Carter v. Portwood

26 S.W.2d 422, 1930 Tex. App. LEXIS 247
CourtCourt of Appeals of Texas
DecidedMarch 19, 1930
DocketNo. 3380.
StatusPublished
Cited by6 cases

This text of 26 S.W.2d 422 (Carter v. Portwood) 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
Carter v. Portwood, 26 S.W.2d 422, 1930 Tex. App. LEXIS 247 (Tex. Ct. App. 1930).

Opinion

RANDOLPH, J.

The parties will be styled as in the trial court. This suit was filed by the plaintiff, Portwood, in the district court of Baylor county, against Roy I. Carter, defendant, seeking to recover the sum of $6,000, balance due on the sale of oil and gas leases upon two tracts of land. The case was transferred 'to the district court of Wichita county and there tried.

The case was submitted to a jury upon special issues, and, on the answers of the jury to such special issues, the trial court rendered judgment for the plaintiff, as prayed for. Prom this judgment, this appeal has been taken.

The plaintiff’s petition alleges: That he was the owner in fee simple of certain land, situated in Baylor and Throckmorton counties, 60 acres of which were covered by the leases in controversy in this suit, and, further, that the defendant approached plaintiff with the view of leasing said acreage for oil and gas purposes, and that, after some discussion, plaintiff, on the 27th of November, 1925, leased to the defendant, for said oil and gas purposes, the 60 acres above mentioned, for a consideration of $125 per acre, or a sum total of $7,500. That, after the plaintiff and defendant had agreed upon the sale of the acreage so purchased, the defendant executed and delivered to the plaintiff his check, payable to W. H. Portwood or order in the sum of $1,500, and, at the time of the execution of such check, the defendant made the following notation upon it: “Por 20 acres, 1279, and 40 Garrett” — and also made the following notation on it: “Part payment subject to title only.” That it was agreed between the parties at that time that plaintiff was to execute two oil and gas leases to the defendant, covering such acreage, and place the same in the Farmers’ National Bank of Seymour, Tex., for the defendant, which the plaintiff did on the 28th day of November, 1925, at which time said leases became the property of defendant, and that the plaintiff was to deliver to the defendant an abstract of title to said acreage, which the plaintiff did, and that defendant was to have said abstract of title examined by his attorneys, and, if said title was held to be a merchantable title by the attorneys, the plaintiff was to draw a draft on the defendant, in the sum of $6,000, balance due on the purchase price of said leases. That the defendant accepted said leases and also said abstract of title and placed same in the hands of his attorneys for examination, and that said attorneys examined said title as reflected by said abstract, and found same to be a merchantable title, thus maturing the balance of said consideration and binding the defendant for the payment of same. That the plaintiff, after learning that the title had been passed by the attorneys of defendant, and after said title had been decreed to be a merchantable title, and after the defendant had accepted said leases, did, on the 22d of December, 1925, draw a draft on the defendant for the sum of $6,000 for the balance of the purchase price of said leases. That plaintiff attached said draft to the two leases and sent the-same, by due course of mail, tp the City National Bank at Wichita Palls, Tex., for collection. That the defendant, upon presentation of the draft by said bank, failed and refused to pay same, and said draft was then returned to the Farmers’ National Bank at Seymour.

After repeating other matters not material here, the plaintiff’s petition further alleges that defendant took possession of said oil and gas leases and began to try to sell same, or a part thereof; alleging the taking of possession of the premises described in said leases, knowing full well that he had purchased same and also knowing all matters above recited.

Upon the question of the drawing of the draft, the plaintiff also alleges: That the “draft, in the sum of $6,000.00, was drawn upon the defendant, in pursuance of an absolute agreement between the plaintiff and defendant to draw said draft and in consideration of the balance due upon the purchase price of said leases, as agreed upon, and in pursuance of the request of the defendant to draw said draft, which would cover the balance of the purchase price of said leases,” etc. That the said sum of $6,000 became due and payable on the 22d day of December, 1925, and the plaintiff is entitled to interest on same. The plaintiff further alleges that ,the draft was drawn upon the defendant in pursuance of an absolute agreement on the part of defendant to pay same in consideration of the balance due upon the purchase price of the leases, etc.

In his prayer for relief, the plaintiff prays for judgment for the sum of $6,000‘, and for a foreclosure of his implied lien.

The defendant’s first amended original answer consists of general and special, exceptions, and a special plea, setting up the statute of frauds. The plaintiff replied to this by filing a supplemental petition.

As stated, the case was tried before a jury, and was submitted to them upon special issues. The issues submitted to them are as follows:

“Special Issue No. 1. At the time plaintiff Portwood signed and acknowledged the leases in the bank at Seymour, was T. D. Humphrey acting as the agent of the defendant Carter?” This was answered in the affirmative.

“Special Issue No. 2. In the negotiations between the plaintiff and defendant at the oil well, was it agreed that the $1,560.00' check, given by the defendant to plaintiff, should.be *424 a forfeit or a partial payment of the consideration? Answer as you find the facts to be.” —which was answered “Partial payment.”

“Special Issue No. 3. If, in answer to special issue No. 1, you have said that Humphrey was acting as agent for defendant Carter, then was Humphrey authorized by Carter to receive the leases from Portwood and deposit them in the Seymour bank for Carter?” which was answered “Yes.”

“Special Issue No. 4. Did Carter direct that the leases be sent to the Security National Bank for inspection of himself and his attorneys?” This was answered “No.”

Special requested issue No. 2, submitted by the defendant and given by the court, is as follows: “Was it the understanding between the plaintiff and the defendant that the lease or leases in question were not to be delivered to Roy I. Carter until the balance of the purchase price of $6,000.09 was paid by Roy I. Carter?” This was answered in the affirmative.

The plaintiff’s contention is that the sale of the leases was a completed transaction; hence he had a right to sue for the purchase money, and, further, that the statute of frauds, requiring the contract to be in writing, does not apply, as nothing remained to be done, delivery having been made and the transaction completed with the exception that the balance of the purchase money had not been paid. If this contention is correct, then it would naturally follow that the statute of frauds does not apply, and therefore the judgment of the trial court should be affirmed, but the defendant controverts the question of delivery having occurred, and, if he is correct in this, it remains for us to then determine whether or not the statute of frauds is applicable to the transaction presented in this case, and, if the statute is applicable, then the judgment of the trial court was erroneous.

If the transaction herein involved was not a completed one, then the two findings of the jury — one, in answer to issue No.

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Bluebook (online)
26 S.W.2d 422, 1930 Tex. App. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-portwood-texapp-1930.