J. M. O. Gallegos Et Ux v. Gulf Coast Investment Corporation

Suit on a promissory note for home improvements given by Mr. and Mrs. Gallegos to Texas American Home Builders, who promptly sold it to Gulf Coast Investment Co., along with a mechanics' and materialmen's lien contract and deed of trust given to secure payment of the note. Gulf Coast brought this suit against the appellants, who joined Texas American as third party defendants and alleged that Texas American and Gulf Coast had conspired to defraud them. Also, that agents, servants or employees of Texas American, acting within the scope of their employment, had induced defendants to execute the note, contract and deed of trust by fraudulently representing to them that they would not be charged for the aluminum siding which was to be applied to their house, only for the labor. That Gulf Coast was not a holder in due course.