Baer v. Dallas Theater Center

330 S.W.2d 214, 1959 Tex. App. LEXIS 1701
CourtCourt of Appeals of Texas
DecidedNovember 25, 1959
Docket3683
StatusPublished
Cited by18 cases

This text of 330 S.W.2d 214 (Baer v. Dallas Theater Center) 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
Baer v. Dallas Theater Center, 330 S.W.2d 214, 1959 Tex. App. LEXIS 1701 (Tex. Ct. App. 1959).

Opinion

WILSON, Justice.

Appellant donated to appellee 1.18 acres out of a wooded tract in the City of Dallas, bounded by Lemmon Ave., Turtle Creek, Blackburn Street and a railroad. This gift was consummated as follows:

(1) A contract was entered into between the parties in 1955 providing (a) that a deed to the property was to be placed in escrow, with delivery to be made to appel-lee when, within two years, it had on deposit $100,000, not including loans, committed to the building of a theater or school of drama on the land; and (b) that not later than one year after the delivery of the deed, appellee “shall, in good faith, commence the construction of a theater or school of drama upon such land, and shall *216 thereafter prosecute such building' with reasonable diligence to completion.”

(2) The deed, reciting appellant had given the property to appellee in memory of his parents for educational and charitable purposes, was deposited in accordance with an escrow agreement embodying the foregoing provisions as to the deposit.

(3) Included in the deed was the grant of an easement 44 feet wide “co-ordinate and equal with that reserved by the Grantor * * * for use as a private road for pedestrian and vehicular traffic, it being expressly understood that Grantor and Grantee shall have equal rights of user of said easement.” The $100,000 deposit was made and the deed delivered to appellee by the escrow agent and filed for record September 19, 1956. The transaction presents no problem to this stage.

Appellee instituted this action against appellant, alleging compliance with all requirements on its part; that shortly after delivery of the deed, appellant embarked upon a course of conduct designed to frustrate and delay commencement of construction; that the property was zoned by the City of Dallas as residential, and appellant opposed re-zoning and issuance of a building permit; that he constructed locked steel gates at both ends of the roadway described in the easement, preventing ingress and egress; that he had sought to enjoin construction. Appellee asked for injunction restraining appellant from locking gates or interfering with use of the easement or construction of the theater. It also prayed for dissolution of a temporary injunction obtained by appellant which restrained the Center from removing an existing curb within the easement. Declaratory judgment was sought that appellee had complied with the provisions of the grant and that it had certain detailed rights to be discussed herein.

Appellant answered that construction had not been commenced in good faith within one year after delivery of the deed and asked cross-relief declaring appellee’s rights had terminated, that title be quieted in him and that appellee be required to re-convey the property.

Jury findings were to the effect that ap-pellee commenced construction in good faith, as required by the 1955 agreement. The trial court rendered judgment decreeing that title to the property is vested and quieted in appellee; that the temporary injunction obtained by appellant be dissolved and that the declaratory relief prayed for be granted.

By a group of seven points, Baer contends the Center failed, conclusively and as a matter of law under the undisputed evidence, to commence construction in good faith within one year after delivery of the deed.

The deed involved here was absolute on its face. Neither the deed nor the contract contained provisions for forfeiture or reversion. Forfeitures not being favored, courts are inclined to construe provisions in a contract as covenants rather than as conditions; and if its terms are fairly susceptible of an interpretation that will prevent forfeiture, they will be so construed. “Unless the consideration in a contract is expressed in terms which unmistakably will demand a forfeiture for nonperformance, a mere breach of such terms will not authorize the cancellation of the contract.” Henshaw v. Texas Natural Resources Foundation, 147 Tex. 436, 216 S.W.2d 566, 570.

In determining whether appellant “commenced construction,” appellant urges application of cases involving the right to> continue construction as against adoption or amendment of zoning regulations (79 A.L.R. 927, 96 A.L.R. 1337, 117 A.L.R. 1117, 124 A.L.R. 540), and those pertaining to the drilling clause in oil and gas leases. Many of these cases militate against appellant’s position. However, appellee is chartered as a charitable corporation and the gift in question is for charitable purposes. *217 If it be necessary to construe the term in ■question, such grants “are held in such high regard by the law that the rules of construction are more liberal to sustain them than they would be if the gifts were to individuals”, Powers v. First Nat. Bank of Corsicana, 138 Tex. 604, 161 S.W.2d 273, 278, 282; and we do not regard the more stringent interpretation in the arms-length situations as being necessarily controlling.

The decisions cited by appellant demonstrate the phrase “commence construction” does not lend itself to precise definition, since each case turns on its peculiar facts. The same is true of the term “good faith,” which has been held not to require definition. Dunning v. Badger, Tex.Civ.App., 74 S.W.2d 151, 155, writ dis.

The deadline for commencing construction of the building in question is treated by the parties as being September 19, 1958. There is evidence to show that before and after delivery of the deed, the Center, with Baer’s active encouragement and participation, engaged in a fund-raising campaign as a result of which over $300,000 in cash or pledges was raised. Frank Lloyd Wright, employed as architect at an expense of over $20,000, prepared preliminary drawings, and on October 4, 1957, was authorized to prepare working drawings. In 1955, since the land in question was in an area zoned for residential purposes, ap-pellee applied to the City Planning Commission for zoning change. The building plans had not then advanced sufficiently to enable the Center to submit required site plans and, on recommendation of the city planning authorities, a new application was thereafter filed. Appellant having then “turned 100% against” the Center, actively protested the zoning change and issuance of a building permit. At this point he erected locked metal gates at each end of the roadway included in the easement, testifying he did not mean to let appellee in. Final plans and specifications were submitted by the architect in May, 1958. Ap-pellee promptly invited bids and, on June 30th, awarded a construction contract providing for expenditure of approximately $669,000.

An ordinance was passed by the Dallas City Council August 11, 1958, authorizing use of the property under a special permit for an educational institution with development to be “generally in conformance” with a site plan attached to the ordinance and approved.

On September 2, 1958 (appellee having succeeded after injunction proceedings in having the gates unlocked), the contractor was notified to begin construction; and he moved equipment onto - the site, the previous day being Labor Day.

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Bluebook (online)
330 S.W.2d 214, 1959 Tex. App. LEXIS 1701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baer-v-dallas-theater-center-texapp-1959.