Sheffield v. Nobles
| Decision Date | 22 April 1964 |
| Docket Number | No. 11175,11175 |
| Citation | 378 S.W.2d 391 |
| Parties | B. R. SHEFFIELD, Jr., Appellant, v. C. A. NOBLES, Appellee. |
| Court | Texas Court of Appeals |
Davee & Davee, Brady, for appellant.
Lee & Lee, Mason, McCollum & Townsend, Brady, for appellee.
This is an appeal from a judgment rendered upon stipulated facts.
The question presented is the personal liability, vel non. of B. R. Sheffield, Jr., appellant, for the debts of Heart o' Texas Supply Company, a Texas Corporation, incurred when the right of such corporation to do business had been forfeited by the Secretary of State under Art. 12.14-12.15, Taxation General, V.A.T.S. Appellee, C. A. Nobles, asserts such liability under the provisions of Art. 12.14, Id, 1 which we quote:
'Each director and officer of any corporation whose right to do business within this State shall be so forfeited shall, as to any and all debts of such corporation, which shall include all franchise taxes and penalties thereon which shall become due and payable subsequent to the date of such forfeiture, and which may be created or incurred, with his knowledge, approval and consent, within this State, after such forfeiture by any such directors or officers, and before the revival of the right of such corporation to do business, be deemed and held liable thereon in the same manner and to the same extent as if such directors and officers of such corporations were partners.'
The pertinent facts are these:
On April 17, 1959, Heart o' Texas Supply Company was a Texas Corporation. On July 17, 1961, the right of this Corporation to do business in Texas was forfeited by the Secretary of State of Texas for failure to pay its franchise tax to the State. This right to do business was revived by the Secretary of State on March 12, 1962, under Art. 12.15, Id.
On September 29, 1961, and on November 4, 1961, during the time when the forfeiture referred to was extant, the Heart o' Texas Corporation, acting through appellant, borrowed from appellee a total of $10,000.00. This loan became due and payable during the period when the Corporation's right to do business was forfeited. Demand for payment was made during such period and default of payment then occurred except as to the sum of $650.00, which was paid. No other payments have been made.
There are three stockholders in the Heart o' Texas Corporation, appellant, who owns 50% of the stock, Eloise Sheffield who owns 49% and Linda Joyce Wall who owns 1%. Appellant is president of the Corporation; Eloise Sheffield is its secretary-treasurer; and Linda Joyce Wall is its vice-president.
Judgment, final in form, was rendered against appellant for the amount sued for and for foreclosure of an attachment lien on certain realty. Judgment was rendered that appellee do not recover of B R. Sheffield, Sr., who was a party defendant.
Appellant's first point of...
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Hovel v. Batzri
...as a penal statute. Schwab v. Schlumberger Well Surveying Corp., 145 Tex. 379, 198 S.W.2d 79, 81 (1946) ; Sheffield v. Nobles, 378 S.W.2d 391, 392 (Tex.App.–Austin 1964, writ ref'd) (statute is “highly penal in nature and one which could produce great hardship”); see also Robert W. Hamilton......
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Jonnet v. State
...Court has called the statute "highly penal in nature and one which could produce great hardship." See Sheffield v. Nobles, 378 S.W.2d 391, 392 (Tex.Civ.App.--Austin 1964, writ ref'd). One commentator has referred to the statute as a "Draconian provision." See Robert W. Hamilton, The Corpora......
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In re Trammell
...without making the corporation a party to the lawsuit against the corporate directors and officers. See Sheffield v. Nobles, 378 S.W.2d 391, 392 (Tex.Civ.App.-Austin 1964, writ ref'd) (discussing earlier version of statute). Often, a plaintiff files suit against a director or officer, seeki......
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First Nat. Bank of Boston v. Silberstein
...should not be charged with statutory liability for recognizing a debt previously binding on the corporation. Sheffield v. Nobles, 378 S.W.2d 391 (Tex.Civ.App.1964, writ ref.), enforced the statute against an officer who himself created the debt. See also Whitehead v. Bulkley, 37 S.W.2d 1112......