Texas Nat. Bank of Fort Worth v. First Nat. Bank of Lipan

1 S.W.2d 717
CourtCourt of Appeals of Texas
DecidedNovember 10, 1927
DocketNo. 596.
StatusPublished
Cited by5 cases

This text of 1 S.W.2d 717 (Texas Nat. Bank of Fort Worth v. First Nat. Bank of Lipan) 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
Texas Nat. Bank of Fort Worth v. First Nat. Bank of Lipan, 1 S.W.2d 717 (Tex. Ct. App. 1927).

Opinion

GALLAGHER, C. J.

The writ of error in this case is prosecuted by the Texas National Bank of Fort Worth from a judgment rendered against it on its answer as garnishee in favor of the First National Bank of Lipan. The parties will be designated as in the trial court. The bank of Lipan had theretofore, as plaintiff in a certain suit in the county court of Hood county, recovered a judgment against I. L. Rippetoe, defendant therein, in the sum of $314.60, with interest and costs of suit. On November 4, 1926, plaintiff sued out a writ of garnishment thereon and caused the same to be served on said Fort Worth bank. Said writ was returnable on Monday, January 3, 1927. The garnishee on November 16, 1926, filed its answer in said cause, admitting an indebtedness to the defendant Rippetoe in the sum of $693.20. On the 26th day of November, defendant Rippetoe presented to the clerk of said court a replevy bond, which correctly recited the proceedings and was payable and conditioned as required by law, but which was in- the penal sum of only $700. Said sum lacked more than $100 of being double the amount of plaintiff’s debt. The clerk accepted said bond and indorsed his approval thereon. Defendant Rippetoe then presented a certified copy of said bond so indorsed to the garnishee herein, and received from it the entire amount owed to him by said bank at the time of the filing of its answer herein. No action was taken at the call of the docket at said January term. On the 7th day of February, 1927, a subsequent day of said term, plaintiff filed its motion to quash said re-plevy bond on the ground that the same was insufficient in amount. Counsel for plaintiff and defendant were present in court at the time. The garnishee was not represented in court at that time and did not know that a motion to quash said replevy bond had been filed nor that the cause would be heard at that time. The court heard said motion, sustained the same, quashed said replevy bond, and- rendered judgment for plaintiff bank against the garnishee bank for the amount of plaintiff’s judgment against the defendant Rippetoe, with interest and costs, in the sum of $431.50. The garnishee filed a motion for new trial. The same was heard at a subsequent day of said term and’ in all things overruled by the court. Said judgment is presented for review by writ of error.

Opinion.

The garnishee insists that the court erred in quashing said replevy bond and in rendering judgment against it, and said insistence presents the principal issue in this case. The terms and conditions of replevy bonds in garnishment proceedings are prescribed by our garnishment statutes. One of the requirements of said statutes is that a replevy bond shall be in double the amount of the plaintiff’s debt. R. S. 1925, art. 4084. Our courts have construed the several provisions of said statutes to absolve the garnishee from liability to judgment for. indebtedness to the original defendant when such defendant has replevied such indebtedness, and to require the court to render judgment against the defendant and the sureties on his bond for any recovery by the plaintiff in such proceedings. Tinsley v. Ardrey, 26 Tex. Civ. App. 561, 64 S. W. 803, 805 (writ refused), and authorities there cited; Modern Dairy & Creamery Co. v. Blanke & Hauk Supply Co. (Tex. Civ. App.) 116 S. W. 154, 155; Sellers v. Buckett (Tex. Civ. App.) 180 S. W. 639, 640; Oceola Mercantile Co. v. Nabors (Tex. Civ. App.) 221 S. W. 991, 994; Wise & Jackson v. Nott (Tex. Civ. App.) 283 S. W. 1110, 1111, 1112. Apparently, the replevy bonds in all said cases were in strict conformity to the requirements of said statutes, except the bond in Modern Dairy & Creamery Co. v. Blanke & 1-Iauk Supply Company. In that case a $500 bond lacked between 30 and 40 cents of being in double the amount of the plaintiff’s debt and the deficiency was held de minimus.

The plaintiff in a garnishment proceeding by the service of his writ secures a right to the satisfaction of his demand out of the funds in the hands of the garnishee or the indebtedness owed to the original defendant. Under the provisions of our garnishment statutes, he can be deprived of that right by a valid replevy of such funds, and ■be thereupon required to look instead to the replevy bond for the satisfaction of his claim. Said statutes prescribe the conditions upon-which the original defendant can secure the release of the funds impounded and. a transfer of liability therefor from the garnishee-to himself and the sureties on his replevy bond. By compliance therewith such transfer of liability is effected, regardless of the plaintiff’s consent thereto. It follows as a-necessary sequence that he has a right to stand on the requirements of the law and to-demand a strict compliance therewith. A replevy bond in a sum materially less than. *719 the amount of his demand does not comply with the plain provisions of such statutes. This identical question was before the Court of Civil Appeals for the Seventh District in the case of First Nat. Bank of Burkburnett v. Curtis, 244 S. W. 225, 227, and that court in an able opinion by its then Chief Justice held that a replevy bond in less than double the amount of plaintiff’s debt was nqt a valid statutory replevy bond and did not absolve the garnishee from liability to judgment for the funds in its hands or the indebtedness owed by it to the original defendant. The Supreme Court refused a writ of error in that case. Such holding is in accord with the trend of authorities in this state, which hold that a replevy bond which does not conform to the requirements of the statutes under which it is given is not effective as such and will not support a summary judgment. Army Bank v. Sunset Wood Co. (Tex. Civ. App.) 206 S. W. 222; Jones v. Hays, 27 Tex. 1, 2; Lang v. Dougherty, 74 Tex. 226, 234, 235, 12 S. W. 29, 34; Colorado Nat. Bank v. Lester & Hazard, 73 Tex. 542, 546, 547, 11 S. W. 626, 627; Jacobs v. Daugherty, 78 Tex. 682, 684, 685, 15 S. W. 160; White v. Suttle (Tex. Civ. App.) 255 S. W. 253, 254,. and the authorities there cited; Mariany v. Lemaire (Tex. Civ. App.) 83 S. W. 215; Hymens v. Brown, 15 Tex. 302, 303. The replevy bond in this case was given for the protection of the plaintiff in the surrender of a valuable right, to wit, a right to have satisfaction of its debt out of the funds in the hands of the garnishee and a judgment against the garnishee therefor. It had a right to complain of the insufficiency of such bond as a statutory replevy bond and to have the same quashed; and to recover against the garnishee as though such bond had not been given.

The garnishee insists, however, in this connection that, since the clerk of the county court, the officer authorized by law to accept and approve said bond, did in fact accept, approve, and file the same in this cause, and did so certify, upon which certificate it paid the funds so garnished to the defendant Rip-petoe, it had a right to rely on such action of said officer, and that plaintiff should have been compelled to seek its' redress against said officer and not by quashal of such bond and judgment against the garnishee. The effect on the rights of a plaintiff in sequestration of the action of the sheriff in taking a replevy bond which did not comply with the requirements of the law and was insufficient as a statutory replevy bond was before our Supreme Court in the case of Wooters v. Smith, 56 Tex. 198, 206, 207. The opinion of the court in that case was written by Chief Justice Stay ton. We quote therefrom as follows:

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Bluebook (online)
1 S.W.2d 717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-nat-bank-of-fort-worth-v-first-nat-bank-of-lipan-texapp-1927.