Zanes v. Mercantile Bank & Trust Co. of Texas

49 S.W.2d 922
CourtCourt of Appeals of Texas
DecidedFebruary 27, 1932
DocketNo. 11169
StatusPublished
Cited by26 cases

This text of 49 S.W.2d 922 (Zanes v. Mercantile Bank & Trust Co. of Texas) 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
Zanes v. Mercantile Bank & Trust Co. of Texas, 49 S.W.2d 922 (Tex. Ct. App. 1932).

Opinions

VAUGHAN, J.

On September 5, 1931, the Mercantile Bank & Trust-Company of Texas filed suit in the court below, against W. R. Zanes and Seth Tate, on a promissory note of date March 19, 1931, for $18,000 in favor of the bank, together with interest and attorneys’ fees due thereon, and -for the foreclosure of an alleged equitable lien on certain stock certificates as security for the note. The bank, among other things, alleged that on May 22, 1930, Zanes and Tate owed the bank the sum of $22,200, and on that date Tate, acting for himself and for Zanes, executed a note for the sum of $22,200, payable to the bank; that the note sued upon was a renewal thereof; that Zanes and Tate delivered to the bank, as collateral, to secure the $22,200 note, a certain note dated May 21, 1930, executed by Niehols-Gillette Transfer & Warehouse Company, dated May 21, 1930, payable on demand after date to the order of W. R. Zanes for $20,200; that Zanes and Tate each individually indorsed said note; that Tate, acting for himself and Zanes, executed a collateral agreement in favor of the bank, which in part provides: “That any and all securities or other property heretofore, now or hereafter pledged, or delivered by any of undersigned, their agents, attorneys or representatives, to said bank to secure any indebtedness of said bank, shall be held and construed to be pledged hereunder and as if fully described herein, and may be held by said bank as security for any and all debts and obligations of any or all of undersigned to said bank for the payment of money, whether such debts, liabilities and obligations now exist, or are hereafter incurred or arise, and whether the obligations or liability thereon of the undersigned or any of them be direct, contingent, primary, secondary, joint, several, joint and several, or otherwise, and whether such obligations be of the same character or different.”

.The bank further alleged that, on or about September 2, 1931, Zanes deposited with the bank $18,090, to be held by it as collateral security for the payment of the note sued upon ; that, prior to making the deposit, Zanes [924]*924and Tate liad purchased the stocks on which lien was claimed from the Dallas branch of the brokerage house of E. A. Pierce & Co., and that Zanes borrowed from Pierce & Co. on said stocks, as collateral, the sum of $18,000, which Zanes placed with the bank as security for the payment of said partnership debt; that Zanes, through certain acts of fraud and misrepresentations (specifically alleged in its petition), withdrew the deposit of $18,000 by his check payable to Pierce & Co., and thereby repossessed the involved stocks from Pierce & Co.; that by reason of said acts and conduct on the part of Zanes, the bank became subrogated to the lien which Pierce & Co. had against the stocks to secure the payment of the $18,000 indebtedness in favor of Pierce & Co., and that thereby the bank had an equitable lien on said stocks, and further alleged that immediately after repossessing the stocks Zanes again hypothe-cated same with Pierce & Co. to secure a loan of $8,000 then made to Zanes. Prayer for relief included the temporary injunction granted and the appointment of “a receiver of said partnership assets with authority to take possession of all partnership stocks belonging to said Zanes and Tate,” etc.

Tate, in his answer, admitted the above allegations of the bank to be true, and based thereon and other allegations made by him sought affirmative relief against W. R. Zanes and wife, Mabel Zanes, and E. A. Pierce & Co., and prayed for a temporary restraining order against them, and for the appointment of a receiver to take possession of said stocks.

Pierce & Co. answered, in substance, that it was holding said shares of stock, named in the temporary restraining order, with the exception of 50 shares of stock in the Fireman’s Insurance Company, as collateral against an indebtedness owed to it by the said Mrs. Mabel Zanes, in the sum of $8,161.-09, that the value of said stocks is constantly fluctuating, and that it has in its possession an agreement executed by the said Mrs. Mabel Zanes, conferring upon it the right at any time within its discretion to sell the certificates of stock for the benefit of said account, and credit the value thereon against any indebtedness that may be due and owing by the said Mrs. Mabel Zanes. Pierce & Co. prayed that the court enter such orders as may be proper, giving to it the authority, power, and right to sell the stocks at any time that it may deem it necessary for the protection of the indebtedness due it.

W. R. Zanes answered the bank’s petition by general demurrer, special exceptions, and general denial, and denied under oath that part of the bank’s petition relating to its claims of lien on the $18,000 in money, and on the stocks involved in this suit. Zanes and wife, Mabel Zanes, pleaded to the cross-action of Tate misjoinder of parties and causes of action, and in abatement alleged that Tate had no right to maintain his cross-action. W. R. Zanes filed a general demurrer, general denial, and certain special exceptions to the cross-action of Tate. Pierce & Co.’s answer was not controverted by any of the parties to the suit. As the statement of the evidence adduced will supply any material omission, in our review of the issues presented by the pleadings, no further reference thereto will be made.

On October 9, 1931, the judge of the trial court, in chambers, granted the injunctive relief and appointed a receiver, as'prayed for by the bank, and Tate, and appointed John C. Harris receiver. At this hearing, the pleas of misjoinder of parties, causes of action, and in abatement, of Zanes and wife to the cross-action of Tate, and the general demurrers addressed to the pleading of the bank and the cross-action of Tate were presented and overruled. Neither Tate nor Pierce & Co. appealed from the above orders; Zanes and wife duly perfected an appeal therefrom.

The following is a statement of all of the material evidence on which the temporary injunction was granted and the receiver appointed, viz.: Milton Brown, vice president of the bank, testified that W. R. Zanes and Seth Tate had been doing business with the bank four or five years; that he, as vice president .of the bank, received from Zanes and Tate a note executed by Nichols-Gillette Transfer & Warehouse Company, payable to W. R. Zanes in the sum of $20,200, as collateral to secure the indebtedness of Zanes and Tate to the bank; that the note sued upon is a part of such indebtedness; that the bank sold said collateral note, and applied the proceeds as a credit on the note sued upon; that he (Brown) discussed the note sued upon with W. R. Zanes; that he admitted it was a just debt, the obligation of himself and Tate, and that they owed it.

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Bluebook (online)
49 S.W.2d 922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zanes-v-mercantile-bank-trust-co-of-texas-texapp-1932.