Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF’IEXAS
AUSTIN
0-O.NANN A--
Honorable Earry Knox, Chairman
state Board ot Control
Aurtln, Texoa
Dear Elr:
4859, your depart- rt the repulaition Control to the istook ttb tex ntempn, aWd~6 t iurrq1.tbe ooll- or ~n~e~~prlntln~ 601~ oSor0, ths ‘hvoloea ior ot be legally approvod Sor of Control.
he tax atenpm mhtea under thie ve been delivered to t&o state the present tlmc, the Tremurer 000,000 or the her tble rauui8ltloa~ -In view of these faote, your valued opinion rcquoatcd on the following pus8- 18 roepoot~ully t1onma “1. Doaa 3tat.e of %&as t1ow here title
anO the right of ponscsaion to the abovr- mentioned tax mtaapm whioh hume heretofore bean bcllverrd to the 24iate Tmmmrer, but whloh beoe not yrst been u~eb8 *2 fionoreble Harry Knox, Pega 3
"2. Xii your answer to the above qusatlon is 'no', sna w3auming that no emergenay o~uaed by the i&ok of tax etampe for aele by the ,::tate will thereby be ereatsd, whet for~elltlee will have to be obeervsd by the Board OS Control. lr order to -oura legally a 6urricmt supply or such star",pm to laet ror the dur8tion or said erergenoy?*
You have heratofore furnirhed ue for examinetlon orlgineZ eontreat between 2tat.e Board of Control and The nteok Corcpeny ereout6a July a, 1939, whereby The 6taok Cosgeny e&reed ta deliver 300,000,000 cigarette tar atampa to Cigarette Tax ::tamg Board. You hove ala0 rurniahsa us rith a photostetic copy or the requisltlou aat04 Sept- mtiber 10, 1939 one oparoved Ssptesber 19, 1934, whsreby the additional 100,000,000 cigerette tmx mtampu referred to ln your letter were pur,"ortcd to heve been omtraoted ror.
hltbougb, as pointrd out in our o~lnion NO. O-3339, the contraot of July 6, 19W had sxplred, tan4 tbe requlsltion spproved on %;,t.saber 19, 1939 did not fulPil1 the oonatl- tutionsl.requirs~ttte, it oannot be quostloned but that it wea tbs intention of the mmtreotfng pcmtias that the pur- oheee or the abrlitlonal 100,000,000 strmpa should be g,ovorn- cd by the tsrmc end contitfoae tf the contraot of July 6, 1937. Faragrerb VX of eel4 contract reatls ~5 followr:
"That in consideration of the party OP the second pbrt rully perPomfn3 and keepfail each an6 every oblfpatlon o&its :'art, enc. the dr- livery of such staaps aithin the tiae anti fa the maoaer a8 provided in this contreot or faemoronduar of egreemnsnt, toapather with the epcciffcsticna, the party 0r tts rirat yrt, egrees tc :ey to tJm gwty of the eecon4 :iart sl.svec acd ninety-five one hue6rsthe (11 CS/lOC) oenta per tbousa& Por eaoh snd every thoueand of said stam3a dellvccd by tbs ,party of the neoond sart the party of the Plrst yart if end ibon eccspted by ths Fart2 of the ftret?art at i;ustln, Textlfi, end 5n ed4ltlonol $100.00 ror esch abrnige or 4ano5inatlonrm (:;,i%pheeie OWlI) *3 Honorable Ilarry Knox, Page 3
ft is &parent frca the above quoted prorlslon, thst it ~88 the arutueL intentlen of the Boar% 0r Control orid The Jteck Conpany, when tbr rsqulsitlon for abdltioaal 1CO,OOO,OOO atmu?? w8a approved, that payment In aaah ma oontenpl6te% upon cblirerp of the 8tampa *it sn% wbon lo- cspted”. ::e muat look, tharoron to the rulea gorarnlng aarh aales, (II dlatin(ylahad from aaloa on ordlt ln order to ascertain ubare the tltls an% right of poaaoralon ef thaws ~ataotps now rad%ea In the li@t of our ruIl&xg ln Opinloa Ho. requirltloa of &ptmabrr 1939 ai% not fultill O-8390 that the conrtitutlonel requlrewnt8 for a contract tor printing. Ja~ds, C.J. la Swing T. Qlraater, 04 Y.S. 408 (Ct. of Clril A~pala, 1906) aanounoeb the rulm relatlne to parrage of title in oaah aalea mhioh baa baaa ooaalatmatly follows% lo Tauar propartjr la aold, a part 9ibere mrronal
