Negociacion Agricola Y Ganadera De San Enrique, S. A. v. Love
Negociacion Agricola Y Ganadera De San Enrique, S. A. v. Love
Opinion of the Court
This suit was brought by M. A. Love against Negociación Agricola y Gana-dera de San Enrique, S. A., a' Mexican corporation, which we shall call the San Enrique Company, Alfonso Madero, and Otto R. Winter, to recover the value of services performed and commissions earned by the said Otto R. Winter, under employment by the defendants, the San Enrique Company and Alfonso *226 Madero, to manage for them a hacienda, which we shall call the San Enrique ranch, in the republic of Mexico; also, to recover for advances made by the said Otto R. Winter to his employers, and the balance on a certain loan payable to one Grotty, made in the name of said Winter, but which was alleged to have been made for the benefit of his said employers. The plaintiff sued as assignee of the said Otto R. Winter and Crotty. The case was submitted to a jury on special issues, and on their verdict judgment was rendered for the plaintiff against the San Enrique Company for the sum of $21,096.46 on account of salary, commissions earned, and advances made by the said Winter, and against the San Enrique Company and Otto R. Winter jointly and severally for the further sum of $13,256.35 on account of the loan made by Crotty, Winter recovering judgment over against the company in the event he should be compelled to pay said last-named amount. Plaintiff took nothing against the defendant Alfonso Madero. The appeal is by the San Enrique Company from this judgment.
The record is voluminous. The appellant, in a brief containing over 300 pages of printed matter, presents many assignments of error. The appellees’ brief is almost equally voluminous. We will condense as much as possible, disposing of the assignments by general discussion in many instances, yet the opinion will be of some length.
As numerous questions , are raised based on the pleadings, we will begin the consideration of the case by a somewhat detailed statement of the pleadings. The petition consisted of three counts. We will condense this, employing the same subdivisions as adopted by the plaintiff. The following is the substance of the allegations of the first count:
(1) That in April, 1912, the San Enrique Company and Alfonso Madero, owners of the San Enrique ranch, in Mexico, employed Otto R. Winter to move onto said ranch and manage and handle the same as Ms own, to take charge, through his wife, of the supply store, and generally to buy and sell for the benefit of the ranch any and all property, receiving and disbursing the proceeds thereof for the benefit of his employers; that it was contemplated that the said Winter should have the right to borrow money for the purpose of purchasing stock for said ranch, as his discretion Might approve; that the plaintiff is unable to state whether the said contract of April, 1912, was verbal or in writing, but alleges, on information, that the same was in writing and in possession of -the defendants other than Winter; that thereafter, in January, 1913, by agreement between the defendants, “additional duties and obligations were placed upon said Winter by the other defendants, and additional powers conferred upon him, to wit,” that the apparent title to the live stock on the ranch was placed in Winter as full owner thereof and he agreed to and was given full authority to handle the same and the supply store in the same manner as if said property were fully owned by him, with the right to buy and sell stock, borrow money, etc., and that if said powers were .not expressly given him he did, with the knowledge and approval of his said employers, exercise the same; that the plaintiff is unable to state whether said additional agreements were evidenced by written contract, but upon belief says that they were in writing, and that if such agreements were evidenced, in whole or in part, by written instruments, the defendants other than Winter have possession thereof.
(2) That the San Enrique Company and Alfonso Madero, as compensation for the services to be rendered by the said Otto R. Winter under his “employments,” contracted and agreed by said “contracts” to pay him a salary of $75 per month, to make reasonable compensation to him for his wife’s services in managing the supply store, to pay him a commission of 15 per cent, upon all sales of cattle and produce from said ranch, and to pay all moneys borrowed by him or advanced by him for the use of said business.
(4) That the said Winter entered upon the performance of his duties in April, 1912, and for a period of nearly four years rendered constant and valuable services to his employers at great personal risk, danger, and hardship; that his services terminated about January 1, 1916, and that during said interval his employers became indebted to him under said contracts in the following sums of money (we quote this statement from the pleading):
Salary for 46 months from April, 1912, at the rate of $75 per month.$ 3,450 00
Personal money of said winter, advanced and used for the benefit of his codefend-ants in purchasing cattle for their use and account, said advancement made about September, 1914. 5,137 13
Balance due upon loan of $12,000 borrowed by said Winter in his name, but for the use, account, and benefit of his codefend-ants, from J. W. Crotty, as hereinafter alleged, such balance aggregating, besides interest and attorneys’ fees. 9,500 00
Commission due said winter on sales of stock and produce made by him for the use and benefit of his codefendants, said sales aggregating $145,412.72 . 21,812 00
Compensation for handling supply store for two years from April, 1912, to April, 1914, reasonably worth $750 per year. 1,500 00
That to the aggregate of said sums should be added interest upon the balance due on the Crotty loan and attorney’s fees thereon; that plaintiff is unable to give in detail the dates and amounts of the sales from the ranch, because such information had been seized by his employers.
