Trotti v. Gaar, Scott & Co.

126 S.W. 670, 59 Tex. Civ. App. 433, 1910 Tex. App. LEXIS 397
CourtCourt of Appeals of Texas
DecidedMarch 3, 1910
StatusPublished

This text of 126 S.W. 670 (Trotti v. Gaar, Scott & Co.) 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
Trotti v. Gaar, Scott & Co., 126 S.W. 670, 59 Tex. Civ. App. 433, 1910 Tex. App. LEXIS 397 (Tex. Ct. App. 1910).

Opinion

McMEANS, Associate Justice.

Suit by Gaar, Scott & Co., a corporation, against W. F. Byerly and J. W. Byerly on four promissory notes aggregating $1,585, and against W. E. Trotti as surety upon two of said notes first maturing, aggregating $796, less a credit of $95.12.

The notes were executed for the payment of the purchase money for certain sawmill machinery purchased by Byerlys from Gaar, Scott & Co., and were secured in part by a mortgage upon the machinery, and a foreclosure of the mortgage was prayed for.

Upon an allegation in the petition that plaintiff entered into an agreement in writing with C. FT. Seale whereby -said Seale, with the knowedge and consent and for the benefit of the defendants Byerly and Trotti, took over the mortgaged property and bound himself to pay the four notes sued upon, and in further consideration for his obligation to pay same plaintiff had extended the time of payment of the two notes first maturing, said Seale was made a party defendant, and a judgment was prayed for against him also.

Defendant Trotti answered by general denial, and specially pleaded that he endorsed1 the two notes referred to as an accommodation endorser, and without consideration, and that if he had ever been bound as surety by such endorsement he had been released from liability by the act of plaintiff in repossessing itself of the mortgaged property and selling the same to Seale, and in granting to Seale an extension of time for the payment of the notes upon which he was endorser.

The case was tried by the court without a jury, and resulted in a judgment for plaintiff against all defendants for the amount of the two notes first maturing, and against the Byerlys and Seale upon the remaining notes, and for foreclosure of the mortgage lien upon the property described in the mortgage. From this judgment defendant Trotti alone has appealed.

The court filed its findings of fact and conclusions of law, which we adopt, and copy so much of same as bears upon the issues presented on Trotti’s appeal:

“First. I find that on April 9, 1906, the defendants, W. F. Byerly and J. W. Byerly, purchased from plaintiff Gaar, Scott & Co. . . .” (Here follows a list of the property purchased.)

.“That the defendants, W. F. and J. W. Byerly, purchased said ma *435 chinery for the purpose of running and operating a sawmill in the town of Jasper, Jasper County, Texas, and that in payment of said machinery the defendants, W. F. and J. W. Byerly, on April 9, 190J, executed and delivered to plaintiff four promissory notes, the first three of which notes were in the sum of $398, and the fourth of said notes for the sum of $391, said notes being due and payable on or before the 1st day of July, 1906, on or before the first day of Eovember, 1906, on or before the first day of March, 1907, and on or before the first day of August, 1907, respectively, in their order, all of said notes bearing interest at the rate of eight percent per annum from date until due and ten percent per annum after maturity, and providing for ten percent attorney’s fees if said notes' should be placed in the hands of attorneys for collection or if suit were brought, and that simultaneously with the execution of said notes defendants, W. F. Byerly and J. W. Byerly, gave to the plaintiff a chattel mortgage on the property hereinbefore described to secure the payment of said notes.

“Second. I further find that the defendant W. E. Trotti, at the time of the signing of said notes by W. F. and J. W. Byerly, became a surety on the first two of said notes, and that his becoming a surety thereon was based on a valuable consideration, such consideration being a contract between the defendant Trotti and the defendants W. F. and J. W. Byerly, whereby the said Byerlys were to sell to the defendant Trotti and C. E. Seale, a firm doing business under the name of Sandy Creek Lumber Company, the entire output of the sawmill to be operated by the defendants W. F. and J. W. Byerly.

“Third. I further find that after the delivery oí said notes and mortgage the defendants W. F. and J. W. Byerly commenced the operation of the sawmill, but that they did not make a success of said business, and on account of their inability to further operate said mill they were forced to close it down, and that the defendant W. E. Trotti, in order to protect himself by reason of becoming a surety on the two notes hereinbefore mentioned, induced the defendants W. F. and J. W. Byerly to transfer the property on which plaintiff held its mortgage to the defendant C. E. Seale, the defendant Seale agreeing to assume the payment of the four notes hereinbefore mentioned, and that such agreement was consummated on the first day of September, 1906, on which date the defendants W. F. and J. W. Byerly transferred to C. E. Seale by written bill of sale all of their" right, title and interest in and to the property on which plaintiffs held their mortgage, and a part of the consideration of said transfer was the assumption of the defendant Seale of the payment of said notes, all of which were unpaid on said date. That said arrangement was made without the knowledge or consent of the Gaar, Scott & Co., but Avith the full knowledge and consent of the defendant, W. E. Trotti, who assisted in negotiating the'transfer of said property to the defendant C. E. Seale. That the defendant Trotti helped negotiate said sale for the purpose of getting the property into the hands of the defendant C. E. Seale, and with the expectation that Seale would make a success in operating .said mill, and would thereby pay off the notes due to Gaar, Scott & Co., and by making such payment would re *436 lieve the defendant Trotti of liability by reason of his becoming surety on the first two of said notes.

“Fourth. I further find that after the consummation of the sale of property by W. F. and J. W. Byerly to C. N. Seale that the plaintiff was made aware of such transfer, and that at the request of the defendant Trotti agreed that the defendant Seale might continue to hold the property under transfer from the defendants W. F. and J. W. Byerly in cohsideration that the defendant Seale would assume the payment of the said notes and mortgage, but I find that there was no agreement on the part of Gaar, Scott & Co.' to release either W. F. Byerly and J. W. Byerly or the defendant W. E. Trotti, and that the agreement of Seale to assume the payment of the notes was intended that the said Seale should become jointly liable with the other defendants as to payment of said debt.

“Fifth. I further find that when Gaar, Scott & Co. entered into the agreement with the defendant Seale, wherein said Seale agreed to assume the payment of said notes, the plaintiff Gaar, Scott & Co. agreed to extend the time of payment of the first two of said notes, the first of said notes at the time being due, and plaintiff agreed to extend the time of payment of the first note until November 1, 1906, and that if first note was paid on November 1, 1906, to extend the second note until December 1, 1906; and I also find that the defendant W. E. Trotti, at the time of becoming surety on said notes, agreed that payment of said notes might be extended without notice to him and without affecting his liability.

“Sixth.

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126 S.W. 670, 59 Tex. Civ. App. 433, 1910 Tex. App. LEXIS 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trotti-v-gaar-scott-co-texapp-1910.