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Houston Sash & Door Company, Inc. v. Davidson
509 S.W.2d 690
Tex. App.
1974
Check Treatment

*1 irregular, we cannot filing motion was appellants were

see in what manner Appellants given more than were

harmed. notice, the mo- days and the fact that

ten filed than ten subsequently less

tion was

days hearing did shorten before the they notice of

period in had been on

Affirmed. COMPANY, & DOOR SASH

HOUSTON al., INC., Appellants, et Trustee, DAVIDSON, Jr.,

William C. Appellee.

No. 7581. Appeals of Beaumont.

May 9, 1974. May 30,

Rehearing Denied *2 Houston, Wright, for Emerson

William appellants. Kuperman, Spivey,

David I. Gibbons & Austin, appellee.

KEITH, Justice. appeal is a wherein 4, Art. relied Subdivision Ann.Civ.St., Vernon’s will des- suit. We parties they ignate appeared state- trial court. A somewhat extensive is re- background ment of the of the suit quired put controversy into focus. this suit Jay Levin instituted

Etta officers corporations, several their claiming suppres- a malicious and directors sought to payments sion dividend recover, derivatively, damages alleged mismanagement. Levins corporate bankruptcy, taken David- refuge son, Bankruptcy, substi- as Trustee was party plaintiff. tuted as a He maintained original claims Levins but, pleadings; in his third amended shortly original be- petition amended filed fore the on he added an additional cause action. alleged The new count in the pleading wrongfully that one R. F. had Michel1 pledge of certain owned foreclosed stocks Levin in the several corporations Mrs. prayer and his for relief “That the read: the shares stock sale of described above be overturned R. F. Defendant compelled Michel be to turn over such stock damages Plaintiff in the event com- awarded and a dividend be not pelled.”

One the individual defendants was a County resident of Travis while one of the corporate defendants was there- domiciled prove any in. Plaintiff made no effort to defendant, against any resi- Louisiana, Michel, pending resident of filed a discloses that matter is still special appearance long-arm challenging the undetermined in the trial court. jurisdiction of the trial court and our record non-resident, except adversary lieves his from making dent save also stock. fact admitted but bars the party disputing (em- himself from it.” hearing on very beginning At phasis omitted) supplied, citations ap- controverting plea, counsel for defendants, acting all of pealing plead entitled *3 court, read into then before the defendants prove and inconsistent of action and causes “stipulation”: a the record Thus, his plea seek to alternative relief. “ the foreclosure sale and his alter overturn pursuant to the Plaintiffs ‘That prayer damages by nate the al caused relief, the sale prayer for leged wrongful properly foreclosure were petition, stock described shares of single combined in Rules and suit. 47 pur- sold at the to-wit, being the shares 48, Procedure; Texas Rules of Mc the securi- ported sale under foreclosure Carte, 520, Kenzie v. 385 526 S.W.2d and Etta ty by Jay agreements executed Christi, 1964, Corpus (Tex.Civ.App., error pleadings, and described Levin e.); Albright Long, ref. n. r. v. on apparently occurred said sale 564, 1969, Amarillo, 2d 566 24, 1971, stipulate September 680, ;writ) Bage, v. 467 Cantu S.W.2d set hereby be is and that foreclosure sale ” Beaumont, 1971, 682 void.’ held null and aside and case, writ). pleaded In plaintiff his unexpected development, being an alternative causes of action and defendants a short plaintiff procured counsel for put to could not him an election thereon the hear- study the before recess matter the venue Texarkana Water Thereafter, plaintiff’s coun- ing resumed. Inc., Supply Corp. Farley, v. L. E. 353 S. stating: proof his claim began the sel Houston, 885, W.2d 889 1962, no writ); Mercer, 414 S. Monroe offering begin by would like to “We Houston, 756, W.2d 760 first an- stipulation into evidence 1967, dism.). error Wright earlier nounced Mr. type Reporter will morning, if remedy The selection of one this, No. 1.” Plaintiff’s this will be where two are available is waiver of of- stipulation previously Whereupon, Brownlee, other. Thrower v. accepted and re- by defendants was fered 184, 186 (Tex.Comm.App., 1929); Bridwell in evidence. ceived Bernard, 981, (Tex.Civ. Worth, App., Fort error o. ref. w. stipula tendered accepting the m.); Employers Corp. Reinsurance. evidence, plain by introducing it into tion Wagner, 250 S.W.2d (Tex.Civ. he had judicial admission tiff made a Galveston, e.). App., ref. error n. r. wrongful foreclo cause of action Plaintiff, remedies, having two inconsistent en sure at the time only one granted, of which made could pleas of overruling the try of the order and, election; his having made the elec hold succinct privilege. Walker’s Justice tion, thereby. he is bound Saner-White- Construction v. Manhattan ing Gevinson Ry. man Lumber Co. v. Texas & N. O. Okl., (Tex. Co. 449 S.W.2d Co., (Tex.Comm.App., S.W. 1969), dispositive: is holding approved). formal judicial “A admission is a true Plaintiff, Stockyards usually citing found Nat.