(5) That the plaintiff is unable to produce a detailed statement of such sales upon which he is entitled to receive commission; that such information is in the possession of the defendants, they having all books and vouchers showing such details. Upon information it is charged that the San Enrique Company and Alfonso Madero not only have their own records, but have fraudulently and wrongfully taken possession of the records and data belonging to Otto R. Winter, and decline to allow said Winter or plaintiff access to such information, and notice is given to said defendants to produce such data on the trial.
*227 (7) That in the course of the discharge of his duties the said Winter about November 2, 1914, borrowed $12,000 from J. W. Crotty, executing and delivering to said Crotty his note therefor, bearing interest at the rate of 8 per cent, per annum, and providing for payment of 10 per cent, attorney’s fees for collection ; that with said funds cattle were bought for the San Enrique ranch, and that the sum of $2,500 had been paid on said noto on March 10, 1915; that the said Winter reported to his employers the fact of his having borrowed said funds and executed said note therefor, and that the said defendants ratified said acts and assumed payment of said indebtedness.
(8) That Winter, in order to secure the said Crotty in the payment of the balance due him on said note, assigned to the said Crotty all of said Winter’s .claims against his employers, and that thereafter the said Crotty assigned and delivered all of said claims, as well as his own claim for the balance of the indebtedness represented by said $12,000 note, to plaintiff.
Second count:
Under this count plaintiff adopts all of the allegations of the first count, except the aver-ments in section 2, as to the amount of the commission agreed to be paid upon sales, and in this connection alleges that the employers’ claim that the said commission was to be on a basis of 12% per cent., which amount he seeks in the alternative to recover in the event it should be found that said contract provided for commission at said rate instead of at the rate of 15 per cent.
Third count:
After the cause had been on trial for several days defendants San Enrique Company and Alfonso Madero produced in court the written contract of April, 1912. This was in Spanish. Translated, it reads as follows:
“April 15, 1912.
“Mr. Otto R. Winter, Present.
“Dear Sir: I hereby make known that by these presents you, in your own behalf and representation, and I, in representation and behalf of the Negociación Agrícola y Gímdera de San Enrique, S. A., have agreed upon the following: You are to lend your services to the Negociación, which I represent, as administrator of the land or house property, taking under your charge the agriculture and cattle on the place, to the attention of which you bind yourself to devote all- of your time. The company on its part binds itself to pay you monthly the sum of $150.00 (one hundred and fifty pesos), and to allow you, when liquidation is made at the end of every year 13%% of the net profits. The agreement to whieh the present letter refers shall be for the term of five agricultural years, or, in other words, until the crop corresponding to the last year has been liquidated. Naturally, if there is a mutual arrangement entered into, this agreement can be extended for an indefinite term. At the first meeting of the board of administration of the negociación Mr. Alfonso Madero binds himself to advise the board of this agreement, in order that same may be ratified and put in due form in the most convenient manner.
“In testimony whereof we sign this in duplicate.
“Yours truly,
“[Signed] Alfonso Madero.
“Otto R. Winter.
“[Two flourishes.]”
When, this contract was offered in evidence the plaintiff filed a trial amendment, which constitutes the . “third count” of his petition. It adopts, except as thereby modified, the allegations of the first count; and alleges, “in lieu of sections 2 and 4 of said petition,” that by the terms of said contract of employment of April, 1912, the said Otto R. Winter was to receive compensation as therein specified, a copy of said contract being attached to the amendment; that the said contract, unless superseded and terminated by the new agreement of employment of January, 1913, continued in force throughout the term of service, and the defendants Madero and San Enrique Company became liable in pursuance to such contract. Section 4 of said trial amendment contains a statement very similar to the allegations of sectibh'4 of the first count, except that it is therein alleged that the net profits of the business during the term of Winter’s service were $70,000, of which amount plaintiff sought to recover 12% per cent. This count contains the following allegation: “That all of the allegations in this count made with respect to such written contract of April, 1912, are made in the alternative, and only in case it be held for any reason that the contract of employment of January or .March, 1913, did' not terminate and supersede such earlier contract.”
