Bradley v. Apel

531 S.W.2d 678, 1975 Tex. App. LEXIS 3325
CourtCourt of Appeals of Texas
DecidedDecember 12, 1975
DocketNo. 17699
StatusPublished
Cited by1 cases

This text of 531 S.W.2d 678 (Bradley v. Apel) 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
Bradley v. Apel, 531 S.W.2d 678, 1975 Tex. App. LEXIS 3325 (Tex. Ct. App. 1975).

Opinion

OPINION

MASSEY, Justice.

Both principals in the cause were acting both individually and as trustees for others not identified. No issue is made relative thereto so for our purposes we may treat the suit filed as having been by Edwin A. Apel as plaintiff against R. B. Bradley. It was a suit by Apel to have judgment for the funds of Bradley put up as escrowed funds of one who had contracted to purchase real estate. The escrow agent, initially a party to the suit, was discharged pursuant to transfer of the amount in escrow (less the entitlement of said agent’s attorney to a part thereof as attorney’s fee) to the registry of the court.

Following trial before the court judgment was rendered for Apel as applied to the remaining escrowed funds and Bradley appealed.

Judgment reversed; judgment rendered that Apel take nothing by his suit against Bradley.

Reason for reversal lies in the fact that Apel failed to prove his case because he was unable to show that there was a date certain set for closing the real estate transaction at which there was breach of contract by Bradley, and that Apel either did or was ready to appear and then and there wholly fulfill those obligations incumbent upon him by his contract to sell, or to show that he was excused from making such proof by prior breach of the contract by Bradley. Another reason for reversal is because of Apel’s failure to prove that he ever had a title to convey to Bradley, as promised, or that he had the certain means of acquiring it to convey.

It is shown by the record that it was Apel who was trying to get Bradley to set a date for closing, with Bradley “dillydallying” and neither refusing to close nor committing himself to close at any particular time, until by the force of circumstances “time ran out” as applied to Apel’s supposed ability to perform as vendor of the real estate he had contracted to sell. Apel testified there was never a “closing date” set and because of that fact he had not delivered certain instruments to Bradley or the title company which he was obliged to deliver as a condition for performance of the contract by Bradley. We note that there were many things, including tender of a deed from himself to Bradley, which Apel was obliged to perform at or prior to the “closing”. These Apel never performed. There never was a “closing” nor a date certain for it to occur.

Apel, himself, never had merchantable title but merely a right to acquire title. Such right was by his own contract to purchase from Kerr Associates, the holder of the legal title. Nothing relative to the Kerr contract was mentioned in the Apel-Bradley contract, it being one which was in form absolute as one whereby Apel had (or would have) a title to convey.

Kerr Associates did serve notice of a time for closing or forfeiture as applied to Apel’s contract to purchase the land from them. The demand of Kerr Associates resulted in Apel’s release to them of rights held in the property, by contract to purchase, and also the earnest money deposited by him on that contract.

As applied to Apel’s contract to purchase from Kerr, Apel did not resist vendor Kerr’s claim to forfeit the contract and earnest money deposited thereon.

As applied to Bradley’s contract he, Bradley, did resist vendor Apel’s claim that he forfeit the earnest money deposited upon his contract to purchase from Apel. It was to obtain the earnest money that Apel sued.

To start at the beginning: January 14, 1974 Apel obtained a contract from Kerr Associates to sell him the land. He put up $10,000.00 earnest money, with proviso in the contract to purchase that he had 120 days from said date in which to exercise his [681]*681right to purchase or forfeit such earnest money. By further provision he was afforded an additional 30 days upon increasing the amount of earnest money to $11,-000.00. Roughly this meant that Apel possessed the right to enforce his contract to purchase from Kerr Associates until June 13,1974, for he paid the $1,000.00 for the 30 day extension.

Thus it is evident for purpose of our discussion at this point that Apel might be treated as having been in position to enforce any proper specific performance by Bradley until date of June 13 but not afterward. The state of the record is such that Apel concedes that his ability to himself perform the contract with Bradley was terminated after such date. He released and surrendered the earnest money he had advanced upon his contract with Kerr. Thereafter he had, as a matter of fact and of law, rendered himself unable to demand specific performance by Bradley. He likewise could have possessed a cause of action against Bradley for breach of contract, but only if Bradley’s breach occurred on or pri- or to June 13; in other words only if there had been a prior breach by Bradley, for Apel had himself, in the eyes of the law, presented himself as in breach of the same contract after June 13, 1974.

Had there been a prior breach by Bradley?

Ordinarily time is not “of the essence” in a contract such as that between Apel and Bradley, though it may be made so by contract of the parties where they provide for the termination and forfeiture of rights of either, as if the purchase money is not paid at or within the agreed time. 58 Tex.Jur.2d 368, “Vendor and Purchaser”, Sec. 159, “(Time of Performance) In general”; 59 Tex.Jur.2d 97, “Vendor and Purchaser”, Sec. 551, “In general; Contractual forfeiture”. Although a clearly expressed provision for a forfeiture will be enforced as written, contracts will be so construed as not to produce a forfeiture if such a construction can be reasonably given. Page 99, “Vendor and Purchaser”, Sec. 553, “Construction of forfeiture provision”. Such a provision is for the benefit of the vendor. It gives him the right either to terminate the contract on default of the purchaser or as treating it as continuing in force and to insist on performance. Page 100, “Vendor and Purchaser”, in 59 Tex.Jur.2d, Sec. 554, “Right to claim forfeiture”; p. 430 in 58 Tex.Jur.2d, Sec. 214, “Tender of performance by vendor.” The right to claim a forfeiture by the purchaser’s default may be lost or waived by the vendor as by agreement or by conduct on the part of the vendor in affirmance of the contract and indicating that he regards it as still subsisting notwithstanding a default by the purchaser or by showing an intention not to treat time as being of the essence of the contract. Page 103, “Vendor and Purchaser”, in 59 Tex.Jur.2d at Sec. 555, “Loss or waiver of right”.

Continuing, from 59 Tex.Jur.2d on “Vendor and Purchaser”, see p. 106, See. 560, “Notice of forfeiture” where it is stated that in the absence of language plainly dispensing therewith the vendor must, as a rule, give notice of forfeiture or a notice of intention to forfeit within a specified time unless in the meantime the default is made good.

March 1,1974 was date of the Apel-Brad-ley contract. In paragraph No. 4 thereof was provided: “The date of Closing of the transaction contemplated by this Agreement (the “Closing Date”) shall be ninety (90) days after the date hereof, or such earlier date as Purchaser shall designate in a written notice delivered to Seller . .” Paragraph No. 5 thereof provided: “The Closing. On the Closing Date, at the offices of the Title Company, Seller agrees to deliver to Purchaser (a) a good and sufficient General Warranty Deed (the “Deed”) duly executed by Seller, granting and conveying unto Purchaser good and marketable title in fee simple absolute to the Property, and containing covenants of general warranty and subject to no liens . . .

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Bluebook (online)
531 S.W.2d 678, 1975 Tex. App. LEXIS 3325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradley-v-apel-texapp-1975.