Hudnall v. Tyler Bank and Trust Company

CALVERT, Chief Justice.

Tyler Bank and Trust Company obtained a summary judgment against J. S. Hud-nall in this suit on Hudnall’s promissory note executed in favor of the hank. Hud-nall appealed, and the Tyler Court of Civil Appeals affirmed. 448 S.W.2d 503. We reverse and remand.

Hudnall responded to the bank’s suit with a general denial, a plea of failure of consideration, and a cross-action. The predicate for the cross-action and the affirmative defense is the same, viz., that the bank allowed the misapplication of the proceeds of the note sued upon, in violation of an express oral agreement…