The defendants the San Enrique Company and Alfonso Madero answered by general and special exceptions' and general and special denial. They specially deny the execution of any such contracts as alleged; they denied the authority of the said Winter to bind them in the execution of the Crotty note, and denied any assumption of its payment. They specially answered that if any such loan had ever been made by Crotty to Winter, and any cattle bought therewith, such transaction ,was for the private benefit of such parties, with the intent on their part to secretly use the ranch for the purpose of handling such transaction, and that only after conditions had changed, and it became evident that loss would be sustained thereby, did the said Winter claim that such transaction was for the benefit of .the S-an Enrique Company; that if they had ever in any way recognized the Crotty loan as being made for the benefit of the San Enrique Company, such recognition was secured by fraudulent statements in reference thereto made by the said Crotty and Winter. In reference to the alleged -contract of 1913, they answered that the defendant company did execute certain instruments at such time, one being a bill of sale, conveying the cattle on the San Enrique ranch to the said Winter, and the other being an option contract to sell the same to him; - that *228 such instrument's were executed in View of the political conditions in Mexico, and for the purpose of enabling said Winter as ostensible owner of said cattle, to take them out of Mexico, and market them in the United States for the benefit of the San Enrique Company, but that neither of such contracts was intended to enlarge the previous contracts between the parties. They further specially answered thát the San Enrique Company did place the said Winter in charge of its ranch as foreman in April, 1912; that the said Winter sold large quantities of cattle and produce from said ranch for which he has not accounted, and that upon accounting the said Winter would be indebted to the company in an amount exceeding $40,000; that the said Winter, by reason of his infidelity to the interests of his employer, has forfeited his right to any compensation for his services. Wherefore the San Enrique Company prayed that said Winter be required to file an accounting of the transactions had by him as agent of the company, and that it have judgment for the amount alleged to be due it.
The San Enrique Company was a Mexican corporation, whose stockholders were composed largely, if not wholly, of the various members of the Madero family. Francisco Madero, the head of the family, resided in New York and was president of the company. Alfonso Madero, one of his sons, was vice president, and under general instructions from his father, had the more direct management of the details of the business. There were several other sons and daughters of Francisco Madero who were interested in the company. At the time of the execution of the contract one of the sons of Francisco Ma-dero, Francisco I. Madero, was president of the republic of Mexico. In' February, 1913, Francisco I. Madero and Gustavo Madero were killed in the revolution which at that time took place, and the other members of the family fled from the republic. In March, 1913, the Maderos called Winter into conference with’ them in San Antonio, Tex., to determine ways of protecting the property of the San Enrique Company ranch. Several of the Madero brothers were present at this conference. If Alfonso Madero was not personally present he had instructed Emilio Madero to act for him, and such action, taken by the said Emilio Madero and the "others present at this conference, was approved by Alfonso Madero and Francisco Madero for the company. The evidence supports the conclusion that it was decided at this conference that it would be best to get the cattle then on the ranch out of Mexico as quickly as possible, and it was thought that, if Winter were made the ostensible owner, it might serve to protect the property from the confiscation. and other dangers that menaced all property owned by the Maderos, and might facilitate the movement of the cattle from Mexico. Accordingly an absolute bill of sale was executed by Emilio Madero conveying the cattle to Winter. Another contract was also signed which was in the form of an agreement to sell said cattle, and which stated that the bill of sale was only executed in view of political conditions, and that no title should pass to Winter except upon payment for said cattle at the rate of $22 per head after they had been brought out of Mexico. The evidence warrants the conclusion that the contract of 1912 was not before the parties at this conference, and it .was assumed that it provided that Winter should receive 15 per cent, of the proceeds of sales from the ranch, and it was understood that such was to be his compensation for his further-services, and that he was to be given a bonus in addition, the amount of which was not agreed upon. A great many of the cattle were, within a few months following this conference, taken out of Mexico and sold. For the present, it will be sufficient to state that on the conflicting evidence the jury made the following findings of fact: That the contract of April 5, 1912, was changed in March, 1913, and a new agreement made, which was afterwards ratified by -the president or vice president of the company, under the terms of which the said Winter was to receive the sum of $75 per month and fifteen per cent, commission on the proceeds of sales from the ranch; that the proceeds of the sales of live stock and farm products made under Winter’s employment after said contract amounted to the sum of $72,430.28; that the said Winter borrowed the sum of $12,000 from Orotty for the benefit of the San Enrique Company, and bought cattle therewith, and that the said transaction was approved by Francisco Madero for the company, and he agreed for the company to pay the balance due thereon to the said Crotty; that the said Winter in September, 1914, advanced the sum of $5,137.13 of his own funds with which to buy cattle for the ranch; that the company agreed to pay Mrs. Winter the reasonable value of her personal services in handling the commissary store of the San Enrique Company, and that her services rendered under said contract were of the reasonable value of $730; that there were no net profits realized in the administration of the San Enrique ranch during the services of the said Winter.
We do not think there was any error in overruling the other special exceptions presented by the appellant. If there were any technical errors in any of such matters, it sufficiently appears that no harm resulted from such rulings. '
*230 “Monterey, Mexico, June 27, 1911.
“To Whom it may Concern: For the present I have the pleasure to recommend amply the bearer, Mr. Otto R. Winter, whom X have known for ample time, and with whom I had the opportunity to trade on various contracts in the interest of artesian wells. He is a person completely honorable and able for any contract, and able to finish any contract he makes in the work that I refer to. The same is in the buying of cattle or any other business of the camp, etc.