waiver of stipulation Maples, or in a Bank pleadings * * * rule, (1936), recognizes indeed parties. vital feature must, seeking he that in is its conclusiveness judicial admission only re- It under party making it. subdivision he must on the tain hearing: at least one defendant venue under (1) subdivision Art. suit; par- plaintiff (2) resides in the existence of a asserting is at least cause of action at the time of the ty proper party Although res- to the claim defendant? defendant; opinion we are (3) ident has that the modern au- require a bona the res- thorities an affirmative answer fide cause posed, ident we turn first a con- defendant.2 sideration of the authorities which contends that dis requires negative claims answer. charged proving a cause of burden Plaintiff relies a series of cases of offer precedential doubtful value we de ing proof that such “ex a cause of action cline to Primary follow in this reli case. Appel- isted as a matter of law at the time *4 placed upon ance is Logan Ludwick, v. lee Third filed his Amended Petition.” Worth, (Tex.Civ.App., S.W. 548 Fort Recognizing that he had no cause of action 1926, writ). cursory no Even a examina wrongful accepted he foreclosure after opinion tion of this reveals the deci stipulation the setting aside the foreclo upon sion turned the applicability subdi of sure, plaintiff argues: “The cause of ac vision not has subdivision 4.3 It against required tion a resident defendant authoritatively since been determined that by only Subdivision 4 need exist plaintiff pleads who a lien and the shows time the plaintiff files his suit.” property location of county the of by suit need not establish extrinsic evi In order to meet the so ad- contention dence that he has a lien enforceable vanced, we will the in- concede that against See, Morgan the defendant. hearing troduced at the was sufficient to Murray, Farms v. 233 S.W. establish of existence a cause of action for 2d 123 (1950), approving holdings the wrongful foreclosure at the time of the fil- nom., the underlying reported case sub ing pleading. But, plaintiff when Brown, Morgan Farms v. 231 S.W.2d 790 accepted stipulation the offered defend- Antonio, The San evidence, ants introducing the same in comments in Logan with reference to sub he judicial made a admission that the necessary de division 4 were neither nor wrongful foreclosure had been set aside terminative of the as presented case the justiciable and was longer issue in the record. case. persuaded Nor are by plaintiffs we reli- Thus, plaintiff established conclu upon Allison, ance Harris v. 29 S.W.2d sively on the of privi of Antonio, 1930, San lege that he had no cause of action for writ). opinion The third sentence this against either reads: plea privilege “If a of can resident or waived, non-resident defendants. Since it was in this waived case.”4 prove any he made no effort other to be Logan noted that the court cited cause the resident de Ludwick, supra, proposition for the fendants, now reach the determinative jurisdiction having been acquired over appeal: Harris, order to main- removal co-defendant appropriate For a more extended discussion 4.Such comment was since the subdivision, plea privilege facts under this see was filed Harris had after McDonald, (1965 appealed successfully judg- Texas Civil Practice Rev. from an earlier Vol.), 4.10.2, p. 434, seq. following § et ment entered trial Allison, merits. See Harris 11 S.W.2d See, McDonald, supra, 4.20, p. 482, Antonio, 1928, § fn. error San Logan dism.). for a discussion this facet of v. Ludwick. fendant, by “death, compromise, from suit must be sus- otherwise, destroy jurisdiction forego did citing long tained. We line of 413, empha- appellant.”5 pro- over which has this followed clear nouncement, Allison simply pointing sis not read as supplied) We do to the fact See, rule venue can be sus- that the rule supporting vitality. has continued e. g., Mahin, tained when fails to Houseman v. 390 S.W.2d any any istence of A M (Tex.1965); & Construction Davidson, Company defendant on the Waco, 1972, privilege. writ). There is a comment in 32 Texas Law quotes language from Plaintiff also succinctly (1954), Review Davidson, SI Tex. Lewis states applicable the rule case. properly brought : suit was (1879) “[T]he says: author first in county of Harris stance, Aus as co-defendant exception under “To [resident] there; fact that and the tin then resided has a three-fold burden died, cause was subsequently and the venue facts to He must sustain. him, not divest dismissed would that one resident defendants over the previously-acquired jurisdiction suit; that he has a (empha other defendant.” bona fide cause of [non-resident] *5 fact that overlooks the ours) defendant; sis party resident and that the privilege plea of prior to the modern 1907 asserting plea privilege the of is at least plea abatement a in was in the nature of proper a party against to the suit the the court over going of jurisdiction to the resident defendant. . . . which, if sus person the defendant the of requirement satisfy “To the second the the tained, a of suit. resulted in dismissal pre- plead a and Milsted, See, g., Blucher v. e. ponderance of the evidence each element Rutherford, 57 Brundidge v. (1869); 623 of a bona fide claim the resident 22 (1882).6 Tex. point at defendant. that the plain- preview defendant a of the obtains Maples, su- Stockyards Bank Nat. In tiff’s case. additional recognized that an pra, the court by judicial con- added fact had been venue Wood, Park Tex. struction; namely, is that the “It Indemnity Falls (1947), Glens must also change venue of prevent to the Co. Sterling, (Tex.Civ. S.W.2d a in cause prove that he has plead Dallas, App., mandamus overruled), fact defendant.”7 quot of in support action cited the author the of Smedley cited Judge 1302) material, (95 directly point. ed in holding that the of many support in cases right of a valuable defendant of the existence

