Alamo Development Company v. Priest

335 S.W.2d 240
CourtCourt of Appeals of Texas
DecidedApril 6, 1960
Docket10739
StatusPublished
Cited by2 cases

This text of 335 S.W.2d 240 (Alamo Development Company v. Priest) 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
Alamo Development Company v. Priest, 335 S.W.2d 240 (Tex. Ct. App. 1960).

Opinion

*242 HUGHES, Justice.

Dean Priest, the former wife of J. C. Priest, brought suit against the Alamo Development Company, J. C. Priest, and Earl Wilson to set aside a deed from J. C. Priest to Alamo Development Company, dated prior to the divorce between J. C. and Dean Priest, purporting to convey property alleged to be community, upon the grounds of fraud and lack of mental capacity of the grantor. Since Alamo had conveyed the property to Earl Wilson, he was made a party defendant.

J. C. Priest by affirmative pleading alleged that he did not execute or sign the deed, that it was without consideration and had been procured by fraud.

Upon trial to a jury it was found that J. C. Priest signed the deed but that he did not have sufficient mental capacity to know and understand the nature and effect of his act in executing the deed and that Alamo and its agents were aware of this fact.

The jury also found that Alamo and its agents exercised undue influence upon J. C. Priest, thereby causing him to execute the deed, and that neither Alamo nor C. O. Hagan had paid J. C. Priest a valuable consideration for the property.

Exemplary damage issues were found in favor of J. C. and Dean Priest in the sum of $5,000 each.

Judgment in accordance with these findings was entered.

Alamo only has appealed.

The first point presented is that the trial court erred in overruling special exceptions which appellant directed to various paragraphs of the trial petition of Dean Priest and to the petition as a whole. The basic complaint was that the petition was not sufficiently specific to apprise appellant of the acts relied upon to establish (1) fraud; (2) want of consideration; (3) lack of mental capacity, and (4) lack of authority of J. C. Priest to manage community estate because of alleged abandonment and desertion of his wife, Dean Priest.

We do not understand appellant to brief any of these matters except- with respect to the allegation of fraud.

If we are mistaken in this, then we hold that a pleading, as here, alleging that grantee “gave no consideration, payment or thing of value for the conveyance”', sufficiently pleads lack of consideration and that a pleading, as here, which alleges that a person “did not possess sufficient mental capacity to understand the nature and effect of his act” in executing a deed to land, sufficiently pleads lack of mental capacity.

The issue of abandonment or desertion of Dean Priest by J. C. Priest was not submitted to the jury and it does not appear to have been a basis for the judgment. Such issue is, therefore, immaterial and we will not discuss the sufficiency of the pleadings to support it.

The pleading as to fraud consisted of allegations that J. C. Priest was mentally incompetent when the deed in suit was executed, that Alamo knew of the mental condition of J. C. Priest, that it paid him no consideration for property alleged to be worth $10,000 and that J. C. Priest “began to sell and dispose of the community property of the plaintiff, and to endeavor to defeat the community property rights of the plaintiff, and to dispose of their community property in fraud of the plaintiff and for his own benefit” and that “The Defendant Alamo Development Company, being aware of the scheme of the Defendant J. C. Priest to defraud the plaintiff of her community one-half of said tract of land, conspired together with J. C. Priest in order to fraudulently enrich the Alamo Development Company and J. C. Priest, and to deprive the plaintiff of her property.”

It is our opinion that these allegations sufficiently allege fraud, particularly in view of the failure of appellant to demonstrate any harm resulting to it by the admission of evidence to establish fraud which came as a surprise to it.

*243 Appellant cites Shaffer v. Brown, 59 S. W.2d 854, Beaumont Court of Civil Appeals, as being the strongest authority supporting its first point. We have read this case and are not satisfied that the pleadings there are comparable to the pleadings here to such an extent as to make our holding in conflict with that case. We note also that such case was decided before adoption of our Rules of Civil Procedure, Rule 45, providing, in part: “That an allegation be evidentiary or be of legal conclusion shall not be ground for objection when fair notice to the opponent is given by the allegations as a whole.”

It is our opinion that the pleading excepted to gave fair notice to appellant of the basis of the claim of Dean Priest.

In appellant’s second point, complaint is made of eleven separate evidentiary rulings made by the trial court. We will dispose of each assignment as briefly as possible. .

(a) In permitting Earl Wilson to testify to the contents of a letter he received from Dean Priest. The objection of hearsay was made and the best evidence rule was invoked.

The record show's that Earl Wilson, a defendant and the person to whom Alamo had conveyed the property,'testified:

“Q. You had just had correspondence with her? [Dean Priest] A. I just answered that letter that’s all.
“Q. You still can’t remember what she said in her letter? A. Well, I’d say that’s about right, I don’t know.”
“Q. Do you have any idea — she must have asked you some questions? A. Well, she — she seemed to be a claiming the land, and of course, I was claiming it, too.”

The evidence shows that the letter had been destroyed.

Wilson pleaded that when he accepted the deed from Alamo to this property he ‘■‘had no knowledge or notice of any impediment in the title to said property and accepted the same in good faith, and for value received.”

The letter written by Mrs. Priest to Earl Wilson was prior to the date of the deed from Alamo to Wilson. The letter, or the claim asserted in the letter, was admissible bn the issue made by Wilson in his answer. The best evidence rule was not applicable under the circumstances.

(b) In permitting Earl Wilson to testify to conversations with C. O. Hagan, the objection being that they were hearsay.

The evidence to support this assignment is set out at great length. Most of it relates to transactions between the witness and Hagan which are wholly unrelated to this suit. As to the land involved here it appears only that Hagan told the witness that he “had this 100 acres of land.”

Mr. Hagan was a realtor and had been active in the transaction in which Alamo acquired title to the 100 acres of land here involved. We are not informed of the materiality of the above evidence nor in what manner its admission could have been prejudicial to appellant.

(c) In permitting in evidence a divorce petition filed in. North Dakota by J. C. Priest against Dean Priest. Hearsay and the best evidence were the objections.

The petition was received only for the purpose of showing that Dean Priest had been sued for divorce.

The best evidence rule was inapplicable because of the collateral nature of the instrument.

Mrs.

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Bluebook (online)
335 S.W.2d 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alamo-development-company-v-priest-texapp-1960.