Abilene Christian College v. Landers

371 S.W.2d 97, 1963 Tex. App. LEXIS 1687
CourtCourt of Appeals of Texas
DecidedAugust 7, 1963
DocketNo. 5575
StatusPublished

This text of 371 S.W.2d 97 (Abilene Christian College v. Landers) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abilene Christian College v. Landers, 371 S.W.2d 97, 1963 Tex. App. LEXIS 1687 (Tex. Ct. App. 1963).

Opinion

CLAYTON, Justice.

On December 15, 1954, William M. Edwards, a bachelor, then some seventy-eight years of age, signed three instruments which Appellant, Abilene Christian College, claims conveyed to it some 41,824.7 acres of land in Pecos and Terrell Counties, Texas. The first of these instruments was a contract between Edwards and Appellant, and the other two instruments (which implemented this contract) were warranty deeds from Edwards to Appellant which together covered this land, subject to certain indebtedness, liens and outstanding mineral leases, etc., and reserving a life estate in the grantor. Edwards also held three notes representing part payment due him on a prior mineral grant on a portion of the land purportedly conveyed on December 15, 1954. The contract between Edwards and the appellant provided that as consideration for the two conveyances Edwards was to receive from appellant $50,-000.00 a year, beginning on December 15, 1955 and continuing each December 15 thereafter so long as any of the existing indebtedness against the two tracts of land described in the conveyances remained unpaid. These $50,000.00 payments were to be applied in full toward retirement of such debts. Furthermore, the payments under the three notes arising from the mineral grant were to be applied to the indebtedness against the property, and should the minerals be reacquired by Edwards through foreclosure or otherwise, the ownership of such minerals was to vest in appellant, subject, however, to Edwards’ life estate, which entitled him to rent or lease all of said lands for grazing, agricultural or mineral purposes under such terms as he might desire, and to receive and retain any proceeds therefrom, as well as the proceeds from all existing leases. Edwards was given the option of applying any such proceeds to existing indebtedness against the land, in which case such payments were to inure to the benefit of appellant as a gift from Edwards.

[99]*99There were four $50,000.00 payment checks made under this agreement prior to the death of Edwards, the first three, for the years 1955, 1956 and 1957, being made payable at Edwards’ request to J. C. Mitchell, the holder of the vendor’s lien notes on a parcel of property bought by Edwards from Mitchell and included in the deeds to Appellant. These checks were delivered to Edwards, who in turn personally delivered them to Mitchell. The fourth payment check for the year 1958 was made payable to Mitchell’s estate, he having died meanwhile, and was turned over to Edwards’ attorney for delivery, Edwards then being confined to the hospital.

Edwards died intestate on June 9, 1959 and in October 1959 this suit was brought by Appellant (plaintiff) in the form of Trespass to Try Title against Appellees (defendants) ; the administrator of the Edwards estate individually and in his official capacity and the other heirs at law of William M. Edwards. The Appellees set out in their answer to his suit substantially, and among other matters, that appellant, through its agents B. Sherrod and Dr. Don H. Morris, (hereinafter designated as agents or representatives) formulated a plan or scheme to obtain from Edwards for the benefit of Appellant all of Edwards’ property as a gift to Appellant, or for little or no consideration, and in furtherance of this plan the agents of Appellant exerted upon Edwards undue influence in securing his execution of the contract and deeds; that at the time of the execution of these instruments by Edwards he did not have the mental capacity to understand the nature, consequences and effect of the instruments he executed; that the said instruments were obtained by actual or constructive fraud and were invalid and void.

The case was submitted to a jury on special issues. The jury found that Edwards was of sound mind and had the mental capacity to understand the nature and effect of his acts when he executed the contract and deeds of December 15, 1954, but was caused to do so by the exercise upon him of undue influence and while under a false impression as to the nature and effect of the instruments, produced in his mind by the words and acts of the agents in order to obtain Edwards’ execution of such instruments (it being appellees’ contention that Edwards was led to believe that the instruments constituted only a mortgage or security for the assistance being given him by Appellant in attempting to pay off his debts in his lifetime).

In other findings the jury determined that on each of the three occasions when Edwards delivered the $50,000.00 checks to Mitchell to apply on his debt, Edwards was aware of the transaction of December 15, 1954 with Abilene Christian College, had mental capacity to understand the nature and effect of such act, but that his will was overcome and supplanted by the will of Abilene Christian College. On these findings, judgment was entered for appellees.

It seems to be uncontroverted that friends and officers of Appellant College devoted time and effort to soliciting “prospects” for gifts to the college. Mr. Edwards was such a “prospect”, whose name was suggested in 1947 to Dr. Don H. Morris, President of Appellant and one of Appellant’s agents. From that time until the documents were signed on December 15, 1954, Morris and one B. Sherrod, another of Appellant’s agents (Chairman of the Board of Directors or Trustees of Appellant college), either together or with others, visited Edwards some six or seven times. At first, no solicitation of gifts to the college was made of Mr. Edwards. Later, when Mr. Edwards was converting his ranching business from cattle to sheep, he was asked to allow the college to sell the cattle in return for a life-time annuity to be paid Mr. Edwards. Mr. Edwards refused the offer. He also refused a proposal that he make a will from which the college would benefit. In June of 1954 the agents of Appellant suggested to Mr. Edwards that he deed his land to the college in return for six per cent or seven per cent [100]*100of its value to be paid Mr. Edwards in the form of an annuity. The latter replied that he wanted to live on the ranch the, rest of his life and that he was not interested in the proposal. In September of 1954 the college agents suggested to Mr. Edwards that he

“might deed the land to the college and retain a life estate in it, so that he could live on it and manage it and get all the income from it during his life, and that if he wanted to do that, the college would pay him $25,000.00 a year with the stipulation that it would apply on the indebtedness against the land”,

such payments to be exempt from income tax. Edwards replied that he would think about it.

In the latter part of November of the same year the agents again called on Mr. Edwards who stated that he had thought about the proposal “a lot” but suggested that the annuity to be applied on indebtedness against the ranch be $50,000.00 a year, and that he, Edwards, “would expect to keep up the fences and pay the taxes”. Mr. Edwards was told that the proposal would have to be taken up with the Executive Committee of the Board of Trustees of the college, to which Edwards replied: “Well, you discuss it with them and if you want to do this, if you want to pay me the $50,000.00 a year, you get your tax attorneys to prepare the papers and bring them back out and show them to me and I will submit these papers to my attorney, and then I will tell you what I will do.”

The agents thereafter received authorization to go forward with the proposal and had the tax attorney for the college prepare the contract and deeds. These instruments were then taken by the agents to Mr.

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Bluebook (online)
371 S.W.2d 97, 1963 Tex. App. LEXIS 1687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abilene-christian-college-v-landers-texapp-1963.