Terrell v. General Motors Acceptance Corp.

59 S.W.2d 442
CourtCourt of Appeals of Texas
DecidedFebruary 22, 1933
DocketNo. 3969
StatusPublished
Cited by4 cases

This text of 59 S.W.2d 442 (Terrell v. General Motors Acceptance Corp.) 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
Terrell v. General Motors Acceptance Corp., 59 S.W.2d 442 (Tex. Ct. App. 1933).

Opinion

HADD, Chief Justice.

The appellant was engaged in selling automobiles in the city of Childress. He sold four automobiles, taking the notes of the several purchasers, each note being secured by a chattel mortgage upon the car so sold. The notes and mortgages securing them were assigned to the appellee company by written assignments, which authorized the company to do every act and thing necessary to collect the debt. The appellant guaranteed the payment of each note and agreed that his liabil,ity should not be affected by any. settlement, extension of credit, or variation of the terms of the contract with the purchasers of the cars and also waived notice of the acceptance of the guaranty and notice of nonpayment and nonperformance by the purchasers. It is provided in all four of the mortgages that the seller had the right to enter upon the premises of the purchaser and remove the same and to resell the car so taken at public or private sale, without demand for performance, with or without notice to the purchaser, and- with or without having such property at the place of sale and upon such terms and in such manner as the seller might determine and to deduct from the proceeds of any such sale all expenses, including a reasonable attorney fee.

The purchasers of the several cars defaulted, and upon the failure of Terrell to pay the corporation the amount due, this action was instituted.

J. M. Terrell, the brother of John J. Terrell, was made a defendant and alleged to be. a partner in the business. He was later dismissed as a party and the case proceeded to trial against John J. Terrell only.

By way of answer Terrell alleged that the plaintiff company did not sell the automobiles which it had repossessed at their reasonable market value, but that it sacrificed all of said cars'and sold them for a grossly inadequate [443]*443price and if they had been sold at their reasonable and fair value, each of said automobiles would have been sold for sufficient money to have more than' paid the indebtedness against it. He sets out the reasonable value of each of the cars and states the amount for which it had been sold by the company’s representative and alleges “that if plaintiff had used reasonable care and diligence it could have sold each and all of the above named automobiles for the amounts of money herein last above named and stated as to each of them, but on the contrary plaintiff, in total disregard of this defendant’s rights and knowing that he was vitally interested in the said automobiles being sold for a reasonable and fair price and market value, so that he would not be required to pay anything. to plaintiff, or become liable to plaintiff in any sums whatever, by reason of •his endorsement of the notes and mortgages for and against said automobiles, assigned andj transferred to plaintiff as alleged by it, and this defendant avers that plaintiff willfully and wantonly sold each and all of said automobiles at the sacrifice prices named in plaintiff’s petition and had it sold each and all of said automobiles for a reasonable, fair and market price as hereinbefore alleged by defendant, plaintiff would have more than been paid the full amounts due upon said notes and each of them.”

When both sides had closed in the introduction of testimony, the court directed the jury to return a verdict in favor of the appel-lee company.

The evidence shows that the automobiles were repossessed by the appellee company under the powers contained in the several mortgages and sold by their agent McCormick at private sale. The evidence is sharply conflicting as to whether they were sold for a fair and reasonable price: The principal complaint by appellant is that because the evidence conflicted upon this issue, the court should have submitted the case to the jury instead of directing a verdict. We sustain the proposition.

We do not know upon what theory the court refused to submit the case to the jury upon special issues, but we assume from the position taken by appellee’s counsel in their .brief that it was because the court agreed with appellee’s counsel in their contention that there was no pleading and no proof of any unfairness, misconduct, or willfullness on the part of the appellee company in selling the cars at private sale. It will be observed that the appellant alleges that the sales were made in total disregard of his rights and that appellee willfully and wantonly sold each and all of them at “the sacrifice prices named in plaintiff’s petition” and that, if they had been sold for a reasonable, fair, and market price, they would have paid the full amount) due upon the notes.

The judgment shows' that the court overruled the appellee’s demurrers to the appellant’s answer setting up his defenses, but sustained the appellee’s demurrers urged to appellant’s cross-action.

The appellant filed no cross-action. The willful and wanton sale of the repossessed ears at a sacrifice was alleged by appellant as a set-off and counterclaim to ap-pellee’s action against him to recover the deficiency and this idea may have influenced the trial judge in his ruling excluding McCormick’s evidence and other testimony as to other sales which the court said would be sustained if offered. Appellee in its first supplemental petition is the first party to designate the appellant’s answer as a cross-action, and it is clear from the judgment of the court overruling it that the demurrer was argued and urged by appellee to the answer as a cross-action, thus inviting the error, if any. In any event, there was error in the ruling and from a consideration of the record as a whole, we strongly incline to the opinion that appellant was prejudiced! thereby. When the court erroneously overrules a general demurrer to an answer instead of sustaining if and defendant, relying upon the court’s ruling as to the sufficiency of his answer, is misled to his prejudice, he is entitled to have the ease reversed in order that he may amend. Colonial Building & Loan Association v. Meyer (Tex. Civ. App.) 48 S.W.(2d) 729, and authorities cited.

Although appellant did not except to the court’s ruling and assigns no error thereon, it is uniformly held that the action of the court in sustaining or overruling general demurrers to pleadings is fundamental and may be reviewed on appeal without assignments of error. City of San Antonio v. Talerico, 98 Tex. 151, 81 S. W. 518; Suhre v. Kott (Tex. Civ. App.) 193 S. W. 417; Grayson County v. Harrell (Tex. Civ. App.) 202 S. W. 160; Eldora Oil Co. v. Thompson (Tex. Civ. App.) 230 S. W. 738; Morrison v. Western Union Telegraph Co. (Tex. Civ. App.) 35 S.W.(2d) 215; Barcus v. J. I. Case, etc., Co. (Tex. Civ. App.) 197 S. W. 478.

Notwithstanding the ruling of the court, testimony was admitted as to the value of several of the cars and there is evidence tending to show that they were not sold at the market value or even a fair value.

Throughout the motion the appellee insists that there is not a “scintilla of evidence” which even tends to show any unfairness, willfulness, or wantonness on the part of the appellee company in disposing of any of the cars. We cannot assent to this. Terrell testified that he had made an agreement with a party by the name of Downing, who was postmaster and druggist at the town of Newlin, for the purpose of selling him the Riiey car for $800, with a small trade-in [444]*444difference.

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59 S.W.2d 442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrell-v-general-motors-acceptance-corp-texapp-1933.