Court Opinion

ID: 9653204
Source: CourtListenerOpinion
Date Created: 2023-08-23 17:41:03.911983+00
Date Added: 2024-06-11T18:12:56.761715
License: Public Domain

MOORE, Justice.
I respectfully dissent from the majority opinion. The only instrument signed by the appellant was a simple application for credit. The application simply stated that:
“In consideration of your selling merchandise to me on Sears revolving CHARGE ACCOUNT, I agree to the following regarding all purchases made by me or on my Sears revolving CHARGE ACCOUNT identification:”
(The application then sets forth certain terms and conditions with respect to the amount of monthly payments, together with a schedule of any interest charges thereon.)
I agree to the statement in the majority opinion wherein it is stated that the legal issues involved here must rest in the law of contracts. But I do not agree that appel-x lant entered into a contract with appellee to \ pay for all purchases made by the use of a ⅞ credit card, whether the purchases were made by him or not.
The determination of whether or not a contract existed will depend solely upon the interpretation to be accorded the language used in (1) the credit application; (2) the so-called credit card; or (3) both instruments when construed together.
The majority seeks to predicate appellant’s liability upon the language used in the above quoted provisions of the credit application. They say that when “fairly construed, the ‘agreement’ (referring to the credit application) imposes upon appellant the liability for ‘all purchases’ made *927through the use of his card.” (Emphasis supplied.) Thus, the majority says that appellant agreed to become liable for all purchases made on “his credit card,” despite the fact that the credit application (agreement) fails to mention anything about a credit card, much less anything with respect to any liability thereon. Just how they could have arrived at the conclusion that appellant automatically became liable upon a credit card when the term “credit card” is not even mentioned in the subject matter of the agreement is beyond my comprehension. It occurs to me that even a cursory reading of the credit application will reveal that the parties did not contract with regard to any purchases made by the use of a credit card. As I see it, the majority, by a “boot strap” method of construction, has erroneously imposed contractual liability where none in fact exists.
We will now direct our attention to whether or not appellant may be held liable under the terms and conditions printed on the card itself, irrespective of the credit application. In this connection, it is without dispute that appellant did not request the card. It was sent to him through the mail several days after he signed the application for credit. The card is fully described in the majority opinion and I will not undertake to again describe it here, except to say that the card had the words “Credit Card” stamped on the face thereof. It will be noted that the card contains no statement whatever advising appellant that he would be liable for purchases made by use of the card, whether made by him or not. It merely advises him to “Report Loss Or Theft Of Card To Credit Office.” Therefore, I take the position that by merely accepting and retaining the card, appellant cannot be held to have contracted to pay for all merchandise purchased by the use of the card whether purchased by him or not. There is nothing on the card indicating that a contract was contemplated and therefore, it appears to me that by accepting the card appellant agreed to nothing.
Nor do I believe that the card, when considered together with the credit application, is sufficient to form the basis of a contract to pay for purchases made by the use of the card. As I view the evidence, the two instruments cannot be construed together because neither makes any reference to the other. The majority frankly admits that neither the credit application nor the statements on the card itself delineates the rights and duties of the respective parties as is usually found in credit card arrangements.
There is absolutely no evidence showing that appellant, at the time he signed the credit application, either knew or by the use of reasonable diligence should have known, that the company would issue a credit card which, when used by another, might subject him to liability for unauthorized purchases. Certainly it cannot be said that appellant was charged with such knowledge by reason of the language in the credit application or by the wording on the card, because neither instrument contained any contractual language with respect to the use of the card.
Even though the majority recognizes the fact that there is nothing in the credit application or on the card itself which delineates the rights and duties of the parties with respect to liability upon a credit card, they apparently concluded that a contract could be inferred. I do not agree. How can it be inferred that the credit application or the card, or both, amounted to a contract of guaranty or indemnity when neither of the instruments reflect such an agreement or make any reference to the other? I can find no basis for an inference that appellant agreed to pay for merchandise not purchased by him or his wife, because I have been unable to find any agreement to that effect in either the card or the credit application. To bind him to such agreement, he must have so contracted and he did not. Lit Bros. v. Haines, 98 N.J.Law 658, 121 A. 131, (S.Ct. *928N.J.). It appears to me that the majority, through the guise of construction, has simply written a new contract for the parties.
Furthermore, even though it be assumed that the credit application could be construed as an agreement by the appellant to accept and use a charge plate for himself and his wife, it by no means follows that he bound himself to pay for unauthorized purchases made by anyone else. Whatever contract which may have resulted from the credit application was completely devoid of any reference to that contingency. The card itself was, likewise, devoid of any agreement with respect to such contingency. Appellant not having thus bound himself by direct agreement, it follows that he would not be responsible for unauthorized purchases made by a stranger. Thomas v. Central Charge Service, Inc. (D.C.App.), 212 A.2d 533, 15 A.L.R.3d 1083.
It is frequently stated that in the interpretation of contracts of surety, guaranty and indemnity, the promises of the uncompensated surety, guarantor or indemnitor are to be strictly construed. Union Oil Company of California v. Lull, supra.
It seems to me that the majority has completely ignored the foregoing principles of law and has rendered a far-reaching decision holding that a person may be subjected to liability upon a card issued by a merchant containing only his name, account number, and the words “credit card” regardless of whether or not he contracted with the merchant with respect to the unauthorized use of the card or not. This is not the law in other jurisdictions. 15 A.L.R.3d 1083. And, it should not be the law in Texas.
I am firmly convinced that no contractual liability is established by the evidence and that the card amounts to nothing more than a simple identification card.
I would therefore reverse the cause and render judgment in favor of the appellant.