Dickerson v. Central Texas Grocery Co.
Dickerson v. Central Texas Grocery Co.
Opinion of the Court
On the 15th of January, 1908, the appellee, the Central Texas Grocery Company, filed its suit against the appellant J. L. Dickerson in the county court of Navarro county, Tex., to recover judgment upon a promissory note executed by J. L. Dickerson on the 25th day of October, 1907, payable to the Central Texas Grocery Company, said note being for the sum of $490.91, with 10 per cent, interest from the 1st of October, 1907, due November 1, 1907; also providing for 10 per cent, attorney’s fees, said note payable at Corsicana, Tex. At the same time affidavit for garnishment was made against the Niagara Fire Insurance Company of New York, garnishee, a corporation, represented- by its local agents at Athens, in Henderson county, Tex. The writ of garnishment was issued out of the county court of Navarro county on the 15th day of January, 1908, and was served and *696 executed on the 16th day of January, 1908. Thereafter on the 20th day of January, 1908, the appellant John T. Dickerson, brother of J. L. Dickerson, filed a suit in the district court of Henderson county against the Niagara Eire Insurance Company to recover the sum of $850, which sum the Niagara Fire Insurance Company had agreed to pay in full settlement of a loss sustained under its fire policy No. 12026 covering property belonging to the said J. L. Dickerson; it being alleged that said policy and said sum-of money had been transferred and conveyed by J. L. Dickerson to John T. Dickerson prior to the issuance and service of the writ of garnishment, in payment, or part payment, of a debt due by J. L. Dickerson to J. T. Dickerson.
It appears that on the 29th of January, 1908, the Niagara Fire Insurance Company answered the suit of J. T. Dickerson in the district court of Henderson county and set up the fact that it had been garnished at the instance of the Central Texas Grocery Company, by writ of garnishment issued out of the county court of Navarro county, Tex., in the said suit pending therein against J. L. Dickerson, and that after said garnishment had been served upon it, to wit, on January , 17, 1908,, it had received notice from the said John T. Dickerson that he was the owner of said policy. The Niagara Fire Insurance Company asked that the Central Texas Grocery Company and J. D. Dickerson be made parties to the suit in the district court of Henderson county in order that, the rights of the different parties to the $850 might be determined therein, which was ddne. The Niagara Fire Insurance Company also answered in the suit in the county court of Navarro county, Tex., setting up the fact that, after it had been garnished at the instance of the Central Texas Grocery Company, it received notice from J. T. Dickerson of Henderson county that he claimed to be the owner of the fund admitted to be due upon the insurance policy, and that said John T. Dickerson had brought suit in the district court of Henderson county to recover said amount. The Niagara Fire Insurance Company further alleged, it seems, in both' the suit of J. T. Dickerson against it in Henderson county, and in this suit, which was pending in Navarro county, in substance: That on January 15th the said Niagara Fire Insurance Company, through its proper agent, issued a draft payable to the order of the said J. L. Dickerson in payment of said loss, but that, before the draft left the possession of the said Niagara Fire Insurance Company, the said writ of garnishment herein was served on one of the agents of the said Niagara Fire Insurance Company. The garnishee further alleged that since the receipt of said writ of garnishment it has been advised that the said J. D. Dickerson had theretofore transferred the Niagara Fire Insurance Company policy and the claim for $850 resulting therefrom, as hereinabove set out, to one J. T. Dickerson, who resided in Henderson county, Tex.; that said transfer is claimed to have been made on the 9th day of January, 1908. That the garnishee was not informed as to whether said transfer is valid and effectual to transfer title to said insurance policy to J. T..Dickerson or not, but it prays that the court hear testimony on that point. The garnishee further averred that it stood ready to pay to whomsoever may be entitled thereto the said sum of $850, but, inasmuch as the Central Texas Grocery Company is claiming that J. D. Dickerson is still the owner of the said policy, it was necessary in order to protect the garnishee from having to pay said sum more than once to have all parties interested before it. The garnishee further alleged that it was entirely indifferent as to 'which one of the parties aforesaid shall recover; that it is simply a stakeholder who desires to pay the money to whomsoever the court may decide that it may be due, and is seeking to only protect itself against having to pay twice said sum of money, and that it is desirous of depositing the said sum of $850 into court. The prayer was that J. T. Dickerson be made a party to this suit, which was done, to the end that the rights of all parties to said suit of $850-might be decided, and that a decree be rendered, directing the garnishee, the Niagara Fire Insurance Company, to whom said sum should be paid, and that it recover its costs,, together with a reasonable attorney’s fee, etc. J. T. Dickerson filed in this suit a plea setting up the pendency of the suit in Henderson county; and asked that this suit be abated because thereof. This plea was overruled and a trial upon the merits of the case-resulted in a verdict and judgment in favor of the appellee, the Central Texas Grocery Company, and the appellants have appealed the case to this court.
The Niagara Fire Insurance Company, garnishee in the case at bar, was sued by the appellant J. T. Dickerson in Henderson county, Tex., to recover the $850 involved in this controversy after that company had been served with the writ of garnishment sued out in that ease, and the answer and cross-bill filed in the suit in .Henderson county was necessary and forced upon it by reason of that suit. It cannot therefore be fairly and justly said, we think, that the answer of the Niagara Fire Insurance .Company filed in the suit of J. T. Dickerson against it in Henderson county, interpleading in that suit the Central Texas Grocery Company and J. L. Dickerson, was voluntary on its part, and an election by it to have the district court of that county determine to which of the defendants the $850 due on the fire insurance policy issued to J. L. Dickerson belonged, and that therefore the county court of Navarro county, Tex., should not have assumed jurisdiction over the Niagara Fire Insurance Company and of the said $850 by reason of its answer to the garnishment issued in this suit and served upon it. Under the circumstances of this case, we think it quite clear that the county court of Navarro county, by reason of the suit of the ap-pellee, the Central Texas Grocery Company against J. L. Dickerson filed in that court, and service of the writ of garnishment issued thereon on the Niagara Fire Insurance Company before the suit of the appellant J. T. Dickerson was instituted against said company in Henderson county, first acquired jurisdiction to hear and determine the matters in controversy in said suit, and appellants’ first assignment of error will be overruled.
It is also contended that the garnishment proceedings should have been quashed by the trial court because of the insufficiency of the bond. In this contention we do not concur. We think the bond is conditioned as required by the statute, and, while the form or construction of it may be subject to some criticism', there is no such defect in it as would authorize the quashing of the garnishment proceedings.
Appellee alleged among other things that, if the transfer or assignment of the insurance policy had been made by J. L. Dickerson to J. T. Dickerson, the same was fraudulent and void; that it was not in fact made until after the suing out and service of the writ of garnishment, and was the result of collusion on the part of the said J. L. Dickerson and J. T. Dickerson to fraudulently prevent appellee from collecting the debt owed it by J. L. Dickerson. Now the burden of proof to establish fraud is on the party who alleges it, and, appellee having alleged a fraudulent transfer of the insurance policy by J.' L. Dickerson to the appellant J. T. Dickerson, the burden was on it to show that fact. Whether such was the character of the transfer was a controverted issue in the case, and it cannot be said that the charge was harmless.
The assignments not discussed point out no reversible error and will be overruled.
For the reasons indicated, the judgment of the court below is reversed, and the cause remanded.
Reference
- Full Case Name
- DICKERSON Et Al. v. CENTRAL TEXAS GROCERY CO.
- Cited By
- 5 cases
- Status
- Published