Elick v. Schiller

235 S.W.2d 494, 1950 Tex. App. LEXIS 1795
CourtCourt of Appeals of Texas
DecidedOctober 12, 1950
DocketNo. 12213
StatusPublished
Cited by4 cases

This text of 235 S.W.2d 494 (Elick v. Schiller) 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
Elick v. Schiller, 235 S.W.2d 494, 1950 Tex. App. LEXIS 1795 (Tex. Ct. App. 1950).

Opinions

MONTEITH, Chief Justice.

Appellee, Mrs. Olga Schiller, brought this action against appellant, J. J. Elick, to establish a constructive trust in certain oil royalties held by Elick and for judgment against appellant and C. J. Marik for damages for the market value of other royalties assigned to other parties by appellant.

In his answer appellant denied the facts alleged to give rise to a constructive trust in favor of appellee and alleged that appel-lee’s cause of action for damages, if true, were barred by the two-year statute of limitations under Article 5526, Section 4, Revised Civil Statutes. C. J. Marik pled that he was an innocent purchaser for value.

Appellant relies for reversal on two points of assigned error in which he contends that appellee’s testimony that a constructive trust was created by virtue of the fact that appellant was acting as the agent of appellee and her deceased husband at the time of the purchase and sale of said 242 acres of land was contrary to the express terms of the written instruments under which he acquired said land which were binding on appellee and that the most of such testimony of such agency was either hearsay or the inadmissible opinions of witnesses. He further contends that appellee’s claim for damages was barred by the two-year statute of limitations.

Appellee and her deceased husband, Leo Schiller, became the owners of the 242 acres of land in Austin County, Texas, involved in this suit by deed dated March 14, 1922. They sold half of the minerals under the land in 1930. On December 18, 1945, they executed a deed conveying said land including the minerals thereunder to appellant and deposited said deed with appellant’s earnest money check for the sum of $200 and an agreement executed by Leo Schiller as vendor and J. J. Elick as purchaser in escrow with the First National Bank of Bellville, Texas. Under the escrow contract Schiller agreed to sell and appellant agreed to purchase said 242 acres of land for the sum of $25 per acre. The contract provided that 1/2 of the minerals under the land had been sold but that the other 1/2 of the minerals was owned by vendors and would be conveyed by the deed to the purchaser and that a warranty deed to said land executed by the seller and his wife was made a part of the agreement as evidence of good faith and that it would be returned to the seller in the event the sale was not consummated. The First National Bank of Bellville was made escrow agent for the purpose of evidencing the receipt of the earnest money. Appellee, Olga Schiller, did not sign the escrow agreement.

[496]*496The deed and escrow agreement between Leo Schiller and appellant remained in the hank until January 22, 1946 when Elick gave the bank his personal check for $5850 and the bank turned over said deed to him and credited the account of Leo and Olga Schiller with the sum of $6050, being $25 per acre for said 242 acres of land. Appel-lee contends that she did not receive or make use of this money.

On January 22, 1946, appellant executed and delivered a deed to said land to G. C. Yelderman and received from him a check for $6,050. In this deed appellant reserved in himself a 1/32 non-participating royalty in said land. The deed provided that it was subject to any oil, gas and mineral leases and/or mineral and royalty deeds theretofore made by prior owners.

On January 23 1946, appellant had said deed recorded and paid the amounts due for the abstract to said land and for the revenue stamps on the deed from the Schillers to him.

G. C. Yelderman to whom appellant transferred said land testified that he had had no dealings with Leo Schiller prior to the purchase of said land and he was permitted to testify over appellant’s objections that he “got an impression from Elick that the Schillers were insisting on reserving the royalty for themselves.”

Appellee testified that she heard her husband tell appellant to find a purchaser for said land. When questioned as to whether she knew what minerals were outstanding in herself and Leo Schiller at the date of the deed to appellant she stated that she thought it was a 1/2; “my husband attended to all those matters.”

Over appellant’s objections she was permitted to testify that “they were always under the impression that they had sold their land to Dr. Yelderman and that they always wanted to keep back some of their royalties.”

Article 7425b — 7, Vernon’s Ann.Civ.St. provides that a trust in relation to or consisting of real property shall be created, established or declared by written instrument.

In the case of Mills v. Gray, 147 Tex. 33, 210 S.W.2d 985, it was held by the Supreme 'Court of this state that a constructive trust may be created by parol if the transfer was procured by fraud, duress, undue influence or mistake or if the transferee at the time of the transfer was in a confidential relation to the transferor.

In the instant case appellee alleged that appellant was an agent of herself and her deceased husband for the purpose of selling their land. However, in' this case the agency depended entirely upon parol evidence contrary to the express provisions of a deed from the Schillers to appellant and an escrow agreement which expressly stated that the vendor had sold said land to the purchaser for a consideration of $25 per acre.

In this case there is direct evidence that said deed from the Schillers to Elick refers to him as grantee and the written contract calls him the purchaser and required him to deposit in escrow $200 of his own funds and to pay to the Schillers $5850 subject to the acceptance of the title. It is undisputed that the vendors did not trust appellant with the deed to the land but on the contrary required that it and the escrow agreement be deposited in the bank at Bellville.

It is a well established rule of law in this state that a contract is binding on those who sign it in the absence of a showing that the signature was obtained by trick or artifice.

In the case of W. L. Macatee & Sons v. Chambers, Tex.Civ.App., 69 S.W.2d 486, affirmed Indemnity Insurance Co. of North America v. W. L. Macatee & Sons, 129 Tex. 166, 101 S.W.2d 553, 556, it was held that: “Every person having capacity to make a contract, in the absence of fraud, misrepresentation, or concealment, must be held to have known what the words used in a contract made by him were, and to have known their meaning; and he must also be held to have known and fully comprehended the legal effect of the contract which the words used made.”

In the instant case while appellee did not join in the written escrow agreement, she is here seeking to ingraft a constructive trust [497]*497upon a deed executed by her and her husband by reason of an alleged prior oral agreement between appellant and her deceased husband. Appellee testified that she was told nothing about the transaction at the time of the transaction except that her husband told her to “sign that paper” and the notary public who took her acknowledgment showed her the line on which to sign. She testified that appellant had “got me and my husband * * * to sign a paper that he had, a writing to sell the place”.

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MJR Corp. v. B & B VENDING CO.
760 S.W.2d 4 (Court of Appeals of Texas, 1988)
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Schiller v. Elick
240 S.W.2d 997 (Texas Supreme Court, 1951)

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Bluebook (online)
235 S.W.2d 494, 1950 Tex. App. LEXIS 1795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elick-v-schiller-texapp-1950.