Switzer v. Mills

47 S.W.2d 334
CourtCourt of Appeals of Texas
DecidedFebruary 10, 1932
DocketNo. 7672
StatusPublished

This text of 47 S.W.2d 334 (Switzer v. Mills) 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
Switzer v. Mills, 47 S.W.2d 334 (Tex. Ct. App. 1932).

Opinion

BLAIR, J.

The parties will be designated herein as appellants and appellees.

This’ litigation arose out of the following facts and transactions:

Appellant H. G. Switzer owned certain lots, and, desiring to erect four residences thereon, deeded some of them to R. L. Cope and others to J. W. Bowers, with agreements that they would each execute mechanic’s lien building contracts for two residences on the respective lots conveyed to them, with appellant as contractor, the contract price for each building to be $2,250, or a total price of $9,000 for the four buildings. The building contracts were accordingly executed, and the mechanic’s liens were transferred by appellant to the Temple Trust Company, under agreement that it would advance the $9,000 for the improvements; and Cope and wife and Bowers and wife executed their respective deeds of trust to the Temple Trust Company to better secure payment of the $9,000. Appellant subcontracted the erection of the four buildings to B. A. Mills, who agreed to erect them for the $9,000. In October, 1927, while Mills was erecting the buildings, Cope and wife and Bowers and wife reconveyed the property to appellant, each deed reciting a cash consideration of $10, and that appellant take the property subject to all indebtedness against it. Appellant admitted that all transactions between himself and Cope and Bowers were 'simulated, made for the purpose of handling the transactions with the Temple Trust Company ; and that he was owner of the property at all times. Appellant testified that during October, 1927, he paid Mills the total sum of $275.52; and introduced in evidence four checks aggregating that amount, payable to Mills or for him. Appellant further testified that on November 2, 1927, while each of the parties mentioned below was present, the followed occurred: Cope and wife and Bowers and wife made affidavits of acceptance of the buildings. Appellant as contractor made affidavits that all claims for labor and material used in the erection of the buildings had been paid. These affidavits were delivered by appellant to the agent for the Temple Trust Company, who delivered appellant the company’s four checks for $2,250, each, aggregating $9,000, in payment of the improvements. At the request of subcontractor Mills, appellant indorsed three of these checks to South Texas Lumber Company, in payment of the lumber and material furnished in the erection of the buildings. These-three checks totaled $6,750, which was more than the lumber company’s claim; and the lumber company executed two cheeks to appellant, one for. $875 and one for $885, for .the difference. There was no specific evidence as to the amount of the lumber company’s claim, but subtracting the amount of its . .two checks from the amount of the .three Temple Trust Company checks would show the claim to be $4,990. Appellant indorsed and delivered the two lumber company, cheeks, aggregating $1,760, to Mills, as payment on ’ his contract; and also indorsed and delivered to Mills the remaining Temple. Trust Company check for $2,250. Appellant further testified that earlier in the day of November 2, 1927, he delivered to Mills a check for $1,000, drawn .by appellant’s wife, payable to appellant, and indorsed by him. On the same day, November 2,1927, Mills cashed this $1,000 check and probably the two lumber company checks, aggregating $1,760, and, after apparently depositing the Temple Trust Company check for $2,250 for collection, absconded without paying appellees the amounts due them for their labor and material as follows: To ap-pellee R. A. Carroll, for labor and plumbing, $1,260.00; to John L. Sims, for surfacing floors, $71.45; and to D. D. Derrick, for painting, $310.

After appellant learned that Mills had absconded, he stopped payment on the four Temple Trust Company checks; but there[336]*336after instructed said company to pay all except $1,045 of the $0,000. Appellant claimed that $5,500 of the $9,000 went to pay the claim of the lumber company. No explanation was made as to why this claim was greater than the claim settled on November 2, 1927, when the lumber company was apparently paid $4,990. Appellant claimed that $1,000 of the $9,000 reimbursed his wife for her $1,000 check; and as to what became of the balance, except the $1,045, appellant made no explanation other than the four checks paid during October, 1927, and the general statement that he made total payments to Mills or his order of $8,560.52, prior to receiving the written notices of the claims of appellees, leaving a balance of $439.48 owing Mills on his contract. The Temple Trust Company paid the $1,045 into court and prayed that it toe distributed to the parties entitled to it.

At the time appellant made the affidavits that all claims for labor and material had been paid, he knew that appellees had not been paid, tout did not know the amounts of their claims. He further testified that under his arrangement with Mills he made the affidavits in order to get the money to turn over to Mills for the purpose of paying these claims; that Mills had built several houses before these for appellant under similar ar'rangements; and that he trusted Mills to pay his own employees, as he had formerly done. The amounts of appellees’ claims are not questioned; and appellant was served with written notice of the claims of appellees Carroll and Sims on November 5, 1927, and later with Derrick’s claim; and each filed their mechanic’s, laborer’s or materialman’s lien with the county clerk.

Appellant alleged and here contends that the evidence detailed showed he had paid all of the contract price for the four buildings, except $439.48, at the time he received the written notices of the claims of appellees, which amount by his pleadings he tendered into court. By their cross-actions appellees alleged, and toy cross-assignments of error here contend: (a) That, at the time they served appellant with written notices of their claims, he had on hand funds due Mills sufficient to pay their claims in full; and (b) that appellant knew the claims of appellees had not been paid, but nevertheless made false affidavits that all claims had been paid, thereby obtaining full payment from the Temple Trust Company of the amount it agreed to advance for the improvements; that appellant could not thus fraudulently obtain the funds and thereby defeat the claims of appellees; but that appellant was therefore personally liable for the full amount of their claims..

These issues were tried to the court without a jury, and the trial court found that appellees’ claims were valid, and ordered that the $1,045 deposited by the Temple Trust Company be distributed pro rata to them; tout denied appellees judgment against appellant for the balance of their claims.

The evidence above detailed sufficiently supports the findings and judgment of the trial court; and the contentions of both appellants and appellees are not sustained. Appellant alone knew to whom the $9,000, except the $1,045 deposited in court, had been paid. His accounting of it was very indefinite and unsatisfactory. He left in the hands of the Temple Trust Company $1,045 with which to satisfy claimants; and this fact, standing alone and unexplained, sustains the findings of the trial court that that amount was due Mills on his contract when appel-lees served written notices of their claims on appellant.

Nor do' we sustain appellees’ contention that, because-appellant made the false affidavits that all claims had been paid, appellant should be held personally liable for ap-pellees’ claims in full.

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

Related

Gulf, Colorado & Santa Fe Railway Co. v. Powers
23 S.W. 325 (Court of Appeals of Texas, 1893)

Cite This Page — Counsel Stack

Bluebook (online)
47 S.W.2d 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/switzer-v-mills-texapp-1932.