Twaddell v. H. O. Wooten Grocer Co.

68 S.W.2d 285
CourtCourt of Appeals of Texas
DecidedJanuary 26, 1934
DocketNo. 1219.
StatusPublished

This text of 68 S.W.2d 285 (Twaddell v. H. O. Wooten Grocer 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
Twaddell v. H. O. Wooten Grocer Co., 68 S.W.2d 285 (Tex. Ct. App. 1934).

Opinion

HICKMAN, Chief Justice.

The appeal is from a judgment in favor of appellee against appellant S. H. Twaddell upon two promissory notes and an open account for merchandise, with a foreclosure *286 of certain liens securing the indebtedness, and against the appellant S. R. Bowhian upon his written guaranty of the indebtedness of Twaddell. Judgment also ran against W. R. Lewis for $612 upon a finding that at the time he became a partner of Twaddell the value of the stock of merchandise owned by Twaddell, and of which Lewis purchased a one-half interest, was $612. Liability was predicated against Lewis for violating the terms of the Buik Sales Law.

In his answer Lewis alleged that at the time he became a partner of Twaddell the value of the stock of merchandise was only $68.62, and that, after he purchased said interest, there was paid’ to appellee $200, which was more than the proceeds of the stock of merchandise on hand at the time of his purchase. Twaddell and Bowman pleaded that the indebtedness'declared upon by appellee was incurred under certain written and verbal contracts entered into by Twad-dell and his then partner, P. R. Sanders, with the appellee, which were in violation of the anti-trust laws of this state, by reason of which the obligations declared upon were unenforceable. Bowman pleaded other defenses, which were not sustained below, and about which no questions are presented here. Attached to the answer of .Twaddell and Bowman, as an exhibit, was a copy of a contract alleged by them to have been entered into between appellee and Twaddell and Sanders at a time when Sanders was a partner of Twaddell’s, and before Lewis purchased an interest in the business. Appellee denied that the contract alleged by said appellants was ever executed. It also denied that there was a verbal understanding or agreement whereby Twaddell and Sanders were to sell the merchandise purchased from it at prices fixed by it. The case was submitted to the jury upon special issues, by their answers to which the following fact findings were made: (1) The written agreement, the printed form of • which was attached to the answer of Twaddell and Bowman, was never entered into; (2) there was no understanding nor agreement between appellee and Twaddell and Sanders that the latter were to sell merchandise purchased from appellee at prices fixed by it; (3) appellee did not induce the execution of the written guaranty by Bowman upon false representations; (4) that Bowman understood the contents of the guaranty contract executed by him; (5) that the value of the stock of merchandise on hand in Twaddell’s store at the time Lewis purchased a one-half interest therein was $612; (6) that Twaddell and his associates, because of their membership in the Red & White Stores System, received from appellee a 5 per cent, rebate monthly on all groceries purchased from appellee. Upon these findings, judgment was rendered as indicated in the first paragraph of this opinion.

The brief contains six assignments of erroi which present three separate questions for decision. Three of the assignments present in different ways the question that, under the undisputed evidence, judgment should have been rendered in favor of appellants and against appellee in so far as appellee declared upon the open account and one of the two promissory notes; the contention being that, under the undisputed evidence, the account and one.of the notes declared upon, arose out of a contract condemned by the anti-trust laws of this state. Upon the trial of the case, it developed that there exists a corporation known as Red & White Stores System, the stock of which is owned by .wholesale grocers throughout the nation. Appellee is a stockholder in that company, and its several wholesale houses are known as the supply houses for different units of retail grocers. The form of contract attached to the answer of Twaddell and Bowman, and alleged to have been entered into between them and the appellee, was a form prepared by the Red & White Stores System. Appellee’s witnesses testified that said System sent appellee this suggested form of contract, but that it never used same. The jury so found, upon conflicting evidence, and there is no contention presented in that regard. In connection with the testimony of one of appellee’s officers, there was produced and introduced by appellee the form of agreement or contract executed by Twaddell and Sanders at the time they became members of the Red & White Stores System. This instrument is here set out in full as follows:

“Confidential Official Bulletin
“This Is The Way
“Information The Red and White Stores
“The Red & White Stores
“Save for Reference
“Membership Application
“Red & White Stores
“Realizing that the merchandising power of a large group of retail merchants, wholesale supply houses and manufacturers dealing with each other on a basis of mutual cooperation will produce results to the material benefit of all concerned,
“We therefore make application to become a member of the Red & White Stores System.
*287 “It is understood that upon acceptance of this application, all Red & White buying privileges will be in force for this store. It is also understood that no Red and White identification will be available until the store has satisfactorily complied with Red & White standards of appearance and operation.
“It is agreed that all purchases of dry groceries will be made from the Red & White grocery supply house, and that invoices for same will be paid weekly. Specialty orders will be discontinued.
“And it is agreed that applicant will furnish the Red & White Supply House with a detailed Financial Statement at the time of making application or before engaging as a Red and White operator.
“This membership, when accepted, shall continue for a period of one year. It shall be without costs, dues, or stock purchases. It is also understood that WE shall retain complete control, ownership, and management of this business. It is further understood that this membership, in event of sale of this business, cannot be transferred without the consent and approval of the Red & White Organization.

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68 S.W.2d 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twaddell-v-h-o-wooten-grocer-co-texapp-1934.