Williams v. Warren & Son

18 S.W. 560, 82 Tex. 319
CourtTexas Supreme Court
DecidedNovember 21, 1891
DocketNo. 3113.
StatusPublished
Cited by8 cases

This text of 18 S.W. 560 (Williams v. Warren & Son) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Warren & Son, 18 S.W. 560, 82 Tex. 319 (Tex. 1891).

Opinion

MARR, Judge,

Section A.—June 17, 1888, the defendants in error, Warren & Son, brought suit in the District Court of Upshur County, based on account, against the Bast and West Texas Lumber Company, procured the issuance of the original writ of attachment as auxiliary thereto, and caused the same to be levied on certain personal property of the said Bast and West Texas Lumber Company.

The defendants, the Bast and West Texas Lumber Company and FT. M. Harrison, as receiver of the Bast and West Texas Lumber Company, both answered in said cause.

*320 January 10, 1890, the ease came on to be tried. The evidence was heard, and there being no other parties to the suit or before the court than those above named, judgment was rendered in favor of the said plaintiffs against the said defendants, the Bast and West Texas Lumber Company and B. M. Harrison, receiver of the Bast and West Texas Lumber Company, and also against these plaintiffs in error, B. C. Williams, S. J. Mings, J. D. Moody, and B. W. Rowland; and against this judgment the plaintiffs in error have prosecuted their writ and brought the cause to this court for a revision of the j udgment.

They present the following assignments of error, viz.:

1. “The court erred in rendering judgment against plaintiffs in error, because they had not been cited as parties to said cause, had not voluntarily made an appearance therein, and were in no sense parties to or represented on the trial of the cause.

2. “The court erred in rendering judgment against Williams and Mings by reason of any liability they may have incurred by the bond executed by them to H. M. Harrison, receiver; for if they were liable upon such bond their liability was an independent liability, upon which they were entitled to a hearing, and which must be determined and enforced in due course of law.

3. “The court erred in rendering judgment against J. D. Moody and B. W. Rowland as sureties of Williams and Mings on said bond, they not being parties to the suit and the bond not being a statutory one upon which judgment may be rendered without notice to sureties.”

There is no statement of facts, and we can therefore arrive at such facts as illustrate the rulings of the court below only in so far as they are disclosed by the recitations in the judgment or as stated in the pleadings. It appears from the judgment that, after the levy of the writ of attachment (June 17,1888) and the appointment of the receiver, as before stated (which we presume was subsequent to the levy of the attachment), all of the property of the lumber company, including the property which had been attached on behalf of Warren & Son, was on the 6th day of July, 1888, “by order of the court,” placed in the hands of the receiver H. M. Harrison; and that “by order of the court,” made on the 3d day of December, 1888, “all of the property” of said company was “sold at public outcry and the proceeds thereof paid to said receiver.” It further appears from the recitations in said judgment, that “by order of the court made in chambers” on the 8th day of February, 1889, “said receiver was ordered to pay over the proceeds of all the property of the said defendant the Bast and West Texas Lumber Company (less the expenses incident to said receivership) to S. J. Mings and B. C. Williams, creditors of said defendant, upon condition of their executing an indemnity bond, obligating themselves to pay such judgments as the plaintiffs (Warren & Son) and T. B. Barnwell might recover.” It is further made to appear from the same source, *321 that said Mings and Williams did execute, with B. W. Rowland and J. W. Moody as sureties, on the 7th day of February, 1889, such “indemnity bond” as was required by the above “order of court, made in chambers,” which was on the next day (8th) “approved by the judge of the court in chambers and was delivered to said receiver. ’ ’ The bond was in the sum of $2800, and the inference from the judgment is that thereupon the receiver paid over to Mings and Williams the entire proceeds of the sale of all of the property of the company, less the expenses as aforesaid. The transcript does not contain a copy of the bond, and we are informed of its terms only by the description given in the final judgment. The record does not inform us in what suit or at whose instance the receiver was appointed, or whether the bond was‘given or filed in the present suit, though it is evident from the description of the bond contained in the judgment that its obligations have reference to the pending controversy. It may be that it was made expressly payable to the receiver and was intended alone for his indemnification, but whether it inures or not to the benefit of Warren & Son we are not required now to decide, as that question is not presented. Eeither are we required to determine whether such a bond should be held void under our statutes relating to receivers, as being in excess of the authority of the court to allow any such disposition of the property in custodia legis and being administered subject to well defined limitations (Sayles’ Civ. Stats., arts. 1461-1466, 1458, and note); nor whether, if the bond is invalid, the plaintiffs in error are in a position to take advantage of its illegality, if any. It does not appear that Mings and Williams were any more than general creditors of the lumber company, but it is shown that they were allowed to relieve the receiver of the entire assets or remaining property of the company, reduced to cash, after the payment of the expenses, and to substitute for the custody of the receiver and the control and supervision of the court a mere promise to satisfy the judgments of the other creditors in the shape of “the indemnity bond.” We have been referred to no statute providing for such a bond, or for summary relief thereon, as in cases of a claimant or replevin bond as provided in other statutes. Rev. Stats., arts. 4823-4843, 168-170, 181; 2 Ct. App. C. C., sec. 231; Wilber v. Kray, 73 Texas, 537; Dixon v. Zadek, 59 Texas, 530. If the plaintiffs in error are therefore liable on the indemnity bond, it must be upon the ground that the bond is valid as a voluntary obligation.

This brings us to the main question, whether they were entitled to be impleaded and cited to appear and defend before any judgment could be legally rendered against them upon the bond. Eone of the plaintiffs in error appeared, nor were they cited. The court below gave judgment against them upon the “indemnity bond” for the plaintiffs’debt, amounting to the sum of $1214.29, and for that amount also against the *322 lumber company, and for a foreclosure of the attachment lien “as it existed on the 17th day of June, 1888,” upon the proceeds of the sale of the property, and further declaring that plaintiff is .entitled to the payment of his debt out of the money derived from the sale of all of the property, including that levied upon, and which had been sold by the receiver, but paid over to Mings and Williams, etc. Although the plaintiffs Warren So Son amended their original petition before the trial of the cause, and after the execution of the indemnity bond, still they did not set it up nor ask any relief upon it, nor did they implead any of the obligors. hTo reference is made to the bond in any of the pleadings of any party.

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Bluebook (online)
18 S.W. 560, 82 Tex. 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-warren-son-tex-1891.