Wills Point Bank v. Bates, Reed & Cooley

10 S.W. 348, 72 Tex. 137, 1888 Tex. LEXIS 1255
CourtTexas Supreme Court
DecidedNovember 27, 1888
DocketNo. 2614
StatusPublished
Cited by18 cases

This text of 10 S.W. 348 (Wills Point Bank v. Bates, Reed & Cooley) 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
Wills Point Bank v. Bates, Reed & Cooley, 10 S.W. 348, 72 Tex. 137, 1888 Tex. LEXIS 1255 (Tex. 1888).

Opinion

Stayton, Chief Justice.

On the 19th day of January, 1882, Bates, Reed, and Cooley had levied an attachment against Gugenheim & Co. on the property in controversy, and on the 20th day of September, 1883, recovered judgment for their debt against Gugenheim & Co., with a foreclosure of their attachment lien—the judgment directing that the order of sale should be suspended to await the result of this suit.

The defendant bank asserts that on the 17th day of January, 1882, two days prior to the levy of the plaintiffs’ writ, Gugenheim & Co. were indebted to it in the sum of about $6300, and that in satisfaction of about $5500 of this debt, they purchased Gugenheim & Co.’s entire stock, including the property in controversy. H. Fuller, W. A. Williams, J. M. Lybrand, and J. W. Fuller composed the banking firm doing business under the style “Wills Point Bank;” and when the attachment was levied on a part of the goods conveyed by Gugenheim & Co. to them, they made the requisite affidavit and filed bond to try the right to the property.

Appellees, in making up issues, alleged that if Gugenheim & Co. made [139]*139a sale of the goods to appellant that this was done with intent to defraud their creditors; that it was made to secure a pretended debt having no real existence; and that Gugenheim remained in possession after the pretended sale, selling the goods in the ordinary course of trade, as he had theretofore done.

The defendants in tendering issues alleged that two days before the goods were seized they bought from Gugenheim & Co. their entire stock of goods, including those in controversy, and that in payment they released Gugenheim & Co. from about §5535xVo due to them at the time, which was the full value of the goods, and that they at once took possession of the goods, and so were at the time of the seizure. They also-denied that the sale was made with intent to hinder, delay, and defraud the creditors of Gugenheim & Co., and alleged that they purchased for the honest purpose of securing the payment of a bona fide debt. They also alleged that Gugenheim & Co. at the time they purchased owed them 80337.50, of which the sum released on account of the purchase was a part.

The trial resulted in a verdict and judgment for appellees.

It does not appear who made the affidavit claiming the property. Williams, one of the claimants, testified in the case in behalf of the appellees, and in the course of his testimony, after stating that'he was a member of the firm at the time it is claimed the goods were purchased from Gugenheim & Co., but that he knew nothing personally about it, stated that he was absent from their place of business and received a letter from a member of the firm in reference to the purchase, which he produced, So much of that letter as has bearing on the questions before us is as fob lows:

" Wills Point, Texas, January 17, 1882.
" W. A. Williams, Esq., Pilot Point, Texas:
"Dear Billy—We have purchased Gugenheim & Co.'s stock goods, but will not make it known for a few days on account of some goods yet to arrive, at which time will write you all the particulars. Don't mention this to any person.”

He then stated that between the twentieth and twenty-fifth of the same month he received another letter, giving the details of the transaction in reference to the stock of goods. After accounting for the non-production of that letter, he stated its contents as follows: "In this letter Hr. Lybrand made substantially the following statements, to-wit: That their attorney had told them that a mortgage on a stock of goods would not hold; that the bank would have to buy the stock from Gugenheim & Co. straight out to pay their debt, which was about §6300; that the bank did buy the stock from Gugenheim, with the understanding at the time that Thompson was to be put in charge of the goods, but that he, Gugenheim, was to stay in the store in connection with the business, they allowing [140]*140him a living out of it until the debt to the bank was paid, when the goods were to go back to Gugenheim; that the purchase had been made to keep GugenheinTs creditors from attaching the goods. ”

The evidence of Williams in regard to letter last referred to was objected to by appellants on these grounds:

1. Because there was no issue under which the evidence was admissible.
%. Because the letter was a privileged communication.
3. Because the testimony was only the declaration of the witness “as to the status of the transaction between Gugenheim & Co. and defendants, made long after the dissolution of the partnership between witness and his other co-defendants.”

It appears elsewhere in the record that the partnership between Williams and the other defendants was dissolved January 1, 1883.

The evidence objected to tended to show that there was not a sale of the goods, but a simulation, under the cover of which the goods should be withdrawn from the reach of other creditors, or that the transaction should be, as between the parties, nothing more than a mortgage, under which Gugenheim & Co. should remain in possession and sell in the ordinary course of trade.

Either of those conditions would make the transaction invalid as to other creditors of Gugenheim & Co., and it was proper to receive under ihe issues made the evidence offered.

The letter was an admission made by one member of the firm, shown to have been present at the time the transaction with Gugenheim & Co. was consummated, tending to show what its real nature was, and in reference to which either partner could be compelled to testify.

Such declarations or admissions made by one partner to another have never been recognized as privileged communications. The fact of partnership being shown to have existed at the time the letter was written, and at the time the transaction to which it referred occurred, the writing of the letter and its contents might be proved by any person having knowledge of these facts.

The fact that Williams testified after the dissolution of the partnership does not affect the admissibility of evidence showing an admission or declaration made by one member of the firm prior to dissolution.

Appellants offered to introduce in evidence a book furnished by them to Gugenheim & Co., in which was contained what purported to be a statement of the debts and credits between them, made up from time to time by the appellant and embracing a period before and after the transaction through which they claim the goods.

The credits to Gugenheim & Co. were shown to have been entered in his presence, or in the presence of such person as he sent to the bank with money, but the debits to that firm were transcribed by appellants from a book in which they were originally entered.

[141]*141That such entries in a pass hook would he evidence against the hank in a controversy between it and the depositor is true, and under given circumstances such evidence ought to be received against a depositor, but we do not see on what ground the book offered could be received against a third person.

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Bluebook (online)
10 S.W. 348, 72 Tex. 137, 1888 Tex. LEXIS 1255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wills-point-bank-v-bates-reed-cooley-tex-1888.