if plaintiff failed in county his residence is to be sued the of de- against the resident a of cause lege from McDonald, 4.02, p. in different supra, sued § See pending sustained, jurisdiction in that which the suit is between distinction a definitive approach near of the close of the used and the in it was which in context venue the Legislature emer session of the creates an Allison, supra. gency . . . .” legislature changed when rule was pre- Acts, indulge procedure do an unreasonable 30th 7.We not adopted our modern Judge sumption Smed- when attribute Gammel’s Leg., CXXXIII Ch. portion ley knowledge quote “has” is the word We of Texas Laws “Whereas, person present of the word third indicative emergency thereof: clause present “have”; and he used the now that when this State of the laws fact the provide tense, past changing or intend the tense did not means privi plea “had”. abatement of case where must be defendant resident a doubtful because of not to be denied reference hearing without made exception. The construction of a of the cause of the existence the time of clearly exception must application of the Bank National Stockyards Co., action. The Superior appear. Oil Goodrich v. upon in the case relied primary is the Case (1951). Tex. word is not one There Plaintiff, dissent. burden of laboring under the issue is decisive indicate it case to hearing the existence proving at the venue the cause before us. Whether against the resident of cause privilege plea at the time defendant, isted may deny the defendants not hearing, time of filed and not at the by showing the exis- right their valuable any of the case, inor simply is in that at the time of tence of a cause of action dissent. other cases cited none at the filing pleading but time of the there apparently here that It is conceded the existence of being There passing are no recent de- against the resident a cause of action I have however, of the cases point; all court hearing, fendant at the trial filing read that it is the time hold overruling erred in time rather than privilege, judgment of of the defendants. The con- is re- court is reversed and trial Ludwick, Logan trols. instructions to transfer manded with Worth, 1926,no writ), (Tex.Civ.App., Fort cause, appellants all of the entire as to any in- disclaimed the resident defendant herein, the District Courts of to one of being sued personal property terest in the County. Harris At the ven- to be dismissed. asked dis- sustained ue the trial court instruc- Reversed and remanded with privi- pleas of claimer and overruled tions. defendants. lege non-resident two that venue appeal contended it was On *6 STEPHENSON, (dissenting). under subdivision Justice not be maintained could 4, against the because All respectfully of the dissent. I longer no ex- (Brock) resident defendant read, sup- do not this state that I have Appeals af- isted. The Court of majority port the conclusion reached firmed this statement: with opinion. Brock, plaintiff’s “If at the institution as opinion, In that the issue is drawn proper suit, necessary even a follows: was, it would be as think he party, under subdi- “In order to maintain venue dis- permitted to that he was immaterial 4, 1995, vision Art. the date of discharged upon claim the existence of a cause of action his in- the trial of the time was, having at it right, terest or such as defendant ?” court, ended, time for the originally acquired jurisdiction under apparent susceptible 1830, re- ception 4 would of article entirely meanings. different Does two jurisdiction throughout, tain that proof it mean of a cause of allegations absence of a that the made at the must be jurisdic- plaintiff’s showing petition Or, privilege? does it mean that made, fraudulently tion had been cause of the time of action must exist at plea. there was no Brooks v. such hearing? such Chatham, 31; Na- 57 Tex. Ablowich v. Bank, All dissent sim- of the cases cited tional 95 Tex. S.W. Bank, 881; Grayson ply Ry. Co. Natl. hold that of a cause of Co. v. 431; Ogburn-Dal 100 Tex. 93 S.W. Taylor,