or the conaldaratlon tQ be paid in oa6h aad tha rest in a&r**% p*ymnta, no title psaaea~uqtil tbc oaab imy#ient is aotua2ly a&s. #'bora 8 ads la made on the aoadttlon #at a aaah py- morrt shall be m%e, aad poaas~alon of the ?rO- perty la obtalnee betor0 aeb pyrsmt, dtbout the oeab paymnt being waived, hitie doer not paaa. A ri+Or DU8t be MdO +Oi~&tdiy W&d lt la a questlon'ot iaat tbst mat be mabe to aloarly an% plainly appear . . . Woohap on
galas, sec. S48, ntataat 'Wltsra a adr ie thus to be for oaah an% paymmt loun% to be a is oondltton precedent, 1% ia char tbrt if the buyer obtain,8 tbo good8 by gtivlng for tha WriOO a obaok or draft whloh la eubraquently di8- bonorod, them la RO payfmnt, sad the tit18 does not :am.* . ..*
In Pirat National Bank of Ltttl*fleld to 8081, (Ct. of Clril appeals, marillo, lOZ3), 10 S.W. an% 4O&ths oourt held thst title to 46 bales of ootton h8d BOt F8*a% to buyer where the buyor's bank draft given in Pacot tbmo- for -B not honored, even though the cotton had beea %Olirar- ati to buyer.
.
Honorable Rorry Knox, F-age 4
“In Continental Bank and Truat Company v. Eartam (Tax. Civil ~ppea1.e) 129 ::.K. 179, Tslbot, J. held that, where a crala Is fos oaah, a dsllvery aubJect to tba ;aayment of the price poaaaa no tltlo.”
Bon%, J. of the Uellaa Court ot Ciril Apwa$a in Fillhas V. Oraer, 122 S.T. Bnd 047, at p. 249 quoted 4th approval tho rollowIng proao~unooment of the PennsylvanIa Court in Frecb ‘I. Lewis, 216 Pa. 141, 67A. 46:
w.Foaseaalon, bouover, having paaaetl an% tbr bayor, by the sot of the seller, havine been internto% with the ln%loIa or ownerablp, the ~llcy or our law requires thst this altuatlon - the pouer$lon in one and tbs right of property in anothor - ahall contInus no longer them is nooea8arp ta -able the 8sller to rooovar the good8 with wklch ~h4 baa The law plvaa the 8alhr tbe right, perted. In euoh oaae, to reolslm him @ode& but ha mrt 40 so promptly; othrrrwlea ha wI11 be bald to hare wplved his right, an% can only thbroarter looktto tha buyer for ths prle~.~
k quoatloo quite rirll8r to the em here preuat@d we8 betore the Texas C~ia8ion Of Appe8la in Rtietf v. city of 3eha kntonlo, 130 Ter. 894, 131 3.78. BInd~lo84. Thor., the City of Can knti3nie kad Pumhuaed 8 pi8RO irOa tba aa1thall kiualc Company for $lSOO ~?.a be p8id on dellvory ot the piano.
After piano bad been delivered, tko City Aui?thr in l cao rdano o with an ordbanco raturns% to $ermlt dellrsry of the wurraat iarued In peymont thorafore for t&a reamon that the Xolthell Was10 Company uua lndebte% to the City tor oemtain taxaa.
Thorsattar the Wdtball Mu%ie Colllpany wee a&&&j@ bankrupt, an% ?Xisrf Co., who ha% ehlpped tbs lane to tars aolthaUCo. on , walgaarent laid claim to p ano. Sal& P the court:
‘Tha olty, bsrlag tbua aoquirra gorrtwmtiion piano, aesdrt.8 the ri&bt krap it wlth- out pyiq ior lt, as it colWnly promlab% to The elty MB not i&&e%, deOOll6d, or de- 40.
