Case ID: sw_231/html/0797-01.html
Source: Caselaw Access Project
Author: {"author": "HAMILTON, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

KANAMAN v. GAHAGAN.
    (No. 7452.)
    (Court of Civil Appeals of Texas. Dallas.
    May 28, 1921.)
    Appeal and error <&wkey;1195(1) — After affirmance by Supreme Court, opinion of Court of Civil Appeals stands as law of case.
    Where the Court of Civil Appeals certified a question to the Supreme Court, which answered it in the affirmative, affirming the opinion of the Court of Civil Appeals, such opinion of the Court of Civil Appeals, originally Handed down, reversing and rendering the judgment, stands as the law of the case.
    Appeal from District Court, Dallas County; Jas. P. Haven, Judge.
    On motion for rehearing. Motion overruled, and former opinion affirmed.
    For former opinion, see 185 S. W. 619.
    See, also, 230 S. W. 141.
    Adams & Stennis, of Dallas, for appellant.
    M; D. Morris and John W. Pope, both of Dallas, for appellee.
   HAMILTON, J.

This cause was appealed from the Sixty-Eighth district court of Dallas county. On February 5, 1916, this court delivered its opinion reversing the judgment of the trial court, and rendering judgment for appellant, because of fundamental error. The opinion of this court so deciding the case is reported in 185 S. W. 619. That opinion clearly states all the facts and exhaustively considers the questions presented. For a full understanding of ‘the issues thoroughly considered, and the conclusions correctly adduced, we refer to the report of the opinion.

The suit was upon notes executed and delivered by appellant, under appellee’s direction, as consideration for certain shares of stock in a prospective corporation in process of organization, which was later incorporated and the stock issued. In the course of events preceding suit, the notes were transferred by the promoters of the corporation to appellant, their employé; the consideration for the transfer being that he might do with the notes for them whatever his judgment dictated. Maturity arrived, appellant failed to pay, and the suit was filed. This court adduced from the facts that the transactions involved resulted in the issuance of stock of a corporation in violation of article 12, § 6, of the state Constitution, which provides that—

“No corporation shall issue stock or bonds, except for money paid, labor done, or property actually received.”

The case having been decided as above indicated, the appellee filed an insistent motion for a rehearing, and the court, in considering this motion, arrived at the conclusion that the holding upon the decisive feature of the case was in apparent conflict with certain other decisions of our appellate courts, whereupon the case was presented to the Supreme Court by this court upon the following certified question:

“Do the facts and transactions recited in our statement of the case constitute, within the meaning of the Constitution and statute, an issue of corporate stock?”

The Supreme Court has answered this question in the affirmative, affirming the opinion of this court above cited. See opinion of Supreme Court in W. I. Kanaman v. H. I. Gahagan, 230 S. W. 141. The opinion of this court originally handed down, reversing and rendering the judgment, and published in 185 S. W. 619, therefore stands as the law of the case, and reference is made to that decision without further discussion.

The motion for rehearing is overruled.