Swaim v. INTERNATIONAL HARVESTER COMPANY

505 S.W.2d 634, 1974 Tex. App. LEXIS 2258
CourtCourt of Appeals of Texas
DecidedJanuary 25, 1974
Docket17472
StatusPublished
Cited by7 cases

This text of 505 S.W.2d 634 (Swaim v. INTERNATIONAL HARVESTER COMPANY) 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
Swaim v. INTERNATIONAL HARVESTER COMPANY, 505 S.W.2d 634, 1974 Tex. App. LEXIS 2258 (Tex. Ct. App. 1974).

Opinion

OPINION

MASSEY, Chief Justice.

As plaintiff below International Harvester Company was granted summary judgment against defendant Floyd Swaim, who appealed.

We affirm.

On or about July 31, 1970, defendant became indebted to International Harvester Company, and by contract such indebtedness should have been paid on that day in Tarrant County, Texas. The defendant did not make compensation by paying such indebtedness, and as a result an agent, servant and employee of the plaintiff followed and encountered him at El Paso, Texas, on either the following or the day after.

At El Paso on such occasion, in the presence of others and because of inability or refusal of the defendant to pay the plaintiff immediately, words were uttered attributable to the plaintiff which constituted slander (or, at least raised the fact thereof).

Within one year from that time plaintiff brought suit against defendant to recover the indebtedness, plus attorney’s fees. By answer filed within one year from that time defendant recited in his pleadings: “3. Defendant further says that plaintiff is liable and indebted to this defendant in a sum much greater than that sued upon by plaintiff, which would more than offset the claim of plaintiff, and which will be asserted herein by cross-action as soon as this defendant can prepare same for filing.”

Over one and one-half years after such El Paso occasion the defendant did file a cross-action by which for the first time he sought affirmative relief of the plaintiff in the form of damages for slander. The amount of damages sought was more than double the indebtedness sued upon by plaintiff.

In response to such cross-action the plaintiff filed its plea of limitation, asserting that the entirety of defendant’s cross-action was barred by the one year statute of limitations. Vernon’s Ann.Tex.Civ.St. Art. 5524, “Actions to be commenced in one year”, provides: “There shall be commenced and prosecuted within one year after the cause of action shall have accrued, and not afterward, all actions or suits in courts of the following description: 1. Actions for malicious prosecution or for *636 injuries done to the character or reputation of another by libel or slander. 2.

A brief discussion later will dwell upon the propriety of the summary judgment for plaintiff in respect to its own claim against the defendant, but we will initially discuss the propriety of such summary judgment in respect to the action of the court, as a part thereof, by striking the entire cause of action asserted by defendant’s cross-action upon holding that it was barred by the above quoted statute of limitation.

Our holding is that limitation of the statute did apply to defendant’s cross-action, and that the trial court properly sustained plaintiff’s plea of limitation with the consequence an entire cancellation of the defendant’s case against plaintiff.

Plaintiff’s contention is that defendant must have filed his cross-action in which there was contained a prayer for unliqui-dated damages for slander within one year from the date of the alleged slander in order to escape operation of the statute which it plead against defendant.

Defendant’s contention is that mention of the fact in his earlier pleadings that he possessed the right to assert a cause of action by cross-action (not yet filed but which he stated he would file) was sufficient to toll the statute so long as he did thereafter file such cross-action and pray for relief thereunder. Furthermore, and aside therefrom, defendant contends that he had the right to file and maintain his cross-action — as a counterclaim — by the provisions of Texas Rules of Civil Procedure, rule 97, “Counterclaim and Cross-Claim,” by its section (a), reading in part as follows: “Compulsory Counterclaims. A pleading shall state as a counterclaim any claim within the jurisdiction of the court, not the subject of a pending action, which at the time of filing the pleading the pleader has against any opposing party, if it arises out of the transaction or occurrence that is the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction; . . . .” (Emphasis supplied.)

By language in connection with Rule 97 the defendant states further in his brief: “Moreover, a plaintiff’s own institution of suit will suspend the running of limitations against a plea of setoff, where the claim was existing at the time suit was filed, arises from the same transaction which is the basis of plaintiffs suit, and was known to the plaintiff. Crook vs. McGreal, 3 Tex. 487 (1848); Birk v. Jackson, 75 S.W.2d 918 (Eastland, Civ.App.1934, err. dismd.) ; 52 Texjur.2d 220, ‘Set-off, Counterclaim, etc.’, Sec. 25. ” (Emphasis supplied.)

So, under defendant’s own presentation, he has correctly stated the law to the effect that the running of limitations will be suspended so that a plea of set-off may be asserted by cross-action after it otherwise would be subject to a plea of limitation if it arises from the same transaction which is the basis of the plaintiff’s suit against him and was known to plaintiff.

Properly analyzed the decisive question to be resolved on appeal is whether the transaction which was the basis of plaintiff’s suit; to-wit, accrual of the debt which should have been paid July 31, 1970, was the transaction out of which the defendant’s cause of action for slander arose two days later.

Our holding is against defendant’s contention that the mention in his pleading filed within one year that he intended to file cross-action for damages for slander protected him so that his later-filed suit by way of cross-action praying for the recovery of damages flowing therefrom was not subject to plaintiff’s limitation plea. By such statement in the pleadings neither plaintiff nor defendant were bound anymore than they would have been bound had defendant, passing on the street, made similar oral statement to plaintiff.

*637 The interesting decisive question, however, whether the defendant’s cause of action for slander arose out of the same transaction which was the basis for plaintiff’s suit for debt, compelled our research.

The section we have quoted from, T.R. C.P. 97, “Counterclaim and Cross-Claim”, was in effect at the time of the Supreme Court opinion in Southern Pacific Company v. Porter, 160 Tex. 329, 331 S.W.2d 42, 45 (1960). Therein the court wrote on the question of whether a shipper’s claim for damages for the negligent handling of cattle in transit could be offset as a re-coupment against the carrier’s claim for freight charges by cause of action filed beyond a nine-month limitation period provided contractually. The court wrote: “The question of common law recoupment in Texas is to be determined in accordance with the decisions of this Court. . The narrow scope of recoupment in Texas is illustrated by the case of Mason v. Peterson, Tex.Com.App., 250 S.W. 142, holdings approved by the Supreme Court.

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Cite This Page — Counsel Stack

Bluebook (online)
505 S.W.2d 634, 1974 Tex. App. LEXIS 2258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swaim-v-international-harvester-company-texapp-1974.