“With all consideration,
“[Signed] Alfonso Madero.”
The o-nly theory on which this letter could be admissible would be on the ground that the allegations in the answer put in issue the honesty of the said Winter, and evidence of his character was admissible, and that this letter is to be regarded as an admission of a party to the suit on such issue. If we concede that the first statement in the above proposition is well taken, yet we think the letter was inadmissible. In the first place, when it becomes permissible to offer evidence as to good character, such evidence must be confined to proof of general reputation. The individual opinion of the witnesses as to character of the subject of the inquiry is not admissible. McCormick v. Schtrenck, 59 Tex. Civ. App. 139, 130 S. W. 720; Ayres v. Duprey, 27 Tex. 593, 86 Am. Dec. 657; Jones on Evidence, § 860; Enc. of Evidence, vol. 3, p. 35; Wigmore on Evidence, § 1980 et seq. This letter, if it be regarded as evidence of a witness given on the stand, would be inadmissible under this rule. Necessarily the statement as to the honorable character of Mr. Winter was the expression of an opinion. Character is an inner quality that lies beneath action, and even thought itself. Words and actions may manifest in a way the general quality of the controlling character, and the person thus acquires a reputation. No witness can testify to the hidden character as a fact. But reputation itself is a fact, and evidence of general reputation is admissible as tending to prove character; but under modem authorities individual opinion as to character is not admissible. In the second place, the letter, not being ’sworn testimony, would, of course, be only admissible as an admission of a party to the suit. Now, according to the most eminent authorities, former statements made by a party to the suit, in respect to facts in issue, are admitted because they tend to discredit such party’s present position as being inconsistent therewith. “Thus, in effect and broadlj^, anything said by the party may be used against him as an admission provided it exhibits the quality of inconsistency with the facts now asserted by him in pleadings or in testimony.” Wigmore on Evidence, § 1048. “The statement is admissible if at the time of the trial it is inconsistent with the contention of the party who made it When ■ a party to a civil action has made admissions of fact material to the issue, they are as a rule admissible against him.” Horwitz’ Jones on Evidence, vol. 2, p. 363. As we have already seen, Alfonso Madero made no statement of fact, but expressed an opinion. Such opinions are subject to change. The fact that he may have, at the time of the writing of the letter, thought that Otto R. Winter was entirely honorable, and so expressed himself in the letter, is not inconsistent with a subsequent assertion of his dishonesty in a specific transaction had at a subsequent time. The reasons for allowing the introduction of former statements of fact qs admissions does not, it seems to us, apply to this character of statement. Plymouth County Bank v. Gilman, 3 S. D. 170, 52 N. W. 869, 44 Am. St. Rep. 782; 1 R. C. L. 481.
“We see no good reason why, although he [the plaintiff] has alleged the promise of the two [defendants], he should not recover against one upon proof that he promised, although he may fail to prove the promise of the other.”
The defendants, other than Otto Winter, themselves pleaded that the contract was with the San Enrique Company, and there was no chance that they were misled by reason of this misdescription of the contracts, and we would be loath to reverse the case on this account. The question will not likely arise upon another trial, and we need not discuss it further.
“Carlos told me that you were in doubt as to the different buys of cattle that you had made as to my having accepted them that they were for account of San Enrique. This I do not understand,. for when you announced to me the buying of the first one thousand head I told you in writing, and also believe by telegram, that I approved the operation.”
And in this connection the witness Winter was permitted to testify that the reference in the letter was to the Crotty transaction. We think that appellants’ objection to this evidence was well taken. The various letters and telegrams passing between the parties should have been introduced in evidence, and the jury left to determine what was meant by the reference contained in this letter. If any of the written communications could not be produced, and were properly accounted for, or if oral communications passed between the parties as to such matters, then the witness could detail the substance of such communications, and the jury yet left to draw its own conclusions as to the meaning of this letter. The appellant, in order to show that harm probably resulted from this evidence, introduced in evidence a telegram from Winter to Francisco Madero, dated September 14, 1914, in which he announced that he had bought one thousand head of stock cattle and borrowed the money at the bank, and it was appellant’s contention that the reference in the letter was to this matter instead of the Crotty transaction.
This general discussion is sufficient to a disposition of all the questions that are raised on appeal, and we overrule those assignments which we have not expressly eonsid- • ered. On account of the errors mentioned in the opinion the case will be reversed as to the appellant company, but will be affirmed as to the defendant Madero.
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Reference
- Full Case Name
- NEGOCIACION AGRICOLA Y GANADERA DE SAN ENRIQUE, S. A., v. LOVE Et Al.
- Cited By
- 22 cases
- Status
- Published