Baugh v. Baugh

224 S.W. 796, 1920 Tex. App. LEXIS 944
CourtCourt of Appeals of Texas
DecidedApril 21, 1920
DocketNo. 6144.
StatusPublished
Cited by1 cases

This text of 224 S.W. 796 (Baugh v. Baugh) 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
Baugh v. Baugh, 224 S.W. 796, 1920 Tex. App. LEXIS 944 (Tex. Ct. App. 1920).

Opinions

Findings of Fact.
Appellee brought this suit against appellant to recover 789 acres of land in Brown county, Tex. The first count of the petition was an ordinary action in trespass to try title, and the second count seeks to cancel a deed made by appellee to appellant, on account of alleged incapacity caused by long-continued use of intoxicants, and also because of false and fraudulent representations charged to have been made by appellant inducing the making of the deed.

Appellant answered with exceptions, a plea of not guilty, the general issue, and various special defenses, including the statute of frauds. The case resolved itself into one for equitable rescission, and was submitted to the jury upon special issues. The jury found against appellee on the question of incapacity, and no complaint is made of such finding.

The material averments of the petition as to the alleged fraud and misrepresentation are, in substance, these: That appellee was in debt several hundred dollars for a dwelling he had just built for a home in Brownwood, the possession of which he could not obtain without paying said indebtedness; that he owed $3,000, secured by deed of trust on the land in controversy, and was in need of money, which appellant, his brother, knew; that he sought help from appellant, in whom he had great confidence, and to whom he went for advice on business matters since the death of his father, about a year before. Alleging a fraudulent scheme and purpose on the part of appellant to acquire his property, he alleged that appellant proposed to assume the $3,000 indebtedness, and to convey to plaintiff's wife a lot in Brownwood, known as the Hill lot, in exchange for the land described in the deed sought to be canceled. The fraudulent representations inducing the trade were claimed to be that appellant represented the lot to be worth $5,000 in cash, and that appellant had been offered that sum for it; that some parties wanted it for a location for a large rooming house or a hotel; that they were then absent from Brownwood, but would return in a few days, and that then the trade could be closed; that, in addition to assuming the $3,000 incumbrance and conveying the Hill lot, appellant promised that he would secure appellee a loan on said lot of a sufficient amount to enable him to pay for his home, and would within three weeks sell the Hill lot for him for $5,000 in cash, and, if he did not do so, he would deed back to appellee the 789 acres; that appellant repeatedly represented to appellee that the lot was worth and would readily bring $5,000 in cash, and reiterated his promise and assurance that if he failed to do so he would reconvey the land. It was alleged that, induced by these statements, representations, and promises, appellee executed the deed to the land, and would not have done so but for the same, and that the representations and promises were false and fraudulent, and with no intention of appellant to perform. It was alleged that the lot was not worth over $2,000, and further that before the deed was made appellant represented to appellee that he had already executed to appellee's wife a deed conveying the lot, which was also charged to have been false.

The special answers of appellant substantially presented the defenses that appellee was not defrauded, because he received full value for the lot conveyed, and that after the execution of the deed to the land, and with full knowledge of all the facts, appellee ratified and affirmed the contract, exercised dominion over the lot, and offered same for sale to various people, and finally sold it to appellant, and applied to his own use the considerations received; that appellee had incumbered the lot and borrowed money thereon, and continued to manifest entire satisfaction with the trade for a period of *Page 798 several years, and until after the discovery of petroleum oil in Brown county, and the apparent enhancement of real estate values on account thereof, and until appellant had leased the land for oil, and because of the possibility of valuable royalties from the lease being realized by appellant, and until after appellant had placed permanent and valuable improvements on the land; that the attempt to cancel the deed was an afterthought, induced by the possible mineral value of the land; and that by such conduct appellee was precluded from prosecuting a suit to rescind the contract and cancel the deed. Appellant specially invoked the statute of frauds.

The findings of the jury upon the special issues submitted were in substance as follows: That at the time appellee executed the deed to the land to appellant he was in a condition of mind to understand the nature and consequences of his acts and the contract; that appellant agreed with appellee to reconvey to him the land upon condition that he would be reimbursed for all money that he might be out in the transaction; that appellant represented to appellee that he had deeded the Hill lot to appellee's wife at the time the deed to the land was made; that appellant agreed with appellee that, in the event he could not sell the lot for the sum of $5,000 within a few weeks, he (appellant) would reconvey to appellee the 789 acres, and that at the time of the transaction it was the intention and purpose of appellant to deceive, mislead, and overreach appellee; that at the time the deed to the 789 acres was delivered to appellant he paid to appellee the sum of $250 cash, and delivered to him a note for $650; that at the time of the deed to the 789 acres appellant did not inform appellee that the lot would have to go through the probate court before a deed could be made to appellee's wife to such lot, and that appellee did not understand that an order of court would have to be obtained, and did not know that the title to the lot conveyed by appellant, as guardian, to appellee's wife, was vested in appellant's children; that appellant, at the date of the trial, had paid $960 interest on the incumbrance existing on the 789 acres when the deed was made to him; that appellee never complained to appellant that he was in any way overreached or defrauded until about the time this suit was instituted; that appellee did not sell the $650 note executed by appellant as a part consideration for the deed sought to be canceled after knowing of the fraud of appellant, and that neither he nor his wife offered the lot for sale after they knew of the fraud of appellant; that the amount necessary to reimburse appellant in the event of a cancellation of the deed was the sum of $3,383.83.

The court rendered judgment canceling] [the deed to the 789 acres, and vesting title thereto in appellee upon condition that within 70 days from the adjournment of court he should pay into the registry of the court, for the benefit of appellant, the sum of $3,383.83.

The material facts are that John M. Baugh is an older brother of L. P. Baugh, Jr., and that their father is dead; that L. P. Baugh, Jr., reposed great confidence in his brother, and looked to him for advice in business matters; that he was needing money to complete paying for a home in Brownwood, and sought his brother's help in raising the money. The latter agreed to help him, and proposed to buy his land, and to put in the Hill lot in Brownwood for $5,000, and to assume the indebtedness on the land in controversy, representing that he had peculiar knowledge of the value of the Hill lot, and that it was worth $5,000, and that he had been offered that amount for the property by a man who wanted it to build an apartment house on it, and that he could get that amount for the lot within three weeks, and that, if he failed to realize $5,000 on the lot for appellee, he would deed the land back to him.

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Bluebook (online)
224 S.W. 796, 1920 Tex. App. LEXIS 944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baugh-v-baugh-texapp-1920.