Spencer v. Thorp Springs Christian College

41 S.W.2d 482, 1931 Tex. App. LEXIS 1364
CourtCourt of Appeals of Texas
DecidedMarch 28, 1931
DocketNo. 12446.
StatusPublished
Cited by2 cases

This text of 41 S.W.2d 482 (Spencer v. Thorp Springs Christian College) 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
Spencer v. Thorp Springs Christian College, 41 S.W.2d 482, 1931 Tex. App. LEXIS 1364 (Tex. Ct. App. 1931).

Opinion

CONNER, O. J.

This suit was instituted in the district court of Hood county on the 9th day of August, 1928, by R. B. Spencer & Company against the Thorp Springs Christian College, of Hood County, Tex., to recover the. principal, interest, and attorney’s fees due upon a promissory note executed in December, 1926, *483 for tte principal sum of $1,440.17, with interest from its date at the rate of 10 per cent, and 10 per cent, attorney’s fees if sued upon. The name of the Thorp Springs Christian College was signed to the note, by A. R. Holton, alleged to have been at the time the “duly elected, qualified and empowered president” of the college. The note was made payable to the order of the Hood County Lumber Company for lumber and building material alleged to have been used in the building and repair of one of the college buildings situated on lots 1 and 2, block 18, in Thorp Springs, upon all which a mortgage was expressly given to secure the payment of the note according to its terms. The plaintiffs alleged that they were the legal successors of the lumber company, and the legal owners of the note and mortgage, and they prayed for judgment and foreclosure.

The defendant college answered by a general demurrer, a general denial, and special pleas to the effect that the person who executed the mortgage and note sued upon was without authority to do so, and further that said instruments were void in that they were in violation of charter provisions of the defendant’s charter. By a trial amendment, the college also pleaded the two-year statute of limitation.

J. L. Rutherford intervened in the suit, claiming title to the mortgaged property under a judgment and execution sale. Hr. T. H. Dabney, as chairman of the board of trustees of the college, also intervened and adopted the answer of the defendant college, alleging that said board had never authorized the execution of the note and lien sued upon. There áre other interveners, all of whom will hereafter be referred to collectively as interveners.

The trial was by the court without a jury, and resulted in a finding and judgment that “plaintiff’s statutory and constitutional lien” was void and the same was canceled and removed as a cloud upon the title of the defendant college. The plaintiff was further adjudged to pay all costs. The interveners were denied all recovery, but discharged “without prejudice in any way or manner to their respective rights and claims to the land and property involved in this suit as against the defendant and as against each other.”

From the judgment so rendered, the plaintiff below has duly prosecuted this appeal.

The plea of want of authority in A. R. Hol-ton to sign the note and mortgage, declared upon reads as follows: “For special answer this defendant says that it .is not liable for the payment of the note or debt forming the basis of plaintiff’s suit, because the same was executed by a person who had no authority under the law or under the charter of said corporation to execute notes and obligations for and in behalf of this defendant, and because of the same reasons the purported mechanic’s or materialman’s lien or mortgage sought to be foreclosed, and which is described in plaintiff’s original petition, is likewise null and. void, and of this the defendant prays the judgment of this court.”

The following demurrer thereto appears in the plaintiff’s petition: “Plaintiff excepts generally to the defendant’s answer and the plea of intervention on file in this cause, says that the same are too general, remote and indefinite, and are each insufficient in law, allege no defense to plaintiff’s cause of action and of this plaintiff prays judgment of the court.”

Appellant, under an enlarged proposition, urges that the court erred in overruling the demurrer. We think the-assignment and proposition must be overruled. The plea in terms is sufficient as against a general'demurrer. It was duly verified by one of the counsel for the defendant, and the plea formally adopted by the intervener Dr. Dabney. Moreover, the record fails to show that the demurrer was ever called to the attention of or ruled upon by the trial court. See Central Lumber Co. v. Fall (Tex. Civ. App.) 264 S. W. 513. The demurrers and exceptions to the sufficiency of the extended pleadings of the various interveners will also be overruled in view of the fact that the several interveners were denied all affirmative relief and dismissed from the case, and no exception or objection to this action is presented in the record. Nor do we find prejudicial error in the rulings of the court in the introduction or rejection of the evidence, or other incidental proceedings. The vital question, as we view the record, is: Does the evidence support the trial court's finding and judgment that the mechanic’s and constitutional liens claimed by the plaintiff below are void?

It is undisputed in the evidence that the predecessor of the plaintiff furnished the material for which the note and mortgage was given, and that the same was used in the improvement of the building located on the property described in the plaintiff’s petition. It is also undisputed that the note and mortgage was owned by the plaintiff and executed by A. R. Holton on December 4, 1926, the signature being in the following form, viz.:

“Thorp Springs Christian College “A. R. Holton.”

On the same day Holton executed a written instrument reciting the purchase of the lumber, the price to be paid therefor, etc., for the purpose of fixing a materialman’s lien on the property. This instrument was signed:

“Thorp Springs Christian College
“A. R. Holton, Pres.”

No objection to the form of this instrument has been urged, and it was duly acknowledged by Holton and recorded in the office of the *484 county clerk of Hood county on the 6th day of December, 1926. This instrument is declared upon as a statutory materialman’s lien, for the foreclosure of which the plaintiff prays. The plaintiff also pleaded the facts of Hol-ton’s purchase and use of the lumber in the repair of the building mentioned as a lien under the terms of the Constitution. The plaintiff also alleged that Holton had been held out by the defendant college as having authority to make purchases and contracts of the kind, and that the facts mentioned estop-ped the college from denying the relief sought.

It is apparent, therefore, that a vital question for our determination is whether the trial court erred in the finding that must he imputed to his judgment that A. R. Holton was wholly without authority to make the purchase of the material and execute the obligations as shown. After due consideration, we feel unable to say that the court erred in this respect. We think we must say that the defendant college introduced testimony, not subject to the objections made, that at least tends to show that Holton was without authority from the college to make the purchase and execute the note .and-mortgage in controversy.

The evidence shows that the college was incorporated under the general incorporation laws to be found in volume 1, Vernon’s Sayles’ Statutes 1914,' authorizing incorporations for educational purposes.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
41 S.W.2d 482, 1931 Tex. App. LEXIS 1364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spencer-v-thorp-springs-christian-college-texapp-1931.