Carter v. Barclay

476 S.W.2d 909
Court of Appeals of Texas·Decided February 14, 1972·No. 8198·Published·Cited by 39 cases

Opinion

ELLIS, Chief Justice.

This appeal results from a trial court judgment quieting title in plaintiff-appellee to a certain tract of land and awarding plaintiff actual and exemplary damages against the defendant-appellant for trespass on the land in controversy.

After a series of negotiations extending over a period of several months, on April 23, 1970, the appellant, William A. Carter, entered into a contract to purchase 35.8 acres of land from Mrs. Betty Barclay, mother of Donald R. Barclay, appellee herein, and Eugene Barclay, uncle of ap-pellee and administrator of the Estate of appellee’s deceased father, Ray A. Barclay. Under the terms of this contract, the purchaser, Carter, was required to sell and convey a tract containing a net of 6.065 acres (hereinafter sometimes called 6 acre tract) out of the 35.8 acre tract to the ap-pellee, Donald R. Barclay. Pursuant to such requirement, a contract was entered into between Carter, a 37 year old man with considerable business experience, as seller, and Donald R. Barclay, 22 years of age, as purchaser, for the sale and conveyance of the tract containing 6.065 acres. This contract provided that Barclay would purchase the land at the rate of $500.00 per acre and that the consideration would be paid in cash at the time of closing. It was understood that the two transactions would be closed simultaneously. Prior to the closing of the transactions, young Barclay arranged to borrow the sum of $3,250.00 from the First State Bank at Vega, Texas, upon presenting his note cosigned by his uncle, Eugene Barclay. Ap-pellee was given a bank note to be executed to secure the loan.

On Friday, May 8, 1970, after bank business hours, all of the parties to the two above mentioned contracts met for the closing of the transactions. At or about the time of the closing, appellee’s uncle, Eugene Barclay, co-signed the note with his nephew, Donald R. Barclay, although there is some conflict in the testimony as to whether Carter was aware of the arrangement for the uncle’s co-signing of the note. On this occasion Carter received deeds executed by Eugene Barclay, administrator of the Estate of Ray A. Barclay, deceased, and by Betty Barclay, conveying together the entire 35.8 acres, and he delivered to them separate checks representing the consideration. Also, upon the closing of this transaction, Donald R. Barclay gave a check to Carter, drawn on the First State Bank of Vega, Texas, in the sum of $3,032.50, the purchase price of the approximately 6 acre tract of land, and Carter delivered a deed to Barclay reciting a cash consideration. It was Barclay’s testimony that Carter agreed to meet him (Barclay) at 8:00 a. m., Monday, May 11, 1970, for the purpose of filing their respective deeds in the courthouse at Hereford and then they would proceed to the First State Bank at Vega together so that Barclay could exchange his signed and co-signed note for cash to pay Carter’s check. Carter testified that his understanding concerning their going to the bank on May 11 was that “(W)e were to meet on the morning of the 11th, Monday morning, and get the check cashed and get the papers recorded.”

On Monday, May 11, 1970, at 8:00 a. m., when Carter had not arrived at Barclay’s home near Vega, Texas — the agreed upon *912 meeting place — Barclay went to the courthouse in Hereford and there recorded his deed. When Barclay arrived at the courthouse, Carter’s deed to the 35.8 acre tract had already been recorded. Carter testified that he had sent a third party to Hereford to file the deed before 8:00 a. m. At approximately 8:10 a. m., Carter arrived at the Barclay home, after Barclay had departed for Hereford. Upon finding that Barclay was not at home, Carter went promptly to the First State Bank in Vega, Texas, and presented Barclay’s check for payment.

Bank officials explained to Carter that the note had not been returned to the bank co-signed and that therefore Barclay’s account had not been credited with the sum of the note. However, the bank president, Raymond Thompson, testified that he assured Carter that his bank would call him when the note was returned and the funds credited to the account so that he could receive his payment on the check. According to Thompson’s testimony, Carter at first seemed agreeable to the arrangement whereby Thompson would contact him by telephone when the note arrived, but then an hour or two later Carter returned and had one of the bank vice presidents stamp “Insufficient Funds” on the check. (This account conflicts with Carter’s testimony that upon being apprised of the situation, he immediately went to a teller and got the check so stamped, and that Thompson told him that “if and when” Eugene Barclay co-signed the note, it would be paid.) Carter than traveled to Amarillo to the office of his attorney. At 3:00 p. m. on the same day, Carter filed an instrument entitled “Resolution In Cancellation of Warranty Deed and Cancellation of Contract to Convey Realty” in the Deed Records of Deaf Smith County, Texas. The instrument alleged failure of consideration and purported to cancel the warranty deed delivered to Barclay and to terminate the Contract of Sale. That evening, after Barclay learned of the presentation and nonpayment of the check, he went to Carter’s home and offered to go with him the next morning and get the check paid, but Carter said he had other things to do and didn’t have time.

On the morning of May 12, 1970, Barclay went to the bank and deposited the money and the bank president, Mr. Thompson, called Carter’s home. Upon being advised by Carter’s wife that Mr. Carter was not at home, Thompson requested that she ask Carter to call the bank and to inform him that the Barclay check was good. Carter did not return the call.

On May 13 or 14, 1970, Carter came to Barclay’s home and tried to renegotiate the contract, seeking more highway frontage for his (Carter’s) property, a removal of restrictions in the contract, and a commitment from Barclay to pay one-half of the cost of a fence between their properties. On this occasion, Barclay advised Carter that he had deposited the money to cover the check. The attempt at renegotiation was unsuccessful and Carter told Barclay to see his lawyer with regard to any further negotiations. On May 15, 1970, Barclay purchased a cashier’s check at his bank in sufficient sum to cover the purchase price of the property, and the check was presented to Carter’s designated attorney on the same day. The attorney refused the check and advised Barclay that he was not authorized to accept it.

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Carter v. Barclay, 476 S.W.2d 909 (Tex. Ct. App. 1972).

476 S.W.2d 909 (Carter v. Barclay) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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