Latham Co. v. Louer Bros.
Latham Co. v. Louer Bros.
Opinion of the Court
Judgment was recovered by plaintiff in a suit upon a note for $166.07, dated Eebruary 7, 1908, and due December 15, 190S, interest at 8 per cent, per annum, alleged to have been executed by the defendant Latham Company in favor of plaintiff. From the judgment in favor of plaintiff for the full amount sued for with interest, the defendant appeals.
Plaintiff alleged in its petition that it was a “private corporation organized under the laws of the state of Illinois, and residing and doing an interstate commerce business, selling and shipping general merchandise in and from Chicago to the state of Texas, and that its headquarters and place of business and offices are in said Chicago, and that it has not, nor never had, any office in Texas, nor place of business in Texas. * * * That the same has been true from long prior to the sale to defendant of the goods, wares, and merchandise for which the note herein sued for was delivered and executed till the present time.” It further alleged that it had not procured a permit from the state of Texas, inasmuch as it was not required so to do under the law.
Defendant pleaded that plaintiff had no lawful right to maintain its suit under the laws of Texas, and prayed that same be dismissed, it being a foreign corporation engaged in and doing business in this state without a permit from this state. It further pleaded payment of the note sued on some time in the month of January, 1909.
“I have personally traveled in Texas, myself, and made my headquarters at San Antonio, but only for a limited time.”
Frank A. Louer, another brother, upon this question testified:
“It (the company) has been represented in Texas by Mr. Louer personally as traveling agent. Plaintiff has never had an office or headquarters in Texas.”
Charles H. Louer, another brother, testified:
“The note was made to Louer Bros, and was in payment for merchandise sold and delivered to the defendant. * * * Our Mr. H. B. Louer has made his headquarters in Texas, when doing business there. This was when acting traveling salesman. The general offices and headquarters are at 215 S. Market street, Chicago.”
This seems to be the only evidence bearing upon this issue, and we believe the court was justified in instructing the jury that the plaintiff was authorized to maintain this suit without securing a permit from the secretary of state. Even though it might be reasonably said, which we question, that the testimony, to the effect, that when H. B. Louer was traveling in Texas he made his headquarters in San Antonio, raises the issue of whether, at that time, the plaintiff was “doing business” in Texas, yet there is nothing to show as to when he so made his headquarters in San Antonio with reference to the time when the goods were sold to defendant, or when the note was executed, or when the suit was filed.
“No such corporation can maintain any suit or action, either legal or equitable, in any of the courts of this state upon any demand, whether arising out of contract or tort, unless at the time such contract was made, or tort com *922 mitted, the corporation had filed its articles of incorporation under the provisions of this chapter in the office of the secretary of state, for the purpose of procuring its permit.”
This article only applies to foreign corporations that are doing business in this state, and when there is nothing in the petition filed by a foreign corporation from which it can be inferred that it is engaged in business in this state, or that the transaction out of which the cause of action arose took place within the state, it need not show that the plaintiff has a permit to do business ,in this state. The allegation and proof must be made by the defendant. Miller v. Goodman, 15 Tex. Civ. App. 244, 40 S. W. 743; Brin v. Wachusetts Shirt Co., 43 S. W. 295; King y. Monitor Drill Co., 42 Tex. Civ. App. 288, 92 S. W. 1047; Chapman v. Hailwood Cash Reg. Co., 32 Tex. Civ. App. 76, 73 S. W. 969. Since, in the state of plaintiff’s pleadings, we believe that the burden of proof of the plaintiff’s incapacity to maintain its suit was on defendant, and since moreover, the pleadings of plaintiff, as well as the uncontrovert-ed testimony, support the contention that the transaction out of which the execution of this note grew was an interstate one, we overrule the first and second assignments.
“If you have seen and inspected such entry, please state whether or not such note (the one in question) was paid? And if paid, by whom and about what time?”
He answered:
“Tes; I have examined the bills receivable and payable book of said company. It was during the year 1913. Personally 1 do not remember paying this note, but the records [were?] in my charge at the time and [contain the?] entry marked ‘Paid.’ ”
The defendant offered the further answer of said witness as follows:
“Yes; the entry was marked ‘Paid’ in said book. It indicates that the note was paid, indicates that it was paid by me, and paid by me as agent, as indicated by entry on the books, either in the latter part of 1908 or early part of 1909.”
If the term “paid” had been in any sense ambiguous in the connection in which it was used, then undoubtedly defendant would have been entitled to the explanation from the witness, who had made the entry of its meaning as used by him, but we do not think there is any ambiguity involved, and therefore this assignment is overruled.
The judgment is affirmed.
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