Woods v. Applemack Enterprises, Inc.

729 S.W.2d 328, 1987 Tex. App. LEXIS 6519
CourtCourt of Appeals of Texas
DecidedFebruary 26, 1987
DocketB14-86-467-CV
StatusPublished
Cited by18 cases

This text of 729 S.W.2d 328 (Woods v. Applemack Enterprises, Inc.) 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
Woods v. Applemack Enterprises, Inc., 729 S.W.2d 328, 1987 Tex. App. LEXIS 6519 (Tex. Ct. App. 1987).

Opinion

OPINION

SEARS, Justice.

This is an appeal from a summary judgment in a suit on a promissory note. Both parties filed motions for summary judgment. The trial court denied Defendants’ (Appellants’) motion and granted Plaintiff’s (Appellee’s). We hold that the summary judgment evidence was wholly insufficient to establish Appellee’s right to judgment as a matter of law and that the summary judgment evidence was sufficient to support Appellants’ motion for summary judgment. We reverse the summary judgment granted in favor of Appellee and grant summary judgment for Appellants.

Appellants executed a promissory note June 11, 1981, payable to Gary L. McConnell in the principal sum of $740,000.00. The note was secured by shares of stock in Commerce Savings Association. Mr. McConnell then assigned this note to Ap-pellee on December 81, 1981. Appellee, Applemack Enterprises, Inc., is a corporation wholly owned by Mr. McConnell and his wife.

In May, 1982, Appellants presented Mr. McConnell with a plan whereby they would meet him in Seattle, Washington, obtain the stock held as security by Mr. McConnell, transfer the stock to a third party and pay the note out of the proceeds of this transfer. Mr. McConnell agreed to this arrangement and agreed to a discount of $23,897.40 for the early payment of the note. On May 21, 1982, the parties met in Seattle and Mr. McConnell, acting on behalf of Appellee, received $716,102.60 in payment of the note. This was the total amount due and owing on the note after discounting $23,897.40 for early payment. Approximately two and one-half years later, Appellee filed this suit to collect the $23,897.40 previously discounted from the note. Both parties filed motions for summary judgment in January, 1986. The trial court granted Appellee’s Motion for Summary Judgment and denied Appellants’. Appellants requested findings of fact and conclusions of law; however, none were filed by the court.

In points of error one and two, Appellants contend the trial court erred because the summary judgment evidence disclosed facts which as a matter of law defeated Appellee’s right to judgment and established Appellants’ right to judgment. We agree with Appellants’ contentions. Appel-lee’s summary judgment evidence included two affidavits of Gary L. McConnell, an affidavit by Appellee’s attorney concerning reasonable attorney fees, and a copy of the promissory note. Appellants’ evidence consisted of the affidavit of Mr. Jarrett E. Woods, Jr. and a deposition by Gary L. McConnell which was taken in a related lawsuit.

Appellee challenges the sufficiency of Mr. Woods’ affidavit because it fails to state that the facts set forth therein are “true and correct.” To be competent as summary judgment evidence, an affidavit must affirmatively show that it is based on the personal knowledge of the affiant and state facts in a form that would be admissi *330 ble in evidence at a trial. Brownlee v. Brownlee, 665 S.W.2d 111, 112 (Tex.1984). The affidavit of Mr. Woods recites that the affiant, one of the makers of the promissory note, has “personal knowledge of all facts set forth in this Affidavit.” The affidavit is signed by the affiant and below his signature is the notary public’s verification that this affidavit was “subscribed and sworn to before me.” While the affidavit does not recite specifically that the facts set forth therein are true and correct, this is the obvious effect when the affidavit is read in its entirety. Southwest Park Outpatient Surgery, Ltd. v. Chandler Leasing Division, 572 S.W.2d 51, 52 (Tex.Civ.App.—Houston [1st Dist.] 1978, no writ); Gutierrez v. Hachar’s Dept. Store, 484 S.W.2d 433, 435 (Tex.Civ.App.-San Antonio 1972, writ ref d n.r.e.). We hold that the affidavit is not defective and sufficiently reflects that it was made on the personal knowledge of the affiant as required by Rule 166-A of the Texas Rules of Civil Procedure.

Appellee further contends that Mr. Woods’ affidavit contains the phrases “an agreed credit was negotiated,” and “[a]ll sums remaining due and owing on the Note on that date, save and except for said agreed upon credit, were paid in full,” which are merely conclusions and not sufficient summary judgment evidence. Affidavits must set forth facts rather than legal conclusions. Harbour Heights Dev. Inc. v. Seaback, 596 S.W.2d 296, 297 (Tex.Civ.App.-Houston [14th Dist.] 1980, no writ). The conclusions of the affiant have no probative value and are not competent summary judgment evidence. Hidalgo v. Surety Savings and Loan Association, 487 S.W.2d 702, 703 (Tex.1972); Manges v. Astra Bar, Inc., 596 S.W.2d 605, 610 (Tex.Civ.App.-Corpus Christi 1980, writ ref'd n.r.e.). We do not find the statements conclusory because they are proven by Appellee’s own affidavit as is shown later in this opinion.

Appellee next contends that Appellants failed to expressly raise the agreement to a discount as a defense. Issues not expressly presented to the trial court by written motion, answer or other response shall not be considered on appeal as grounds for reversal. Tex.R.Civ.P. 166-A(c). An affirmative defense may properly be raised in a response to the motion for summary judgment and attached affidavits. See Brownlee v. Brownlee, 665 S.W.2d 111, 112 (Tex.1984); Clark v. Dedina, 658 S.W.2d 293, 296 (Tex.App.-Houston [1st Dist.] 1983, writ dism’d w.o.j.). Appellants’ Motion for Summary Judgment and Response to Plaintiff’s Motion for Summary Judgment contains the following language:

As can be seen from the Affidavit of Jarrett E. Woods, Jr. and the affidavit of Gary L. McConnell, Defendants have paid all sums which were agreed due and owing on the note which forms the basis of Plaintiff’s claim in this cause of action.

This motion, when read in conjunction with supporting and opposing affidavits, clearly presents the defense of discount upon which Appellants rely.

We now turn to the question of whether either of the parties sustained their burden of proof and established a right to summary judgment as a matter of law. Where both parties move for summary judgment, each party must carry his own burden of establishing a right to judgment. Neither can prevail solely because the other party failed to discharge his burden. The Atrium v. Kenwin Shops of Crockett, 666 S.W.2d 315 (Tex.App.-Houston [14th Dist.] 1984, writ ref’d n.r.e.). On appeal, the proper course is for the appellate court to rénder judgment for the party whose summary judgment motion should have been granted. Members Mutual Insurance Co. v. Hermann Hospital,

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Bluebook (online)
729 S.W.2d 328, 1987 Tex. App. LEXIS 6519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-applemack-enterprises-inc-texapp-1987.