Thos. Goggan & Bro. v. Goggan

146 S.W. 968, 1912 Tex. App. LEXIS 361
CourtCourt of Appeals of Texas
DecidedMarch 27, 1912
StatusPublished
Cited by10 cases

This text of 146 S.W. 968 (Thos. Goggan & Bro. v. Goggan) 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
Thos. Goggan & Bro. v. Goggan, 146 S.W. 968, 1912 Tex. App. LEXIS 361 (Tex. Ct. App. 1912).

Opinion

JAMES, G. J.

The original petition of M.. Goggan, filed March 29, 1910, against Thos. Goggan & Bros., a private corporation, alleged, in substance, that for some time prior to January, 1906, plaintiff and John Goggan and the widow and children of Thomas Gog-gan owned and conducted a business in San. Antonio, Tex., buying and selling musical instruments and supplies, under the style of Thos. Goggan & Bros., plaintiff being the-owner of one-half, John Goggan one-fourth, and the widow and children of Thos. Gog-gan one-fourth, of said business; that at said date the assets of the concern, less the liabilities, were of the reasonable value of $200,000, and plaintiff’s interest therein $100,-000; that on or about said date an inventory, or inventories, of the assets was delivered by plaintiff to defendant corporation, and plaintiff is unable to furnish a copy or copies of same because of such delivery to- *970 defendant, who is notified to produce its books and papers containing same at the trial, or secondary evidence thereof would be offered; that defendant refuses to furnish plaintiff a copy thereof; that about said time the copartnership of Thos. Goggan & Bros. sold all its property and assets to defendant corporation, and said corporation agreed and promiséd to pay plaintiff for his half interest its reasonable value, payment to be made in the stock of said corporation at par, to be delivered to plaintiff in a reasonable time from the date of sale and delivery, which said reasonable time would, by agreement of plaintiff and defendant, not occur until the year 1908, and in fact did not occur until then, for the reason that defendant was desirous of protecting its credit and giving its creditors the greatest possible assurance of protection, and therefore none of its capital stock, except the amount required to qualify its officers, was to be issued and delivered until the credit of said corporation was securely established and its indebtedness reduced, and, to that end, it was necessary that all the stock in said corporation should remain in the treasury of the corporation, or that such as might be issued should at once be transferred by indorsement in blank, to be held by the corporation in trust for the owners thereof; that plaintiff agreed with defendant that his stock should not be issued to him then, but should be so held by it in trust for him for said purpose, and until he should request that it be issued to him, and that the stockholders and directors adopted resolutions, entered on the books of the corporation, accepting said property, business, and effects so transferred by this plaintiff, and promised to pay therefor, which resolution defendant is notified to produce, etc.; that the reasonable value of said stock at said time was its face or par value, and that in forming the corporation all of its capital stock was distributed to and belonged to members of the copartnership, which was absorbed by it, and all the officers and directors have knowledge of all the matters, things, and business of the copartnership, which had theretofore been known to them as partners, and said parties have continued as the sole stockholders ever since; that about March, 1908, plaintiff requested defendant to issue to him 100 shares of the stock at par value of $100 per share, the same being then of the reasonable value of $10,000, which was done, and plaintiff received and accepted the same only as part payment for his share in the assets transferred to defendant; that about August, 1908, plaintiff was notified by defendant that it would issue him no more stock, nor pay him the balance due him for his said interest in the San Antonio concern, and that until then plaintiff was not aware that defendant would not perform its contract with him, and plaintiff then and there refused to accept said 100 shares as full payment, and so notified the corporation; that plaintiff has often demanded the issuance to him of stock to the extent of $90,000 remaining due to him, or payment of $90,000, its reasonable value, which defendant has refused to do, to plaintiff’s damage, etc., for which he prayed judgment.

The answer, omitting here a statement of the various exceptions to the petition, consisted of a general denial. Further answering, defendant alleged that the assets were only of the face value of $91,884.28, but the actual net value of said assets, after making allowance for costs of collection, bad debts and other expenses, and losses, was only about two-thirds of said face value; that plaintiff’s interest was much less than $10,-000, but by agreement between him and John Goggan, acting for himself and for the widow and children of Thos. Goggan, $10,000 of stock at par was issued to and received and accepted by him in full payment of his interest in said business, said stock, however, at the time having an actual value of $14,-000; that plaintiff had withdrawn from the funds of the partnership firm more than his half interest in the profits, which reduced his interest' in the firm; that plaintiff was one of the incorporators signing defendant’s charter, which provided for a capital stock of $200,000 in shares of $100 each, and it was agreed at that time that the stock should be apportioned in accordance with respective contributions of each, and that plaintiff should receive one-twentieth, or 100 shares, with which understanding the charter was duly executed by plaintiff and the others, and that neither then nor at any other time was there any agreement or understanding that plaintiff should receive any other or further consideration for his contributions or subscription to the corporation, and that, in pursuance of such contract or agreement between the organizers of the corporation, and between the company itself and plaintiff and the other stockholders, plaintiff and the others executed a bill of sale to defendant on or about February 11, 1906, which conveyed all the property of the two firms of Thos. Goggan & Bros., whose store was in San Antonio, and Thos. Goggan & Bro., who had stores at Galveston and three other places, to the defendant corporation, reciting the consideration as being “one dollar to us in hand paid by Thos. Goggan & Bros., the receipt of which is hereby acknowledged, and, further, in consideration of the issuance by Thos. Goggan & Bros., a corporation, * * * of stock in said corporation in such amounts as represent our interests in the former firms of Thos. Goggan & Bro. and Thos. Goggan & Bros., to wit: To Michael Goggan 100 shares; to John Goggan 1,100 shares; to Margaret F. Goggan 118 shares; to ffm. P. Goggan 237 shares; to Thos. S. Goggan 238 shares; to John F. Goggan 207 shares;” that said bill of sale expressed the only agreement and consideration relating *971 to said transfer, and, tlie other signers and parties having been in part induced to enter into the agreement by plaintiff’s action as stated, plaintiff is estopped to claim that he had any other or different agreement with defendant John Goggan or any officer of the corporation; that the books of the San Antonio firm were kept under the supervision of plaintiff for more than 20 years previous to the incorporation, and that he had access to them and to those of the corporation, all of which showed his interest to be as stated in the bill of sale; that plaintiff had taken part in at least one meeting of the board of directors at which an annual dividend of $1,000, being 10 per cent, of his stock, had been allowed, and he claimed no more.

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Cite This Page — Counsel Stack

Bluebook (online)
146 S.W. 968, 1912 Tex. App. LEXIS 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thos-goggan-bro-v-goggan-texapp-1912.