Tyson v. ASSOCIATES INVESTMENT COMPANY

331 S.W.2d 768, 1959 Tex. App. LEXIS 1792
CourtCourt of Appeals of Texas
DecidedOctober 9, 1959
Docket15506
StatusPublished
Cited by2 cases

This text of 331 S.W.2d 768 (Tyson v. ASSOCIATES INVESTMENT COMPANY) 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
Tyson v. ASSOCIATES INVESTMENT COMPANY, 331 S.W.2d 768, 1959 Tex. App. LEXIS 1792 (Tex. Ct. App. 1959).

Opinions

YOUNG, Justice.

Rule 166-A, Texas Rules of Civil Procedure. Summary. Judgment proceedings. Associates Investment Company, a Texas Corporation, brought this action against Kenneth Ray Tyson for recovery of an alleged balance of $403.50 plus attorney’s fees on a $2,300 note executed by Tyson to Morris Robinson Motor Co. and assigned to Associates. Tyson filed ‘answer and cross-action alleging that the note balance was not collectible perforce of usury and Anti-Trust Statutes of Texas; and that in any event Tyson had been over-charged on his insurance and was entitled to damages. Tyson brought in as additional parties in cross-action 'defendants Morris Robinson, doing business as Morris Robinson Motor Company, Emmco Insurance' Company and Associates Investment Company, both Indiana Corporations; alleging that the latter wholly owns and controls Associate Invéstment Company of Texas and Emmco Insurance Company.

On motions,' the trial court ordered summary judgment ' for plaintiff Associates on its ’ main action,' also on his cross-action agaifist said plaintiff and Emmco. The Court then severed the cause as to all parties thus disposed of, rendering final judgment in their favor, leaving undisposed of only the cross-action of Tyson against Morris Robinson, doing 'business as Morris Robinson Motor Company; further holding, however, that it had no jurisdiction over Associates Investment '-Company, an Indiana Corporation. From these final orders, pursuant to Rule 166-A, the appeal is taken'.

This 173 page Transcript reflects protracted litigation, the factual background of which must be related in detail before reaching appellant’s.several points of error and answering counterpoints of appellees.

On March 21, 1956, Associates filed this suit against Tyson for said balance allegedly due on an original note of $2,300 described as dated August 21, 1955 signed by Tyson and payable to Morris Robinson Motor Company, in 17 monthly installments of $72 each, and a final installment of $1,076 on September 22, 1956; which original note had been assigned and .delivered to plaintiff Associates ón August 21, 1955 for valuable consideration; plaintiff then ' alleging that said note had been secured by a chattel mortgage lien on a 19⅜5 Chevrolet Model automobile and after same had been reduced [770]*770to $2,156 that Tyson defaulted in the monthly payments, requiring plaintiff holder to repossess the car. It was then alleged that after repossession and repairs to said car, it was re-sold for the highest sum obtainable, to wit: $1,700; Tyson becoming entitled to the following credits on the $2,300 note: installments' paid by defendant $144; expenses of repossession, $21.95; credit on re-sale of car, $1,700; insurance premium credit, (Emmco policy) $74.45; leaving a balance due plaintiff of $403.50 for which it sued, plus 15% attorney’s fees, or a total of $464.03 and costs.

Appellant Tyson’s sworn answer and cross-action are lengthy and must be summarized basically, including the following allegations: that he had agreed to buy from Morris Robinson Motor Company, through an agent or employee named Cotton, a Chevrolet automobile at a selling price of $2,985, being allowed a trade-in value on his Plymouth car of $1,195, leaving a net balance of $1,795 to be financed; that such agreed amount was to be financed at 6% per annum, Cotton then asking Tyson if he could pay as much as $72 per month; and on affirmative reply was informed that payments would be that amount per month for seventeen months, with a bumper note to be financed, not advising Tyson of the amount of same; that the deal was closed by exchange and delivery of the automobiles, Tyson’s payment to the Motor Company of $37 for license, tax and title fee on the Chevrolet, and his executing papers in blank upon representation by the Motor Company’s salesman that they would be filled out in accordance with above terms of sale. That there was a fraudulent breach of these representations in that subsequent to Tyson signing the sales contract and note in blank, the Motor Company fraudulently inserted the figure $2,300 as the deferred balance due on the Chevrolet; further figures indicating that the final installment note was $1,076; all of which being without Tyson’s knowledge and consent; that appellant discovered the fraud after making two monthly payments of $72 each to the finance company (Associates); thereafter trying without success by contacting both Associates and Robinson Motor Company to have the interest rate reduced to 6%, the amount agreed upon; that Associates Investment Company had bought the contract with notice of the fraud; Tyson seeking relief from the transaction by proposing a return to Associates of the Chevrolet he had bought in exchange for his Plymouth car valued at $750; a refund of the $144 he had paid on the note, and the $37 paid for license, tax and title fee on the Chevrolet. His cross-action was for compensatory damages against the motor company; praying for judgment against other cross-defendants “for rescission and cancellation of the note, conditional sales contract as well as of the entire fraudulent and usurious transaction, return of the entire-consideration,” etc. He alleged that Associates Investment Company, an Indiana Corporation, was the parent company, owning and controlling the Texas Associates. Corporation and Emmco Insurance Company in their dealings with him. Though lengthy, it is necessary to detail in sequence the further pleadings of all parties, motions, affidavits, court orders and judgments up to-the decree of Judge Hyer dated May 26, 1958, but signed June 17, styled “Amended Final Judgment and Order of Severance”, which becomes the basis of this appeal.

On May 15, 1956 Texas Associates filed motion for summary judgment supported by affidavit of E. G. Liechty, its agent, stating facts generally as set forth in plaintiff’s, original petition; paragraph of said affidavit reading as follows: “I state further that the conditional sales contract and note were agreed upon between Kenneth Ray Tyson and Morris Robinson Motor Co. at the time the said Kenneth Ray Tyson purchased the said car and that the figures contained therein were those customarily used upon a sale price of the amount for which the car was sold in time sales contracts, and that Kenneth Ray Tyson has not paid, nor did he agree to pay, nor did the said time [771]*771sales contract provide for payment of any interest.”

Previously and in the same connection, ■plaintiff Associates had propounded to defendant Tyson the following interrogatories for admissions under Rule 169, T.C.P.: (1) “That when defendant signed the papers at Morris Robinson Motor Company, no one from Associates Investment Company was present. (2) That defendant signed the papers so that defendant could have possession of the 1955 Chevrolet at once. (3) That at no time during the purchase transaction did anyone from Associates Investment Company make any representations to defendant about any phase of the transaction. (4) That defendant on the date of signing the note and contract saw the full face of the papers which he signed including the words ‘time price’ and ‘deferred balance’. (5) That defendant knew that he was not paying cash for the automobile. (6) That defendant knew that he was to pay for the automobile upon a time balance plan. (7) That defendant has no writing signed by Associates Investment Company or any of its officers or employees that contains the facts and figures which he says he and one ‘Cotton’ discussed.

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Related

Hatten v. Mohr Chevrolet Company
366 S.W.2d 945 (Court of Appeals of Texas, 1963)
Tyson v. ASSOCIATES INVESTMENT COMPANY
331 S.W.2d 768 (Court of Appeals of Texas, 1959)

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Bluebook (online)
331 S.W.2d 768, 1959 Tex. App. LEXIS 1792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyson-v-associates-investment-company-texapp-1959.