Carter v. Walton

469 S.W.2d 462, 1971 Tex. App. LEXIS 2468
CourtCourt of Appeals of Texas
DecidedMay 27, 1971
Docket601
StatusPublished
Cited by37 cases

This text of 469 S.W.2d 462 (Carter v. Walton) 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. Walton, 469 S.W.2d 462, 1971 Tex. App. LEXIS 2468 (Tex. Ct. App. 1971).

Opinion

OPINION

BISSETT, Justice.

This is primarily an agency case and the main point involved in this appeal is wheth *465 er the principals were disclosed or undisclosed.

Irving Walton, d/b/a Walton Neon Company, as plaintiff, sued Tally-Ho Motor Hotel, Inc., WKD&C, Inc., GJ&W Investments, Inc., and Clyde K. Carter as defendants. WKD&C, Inc., as cross-plaintiff, filed a counterclaim against plaintiff. The trial court instructed a verdict in favor of plaintiff on the counterclaim. After a trial before a jury, but prior to the entry of judgment, plaintiff took a non-suit with prejudice as to the defendants WKD&C, GJ&W Investments, Inc., and Tally-Ho Motor Hotel, Inc. The jury answered all issues favorably to plaintiff, who then elected to take, and did take a personal judgment against Clyde K. Carter.

WKD&C, Inc. has appealed from the judgment that it take nothing on its coun-erclaim and Clyde K. Carter has appealed from the judgment entered against him. The parties will be referred to either by name, or by plaintiff with respect to Walton, by defendant with respect to Carter, or by cross-plaintiff with respect to W K D & C, Inc.

It is admitted by Carter that at all times pertinent to this lawsuit he was an officer and an agent of W K D & C, Inc. and of GJ&W Investments. It is undisputed that he was not an agent of Tally-Ho Motor Hotel, Inc.

It is established by the evidence that the contracts upon which plaintiff sued were signed by Henry Price, but were negotiated by and between Carter and the plaintiff, Walton. It is plaintiff’s contention that Carter is either a party to the contracts or that he acted as the agent for his undisclosed principals. Carter contends that he acted solely as an agent for fully disclosed principals. Therefore, unless Carter is liable as a contracting party, then his liability depends upon whether or not his principals were disclosed to plaintiff at the time the contracts were made and the materials and services were furnished. In deciding this issue, we must be guided not only by the evidence adduced at the trial but by the pleadings as well. A rather detailed resume of both the evidence and pleadings is necessary.

We are here concerned with the original Viking Motor Hotel, located near Portland, Texas, and the original Tally-Ho Motor Hotel, located in Corpus Christi, Texas. WKD&C, Inc. purchased the Viking Motor Hotel sometime between March 1968 and August 30, 1968; during the same interval of time, GJ&W Investments, Inc. purchased the Tally-Ho Motor Hotel. On May 15, 1968, a written lease was executed by and between Park Central Apartments, Inc. (the predecessor in title of G J & W Investments, Inc.), as lessor, and Henry Price, as lessee, covering the original TallyHo Motor Hotel. On August 31, 1968, a written lease was executed by W K D & C, Inc., as lessor, and the same Henry Price, as lessee, covering the original Viking Motor Hotel.

Plaintiff did not learn that these hotels were owned by the aforesaid corporations or that they were under lease to Price until after he filed this suit.

After the purchase of the Hotels, it was decided that the original Viking would be renamed “Tally-Ho East Motor Hotel” and the original Tally-Ho would be renamed “Tally-Ho West Motor Hotel”; this required the construction of a new sign for the original Viking and a revision of the then existing sign for the original TallyHo. In August 1968, Price contacted plaintiff and told him that a new sign was required for the Viking, and following a personal conference between the two on August 21, 1968, when Price told plaintiff that Carter was one of the owners of the hotel, plaintiff prepared preliminary drawings of the new sign.

On August 30, 1968, plaintiff went to the Tally-Ho Motor Hotel, and was introduced by Price to Carter. The drawings for the contemplated sign were then examined by Carter, who after some discussion with plaintiff, decided that they were *466 not satisfactory. He then outlined his requirements to plaintiff and requested that plaintiff redesign the sign at once as he (Carter) had to get back to Fort Worth without delay. Whereupon, plaintiff returned to his place of business, went to work, and in the afternoon of the same day completed the new drawings and returned to the Tally-Ho, where he again met with Price and Carter. The three of them drove to the airport and Carter and plaintiff studied the new drawings on the way. Carter asked all of the questions; plaintiff answered the questions; Price took no part in the discussion and made no decision on any matter. The drawings and plans for the new sign, as redesigned, were approved by Carter. Plaintiff handed Carter a written proposal concerning the new sign for the old Viking Motor Hotel, to be renamed "Tally-Ho East Motor Hotel”. Carter approved the proposal, said that the contract price was satisfactory, and told plaintiff “when you finish, your money will be waiting for you”. Carter did not sign the proposal at that time and took it back to Fort Worth with him; he never delivered the signed proposal to plaintiff and did not execute it in his presence.

On September 4, 1968, plaintiff went to see Price at the Tally-Ho and took with him three proposed contracts, which were sued upon by plaintiff and were introduced in evidence at the trial as plaintiff’s exhibits 7, 8 and 9; exhibit 7 concerned the new sign for the Tally-Ho East; exhibit 8 concerned the temporary sign for the TallyHo East; exhibit 9 concerned the revision of the existing sign for the Tally-Ho West. The proposed contracts were all dated “9-3-68”, submitted to “Tally-Ho Motor Hotel”, attention “Mr. Price & Mr. Carter” and signed by “Hank Price” on “9-4-68”. When these proposed contracts were first submitted, Price refused to sign any of them until he got clearance from Carter. Price then telephoned Carter, and plaintiff and Carter discussed the problems that had arisen subsequent to their previous meeting and discussion on August 30, 1968. The difficulties were apparently resolved and plaintiff testified that Carter instructed him to go ahead with the work. After the telephone conversation was concluded, plaintiff advised Price that he needed signatures on the three proposals. Price signed them in plaintiff’s presence.

Plaintiff was never paid for his work (either for the signs or for the materials and services rendered in making repairs), and on January 30, 1969, filed suit naming Tally-Ho Motor Hotel, Inc., as sole defendant. He alleged that Price and Carter held themselves out as agents of Tally-Ho Motor Hotel, Inc. in certain negotiations, whereby plaintiff and Tally-Ho Motor Hotel, Inc. contracted for the construction of the signs; in addition plaintiff alleged that he furnished certain services and materials pursuant to defendant’s order. The pleadings were amended by the filing of a second amended original petition on November 1, 1969, wherein plaintiff named TallyHo Motor Hotel, Inc., W K D & C, Inc., G J & W Investments, Inc., and Clyde K. Carter as defendants.

Defendants (save and except Tally-Ho Motor Hotel, Inc.), on November 7, 1969, filed their sworn first amended original answer (in answer to plaintiff’s second amended petition), consisting of a general denial, special denials, and special exceptions, some of which were sustained and some of which were overruled.

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Bluebook (online)
469 S.W.2d 462, 1971 Tex. App. LEXIS 2468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-walton-texapp-1971.