Yakey v. Chapman Milling Co.

74 S.W.2d 148, 1934 Tex. App. LEXIS 797
CourtCourt of Appeals of Texas
DecidedJuly 5, 1934
DocketNo. 3053.
StatusPublished
Cited by1 cases

This text of 74 S.W.2d 148 (Yakey v. Chapman Milling Co.) 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
Yakey v. Chapman Milling Co., 74 S.W.2d 148, 1934 Tex. App. LEXIS 797 (Tex. Ct. App. 1934).

Opinion

PELPHREY, Chief Justice.

During the year 1930, appellee instituted a suit in the district court of Grayson county against Agua Dulce Supply Company, a corporation, H. G. Yakey, J. G. Mrazek, and Will Phillips.

Yakey and Mrazek seasonably filed pleas of privilege to be sued in Nueces county. Ap-pellee filed controverting affidavits and upon hearing the pleas were overruled. An appeal was prosecuted from the order overruling the pleas of privilege to the Dallas Court of Civil Appeals. Under the equalization of the dockets by the Supreme Court, the cause was transferred to the Texarkana Court. There judgment was reversed and the cause remanded with instructions to the trial court to transfer the suit, so far as it was against Yakey and Mrazek, to Nueces county. Agua Dulce Supply Co. et al. v. Chapman Milling Co., 37 S.W.(2d) 768.

In that case the court held that Yakey and Mrazek were not jointly liable with the Agua Dulce Supply Company on the contract and that if there was any liability on their part, it was by virtue of their being officers and directors of the Supply Company, after its charter had been forfeited, and by virtue of their consent and approval of the transaction forming the basis of the Milling Company’s cause of action, as provided in article 7091, Revised Statutes 1925.

While the appeal from the order overruling the pleas of privilege was pending, the case was called and tried upon its merits.

On May 8, 1931, appellee filed a motion for execution against appellants, 'Setting up the judgment rendered against 'the Agua Dulce Supply Company, Phillips' and appellants. In the motion it was alleged that the judgment in so far as it was against appellants was void for the reason that the Court of Civil Appeals had held that their pleas of privilege should have been sustained, but that it was in full force and effect as to the Agua Dulce Supply Company and Phillips.

The motion then reads:

“That the Agua Dulce Supply Company was duly incorporated under the laws of Texas with an authorized capital stock of $10,000.00. The said Will Phillips and the said J. O. Mrazek and H. G. Yakey were the sole subscribers for said capital stock and they together subscribed for all of it but paid in only 50% thereof, leaving unpaid on the capital stock the sum of $5,000.00. That the defendants aforesaid have never paid the balance of said capital stock and on the 21st day of February, 1930, the Secretary of State for-' feited the charter of said corporation for failure to pay the balance of said capital stock. The subscription is in joint and several form.”
“That the defendants, H. G. Yakey, J. C. Mrazek and Will Phillips jointly and severally owe to -said corporation, or to its creditors, the sum of $5,000.00, being the balance unpaid on their subscription to and for said capital stock.
“That plaintiff has had execution issued on said judgment against the defendant Agua Dulce Supply Company and no property could be found on which to levy same and it has been returned by the Sheriff so endorsed by him. In fact, the plaintiff says that the said Agua Dulce Supply Company is wholly insolvent and has no property whatever on which a levy can be made, or which can be subjected to said judgment save and except the amount owing by the said defendants for the amount unpaid on their subscriptions for the capital stock. The plaintiff is entitled to have execution issued against the said defendants for the amount of its judgment and costs.”

After notice was given of this motion, appellants secured a permanent injunction from the district court of Nueces county, restraining the collection of the judgment and .further action on the, motion as against them. The San Antonio Court of Civil Appeals, 51 S.W.(2d) 639, held that the Nueces county district court had no authority to grant the injunction ; that the cause of action was sever-able as had been held by the Texarkana Court, supra; and that while the directors were not liable under the judgment in Gray-son county, they might be made so in that County under the terms of article 1345, R. S.

Thereafter a hearing was had on the motion in the Grayson county district court before a jury, who returned a verdict in favor of appellee. Upon such verdict, judgment was rendered that appellee have its execution against appellants, and each of them, on and •for the amount of the judgment rendered against the Agua Dulce Supply Company.

5?his appeal is from that judgment.

Opinion.

Appellants are here sought to be held by virtue of the provisions of article 1345, which *150 reads: “If execution lias issued against the property of a corporation, except a railway or a religious or charitable corporation, and there cannot be found any property whereon to levy such execution, then the execution may be issued against any of the stockholders to an extent equal to the amount of the stock unpaid. No execution shall issue against any stockholder, except upon an order of the court in which the suit or other proceeding was instituted, made in open court upon ¡motion after a reasonable written notice to the person or persons sought to be charged. Upon such motion, such court may order execution to issue accordingly; or the plaintiff in execution may proceed by action to charge the stockholders with the amount of his judgment, in accordance with the liability of the stockholders.”

The only evidence introduced by appel-lee to show that appellants had not paid for their stock in full was a certified ledger sheet from the office of the Secretary of State upon which the following notation appeared: “Forfeited for failure to file Proof, Final Payment 2/21/30.”

By their fifth proposition, appellants contend that such ledger sheet was no evidence that payment had not in fact been 'made by them. Article 1338, Revised Statutes, makes it the duty of stockholders to pay, within two years from the date of filing the charter, the unpaid portion of the capital stock, and make proof of such payment to the Secretary of State.

. If the payments had in fact been made, it can be presumed, we think, that proof thereof would have been furnished to the Secretary of State and a forfeiture of the charter prevented. If we be correct in this, then the fact that no proof was made would be a circumstance tending to show that the payments had not been made.

To refute this evidence, appellants offered to prove by Yakey that both he and Mrazek had subscribed for only $1,000 worth of the stock in the Supply Company and had paid their subscriptions in full.

Under the above statute the burden is upon a person seeking to hold a stockholder to .prove that the person sought to be held, subscribed for stock, and that his subscription has not been paid.

It is equally true, we think, that a person sought to be held is entitled to introduce any proof tending to show that his subscription has been paid.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bartelt v. Lehmann
207 S.W.2d 131 (Court of Appeals of Texas, 1947)

Cite This Page — Counsel Stack

Bluebook (online)
74 S.W.2d 148, 1934 Tex. App. LEXIS 797, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yakey-v-chapman-milling-co-texapp-1934.