Stillman v. Hirsch

84 S.W.2d 501, 1935 Tex. App. LEXIS 718
CourtCourt of Appeals of Texas
DecidedMay 8, 1935
DocketNo. 10100.
StatusPublished
Cited by5 cases

This text of 84 S.W.2d 501 (Stillman v. Hirsch) 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
Stillman v. Hirsch, 84 S.W.2d 501, 1935 Tex. App. LEXIS 718 (Tex. Ct. App. 1935).

Opinion

LANE, Justice.

This suit was brought by Maurice Hirsch, hereinafter for convenience some times referred to as “the plaintiff” and at other times as “appellee,” against Phillip Stillman, hereinafter referred to as “the defendant” or as “appellant.”

Plaintiff in his original petition, pleaded, reduced to its essentials, that he had become the owner of 22.22 per cent, of the capital stock of the Union Realty Corporation, the defendant had become-the owner of 38.88 per cent, of such stock, and one Will Minchen was the owner of 38.88 per cent, of such stock; that such company was indebted in the sum of $17,000 to the Seaport National Bank, such money being borrowed upon the agreement among the stockholders that they would be responsible for the indebtedness of the company in proportion to their ownership of the stock; that such company ceased doing business, and it became necessary for each party to ¡pay off his proportionate part of the $17,000 obligation of the company; that plaintiff and Minchen paid off their part thereof by the execution of their personal notes. That by reason of the defendant’s connection as an officer of the bank, defendant’s part thereof, amounting to approximately $6,483.03, was paid by the execution of the company’s note, which note the plaintiff was persuaded to indorse by the defendant’s agreement to reimburse him for any liability which he might sustain by reason of such indorsement. That, notwithstanding such agreement, upon the maturity of such obligation, the defendant failed and refused and continues to fail and refuse to pay the same, although the payment of the same was duly and repeatedly demanded of him; that by reason of the defendant’s failure and refusal to pay such note of any part thereof, it became necessary, by reason of his indorsement, for the plaintiff to pay such obligation, and upon demand by the City Bank & Trust Company the plaintiff did pay such obligation in full and the note in question was by the City Bank & Trust Company indorsed and assigned to the. order of this plaintiff, without recourse on the assignor, as evidence of the payment and discharge of such note by the plaintiff; that by reason of the facts herein alleged the defendant is obligated to pay and reimburse this plaintiff the principal amount of such note, to wit, $6,483.03, with interest thereon at the rate of 8 per cent, per annum from September 9, 1930.

By his amended answer defendant made a certain written contract entered into between the plaintiff Will Minchen and himself a part thereof. The contract pleaded, among other things, provides that Stillman assumes 38.88 per cent, of the obligations of the Union Realty Company, amounting to the sum of $17,000, same being evidenced by a note payable to the Seaport National Bank by the Union Realty Company. tie alleged that such written agreement constituted a full settlement of the rights and liabilities of the parties thereto.

Defendant further alleged in his answer that under the terms and provisions of their contract he agreed to pay, and did pay, the sum of $757.79, represented by a note, to the Seaport National Bank executed by Minchen, and also the sum of $2,700 in cash, and transferred to Minchen ten shares of stock in the Seaport National Bank; that defendant fully carried out the terms of the contract so agreed to by him; that such contract sets out the indebtedness of Union Realty Corporation as $17,000, represented by one note; that as a matter of fact such note did not represent money borrowed only by the corporation, but there was grouped in this note various personal transactions of the parties; that on or about September 4, 1929, the settlement between the parties of the written contract was consummated; that there was executed by Minchen one note in the sum of $9,200,. the execution by plaintiff of one note in the sum of $3,-780, and the execution by Union Realty Corporation, bearing the indorsement of plaintiff, of one in the sum of $6,609.60; that defendant paid out the amounts of money above set forth and provided to be paid by him in the contract; that same constituted a complete settlement and compromise of all matters between plaintiff and defendant; that the note sued on was executed pursuant to such written contract, and defendant is in no manner liable thereon; that at the time of the execution of such notes it was mutually agreed between plaintiff and defendant that there would be no kind or character of liability on the part of defendant for *503 apy of the obligations of Union Realty Corporation.

Defendant further pleads the two and four years’ statutes of limitation (Vernon’s Ann. Civ. St. arts. 5526, 5527), and that if any certain agreements were ever made as alleged by plaintiff, same, not being in writing, are void under the statute of frauds.

Defendant further pleads that it affirmatively appears from plaintiff’s petition that his name was not signed to the note in question, and plaintiff is attempting to charge this defendant with liability on the promissory note to which his name does not appear in any capacity, and further attempts to vary the terms of the written contract by a verbal contract.

Replying to the new matter set up in defendant's first amended original answer, to wit, the contract, in which he admitted the execution of such contract and admitted its binding effect, plaintiff again pleaded the defendant’s obligation to pay 38.88 per cent, of the obligations of the Union Realty Corporation as verbally agreed and as set out in such contract, had been paid by a note of the Union Realty Corporation, which note he had indorsed upon the defendant’s express agreement to reimburse him for any liability thereon, and further pleaded that in addition to the liability of the defendant to him under his express agreement to reimburse him, that the plaintiff had, by the payment of such obligation, become subrogated to the rights of the holder of the note under the terms of the contract, under which contract the defendant had assumed that part of the total obligation of the Union Realty Company represented by the note.

Defendant in his supplemental answer alleges, among other things, that defendant executed the written contract, a copy of which is attached to his answer, relying on the statements and representations of plaintiff that same represented a complete settlement of account between the parties with reference to Union Realty Corporation; that he paid in cash the money provided by said contract to be paid by him based upon the representations and in the belief that in so doing he would completely settle all matters of contro-’ versy concerning the corporation; that otherwise he would not have executed the contract and would not have paid the money; that plaintiff was attorney for the Seaport National Bank and also for this defendant, and defendant. had every reason to rely, and did rely, on his statements and representations; that such representations were so made with the direct purpose and intent of procuring the execution by defendant of such contract, and same did so-procure the execution of same by defendant ; “that by reason of the facts herein pleaded and the facts pleaded by defendant in his amended answer previously filed herein, plaintiff is here now estopped to claim any liability on the part of defendant or that- the defendant is indebted to him in any sum of money.”.

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Related

Cooper Petroleum Co. v. LaGloria Oil & Gas Co.
423 S.W.2d 645 (Court of Appeals of Texas, 1967)
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111 S.W.2d 324 (Court of Appeals of Texas, 1937)
Stillman v. Hirsch
99 S.W.2d 270 (Texas Supreme Court, 1936)

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Bluebook (online)
84 S.W.2d 501, 1935 Tex. App. LEXIS 718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stillman-v-hirsch-texapp-1935.