First State Bank & Trust Co. of Hereford v. Southwestern Engineering & Construction Co.
First State Bank & Trust Co. of Hereford v. Southwestern Engineering & Construction Co.
Opinion of the Court
The basis of this suit is a note for the sum of $1,230.60, executed by the ap- *681 pellee the Southwestern Engineering & Construction Company, payable to the order of the First State Bank of Hereford, six months after, date, of which note plaintiff in error became the owner prior to the institution of the suit. Upon the filing of the original petition, plaintiff in error sued out a writ of attachment and had it executed by levying upon a certain section of land in Deaf Smith county. This land is claimed by appellee F. M. Barden. Plaintiff in error alleged that F. M. Barden was the president of the appellee Construction Company; that the officers of said Engineering & Construction Company and the officers of the Colorado, Hereford & Gulf Town-Site Company were the same; that the said Town-Site Company was a subsidiary corporation to the Construction Company; that the said Construction Company-furnished the money to the said Town-Site Company with which to purchase lands for town sites and over which and through which the said Construction Company was to build a line of railroad; that the Town-Site Company had no funds, and as a matter of convenience, merely, 'title to the lands was taken in the name of the Town-Site Company, but that the stock of same was owned by the said Construction Company; that in furtherance of the agreement between said companies, the Town-Site Company purchased the section of land ifi question with the funds of the Construction Company, paying therefor the sum of $8,090; that said section of land was purchased from W. H. Rayzor and first conveyed to W. A. Cullen and by him to the Town-Site Company, but that the Construction Company furnished all the money used in paying for said land. It is further alleged that after the note sued on was 'executed without any consideration and for the fraudulent purpose of putting the said section of land beyond the reach of its creditors, and especially plaintiff in error, the Town-Site Company conveyed the land to the said Barden. It is further alleged that the said section of land was all the property owned by the Construction Company in the state of Texas or belonging to and in the name of the Town-Site Company, that, by the conveyance to said Barden of the land, both corporations became insolvent; that Barden knew at the time the section of land was conveyed to him the fraudulent purpose of the Construction Company and that the same was being held in the name of the Town-Site Company for the Construction Company, and that the claim of the said Barden was fraudulent and an attempt on his part to defraud plaintiff in error. Plaintiff in error further alleged that, if it was mistaken about the said Barden holding the property fraudulently, then he was holding it as trustee for the Construction Company, and that he knew the condition of the title when he had the property conveyed to him. There was a prayer for judgment for the amount of the debt, principal, interest, and attorney’s fees, costs ■ of suit, for foreclosure of the attachment lien,' and for general and equitable relief. The defendant in error the Southwestern. En-1 gineéring & Construction Company made no ' appearance and filed no answer. Defendant ; in error Barden answered by demurrers, general and special, general denial, and alleged that he was an innocent purchaser for value of the land, denied partnership between the ¡ Construction Company and the Town-Site Company; that, if the said two corporations were partners, it was void, and their acts were void and against public policy; that he had advanced large sums of money, to wit, about $5,500, to the Town-Site Company on condition that it would have the said land conveyed to him and that said Town-Site Company did have said land conveyed to him; that he paid debts of the Town-Site Company with his own funds. When all | parties had closed in the introduction of the testimony, the court peremptorily instructed the jury to find for defendants in error.
This is the second appeal of this cause. On the former appeal the judgment was reversed because the court erred in sustaining a general demurrer to the petition. 138 S. W. 443.
Defendant in error Barden has filed a motion, asking this court to dismiss the application for writ of error, upon the ground that we had no jurisdiction to hear and determine the matters in issue because the Southwestern Engineering & Construction Company was not cited to appear in the trial court and did not voluntarily appear; that the Construction Company is a foreign corporation, chartered under the laws of New Jersey. A notice to serve nonresident defendants was issued by the district court of Deaf Smith county, for the purpose of serving the said Construction Company, and F. W. Barden, as the defendant. A copy of the notice, together with the return, having been brought into this court by certiorari, we find the return to be as follows: “State of Ohio, County of Butler. Personally before me appeared the un-der-signed authority, Harry A. Metcalfe, deputy sheriff, who, being by me duly sworn, deposes and says that on the 24th day of November, 1909, at 9 o’clock a. m., in Hamilton, county of Butler, state of Ohio, he delivered to F. W. Barden, the defendant, in person, a true copy of this notice with a certified copy of the plaintiff’s petition accompanying the-same and further that he is an adult male and is in no manner interested in this suit.” This was signed and sworn to the 24th day of November, A. D. 1909.
It is insisted by plaintiff in error that the •court erred in peremptorily instructing a verdict for the defendant in error, and that the instruction should have been to return a verdict in favor of the plaintiff. The court, -upon objection, excluded some important testimony, which in our judgment should have been admitted, and, if admitted, was sufficient to require the court to have submitted the issues raised by the pleadings to the jury.
The witness Adams, by deposition, testified in the case, and the following interrogatories and answers propounded to him were excluded: “What was the purpose of organizing a Town-Site Company? A. As a holding company for real estate purchased in Texas by the Construction Company. Q. It is a fact, is it not, that the Town-Site Company was organized for the purpose of holding *683 town sites of thé Southwestern Engineering ■& Construction Company, and, if this is not a fact, then please state the facts. A. It is a fact. Q. Is it not a fact that the funds of the Colorado, Hereford & Gulf Town-Site Company belonged to it and its stockholders? A. It is, but the Construction Company owns all of the stock of the Town-Site Company.”
For the error indicated, the judgment is’ reversed, and the cause remanded.
Reference
- Full Case Name
- FIRST STATE BANK & TRUST CO. OF HEREFORD v. SOUTHWESTERN ENGINEERING & CONSTRUCTION CO. Et Al.
- Cited By
- 3 cases
- Status
- Published