Southwestern Investment Company v. Neeley

443 S.W.2d 573
CourtCourt of Appeals of Texas
DecidedJune 27, 1969
Docket17027
StatusPublished
Cited by4 cases

This text of 443 S.W.2d 573 (Southwestern Investment Company v. Neeley) 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
Southwestern Investment Company v. Neeley, 443 S.W.2d 573 (Tex. Ct. App. 1969).

Opinion

OPINION

MASSEY, Chief Justice.

Reference is made to Southwestern Investment Company v. Neeley, 412 S.W.2d 925, in which this court concluded that a prior judgment of the trial court — in the same case — should be reversed and rendered. Reference is also made to the Supreme Court’s opinion in the same case, wherein it agreed that the trial court’s judgment should be reversed, but directed that there be a retrial; Neeley v. Southwestern Investment Company, 430 S.W.2d 465.

The case is one wherein Claude D. Nee-ley et ux., as plaintiffs, sued defendant Southwestern Investment Company for conversion of household furniture. On retrial plaintiffs obtained judgment against the defendant, based upon a jury’s verdict, for actual damages in the amount of $4,-500.00 because of the conversion, plus exemplary damages in the amount of $20,-000.00.

Judgment is to be reformed and affirmed on condition of remittitur; otherwise to be reversed and remanded for a new trial.

In the opinion of the Supreme Court (430 S.W.2d 465, 468) it was stated that evidence introduced on the prior trial established accord and satisfaction between plaintiffs and the defendant as a matter of *576 law. The evidence was substantially the same on the trial from which the instant appeal was taken. Accordingly, our holding is that the evidence established accord and satisfaction as a matter of law. In other words there was a full and complete release by the defendant finance company of any and all mortgagee’s interest in the plaintiffs’ household furniture when it accepted plaintiffs’ check for $837.01 on March 26, 1963. Afterward there was never a time when the defendant had a legitimate claim of any kind against the plaintiffs. Defendant did not have any right under the plaintiffs’ mortgage, theretofore in effect.

Despite the fact that there had been accord and satisfaction of the debt the defendant actually believed the contrary, although aware that plaintiffs were contending that the pre-existent indebtedness had been released. The defendant also actually believed that its mortgage persisted as a valid and subsisting lien upon plaintiffs’ furniture, as security for its claimed balance of indebtedness of $62.09.

Under what it considered as authority under contractual provisions in the "Note With Chattel Mortgage” executed by the plaintiffs (at time the original lien was placed on their furniture) the defendant constructively entered into possession of plaintiffs’ furniture on November 17, 1964, and proceeded to sell it at private sale (under power given in the mortgage instrument) for the sum of $62.09. It made no attempt to obtain more than $62.09 for such of the plaintiffs’ property which was indisputably converted. Neither did defendant attempt to obtain $62.09 (plus expenses of “repossession” and sale) by selling only one or two articles rather than all of plaintiffs’ furniture.

We speak of $62.09 as the amount for which plaintiffs’ furniture was sold. By reference to our opinion on former appeal (at 412 S.W.2d 925, 929) it is to be noted that a Mr. Brumbelow paid this amount of money to the defendant and also paid $315.00 to plaintiffs’ landlord, a Mr. Lambert, in exchange for which Lambert unlocked the doors of the premises where the plaintiffs’ household furniture was located and admitted Brumbelow and permitted him to remove it. More complete testimony relative thereto, produced on the trial following which the instant appeal was taken, disclosed the fact that the foregoing was arranged by a Mr. Scott Allred, acting as agent for the defendant finance company. Furthermore, the evidence positively reflects the fact that the defendant at all times knew that its lien was first and prior to that of any other person (assumption made that defendant’s lien persisted). It is indicated that the landlord, Lambert, and perhaps Allred and/or Brum-below might have believed that a landlord’s lien applied to the furniture, next after that of the defendant. Of course there was no landlord’s lien, whether or not there might have been a belief that there was.

As a matter of law Brumbelow’s payment of the $315.00 to Mr. Lambert, as the landlord, would have been the act of a “volunteer” insofar as the plaintiffs were concerned. The same thing would be true if, by implication, such payment might be attributable to the defendant. Plaintiffs’ household furniture was “exempt” under Texas statutory law, enacted in obedience to constitutional mandate. Vernon’s Ann. Tex.Civ.St., Art. 3832, “Property exempt to family”. As between plaintiffs and whoever paid the $315.00, there would be no entitlement to thereafter claim it of plaintiffs. What we are attempting to make clear to the reader is that the $315.00 which Mr. Brumbelow paid to Mr. Lambert may be entirely disregarded for purposes of this action, and the transaction viewed as one where Brumbelow, upon payment of $62.09 and nothing more, received (at the hands of, and because of arrangements with the defendant finance company) the furniture of the plaintiffs. It is our holding that action attributable to the defendant amounted to a conversion of plaintiffs’ furniture as a *577 matter of law, both in the “repossession” action and in the sale thereof afterward.

If it be that we err in our holding that such conversion was established as a matter of law under undisputed evidence, then we hold that there is ample evidence in the case supporting the jury’s finding of conversion against the defendant through authorized action of its agent, Scott Allred, and the jury’s finding of subsequent ratification by managerial officials. We furthermore hold that the findings were not contrary to the greater weight and preponderance of the evidence.

In view of the accord and satisfaction between plaintiffs and the defendant any exercise of dominion over plaintiffs’ property by the defendant would be a conversion. That would not have been true as applied to the defendant’s “repossession” (apart from any subsequent sale) had there been no accord and satisfaction between the parties, and if $62.09 was still due and owing, with plaintiffs’ furniture incumbered as security therefor. In such situation hypothesized, however, we would nevertheless be of the opinion that there would have necessarily been a conversion as a matter of law resultant from the sale following “repossession”. It would be the conversion by the defendant of plaintiffs’ interest in their furniture, over and above the $62.09 claimed by the defendant, as the natural and proximate consequence of the defendant’s sale of such property, i. e., in a manner whereby plaintiffs would receive nothing for their interest — though at the very time the defendant actually knew of and acknowledged the fact of its existence (as applied to the value of the furniture over and above the amount the defendant claimed plaintiffs owed).

In other words defendant would be guilty of conversion, as a matter of law, — because of the nature of the sale of plaintiffs’ furniture — even had $62.09 continued to be due and owing.

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Related

Aetna Cas. and Sur. Co. v. Joseph
769 S.W.2d 603 (Court of Appeals of Texas, 1989)
Christian v. First National Bank of Weatherford
531 S.W.2d 832 (Court of Appeals of Texas, 1975)
Maxey v. Citizens National Bank of Lubbock
507 S.W.2d 722 (Texas Supreme Court, 1974)
Southwestern Investment Company v. Neeley
452 S.W.2d 705 (Texas Supreme Court, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
443 S.W.2d 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-investment-company-v-neeley-texapp-1969.