Honorable Harry Xnox, i'sgo 5
freuded; It received th% piano contracted for. The city hoa paid nothing, fiioan up Dothing, euff8red c.0tblng. Thme is no ssmblanca of un ssto;pel la favor of the. city against the ftisnutaaturef, the owner of the piano. Tku8 there is no gossibls groUnti Upon which t&d ofty oan CIWE tke title or rigkt of ~ossraaioa of the pls30.~*
3hsther the 3took Company hsa logal tltla at this time or merely a right to re?orssrraion 18 raletlvoly unkportclnt aa iadlotntd by thhg following quotation iroE ;;8OQlC8 Yt8t8 D8llk V. %W~ll, m &8nSa8 520, 109 PSC. 102, (N .S.) 024, 31 a.L.R. !%‘I: 2s t.ti.A. "A8 a praotioal noosed ty, avoid th8
inoonr8nlaaO8 reguiring sall8r of en to keep 0~1) band upon it until dth artlch th8 oth8r he graape the Ourrenoy tendered In lW8t b8 8OPIO rSleX8tiCfl Of thi8 P4V==J t , th8r8 rtllil. Dalivcrry and paysmnt, 88 a praoti6al Blttsr, CMDot be ebsohtrly SiPaUltSn8OW. SOme slight intWve3 bStWS8n tk8 two 8otl i8 and the eritarion upon wblch tha in8Vit8bla, CO-t8 bars agrq8d v!ith oubst8ntial Un%nirbity ill that such hIt8l=V8l d068 ‘Dot CiOIlO1U81Vs1y PtOVc, and the ri&kt of a tot81 8brndoOsent of title po~eamrion by the seller, unle88, nubor aI1 the ObKU48tanO84i Of thQI Mb8, it in fEOt 8hoU8 that result to b8va been intendell. S0m8 in680ufty ha8 b8en exerai8ed wttk doubtful profit in de- Sinlng the oharsotar of rZgbt remalnlng La rsller 8tter delio*ry 8nb before pepant. "'hether 1t 3.8 lmre 2rop8rly dsroribed 85 a lien, 12 ratrrntlon OS title, or an option to reroind tks awti%Ot, IS not Very impOrt8Dt SO at [88] affeats the so3utfOn or tlm jirObl8m Pro- xt 58 ~1 right 0r 8811~ to seated here. reposaesa bimae2f of the (pob+ St the buyor falls ia t&Q p8rfomanoe of tka 8&$W4tC8KIt on his part wSioh ~813 intended ta be ecnteP:porsD8OU8 with the delivery. It in 8 iwM.Lar right &DOW- ing out of D peeullar situation, and it io not *6 iwe of wvnloh ml&ht nsceaemy to &ire it o name the 11005 to de0169 aontrov*r8ies growing out of othbr re~latlon8.w
Ap?lyln(S rules l nnounaed in the forr~ohg authorities to the fast 8Ituatlon @reamted In your letter, it is our opinion that the Steak Company has th6 rlgbt to &emend rrturn 0: the clgarrtto tax atanpr reoently 6elIver- ed to the stata Treasurer upon bring rdrlaed that the oon- tract and requlsltlon undar whloh they were prerumably do- llvrred 1s lnvelld. Tha mller*s right or repommmlon or gosde delivered but not paid for on a cash sale muat bo exeralrsl within a reraonable time and nap be waived by lack oE Qlllgsnao or agreement ot the :wrtls8.
Xe turn now E0 49 oon8ldwatlon of your s*oontl quertlon. As at&o& In our oplalon ISo. 0-fS539, all ooatrbots for printing, whether in aeuea of emergency or not mu& oon- form to the requlrrfneats of krtlala 16, ::eatIon 21 of the COLl~titUttOD or 50x08, of which the :ertlnaat provlri~a~ are that the prlntlng anhall b8 portormad under Qontraat, to be given to loweet raaponslble blddmr, below ruah maximum prloa and under mmh regulationa, as shall br pro- sarlbd by law . . . and all nuah aoatrsota shot1 be eubJeot to the approval ot tha Governor, 9earetary Stat.4 and Comptroller .*
In the event of an emar~eaoy, krtlolr 61.8, 8eri#od Civil Statutes, 19E2, provldse:
“Ihs Board may In Ita dlsoretlon oaka 8~0h temporcrry arrangement to suaat the aocrrgsnay @a public interest may damafui." ks~~~.lo~ th,at the Board of Contrcl, in the ex- erctse of lta rcsa0nekl.e dlaaretloa, deternIne that aii smrgenoy now exlrste whlcb lw:;uires til@ lmmedlat~ putOhM of o@rette tar stamps, it Is our oplnloo t?.at ttm Tmard may enter into a oontrsot for the Durollere ot uuah struPp8 rrom the loweet ne~oa6lble bidder atter eucb navrrtiif.inc for bida as then 3oard may deaa FroWr.
-- J 200 APPROVEDJUN 11, 1940 -.=&d
ATTORNEY GENERAL Or' TEXAS