Stephenson v. Nelson

233 S.W. 1000, 1921 Tex. App. LEXIS 959
CourtCourt of Appeals of Texas
DecidedJune 25, 1921
DocketNo. 8574.
StatusPublished
Cited by1 cases

This text of 233 S.W. 1000 (Stephenson v. Nelson) 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
Stephenson v. Nelson, 233 S.W. 1000, 1921 Tex. App. LEXIS 959 (Tex. Ct. App. 1921).

Opinion

TALBOT, J.

Tbe appellee Nelson sued tbe appellant, J. B. Stephenson, and the Hygro Company of Texas, and H. Grossman, alleging, in substance, that tbe Hygro Company of Texas was engaged in tbe business of selling and installing soda fountains and restaurant fixtures, etc., and that its agent secured from appellee a certain written order dated August 7, 1918, for certain fixtures to be constructed and installed in accordance with specifications therein stated, for which be was to pay $4,985 as follows: $1,985 upon tbe arrival of tbe goods at destination and the balance in 12 equal monthly installments; that said fixtures were to be installed within six .weeks from August 11, 1918, and deferred payments to be evidenced by notes to be .executed by plaintiff on tender and delivery of tbe goods, tbe order subject to tbe approval of tbe Hygro Company of Texas at Dallas, Tex.; that upon receipt of said order on August 9, 1918, the Hygro Company of Texas wired plaintiff that it could not accept tbe contract without $1,985 cash with order, as fixtures would have to be specially built, and that it would furnish acceptable bond guaranteeing delivery of tbe goods according to specifications; that plaintiff replied to this telegram by wire, in which be requested the Hygro Company of Texas to send tbe bond to tbe Merchants’ State Bank & Trust Company of Laredo, Tex., and, if satisfactory, tbe bank would transfer tbe money; that upon receipt of such telegram from plaintiff tbe Hygro Company of Texas did, on August 12, 1918, execute and forward a bond as requested, which bond was signed by tbe Hygro Company of Texas as principal, and M. Murphy and J. B. Stephenson as sureties; that said bond was for $2,000;-that tbe bond provided, among other things, that tbe Hygro Company of Texas bad entered into a contract with plaintiff for tbe furnishing and installation of certain, restaurant and kitchen equipment as per contract and specifications attached to said bond, and that if tbe Hygro Company of Texas did all tbe things required of them by tbe contract, then tbe bond to be void, otherwise to remain in full force and effect; that tbe bond was received by the bank at Laredo, and tbe bank sent a wire approving said bond, and authorizing- tbe Hy-gro Company of Tesas to draw on it for $1,985, which draft was duly drawn and paid; that tbe contract was never complied with, and plaintiff demanded tbe return of tbe $1,985, which was refused; that demand *1001 was also made of the sureties, and that one of the sureties, M.* Murphy, pursuant to said demand, paid $1,000 and was released of all liability, with the understanding that the release of him by the appellee on account of said payment did not release the appellant from liability on the bond. Plaintiff prayed for judgment for $1,000 against Stephenson. Defendants the Hygro Company of Texas and Grossman filed general demurrers and general denials.

The appellant, Stephenson, pleaded a general demurrer, special exceptions, a genera^ denial and specially, that before the execution of the bond 'by Stephenson, plaintiff and the Hygro Company of Texas changed and altered* the terms of the original contract between them and the method of payment to be made thereunder, and that plaintiff, under the terms of such altered contract, paid the Hygro Company of Texas $1,985 without first requiring the goods to be shipped, and without requiring any bill of lading to be attached to the draft, and that all of the changes and alterations were made without the knowledge or consent of Stephenson, and that by reason thereof he was released from any and all obligations under said bond.

The case was tried June 23, 1920. The appellant’s demurrers were overruled, and at the conclusion of the evidence the court instructed the jury to return a verdict in favor of the appellee Nelson against the Hygro Company of Texas, H. Grossman, and the appellant, Stephenson, for the sum of $985, with interest thereon at the rate of 6 per cent, per annum from January 1, 1919. Verdict in accordance with the court’s instructions was returned, and judgment entered upon the same. Appellant made a motion for a new trial, which was overruled, and he perfected an appeal to this court.

[1] The first, second, and third assignments of error complain respectively of the court’s action in overruling the appellants’ second, ninth, and tenth special exceptions to the appellee’s petition. These assignments will be overruled. While the appellee’s petition shows on its face that the appellant was only a surety on the bond sued on, it does not so show, as we view it, that the terms of the contract which were guaranteed by the bond were, after the date the contract was executed, materially altered and changed by the parties to the contract. This being true, no matter what the 'facts may be in reference to the alleged change of the contract guaranteed by the bond the exception to the petition on that ground was properly overruled. It is too clear for argument that a demurrer to a petition can only be sustained because of some defect appearing therein, and not because of any matter set out in the demurrer. Conley v. Railway Co., 44 Tex. 579. In discussing these assignments, counsel for the appellant refers, in support thereof, to matters which they claim are disclosed by the statements of facts, but such matters are not ap--parent upon the face of the petition, and could only be made available, if at all, by proof. The contract made and to secure the performance of which the bond sued on was given is fully set forth in the petition, and it does not appear from any allegation in the petition, as we understand it, that the contract actually entered into between the parties was in any particular changed after the bond was executed.

[2] The assignments of error from 4 to 10, inclusive, assert that the trial court erred in overruling the objections urged by the appellant to the giving of a peremptory instruction in favor of the appellee. The controlling question presented for decision is whether or not the evidence was sufficient to authorize a finding that the contract, to secure the performance of which the bond in question was given, was materially altered and changed by the appellee and the Hygro Company of Texas after the same was signed by the appellant. If it was, then appellant is not liable on the bond, and the court erred in giving the peremptory instruction. If not,’’such instruction was proper, and the appellant has no fcause of complaint thereat. The question then is: Does the evidence show that, after the signing of the bond sued on, the parties to the contract for the performance of which it was given materially changed the terms of said contract? We have reached the conclusion that the question must be answered in the negative. The contention of the appellant is, in effect, that the contract as originally made provided that the price to be paid for the property ordered by said contract, to wit, $4,985, should be paid as follows: $1,985 upon the arrival of said goods at destination upon draft attached to shipper’s order bill of lading, and the balance in 12 equal monthly installments; while the one upon which plaintiff relies in this suit provided, in substance, that a large payment, to wit, the sum of $1,985, should be made in cash with the order and before any of the equipment called for therein was actually shipped, which payment the evidence in this cause shows was in fact so made without the knowledge or consent of this defendant.

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Related

Stephenson v. Nelson
243 S.W. 1069 (Texas Commission of Appeals, 1922)

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Bluebook (online)
233 S.W. 1000, 1921 Tex. App. LEXIS 959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephenson-v-nelson-texapp-1921.