Tackett v. Cunningham

91 S.W.2d 965
CourtCourt of Appeals of Texas
DecidedFebruary 12, 1936
DocketNo. 9646.
StatusPublished
Cited by11 cases

This text of 91 S.W.2d 965 (Tackett v. Cunningham) 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
Tackett v. Cunningham, 91 S.W.2d 965 (Tex. Ct. App. 1936).

Opinion

SMITH, Chief Justice.

R. O. Tackett and J. B. and W. S. Cunningham, a. partnership, operated a cotton business, with offices at Taft and Corpus Christi, under the trade-name of- “Tackett and Cunningham, Cotton.”

On December 14, 1931, the partnership was dissolved by mutual consent, evidenced by four certain contemporaneous written instruments, including a promissory note for $1,900, executed by Tackett, in behalf of the partnership, and by the two Cun-ninghams, payable to Tackett, individually, on or before December 14, 1932.

The partnership had an existing deposit account in the City National Bank of Corpus Christi, then in liquidation, for $1,900 (the amount of said note), and it-was provided in said note, as well as in a contemporaneous collateral written agreement, that, as dividends were thereafter paid on the deposit account, they should be credited on the note. It was further provided in the collateral agreement that, in the event the bank failed to pay the full amount of the deposit account, then each member of the partnership should pay, on demand, his' one-third of the deficiency so arising on the note. During the ensuing year, and therefore prior to the maturity of the note, the defunct bank paid a part of the firm’s deposit account, which payment, being credited on the note, left a substantial balance due thereon. At its maturity date the Cunninghams paid the accrued interest on the note, but subsequently, upon their default in the payment of the principal, Tackett brought this action against them for their proportion of that balance.

The Cunninghams answered, alleging, in effect, that under the terms of the collateral agreements they were not obligated to pay the note until the liquidation of the bank was completed, and all dividends accruing upon the firm’s deposit account were collected and credited upon the note, whereby the final liability of the Cunninghams thereon would be determined; that the bank was still in process of liquidation, and further dividends, in undetermined amounts, were yet to be paid; that Tackett had orally agreed and promised, and all parties understood, at the time the note was executed, that, if the liquidation of the bank was incomplete, and further dividends were due the partnership, at the recited maturity of the note, Tackett would then carry, continue, or extend the note, until that contingency occurred. Upon those allegations, as well as others of like import, the Cunninghams contended, in their pleading, that the suit was prematurely commenced against them, and prayed that it be dismissed, which the court ordered done, without prejudice, however, to Tackett’s right to sue again when his cause of action, if any, accrued. Tackett has appealed. The parties will be referred to as appellant and appellees.

Appellees alleged that the note sued on was but one of four written agreements entered into, executed, and delivered at the same time, concerning and effectuating the dissolution of the partnership; that each of those agreements was a material element of the act and contract of dissolution, and all together constituted that contract, and were intended to, and did by their own terms, form the one contract, and should therefore be considered and given effect in determining the rights and liabilities of the respective parties thereto; that there was a conflict in the provisions of the note sued on, creating an ambiguity therein. Appellees also alleged, generally, that appellant procured the execution of the note through fraudulent oral representations and promises.

The parties each demurred, generally and specially, to the'other’s pleadings, but it does not appear that those demurrers were urged or ruled upon below, wherefore they will be treated here as if waived by the parties. We think that in this situation appellees’ pleadings were suf *967 ficient to let in proof, both written and oral,-in support of those pleadings, setting up ambiguity in the indorsement on the face of the note. Certainly it was proper, under those pleadings, to admit and give effect to the contemporaneous written collateral contracts, executed, as the note was, as parts and parcels of the dissolution agreement; and to admit, as well, parol proof to show the note and contracts were executed at the same time, and as parts of, and constituting, the whole agreement. Being so in evidence, the contracts and' note were properly considered together, as making up an entire agreement.

One of the four written agreements provided, only, that the partnership was thereby dissolved “except for the purpose of 'final settlement and liquidation of the business thereof, said final settlement to be made - of this date and each partner’s responsibility cease of this date, only for the purpose of final settlement and liquidation, after which final settlement said partnership to wholly cease and determine.”

Another of those agreements provided, simply, that the partnership “is on this date dissolved by mutual agreement, and R. O. Tackett is hereby designated to liquidate and make all final settlement of said partnership.”

As those two agreements seem to be immaterial to the questions raised in this appeal, they will not be further discussed in this opinion. The remaining agreement only, other than the note sued on, will be hereinafter referred to as the “collateral” agreement.

The note sued on was in the usual form, except that it bore upon its face this in-dorsement: “As Tackett & Cunningham, Cotton City Nat’l Bank account is liquidated said funds to be applied on payment of this note.”

The trial judge filed quite voluminous findings of fact, and no statement of facts was brought up with the record. That being the case, it will be conclusively presumed by this court that every finding, in so far as founded upon parol evidence, was supported by sufficient evidence, and every such finding must be given its full legal effect upon this appeal, if supported by the pleadings. This presumption, however, does not extend to findings involving an interpretation of the written documents in evidence and appended to the findings. Those documents being before this Court for consideration, it is for this court to interpret, construe, and give effect to them, without regard to the trial judge’s findings or conclusions thereon. It should be added that, in the absence of a statement of facts, no fact other than those specifically included in the findings of the trial court will be presumed or implied. The judgment must stand, if at all, solely upon those specific findings.

We will first consider the question of the alleged ambiguity in the provisions of the note in suit. It is obvious from the record that that note was substituted for an existing demand note for a like amount. The allegation as to ambiguity was that the note “was prepared and executed subsequent to and as a part of the said written agreement, and that the notation upon said note is ambiguous.” The “notation upon said note,” as shown above, was, simply, that “as (the partnership account in the named bank) is liquidated said funds to be applied on payment of this note.” It is obvious that the language of' the notation is, within itself, plain and simple, and therefore unambiguous, but was nevertheless subj ect to a' more complete explanation of what the bank account was, which explanation could properly be shown by the collateral agreement. That agreement, being full and complete within itself, could not properly be enlarged or modified by parol evidence.

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91 S.W.2d 965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tackett-v-cunningham-texapp-1936.