Dollins v. Brooks

229 S.W. 344, 1921 Tex. App. LEXIS 21
CourtCourt of Appeals of Texas
DecidedMarch 3, 1921
DocketNo. 2382.
StatusPublished
Cited by2 cases

This text of 229 S.W. 344 (Dollins v. Brooks) 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
Dollins v. Brooks, 229 S.W. 344, 1921 Tex. App. LEXIS 21 (Tex. Ct. App. 1921).

Opinion

HODGES, J.

This suit was filed in the court below by the First National Bank of Greenville and S. B. Brooks, cashier and a trustee for the bank, against the appellant, to recover a lot in the city of Greenville. The amended original petition contains two counts. The first is in the ordinary form of an action of trespass to try title, and concludes with the usual prayer for relief. The second count alleged, in substance, that in May, 1915, Brooks - as the trustee for the bank' sold and conveyed the property sued for to the appellant in consideration of a note for $15,000 due January 1, 1916, with interest at the rate of 8 per cent, per annum and the usual attorney’s fees. A vendor’s lien was reserved in both the deed and the note. In July, 1917, the appellant was indebted to the bank in the sum of about $18,612.45, most of which was secured by a vendor’s lien on the property. The defendant being then unable to pay the indebtedness due the bank, it was agreed that he would surrender possession to the plaintiffs in consideration of the cancellation of all of his debts except one for $4,700.87. It was further agreed that appellant would convey another lot in the city of Greenville to the bank in consideration of $2,500, and that he would execute his note for $2,200.87, due October 27, 1917. it was also agreed and understood that the plaintiffs should undertake to sell the property to third parties and when they found a purchaser upon satisfactory terms the defendant would execute a deed, conveying all of his rights in the property to such purchaser. It is also alleged that in August, 1917, the plaintiffs made a contract with the firm of Murphy & Olar, whereby the latter were to purchase the property, the consideration being the assumption by them of an indebtedness existing against the property amounting in the aggregate to $15,046.70, this being exclusive of the debt for $2,200.87 above mentioned. In pursuance of that contract of sale Murpby & Olar went into possession of the property with the knowledge and consent of the defendant, and expended more than $1,000 in making improvements thereon. Those improvements were made with money advanced by the bank on the faith of the agreement, theretofore made with the defendant, that he would convey title to such purchaser; but when called upon to execute the deed of conveyance the defendant refused unless the bank would release him from the debt for $2,200.87.- It is further alleged that the plaintiffs had not agreed to release the defendant from that obligation; that this was his personal indebtedness to the bank for money advanced which was not used in the operation of the gin. The plaintiffs asked for judgment against the defendant, removing any apparent claim, right, title, or interest he may have, or appear to have in the property, and for such other relief, general and special, to which they may be entitled.

In his special answer the appellant did not deny the sale and purchase of the property in controversy. He alleged however, that it originally consisted of an old gin plant, against which the bank held an indebtedness amounting to $10,055; that he agreed to take- *345 the property and assume the payment of that debt; that the note was made for $15,000, a sum in excess of the real purchase price, m order to cover advances which the bank agreed to make thereafter to enable him to operate the gin. After having operated the gin until some time in 1917, and being unable to pay off the debt assumed, he entered into an agreement with Brooks, as the representative of the bank, whereby Brooks was to sell the property to some third party in consideration of the assumption by such party of the entire indebtedness which the defendant had incurred in the purchase and the operation of the gin. He alleged that—

“On or about September 1, 1917, Brooks, acting for and in behalf of the bank, proposed to him (defendant) that the gin plant be sold in liquidation of the balance due by defendant; that defendant thereupon agreed that, if he or the plaintiff Brooks could find a purchaser for the said property who would take the same and pay defendant back the total balance due by defendant, he (defendant) would execute a deed to such purchaser; that thereafter and in pursuance of said agreement to sell said property the plaintiff Brooks informed the defendant that he had sold same to Murphy & Olar, and presented a deed to defendant with the request that he execute the same.”

He says that be refused to sign that deed because Brooks refused to cancel the entire indebtedness held against him by the bank. He further alleges that the house, machinery, and other appurtenances belonging to the property had been insured, and that on or about the 14th of November, 1917, the plant and houses and large part of the machinery were destroyed by fire; that the bank collected on the policies of insurance the sum of $11,898.55; that this money should have been credited on the account of the defendant previously described. He also charges that the plaintiffs converted to their own use a large portion of the machinery, aggregating something over $3,000. He avers that he had therefore offered and tendered to plaintiffs, and has at all times been ready and willing and now offers to pay plaintiffs, the balance due on said account after deducting all payments theretofore made by him, including the sums of money collected by the bank from the insurance companies and the value of the machines, houses, and salvage which were not destroyed by fire, and which had since been taken and converted by the plaintiffs. Defendant was unable to state the exact amount of the balance that would then be due, but offers to pay the bank whatever sum a correct auditing and accounting may show that balance to be. He concludes with a prayer that the plaintiffs be required to render an accounting; that the note sued upon be declared an accommodation paper, collateral security with vendor’s lien against the property, and that he have judgment over against the plaintiffs for the sum of $3,025.

At the conclusion of the testimony the court gave a peremptory instruction to the jury to return a verdict in favor of the plaintiffs for the lot sued for, without prejudice to the rights of the parties to litigate in the future appellant’s liability for the debt of $2,200. The only assignment of error presented in this appeal is one which assails the correctness of that charge. It is claimed that the testimony was such as to support a finding that the plaintiffs in the suit had agreed to cancel that indebtedness as a condition upon which appellant should execute a conveyance to Murphy & Olar. It appears from the testimony that the appellant’s refusal to execute the conveyance to Murphy & Olar was due to the refusal of Brooks to surrender the $2,200.87 note.

The facts about which there appears to be no dispute are, in substance, as follows: At the time stated by the appellees in their amended original petition they sold and conveyed the lot in controversy to the appellant. At that time there was standing on the lot a gin plant, which the bank had previously taken over in satisfaction of a debt. The consideration mentioned in the deed to the appellant was $15,000, evidenced by a note due January 1st thereafter, bearing interest at the rate of 8 per cent, per annum, and providing for the collection of attorney’s fees in the usual form. It was admitted, how.ever, in the trial, that this note exceeded the real purchase price which the appellant was to pay. It was made larger in order to cover advances that might thereafter be made by the bank to enable him to operate the gin.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Home Improvement Loan Co. v. Brewer
318 S.W.2d 673 (Court of Appeals of Texas, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
229 S.W. 344, 1921 Tex. App. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dollins-v-brooks-texapp-1921.