chau Lumber Co. v. 59 Tex.Civ.

App. 48.” S.W. 126 S.W.

550) cases,

Other under subdivision Allison,

follows: Harris v. Antonio,

(Tex.Civ.App., San Davidson,

writ); and Lewis v.

(1879). are: subdivisions other

Cases under of Hus- Land Bank v. Federal

Boettcher

ton, Gal-

veston, 1940, dism’d)(subdivision writ Ogburn-Dalchau Lumber Co.

29a); Tex.Civ.App.

Taylor, 59 S.W. writ) Texarkana, 1910, no Wheelock, 331 Beer v.

(subdivision 12); Waco, (subdivision See also Slaton

writ)

Anthony,

Amarillo, 1911, writ).

Harris, Cook, Barker, Browning & Cor- Christi, pus appellant. CONSTRUC- W. RICHARDSON LOYD COMPANY, Appellant, Lattimore, Gen., Atty. R. L. Aus- Asst. TION tin, appellee. Comptroller CALVERT, Public S. Robert State of STEPHENSON, Justice. Accounts *7 Appellee. by Loyd This suit Rich- brought was D. No. 7582. Company (herein- ardson Construction Company) against after called Robert S. Texas, Appeals Calvert, Comptroller of Public Accounts Beaumont. for a refund of State of 2,May paid Trial was monies in state sales taxes. May Rehearing Denied ren- judgment before court nothing. take dered question court sole before the trial is and here lease transaction whether provisions exempt under the Taxation-General, V. Article 20.04(V), A.T.S., which reads as follows:

“Transfers Without Substantial Ownership. are ex- Change There

Case Details

Case Name: Houston Sash & Door Company, Inc. v. Davidson
Court Name: Court of Appeals of Texas
Date Published: May 9, 1974
Citation: 509 S.W.2d 690
Docket Number: 7581
Court Abbreviation: Tex. App.
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