Tsesmelis v. Sinton State Bank

35 S.W.2d 451
CourtCourt of Appeals of Texas
DecidedJanuary 14, 1931
DocketNo. 8519.
StatusPublished
Cited by6 cases

This text of 35 S.W.2d 451 (Tsesmelis v. Sinton State Bank) 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
Tsesmelis v. Sinton State Bank, 35 S.W.2d 451 (Tex. Ct. App. 1931).

Opinion

*452 COBBS, J.

Appellee Sinton State Bank, a private corporation, sued appellant upon a promissory-note for $725, dated Aug. 15,1929, bearing interest from date at tlie rate of 10 per cent, per annum, due and payable ninety days after date, stipulating for the payment of 10 per cent, as attorneys’ fees, in the event said note is not paid at maturity and placed in the hands of an attorney or suit is brought on the same.

Suit was instituted on January 7,1930, and on the same day the bank filed an affidavit and bond for attachment, and the writ of attachment issued was levied upon a lot in Sin-ton, Tex., upon which is located a two-story brick building, and a farm near Sinton containing 127 acres.

Appellant filed a plea in abatement alleging that the suit was prematurely brought, because the payment of the note had been extended and the bank was not in a position to enforce payment of the note.

Subject to his plea in abatement, appellant filed a motion to quash the attachment and therein pleaded that the note, although alleged by the bank to be due, had been extended, that the affidavit for attachment was false, and that no ground for the attachment existed.

Subject also to the plea in abatement, appellant filed an answer and cross-action for damages, actual and exemplary, based upon the wrongful levy of .the attachment, and for the wrongful publication of the affidavit for attachment alleged to be libelous, against the bank, and made appellees J. F. Odem and Fred Johnson, sureties on the attachment bond, parties defendant.

All pleas in abatement were passed upon by the court and were overruled.

The case was tried with a jury and judgment entered in favor of appellee.

There is no denial of the note, but the defense is based upon the fact that a valid agreement was made for the extension of the •note, that the suit was prematurely brought, a wrongful attachment sued out and levied upon appellant’s property.

The alleged agreement for extension was contained in'a letter of appellee to appellant, which is, in part, as follows:

“With reference to your note of $725, since you state that you are unable to obtain credit we will expect a payment of $100 at once and a similar amount thirty and sixty and ninety days.
“We do not care to extend the old note, but will hold the time of payment in abeyance as above stated.”

Appellant testified that: “A day or two after I got this letter I wrote the' bank and told them I would pay the first $100 January 1, 1930.”

On cross-examination appellant stated:

“This note was due in November and I didn’t pay it when it was due, but paid the interest on it and asked for an extension, and he told me that I was doing business with another bank and he couldn’t give me an extension, and I told him to give me a few days to get the money, and he said he would. Later he did give me more time to pay the note. I was to pay Mr. Odem $100 on this note at that time, $100 in thirty days, $100 in sixty days, $100 in ninety days — and it was my understanding that the balance due on the note would be due at the end of ninety days — that’s the understanding that we had.”

There was no understanding or definite agreement as to the final payment of the balance of the note, and as to that, evidently, the minds of the parties did not meet.

The alleged oral agreement as to payment and extension of the note seems' unsatisfactory ; $100 was to be paid at the time the letter was received, but it was nót done, and the $100 payments were not made in thirty, sixty, and ninety days, and there was no tender of the money until the time the note was turned over to appellee’s attorney for collection, when appellant offered his check for $100, with no promise or arrangement to pay the balance.

The agreement in respect to the extension of the note seems too general and is unenforceable.

An agreement for an extension must be for a definite time as to the whole obligation and not be left, any part thereof, to surmise and conjecture. It must mutually bind both parties; the creditor to forbear the collection of the whole debt for the stated time, and the debtor to continue to pay interest to such time. If by the terms of the agreement it should only bind the creditor to forbear, and allow the debtor to discharge the entire debt at any time and thereby stop the running of interest, the agreement is without consideration.

The alleged agreement shows no more than that the Bank expected a payment of $100 on the note at once, and a similar amount in thirty, sixty, and ninety days; and the letter expressly stated that, “We do not care to extend the old note.”

We do not regard that appellant’s check for $100 which appellee refused and returned amounted to any tender whatever. Besides; it was made after the institution of the suit.

If all the amounts named for the extension had been promptly paid, they would have aggregated $400, thus leaving approximately $325 still due and unpaid on the note, the payment of which had not been provided for. This court in the case of International Shoe Co. v. Kaufman, 270 S. W. 1109, 1110, after citing many authorities, including the Su *453 preme Court cases of Austin Abstract Co. v. Rahn, 87 Tex. 582, 29 S. W. 646, 30 S. W. 430, and Wilkins v. Carter, 84 Tex. 438, 19 S. W. 997, held that an “extension for the time of payment must be for a definite duration or period of time, to become binding.”

See Dickson v. Kilgore State Bank, 257 S. W. 867, in which the-Commission of appeals held that:

“An agreement to extend the time of the payment of an overdue indebtedness to a time stated, but which permits the debtor to pay the obligation at any time within the extension period and so stop interest, is invalid for want of consideration.”

The rule is stated in another way in the case of Ellerd v. Ferguson (Tex. Civ. App.) 218 S. W. 605, where the court held:

“The burden of proof is on the defendant to prove a consideration for an extension. * ⅜ *
“If there be no outside consideration, a mutual agreement for an extension, in order to be valid, must bind each party, — the creditor to forbear collection of his debt for the stated time, and the debtor to continue to pay interest to such time; if, by the terms of such agreement,' it would bind only the creditor to forbear, but allow the debtor to discharge the debt at any time, and stop running of interest, the agreement is without consideration.”

To the same effect is the case of Kirby v. Bank (Tex. Civ. App.) 4 S.W.(2d) 205, affirmed by the Commission of Appeals, 18 S.W.(2d) 599, 600, 63 A. L. R. 1528.

In the case of Neyland v. Lanier (Tex. Civ. App.) 273 S. W. 1022, it is held.:

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