American Rio Grande Land & Irrigation Co. v. Barker

268 S.W. 506
CourtCourt of Appeals of Texas
DecidedDecember 17, 1924
DocketNo. 7247.
StatusPublished
Cited by17 cases

This text of 268 S.W. 506 (American Rio Grande Land & Irrigation Co. v. Barker) 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
American Rio Grande Land & Irrigation Co. v. Barker, 268 S.W. 506 (Tex. Ct. App. 1924).

Opinion

■ ELY, C. J.

This suit was instituted by E. R. Barker against the Stewart Farm Mortgage Company, W. E. Stewart Land Company, and the American Rio Grande Land & Irrigation Company, to recover of the named defendants a rescission of a contract of a sale of land, to cancel the deed of conveyance to the same, and to recover the sum of $8,275, actual damages, and $15,000, exemplary damages, and for a foreclosure of a lien on the land. The cause was submitted to the jury on special issues, and on the responses thereto judgment was rendered in favor of Barker against the defendants, jointly and severally, for the sum of $5,935, with interest and costs, .and for the foreclosure of an equitable lien on the land described in the petition. This appeal has been perfected by appellant alone as against appellee alone. Appellee entered a remittitur of $590.

The demand of appellee is based on the fraud of the defendants, acting through a conspiracy to defraud appellee, and the jury found:

That appellant entered into a conspiracy with the W. E. Stewart Land Company and the Stewart Farm Mortgage Company to sell lands to appellee through fraudulent misrepresentations of material facts concerning said lands, that appellee was induced by such misrepresentations of facts to purchase the west 20 acres of lot No. 12, in block 101, of the Campacuas addition .subdivision, in Hidalgo county, that the fraudulent misrepresentations were made by the officers and agents of appellant to appellee to induce him to purchase the lánd, and appellee did purchase said land, and placed improvements on the land, which enhanced'its value in'the sum of $2,275. The evidence sustains the findings of the jury. The facts show that the three corporations were acting together in procuring buyers for the land, and were interested in all the land deals.

The transcript of the record in this case is very voluminous, containing 259 pages, and the statement of facts containing 570 pages. The brief of appellant consists of 139 typewritten pages, presenting 99 assignments of error, with 20 propositions.

The amended petition did not set up a different cause of action from that alleged in the original petition. The original petition was based on the fraud of the parties sued, and a conspiracy between them and the facts set forth therein created a conspiracy between them to perpetrate that fraud. It was not necessary to label the facts and state that they constituted a conspiracy. In the original petition facts were alleged that constituted a conspiracy. In addition it was in terms alleged that in making the false statements “each of the defendants, its officers, agents, ■and employes connived, conspired, co-operated with and worked hand in hand with each and every other defendant herein; that by reason thereof each and every defendant herein, their officers, agents, <and employes, became parties to, participated in, and ratified all of the acts of fraud and deceit here-inbefore alleged and set out, by virtue of which they, and each of them, benefited as hereinbefore and hereinafter stated.” The allegations show a clear conspiracy under the law, as well an agency, existing between appellant and the other defendants. There was no change in the cause of action in the amended petition; the latter merely setting out the facts of the conspiracy more in detail. Railway v. Hales (Tex. Giv. App.) 196 S. W. 903; Sullivan v. Ramsey (Tex. Civ. App.) 155 S. W. 580. The first, second, third, and tenth assignments of error are overruled.

The filing of amendments to pleadings is largely within the discretion of the trial judge, and permission to file such amendments will not form the subject of review unless there has been a clear abuse of such discretion. Stress seems to be placed by appellant upon the fact that an amendment was permitted after the trial was begun, the jury selected, and some evidence introduced. It must be while the .trial is in progress that a trial amendment can be filed; which character of amendment is recognized under Texas practice. Rule 27 provides for the filing of trial amendments, and Rev. St. art. 1824, provides that all amendments must, when the court is in session, be filed under leave of the court. The burden of showing *508 an abuse of discretion as to amendment of pleadings rests on the party assailing the action of the court. Lipscomb y. Perry, 100 Tex. 122, 96 S. W. 1069. No claim is made in assignment or proposition that any injury was sustained by appellant because of the trial amendment being permitted. Appellant’s objections to the amendment are mere abstractions.

The allegations of a general conspiracy among the defendants to sell and dispose of lands off the same grant with that sold to ap-pellee, foj sums far above their actual value, arid to defraud and swindle the buying public, were properly made as showing the existence of a conspiracy to defraud appellee, and the court did not err in refusing to sustain exceptions to such allegations. No question of conspiracy arose in the case of Goree v. Uvalde Bant, 218 S. W. 620, decided by this court, and that case has no bearing on this. The question of intent of the parties may not have been a material inquiry; but the existence of a conspiracy was of vital importance. This ruling disposes of the fourth proposition, as to the allegations, and of the fifth proposition, as to evidence admitted under the allegations. The allegations set forth and the evidence showed an acting together of the parties in the fraudulent scheme to defraud the purchasing public. It showed a general coursé of conduct by the parties towards the public. It tended to show a continuous acting together in furtherance of a common design. The evidence of Shaw, appellant’s engineer and general manager, tended to show that appellant was acting together with the defendants, whose fraudulent action is not questioned by appellant. The Stewart Companies dealt with appellant’s lands. The president of appellant told ap-pellee, before he paid for the land, that it belonged to Stewart. As said by this court in San Antonio Gas Go. v. State, 22 Tex. Civ. App. 118, 54 S. W. 289:

“Conspiracies, being in defiance of law, are conceived in secrecy and executed in such a manner as to avoid detection and exposure, and proof of such unlawful enterprises must, in the very nature of things, be made by circumstances, and every circumstance which tends to cast light upon the transaction is legitimate and proper.”

As quoted in State v. Racine Co., 63 Tex. Civ. App. 663, 134 S. W. 400:

“If two persons pursue by their acts the same object, by ,the same means, one performing one part of the act and the other another part of the act, so as to complete it, with a view to the attaining of the object which they were pursuing, this will be sufficient to constitute a conspiracy.”

In this case the evidence shows that the parties were essential to each other; the one supplying land and water, the other doing the active work of procuring buyers. Under the facts appellant’s, president stated that the other defendants owned the land and advised the purchase of it, but afterwards, when the purchase money had been paid and the improvements made, appellant discovered! that the land belonged to it, and not to Stewart. Both appellant and Stewart knew’ or should have known who owned the land, and they perpetrated a fraud upon appellee in inducing him to pay for the land and make the improvements, and they should be compelled to reimburse him for the outlay on the land.

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Bluebook (online)
268 S.W. 506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-rio-grande-land-irrigation-co-v-barker-texapp-1924.