Welborn v. Kitchen-Quip Finance Co.
Welborn v. Kitchen-Quip Finance Co.
Opinion of the Court
Byron Welborn sold merchandise for Colonial Products, Inc., taking notes for the purchase price which were secured by mortgages on the things he sold. He sold the. installment contracts containing said notes and mortgages to Kitchen-Quip Finance, Inc., and guaranteed payment of the notes. Welborn’s written contract with Kitchen-Quip contained his guaranty of payment and provided that upon breach of any warranty he would repurchase said instruments for the amounts owing thereon, plus costs and expenses. Some of the purchasers failed to pay their notes and Kitchen-Quip instituted this suit against Welborn on his guaranty. Plaintiff attached to its petition copies of the installment contracts, including said notes and mortgages, and the contract between Wel-born and Kitchen-Quip, all of which showed Welborn was the franchised dealer for Colonial Products, Inc., and that Welborn had transferred the notes to Kitchen-Quip and guaranteed their payment.
Welborn answered that he was not indebted to Kitchen-Quip by reason of the fraud of Rike, “who represented Colonial Products”; that Rike had represented to Welborn that purchasers from him, who paid their accounts, could buy merchandise at a discount in stores to be opened by a savings club; that such stores were never opened and for that reason the purchasers refused to pay their notes, wherefore, Wel-born contended, he was not liable to Kitchen-Quip on his guaranty. He alleged that Rike represented Colonial Products and that the contracts sued upon “were based upon the representations made by Colonial Products”. Welborn alleged that Kitchen-Quip, Saladmaster, and Colony House, Inc., the latter two, along with Colonial Products, being made cross defendants by Welborn, were liable for the fraud of Rike, because they were related corporations. Welborn alleged that Rike represented to him that if he would execute contracts to represent Colonial Products and their products, “which were purchased through Saladmaster”, that purchasers from him could obtain such discount.
In answer to Kitchen-Quip’s motion for a summary judgment, Welborn alleged that Kitchen-Quip was liable for Rike’s misrepresentation “in that the defendant was induced to enter into a contract with plaintiff and with Colony House, Inc. and Colonial Products, Inc. as well as Salad-master, Inc., all sisters and parent companies to the plaintiff herein, and had not all parties mentioned misrepresented and led defendant into believing that as a part of the contract sued on — defendant, and those dealing with him as purchasers of Colony House Products, would receive benefits from member stores — ” etc. But Welborn swore only that he entered into a contract with Colonial Products, Inc.,
The only defense asserted to the written contracts which Kitchen-Quip sued on and the only cause of action against the cross defendants asserted by Welborn were based on their inferred liability for Rike’s misrepresentation because he was the agent of Colonial Products, Inc., and the other corporations were sister corporations. Welborn swore to no fact that would make them liable for Rike’s representation. The affidavits supporting appellee’s motions state directly and positively that Rike was not their employee or agent and that there was no connection between them and Rike or his employer, Colonial Products Company, Inc.
Facts sworn to by Welborn constitute no defense to the written contracts sued upon. The facts essential to Welborn’s liability as guarantor of payment of said notes are undisputed. He did not swear to facts which, if true, would establish liability of any of appellees for Rike’s misrepresentation. Appellees swore to facts which show they were not liable. We, therefore, conclude that the court did not err in rendering summary judgment for the plaintiff and cross defendants. State v. Swift & Co., Tex.Civ.App., 187 S.W.2d 127 (WR). Appellant, of course, does not contend that the court erred in rendering judgment for him against Colonial Products, Inc. for $3,056.-47. The judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.