Vassiliades v. Theophiles
Vassiliades v. Theophiles
Opinion of the Court
John Theophiles sued Andrew Vassiliad-es for debt and procured the issuance of a writ of garnishment directed to the Sussex Fire Insurance Company of Newark. Judgment in the main case was for the defendant.
The Insurance Company, garnishee, answered and therein filed a bill of interpleader admitting liability on an insurance policy in the sum of $1525, which sum it tendered into court. It alleged that it had issued a fire insurance policy covering certain articles in a restaurant operated under the name of Andrews Cafe, which restaurant was owned by the defendant Vas-siliades and his partner. The restaurant burned. The garnishee alleged that certain persons had made claims for the proceeds of the insurance policy as creditors and assignees of the partners and Vassiliades. It prayed that all claimants be impleaded and their respective rights to the fund be determined. The judgment in the interpleader suit of the garnishee ordered distribution of the fund among various claimants and ordered payment of garnishee’s attorneys’ fees and certain costs amounting to $11.80, apparently incident to the interpleader’s suit, paid out of the fund.
The payment of $75 to the attorneys for the garnishee, and said court costs out of the fund paid into court by the interpleader garnishee, is assigned as error. The judgment is not in any other respect complained of.
It is apparent that the answer of the garnishee impleading the claimants to the fund was necessary and proper; that it acted honestly and promptly; that it did not contest its liability on the policy, but admitted same and paid said sum into court; and that it occupied the position of an innocent stakeholder, taking no part in the contest between the respective claimants of the fund. Under such circumstances the garnishee interpleader was, we think, entitled to have the reasonable attorneys’ fees fixed by the court and its costs paid out of the fund. 33 C.J. p. 469.
Appellant contends that he was the successful party to the suit and, since the plaintiff failed to recover anything against him, the interpleader’s costs and attorneys’ fees were improperly paid out of the fund, such action having the effect of causing the appellant to pay it, and that said costs and attorneys’ fees should have been adjudged against the plaintiff.
In 25 Tex.Jur. § 11, p. 62, it is said: “Ordinarily a mere fundholder or stakeholder is not liable for the costs of the suit; he is, however, entitled to his own costs, which include reasonable attorney’s fees for preparing and filing the bill of interpleader — provided they were properly incurred and were asked in the petition. These costs are usually awarded from the fund in controversy, rather than taxed against the unsuccessful claimant, although as a general rule, the costs as between the contending claimants must ultimately be paid by the unsuccessful party.”
In Halloran v. Abilene State Bank, Tex.Civ.App., 15 S.W.2d 1056, 1060, this court held that an innocent stakeholder was entitled to his costs and attorneys’ fees “out of the fund in controversy, which costs, as between the parties contending for said fund, must ultimately be paid by the unsuccessful party. Nixon v. New York Life Insurance Co., 100 Tex. 250, 98 S.W. 380, 99 S.W. 403; Beilharz v. Illingsworth, 62 Tex.Civ.App. 647, 132 S.W. 106; 4 Pomeroy’s Equity, § 1480.”
We are of the opinion that the attorneys’ fees allowed the garnishee interpleader and the costs incident to the interpleader were properly paid out of the fund paid by the garnishee into court. If the appellant were entitled, as the successful party, ultimately to be reimbursed therefor by the unsuccessful party, it was essential that by proper pleading he ask therefor. This the appellant did not do. Therefore, the question of whether or not appellant is so ultimately entitled to be reimbursed is not presented for our decision. It was, in effect, so decided in Wilke v. Finn et al., Tex.Com.App., 39 S.W.2d 836, 840.
The judgment of the trial court is affirmed.
070rehearing
On Rehearing.
Further consideration of this cause leads to the conclusion that a different disposition should be made of the appeal than that indicated in the original opinion.
We are further of the opinion that if it had been necessary to maintain the action of interpleader in order to establish garnishee’s right to a discharge or to ascertain the proper amount for which judgment should be rendered against it as garnishee, the county court had no jurisdiction of such action as was brought. The amount involved was $1,525. In its pleading garnishee, among other things, said it “does not know nor is it certain to whom such money belongs or whether or not all of such money belongs to Andrew Vas-siliades or John Vassos, joint assureds under” the policy, etc. (Italics ours.) The action therefore involving $1,525 sought to invoke the jurisdiction of the county court to adjudge whether all of it may not have been due to one person or another or parts of all of it to different persons. It seems clear that the county court had no potential jurisdiction of such an action.
But even if the amount of the debt had been within $1,000 and, as to amount, within the jurisdiction of the court, there were no written pleadings in the record of any of the supposedly interpleaded claimants of the fund. In county court written pleadings are required to support a judgment. The clerk certified that the transcript “is a full, true and correct copy and transcript of all of the proceedings had in the trial” of the cause. This must be taken to be true, at least and especially so when, as here, there is nothing in the récord to show the contrary.
Although appellant seems to have considered himself a party to the suit, the record does not show that he was' a party until he made himself a party by filing the motion for a new trial. Plaintiff’s pleading, of course, did not make him a party; the only party being the garnishee. The record contains no citation nor formal waiver of citation. There is no pleading by him, nor is there any recitation in the judgment of the court that he appeared as a party. The record suggests that he regarded himself as a party simply by virtue of being the defendant in "the suit to which the garnishment proceeding was ancillary.
We therefore conclude that appellant’s motion for rehearing should be granted; that the judgment of the court below should be reversed and the cause remanded, with directions, to dismiss the action of inter-pleader and to render judgment discharging the garnishee, with provision that the plaintiff pay the costs of the garnishment suit. It is accordingly so ordered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.