Warren v. Johnson

218 S.W. 104, 1919 Tex. App. LEXIS 1339
CourtCourt of Appeals of Texas
DecidedNovember 20, 1919
DocketNo. 7758.
StatusPublished

This text of 218 S.W. 104 (Warren v. Johnson) 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
Warren v. Johnson, 218 S.W. 104, 1919 Tex. App. LEXIS 1339 (Tex. Ct. App. 1919).

Opinion

PLEASANTS, C. J.

This suit was brought by Mrs. J. B. Warren, joined by her husband, against Lion Bonding & Surety Company, J. A. Allen, R. E. Goree, A. B. Wilson, A. O. Blackwell, John Boone, Ge.orge Khul-man, Sid Westheimer, and Ludwiek Scharck, to recover damages for the alleged wrongful conversion by defendants of an automobile belonging to plaintiff, Mrs. Warren.

The petition alleges that in a suit brought by the Atlas Construction Company on April 2, 1915, against one Steve Johnson, an attachment sued out by the plaintiff in said suit ■was levied upon the automobile in question as the property of the defendant Johnson, and that thereafter, on May 5, 1915, J. B. Warren filed a claimant’s oath and bond for trial of the right of property in said automobile, the Lion Bonding & Surety Company being the surety upon said bond; that on November 24, 1915, the Atlas'Construction Company recovered judgment in the suit against Johnson, with foreclosure of its attachment lien, and also recovered judgment in the trial of the ’right of property proceedings against J. B. Warren and the Lion Bonding & Surety Company, the surety on his claimant’s bond, for the sum of $550 and all costs of said proceedings.

It is further alleged that before the judgments in the suits before mentioned were rendered, the matter in controversy between the Atlas Construction Company and the said defendant Johnson had been fully settled, and Johnson released from all claims and demands by said company, and that the purpose and object of the parties (defendants here) in continuing the prosecution of said suits and obtaining judgments therein “was not to reach the said Johnson, but to proceed against and reach the said Warren, and to convert the said automobile to the use of the defendants herein, their agents and attorneys, by taking ‘snap’ judgments.”

The petition contains allegations of fraud and willful wrong on the part of the defendants, .which for the purposes of this opinion it is unnecessary to set out.

It is also alleged that plaintiff Mrs. Warren purchased the automobile from her husband on June 20, 1915. The judgment against-Warren and the Lion Bonding & Surety Company, the surety on his claimant’s bond, was brought to this court for review by writ of error, and was set aside by the judgment of this court. No execution was levied upon the judgment, the only execution issued having been returned “unsatisfied by order of the plaintiff.” The Lion Bonding & Surety Company did not pay the judgment rendered against it as surety on the claimant’s bond, or any part of it. After this judgment was rendered against it, and before. the writ of error was sued out therefrom by Warren, it brought suit by its trustee, Allen, against Warren, and sued out an attachment which was levied upon the car. This attachment was quashed. Thereafter it sued out two writs of sequestration in said suit, both of which were also quashed, after which it dismissed its suit.

The defendant Boone, who in his official capacity as constable held possession of said car under said writs of attachment and sequestration, refused upon the quashing of the writs and the dismissal of the suit to deliver the car to plaintiff Warren, but delivered it to the Lion Bonding & Surety Company upon its execution and delivery to him of a bond of indemnity. Having obtained possession of the car in this manner, said company *105 sold it for $100, and appropriated the proceeds to the payment of costs and attorney’s fees incurred in the litigation before mentioned.

Plaintiffs in this suit alleged that the value of the car was $300. In addition to this value they claim actual damages in the sum of $3,000 as the value of the use of the car, and exemplary damages in the sum of $5,000. They also claim $500 as attorney’s fees.

The defendants answered by general and special exceptions and general denial, and further defended upon the ground that the Lion Bonding & Surety Company was expressly authorized by the terms of a chattel mortgage executed and delivered by Warren to J. A. Allen, trustee, to indemnify said company, as Ms surety upon his claimant’s bond, “to take possession of the automobile and sell it at public or private sale and apply the proceeds to the payment of any court costs, expenses, and attorney’s fees for which Lion Bonding & Surety Company was liable, whether paid or not, and authorized the sale of the automobile and application of proceeds without payment in advance by Lion Bonding & Surety Company of any court costs, expenses, and attorney’s fees, which such court costs, expenses, and attorney’s fees had heen incurred by Lion Bonding & Surety Company, or for wMch it was liable; that said automobile was sold under the terms of said chattel mortgage for $100, and the proceeds applied to the payment of court costs, attorney’s fees, and expenses, leaving a balance due defendant surety company of $150.”

The trial court held that the surety company had the right to take possession of the car under the terms of the application for the bond and the indemnity contract and sell it, applying the proceeds to court costs, attorney’s fees, storage, etc., incurred by it for its protection, and the court instructed the jury to return a verdict for defendants. Under appropriate assignments of error appellant assails this ruling of the trial court.

The application made by ^ Warren to Lion Bonding & Surety Company to execute as surety his claimant’s bond contains the following provision:

“The indemnitor will perform all conditions of said bond on the part of the in,demnitor to be performed and will at all times indemnify and keep indemnified the surety and hold and save it harmless from any and all damages, loss, costs, charges and expenses of any kind or nature whatsoever which it may at any time sustain or incur by reason of its suretyship, and will pay over to the surety, its successors or assigns, all sums of money which may be paid by or for the surety or which it may become liable to pay by reason of such suretyship. Council and attorney’s fees, whether incurred under retainer or salary, or any other expense incurred by the surety at any'time, in any litigation, investigation, collection of premiums due on this bond or in seeking its discharge as surety shall be deemed a proper charge or expense within the meaning of the preceding sentence, and the surety is hereby authorized to prove such costs or expenses in any action or proceeding against the indemnitor, and include the same in any judgment or decree, which may be recovered against said indemnitor, and the company may bring as many actions hereupon as there are defendants, the recovery of each judgment not to be a bar to. the recovery of any other judgment. That in any accounting which may be had between the indemnitor and the surety, the surety shall be entitled to credit for any and all disbursements in and about matters herein contemplated made by it.
“That the surety shall at its option have and may exercise in the indemnitor’s name or otherwise, any and all rights and privileges which the indemnitor has or may have in the premises.

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Cite This Page — Counsel Stack

Bluebook (online)
218 S.W. 104, 1919 Tex. App. LEXIS 1339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warren-v-johnson-texapp-1919.