State v. Collins & Burford Drug Co.
| Decision Date | 24 May 1939 |
| Docket Number | No. 2248-7478.,2248-7478. |
| Parties | STATE v. COLLINS & BURFORD DRUG CO. et al. |
| Court | Texas Supreme Court |
On August 15, 1936, the Sheriff of Tarrant County, under directions of the Texas Liquor Control Board, sold a stock of liquors which the Board had attempted to confiscate, and Collins-Burford Company, Inc., became the purchaser thereof for the sum of $10,600. Said sum was deposited in cash with the said Texas Liquor Control Board. Several days later, after a small amount of the liquors had been delivered to the purchaser, the Board entered an order declaring the sale void for certain reasons, and refused to relinquish the stock of liquors to Collins-Burford Company, Inc. From recitals in the record, it appears that these liquors were delivered to a receiver appointed by the Federal Court in some proceeding. The Texas Liquor Control Board, however, retained the $10,600 which had been deposited with it.
On February 20, 1937, the State of Texas, by its Attorney General, instituted a suit in the District Court of Tarrant County against Collins-Burford Company, Inc., Collins & Burford Drug Company, a partnership, and C. G. Collins and C. O. Burford, individually. The purpose of the suit was to collect a large amount of tax alleged to be due by the defendants to the State on various stocks of liquors. In its petition the State set out the facts concerning the purported sale to Collins-Burford Company, Inc., and of the deposit of $10,600 with the Texas Liquor Board. It was alleged that the Board had declared the sale void, but that said Board still retained in its possession the $10,600. Without attempting to allege any lien or any particular reason why said sum should be applied as part payment upon any judgment obtained by the State for taxes, the State merely stated that it should be allowed as a deduction from the alleged tax liability.
Defendants answered in said cause, setting out, among other things, that the purported sale of said liquors had been declared void, and claiming the money on deposit with the Texas Liquor Control Board. On March 23, 1937, one Guy O. Street was permitted to intervene, on the ground that of the $10,600, the sum of $8,700 was his money, under the terms of an agreement which he had made with Collins-Burford Company, Inc., by which said money had been advanced for the purchase of said liquors, with an understanding that if title to same did not pass and he (Street) was not secured by a valid lien upon said liquors, the said sum of $8,700 was to be returned to him. Defendant Collins-Burford Company, Inc., admitted the claim of Street.
By agreement of the State, represented by the Attorney General, on the one part, and Street on the other, the title or right to said $8,700 was tried before the court in advance of a trial of the tax suit upon its merits; being submitted upon an agreed statement of facts. Upon hearing the trial court entered judgment awarding the $8,700 to intervener Street. While the judgment was in terms against all other parties and in favor of Street, manifestly it was in substance only a determination that the said sum of money was the property of Street, and in no sense was the property of the State or the Texas Liquor Control Board. The State prosecuted an appeal to the Court of Civil...
To continue reading
Request your trial