt from execution. It was alleged that the First National Bank was in the process of liquidation, and that the defendants Butler and Boone were its liquidating agents and they were sued as such, save that it was specially charged that J. W. Butler advised and directed the levy with full knowledge at the time that the property levied upon was exempt, and the plaintiff claimed both actual and exemplary damages against the bank and Butler.

The defendants, who are now appellees, answered on September 17, 1913, after our new act on the subject of pleading went into effect. They filed a general denial, and specially denied that the property levied upon was exempt, and specially alleged that they did not levy upon and sell the property “maliciously and without probable cause.”

To this the appellant answered by way of supplemental petition, alleging, among other things, that on the 2d day of December, 1912, the plaintiff on his own petition had been, by the District Court of the United States for the Western District of Texas at Waco, adjudged a bankrupt, the judgment described in the plaintiff’s petition, and by virtue of which the execution in question had beeh levied, being .listed as one of the debts from which the plaintiff desired a discharge; that the bank had been duly notified of the adjudication, and summoned to prove up its judgment against the plaintiff’s estate; that on the 3d day of January, 1913, “Ed Russell, the duly appointed and qualified trustee of *446 said bankrupt estate, set aside all of said exempt property described in plaintiff’s said petition as being Ms exempt property and not subject to be administered as a part of tbe bankrupt’s estate, wherefore [as tbe prayer is] tbe plaintiff sa'ys that the fact that said property is bis exempt property, and not subject to sale under execution to satisfy said judgment, is, as between tbe plaintiff and said bank, res adjudicata, and not subject to dispute between them.”

The case was tried before tbe court without a jury on September 17, 1913, and tbe court found that, of the property levied upon, property of tbe value of $704.60 was, in fact, exempt, as alleged by tbe plaintiff, and for this amount judgment was rendered against all defendants (no personal judgment being rendered against defendant Butler). Tbe remaining part of tbe property was found to be nonexempt and subject to tbe execution in question. Tbe court further found and adjudged in favor of tbe defendant bank against tbe plaintiff, Gustav Seedig, for tbe sum of $315.60, the balance due upon a note and mortgage that tbe defendants had set up by way of cross-action in their answer. Tbe court filed formal conclusions of fact upon which he based his judgment.

[1] We are of the opinion that appellant’s first assignment is well taken. It appears that in rendering judgment the court allowed plaintiff interest upon the value of the exempt property found to have been converted from the date of the judgment only; whereas we think he was entitled to interest thereon from tbe date of tbe conversion of tbe property, to wit, from November 5, 1912, making a difference of $35.23 to which appellant is entitled. See Thompson v. Griffin, 69 Tex. 140, 6 S. W. 410; Masterson v. Goodlett, 46 Tex. 402; Hillebrant v. Brewer, 6 Tex. 51, 55 Am. Dec. 757. The error here noted, however, will not require a reversal of the judgment, but may be corrected ast>we will hereinafter attempt to do by its reformation.

[2, 3] In the second assignment appellant urges “that tbe court erred in not finding as against the First National Bank of Clifton that all the property was exempt for the reason that the nonexempt character of the property had become res adjudicata, as had been specially pleaded.” Whatever of merit there might otherwise be in this contention, we think the present record fails to sustain it. In prescribing the duties of a trustee in cases of bankruptcy, the federal statutes, among other things, provides that he shall “set apart the bankrupt’s exemptions and report the items and estimated value thereof to the court as soon as practicable after the appointment.” See chapter 5, § 47, par. 11, of the Bankrupt Act (1 Fed. Stat. Anno. p. 656). It seems evident that the mere act of the trustee in setting apart exempt property has not been given the force of an adjudication. He is required to report the items of exempt property, with the estimated values thereof, to the court. This report may be contested, and, as between the creditor and the bankrupt, does not become final and conclusive until the court shall have acted thereon. It will be noticed from tbe quotation from tbe appellant’s plea that we have here-inbefore made that nothing beyond the act of the trustee in setting apart appellant’s exempt property is alleged. It is not charged that this report was finally approved by the federal District Court at Waco, nor is any .evidence that tMs took place pointed out, so that we cannot say that the record sustains the plea. It is further insisted, however, that tbe allegations relating to the plea of res adjudicata were not specifically denied, and that therefore under our new act relating to pleading, the plea must be taken as confessed in appellant’s favor. Pretermitting for tbe moment a discussion of tbe new act, it will be sufficient to say, in answer to this proposition, that tbe confession cannot be extended beyond the allegations of the plea, and, tbe plea itself having set up only the act of the trustee in setting apart appellant’s exempt property, the confession fails, in legal effect, to support the assignment.

[4] Several other assignments may be disposed of, we think, by the same general proposition. The assignments are: First, that “the court erred in not rendering judgment in favor of the plaintiff against the defendants and X W. Butler for actual damages for the wrongful conversion of plaintiff’s exempt property,” for the reason that said defendants bad not specially denied, as required by the new act relating to pleading (see General Laws, 1913, p. 257), plaintiff’s allegations to tbe effect that Butler, as president of tbe First National Bank, directed tbe wrongful levy and sale of the property knowing that the property was exempt, and not subject to levy; second, that “the court erred in not rendering judgment in favor of the plaintiff against the defendant J. W. Butler for actual damages for the alleged wrongful conversion of plaintiff’s exempt property, for the reason that the uncontroverted and uncontradicted evidence was that the said Butler knew, or, if he had used proper care and diligence, as he in the premises was bound to do, could have known, at the time he directed said levy and sale of said property that the plaintiff’s exempt property was among tbe property levied upon”; third, that “the court erred in not rendering judgment for exemplary damages in favor of the plaintiff against the First National Bank of Clifton and the defendant X W. Butler,” for the same reasons.

As before stated, the trial court filed formal conclusions of fact and of law.

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Bluebook (online)
168 S.W. 445, 1914 Tex. App. LEXIS 1163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seedig-v-first-nat-bank-of-clifton-texapp-1914.