Zimmerman v. Franzheim

483 S.W.2d 380, 1972 Tex. App. LEXIS 2136
CourtCourt of Appeals of Texas
DecidedJune 22, 1972
DocketNo. 15923
StatusPublished

This text of 483 S.W.2d 380 (Zimmerman v. Franzheim) 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
Zimmerman v. Franzheim, 483 S.W.2d 380, 1972 Tex. App. LEXIS 2136 (Tex. Ct. App. 1972).

Opinion

BELL, Chief Justice.

Appellee recovered a summary judgment against S. Mort Zimmerman, Capital Exchange Corporation and several other makers of two promissory notes. Only Zimmerman and Capital Exchange have appealed.

March 23, 1971, appellee filed suit on two notes. One note was for the principal sum of $325,000, bore interest at the rate of 9% percent per annum and provided for 10% attorney’s fees. It was to become due on demand and if no demand was made, on March 15, 1970. It was dated October 15, 1969. The other note bore the same date and was identical in terms except the principal sum was $225,000. Appellee’s petition was in proper form for recovery on both notes. Unsworn copies of the notes were attached to the petition. Appellants filed a joint answer consisting of a general denial.

April 23, 1971, appellee filed his un-sworn motion for summary judgment supported by the affidavit of Mr. Franzheim. The affidavit complies with the requirements of Rule 166-A, Texas Rules of Civil Procedure, and asserts the execution and delivery of each note. It further recited that a “full, true and correct copy of each note is attached to ‘Plaintiff’s Original Petition’ . . . and is incorporated herein for all purposes.” It is also stated as to each note that plaintiff contends to be the owner and holder and the defendants are entitled to no credits, offsets or rights of recoupment. The affidavit shows [381]*381by factual recital that each note became past due March 15, 1970, and remained past due.

The motion is also supported by a sufficient affidavit of Harry Weeks swearing to correctness of the copies of the notes which are attached to his affidavit.

May 13, 1971, appellants filed what is denominated “Answer to Motion for Summary Judgment.” This answer consisted in substance of the following:

1. A special exception to paragraph III, Subparagraph (B) and paragraph IV, Sub-paragraph (B) “for the reason that same constitute a conclusion of the affiants and is not competent evidence, as a matter of law, to support the allegations therein made.” Paragraph III, Subparagraph (B) asserted that appellee “continued to be the owner and holder” of the $325,000 note, and the defendants were “entitled to no credits, offsets or rights of recoupment.” This subparagraph also asserted “the principal sum of $325,000 plus accrued interest became past due on March 15, 1970, and remains past due.” Paragraph IV, Sub-paragraph (b) of the affidavit contained precisely the same statements with regard to the $225,000 note.

2. By way of an affirmative defense appellants asserted there had been a compromise and settlement “after the due date in 1970 upon the basis that each maker thereof would be severally liable for his prorata share of the indebtedness, if any. Said agreement was entered into between these defendants and Mr. Richard Randall, attorney for the Plaintiff.” Appellants further alleged that as a part of the agreement, it was agreed that no action would be taken on the debts “until such time as the collateral placed by these defendants had risen in value sufficiently to cover any balance owing.” It is asserted that by entering into the agreement appellee had waived its right to proceed to judgment at the present time.

3. There was a special denial that plaintiff was the owner of the notes or that they were due.

4. There is a special denial that $550,-000 was due and an assertion that “these defendants are entitled to offsets and credits among others, of a minimum of approximately $120,000; which amounts represent notes held by these defendants and payable by Plaintiff.”

5. Recovery of attorney’s fees cannot, as a matter of law, be the subject of a summary judgment.

The above answer is sworn to by Zimmerman for himself and Capital Exchange by separate oaths. Each oath states that Zimmerman was duly sworn and “says he has read the foregoing instrument and that all facts and allegations contained therein are true within his personal knowledge.”

On May 14, 1971, plaintiff filed “Objections to Answer to Motion for Summary Judgment Filed by Co-Defendants Capital Exchange Corporation and S. Mort Zimmerman.” This instrument in substance asserted the following:

1. The answer does not affirmatively show that Zimmerman is competent to testify to the matters stated or that he swore to or has personal knowledge of the matters stated therein.

2. The answer is a mere pleading and not independent proof of facts.

3. The allegations in the answer do not set forth facts “but rather contain mere denials and conclusions.”

4. It contains no facts that would be admissible in evidence on trial.

5. Original answer of defendants does not support allegations.

The motion for summary judgment was granted May 17, 1971, though it was signed October 18, 1971. It was interlocutory in that it disposed only of the appellants.

[382]*382The original notes were presented to the trial court at the hearing on May 17, 1971. Such originals have, on order of the trial court, been transmitted to this court. They are identical with the copies attached to the affidavit of Weeks. While appellants’ brief asserts failure to produce the original notes, it was conceded by appellants’ counsel on submission of the case that the originals were before the court when summary judgment was rendered.

As earlier noted, there were a number of other defendants. At various times interlocutory summary judgments or default judgments were rendered against all except Ross Brunner. He was dismissed with prejudice upon his paying $105,000, which payment was credited on the final judgment rendered against the other defendants.

November 11, 1971, appellee filed a motion to make the interlocutory judgments final.

November 19, 1971, appellants filed their “Motion to Vacate Interlocutory Summary Judgment.” In it they assert an accord and satisfaction allegedly reached after the rendition of the interlocutory judgment. The substance of the alleged agreement was that Zimmerman was instrumental in bringing about a settlement of other litigation in which appellee had potential liability ahd appellee represented if this were done he would release the appellants. Prayer was that the interlocutory order be vacated and upon hearing final judgment be denied “until . . . defendants have been able to produce . . . full and convincing evidence of the merit of the facts and evidence . . .” Zimmerman swore that all facts and allegations contained therein are true and correct to the “best of his knowledge and belief.”

Final judgment was rendered November 22, 1971. It recites that “Capital Exchange Corporation and S. Mort Zimmerman although duly notified of said hearing came not.”

To entitle a movant to a summary judgment the summary judgment evidence must show the absence of any dispute as to the existence of any material fact. Such evidence must show the movant is entitled to judgment as a matter of law. Gibbs v. General Motors Corporation, 450 S.W.2d 827 (Tex.Sup.); Great American Reserve Ins. Co. v. San Antonio Plumbing Supply Co., 391 S.W.2d 41 (Tex.Sup.); Gulf, Colorado and Santa Fe Railway v. McBride, 159 Tex.

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Related

Gibbs v. General Motors Corporation
450 S.W.2d 827 (Texas Supreme Court, 1970)
Gulf, Colorado & Santa Fe Railway Co. v. McBride
322 S.W.2d 492 (Texas Supreme Court, 1958)
Kuper v. Schmidt
338 S.W.2d 948 (Texas Supreme Court, 1960)
Tsesmelis v. Sinton State Bank
53 S.W.2d 461 (Texas Commission of Appeals, 1932)

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Bluebook (online)
483 S.W.2d 380, 1972 Tex. App. LEXIS 2136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmerman-v-franzheim-texapp-1972.