Cassel v. West

98 S.W.2d 437
CourtCourt of Appeals of Texas
DecidedSeptember 28, 1936
DocketNo. 4637
StatusPublished
Cited by15 cases

This text of 98 S.W.2d 437 (Cassel v. West) 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
Cassel v. West, 98 S.W.2d 437 (Tex. Ct. App. 1936).

Opinion

MARTIN, Justice.

Appellee sued appellant for the balance due on notes and to foreclose his lien, on 160 acres of land given to secure same. Appellant filed a cross-action to cancel a mineral lease on said land theretofore given appellee by appellant, alleging certain fraudulent promises to develop same, and for damages. Such cross-action is all that is properly' involved here.

Judgment was for appellee and against appellant upon his cross-action.

The general nature of the case, as well as' the legal questions involved, are fairly well illustrated • by the following special issues submitted to the jury:

“Special Issue No. 1. Do you find from a preponderance of the evidence that E. ■E. West, before he' procured the lease from V. S. Cassel, represented to V. S. Cassel that he would develop the mineral lease in controversy?
“Special Issue No. 2. Do you find from a preponderance of the evidence that said representations, if any, were falsely made?
“Special Issue No. 3. Do you find from a preponderance of the evidence that said representations, if any, were made by E. E. West without the intention of performing them?
“Special Issue No. 4. Do you find from a preponderance of the evidence that V. S. Cassel was deceived by said representations ?
“Special Issue No. S. Do you find from a preponderance of the evidence that V. S. Cassel was induced by said representations, if any, to execute the mineral lease of date June 23, 1933?
“Special Issue No. 6. If you have found in answer to preceding issues that E. E. West did not intend to develop the mineral lease in controversy at the time the lease was executed, then do you find from a preponderance of the evidence that in February, 1934, at the time V. S. Cassel received $30.00 in lieu of royalty, that he had knowledge of the fact that the said E. E. West at the time of the execution of the lease did not intend to immediately develop the lease?
“Special Issue No. 7. If you have found in answer to preceding issues that E. E. West did not intend on June 23, 1933, to develop the mineral lease 'in controversy, then do you find from a preponderance of the evidence that V. S. Cassel had knowledge of such fact prior to August 8, 1934?
“Special Issue No. 8. In what.amount, if any, do you find from a preponderance of the evidence was the value of the land in controversy, if any, by the removal of the property by the plaintiff, E. E. West?
“Plaintiff’s Requested Special Issue No. 1. Do you find from the evidence that in October, 1933, at the time V. S. Cassel demanded and received $45.00 in lieu of royalty that he had knowledge of the fact that E. E. West at the time of the execution of the lease on June 23, 1933, did not [439]*439intend to immediately purchase and install sufficient machinery to work the lease?-

“Plaintiff’s Requested Special Issue No. 2. Do you find from the evidence that in December, 1933, at the time V. S. Cassel received $30.00 in lieu of royalty that he had knowledge of the fact that E. E. West at the time of the execution of the lease on the 23rd of June, 1933, did not intend to immediately purchase and install sufficient machinery to work the lease?

“Plaintiff’s Requested Special Issue No. 3. Do you find at the time V. S. Cassel attempted to cancel the lease in controversy by letter on or about the 8th day of August, 1934, that he had knowledge of the fact that E. E. West, at the time he received the lease, did not immediately intend to purchase and install sufficient machinery to work the lease?

The jury answered special issues Nos. 1, 5, 6, and 7, “Yes,” but failed to answer the remaining issues.

We are of the opinion that this case should be affirmed for the following three reasons:

1. The evidence conclusively shows that no fraudulent intent existed in the mind of appellee at and prior to the time of the signing of the mineral lease in question.

2. It conclusively appears that appellant was not deceived by the alleged fraudulent representations.

3. The jury found in effect, and the evidence overwhelmingly if not conclusively shows, that appellant waived the fraud alleged to have been practiced upon him by appellee.

These-reasons we now discuss in detail.

The appellee alleged, in part:

“* * * That the said E. E. West stated and represented to the said V. S. Cassel that if the said V. S. Cassel would make, execute and deliver the aforesaid mineral lease, he would develop said land and produce and market the aforesaid minerals, particularly silica, pumice and Fuller’s earth. * * *
“That he would immediately purchase, install and operate sufficient machinery therefor.”

Appellant testified in part:

“A. He said he would go into development immediately.
“Q. What did he say to you? A. He said as soon as we could get the things rounded up and get the lease and get the equipment on the land we would go to work at it, and he employed me and said he would put me on the payroll immediately as manager of construction and operation work.
“Q. Did he tell you about how much ■ machinery it would take to develop it? A. He did not know at that time.
“Q. But he told you he would put enough machinery there to produce the minerals and market them? A. Yes, sir.”

The case was submitted upon the above special issues, as correctly presenting the respective theories of the parties as raised by the evidence without objection by appellant, but over the vigorous objection of appellee, who presented a request for a peremptory instruction, and other objections not necessary to here repeat.

It will be noted that appellant’s alleged fraud had its basis in promises to be performed in the future. There is a marked difference between fraud arising out of such promises and that based upon representations as to present or pre-exist-ing facts. Respecting the latter, scienter or intent to deceive are immaterial elements. Stowe v. Wooten (Tex.Civ.App.) 37 S.W.(2d) 1055, affirmed (Tex.Com.App.) 62 S.W.(2d) 67; 20 Téx.Jur. pp. 42 and 44. The rule as to the former is correctly stated, we think, as follows:

“Ordinarily a promise to perform some act in the future, although made by one party as a representation to induce the other to enter into the contract, will not amount to fraud in legal acceptation, though subsequently the promise is, without any excuse, entirely broken and non-fulfilled. This is a plain and well-established proposition, about which there can be no controversy; otherwise every breach of a contract would amount to fraud.
“In order for a promise to constitute fraud it is necessary that it should have been made with the intent at the time that it would not be performed, and with the intention, design and purpose of deceiving.” 20 Tex.Jur. pp. 32 and 33, and numerous authorities there cited.

Fraud of this character must be such as carries with it moral turpitude or intentional wrong. Higginbotham-Bartlett Co. v. Powell (Tex.Civ.App.) 270 S.W. 193. See, also, Mid-Continent Life Ins. Co. v.

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98 S.W.2d 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cassel-v-west-texapp-1936.