Ellis v. Waldrop

627 S.W.2d 791, 1982 Tex. App. LEXIS 3821
CourtCourt of Appeals of Texas
DecidedJanuary 21, 1982
Docket18596
StatusPublished
Cited by22 cases

This text of 627 S.W.2d 791 (Ellis v. Waldrop) 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
Ellis v. Waldrop, 627 S.W.2d 791, 1982 Tex. App. LEXIS 3821 (Tex. Ct. App. 1982).

Opinion

OPINION

HOLMAN, Justice.

This suit originated as a declaratory judgment action to construe a recorded agreement under which appellant claimed the first right of refusal to purchase a tract of land.

The action sought to remove cloud on the title by a determination that the land had not been sold until after appellant’s right had expired.

The tract was owned by appellant G. C. Waldrop and his late wife. Their son, appellant Thomas Coleman Waldrop, is trustee under his mother’s will.

G. C. Waldrop offered appellant the land, but failed to reach agreement and sold it to appellees Aghamalian and Wilemon. Agha-malian later sold his interest to appellee Mahoney.

Upon jury findings, the judgment (1) can-celled appellant’s first right of refusal, removing its cloud on the land title; (2) awarded damages to appellees Wilemon and Mahoney upon their cross-claims for slander or cloud of title; and (3) awarded attorneys fees to the Waldrops, Wilemon and Maho-ney.

We affirm.

By its terms, the first right of refusal is an agreement between appellant Ellis and G. C. Waldrop only, although it is signed also by Thomas Coleman Waldrop.

The agreement contains the following language:

“Waldrop must first offer the tract . . . to Ellis for his refusal at the same price as is being offered by any third party or parties for the same in a bona fide offer by a proposed purchaser, who is ready, willing and able to purchase same, and . . . the terms offered to Ellis must be not less than those offered by the pro *794 posed third party purchaser. Ellis shall have a reasonable time, not to exceed 30 days in which to refuse to purchase same, at which time, this option as to the tract offered for sale or purchase, shall cease and said tract shall be free and clear of any further rights on behalf of said Ellis, only if said tract or tracts is sold to said Third Party and closed.”

Appellant urges twenty two points of error.

The first point is that there was no pleading or evidence that the Waldrops offered the land to appellant as required by the first right of refusal before selling to Agha-malian and Wilemon.

Aghamalian and Wilemon went to trial on their second amended original answer which recites the language of the first right of refusal and pleads (1) that G. C. Wal-drop’s attorney presented appellant with the opportunity to exercise that right; and (2)the right expired by its own terms when appellant failed to exercise it within thirty days.

A first right of refusal vests its holder with an option to purchase. Humphrey v. Wood, 256 S.W.2d 669 (Tex.Civ.App.—Amarillo 1953, writ ref’d n. r. e.).

Under a “first refusal” agreement, the primary right that accrues to the option holder is the entitlement to an opportunity to buy on the same terms as are offered by any bona fide purchaser. Gochman v. Draper, 389 S.W.2d 571 (Tex.Civ.App.—Austin) rev’d on other grounds, 400 S.W.2d 545, (1966); Mecom v. Gallagher, 213 S.W.2d 304 (Tex.Civ.App.—El Paso 1947, no writ).

We conclude that the allegations by Wilemon and Mahoney sufficiently pled that the Waldrops offered the land to appellant as required by the first right of refusal agreement.

In answer to special issue No. 1, the jury found that, acting through their attorney, the Waldrops did give appellant an opportunity to purchase the land at the same price and terms offered by “Aghamalian, Trustee”.

Appellant argues that there is no evidence on which to base such a finding.

If there is probative evidence which supports the finding, the point must be overruled. In making that determination, it is our duty to consider only the evidence which tends to support the jury’s findings, view such evidence in a light most favorable to those findings, and disregard all contrary evidence. Glover v. Texas Gen. Indem. Co., 619 S.W.2d 400 (Tex.1981); Butler v. Hanson, 455 S.W.2d 942 (Tex.1970).

The evidence shows that by letter dated April 15, 1977, G. C. Waldrop’s attorney presented appellant with a copy of a contract of sale between Waldrop and “Richard A. Aghamalian, Trustee”, covering the land for which appellant then held the first right of refusal.

The contract set a total price of $55,-000.00 and designated Aghamalian (a) as the purchaser in a “trustee” capacity and (b) as a co-broker entitled to share in a real estate commission of $3,300.00 for negotiating the sale.

On its face, the Aghamalian contract was made subject to appellant’s first right of refusal and was conditioned upon appellant’s waiver or release of that right.

The contract required Aghamalian, trustee, to escrow a $4,500.00 letter of credit if appellant’s signature was obtained on a waiver or release.

The April 15, 1977, letter also tendered to appellant a proposed contract whereby he could purchase the land “upon the same terms and conditions as those offered to Mr. Waldrop by Richard A. Aghamalian, Trustee”. The letter requested appellant to accept or reject within thirty days.

A comparison of the two contracts shows that Aghamalian would not be required to escrow the $4,500.00 letter of credit until five days after Waldrop obtained waiver or release of appellant’s first right of refusal; while appellant would be required to make such an escrow within five days of signing his contract.

*795 Appellant also emphasizes that Waldrop never required Aghamalian to escrow a letter of credit.

The evidence shows that rather than the sale being closed into “Richard A. Aghama-lian, Trustee”, it was closed into “Richard A. Aghamalian and Brad L. Wilemon”.

Appellant argues that while both contracts set a $55,000.00 sales price, Aghama-lian was able to offset his share of the real estate commission against the $55,000.00, in effect paying less for the land than appellant would have been required to pay.

Appellant therefore contends that the terms and conditions offered him were not the same as those in the Aghamalian contract.

Appellant initially responded to Waldrop by letter dated May 17, 1977. That letter protested that Aghamalian’s real estate commission would render his contract materially different from the one offered to appellant. The letter stated that the appellant “would appreciate being offered a contract on the same terms as the purchasers [Aghamalian, Trustee] ...”

When subsequent negotiations failed to produce agreement with appellant, the sale was closed into Aghamalian and Wilemon.

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

Related

American Apparel Products, Inc. v. Brabs, Inc.
880 S.W.2d 267 (Court of Appeals of Texas, 1994)
Traco, Inc. v. Arrow Glass Co., Inc.
814 S.W.2d 186 (Court of Appeals of Texas, 1991)
C & C Partners v. Sun Exploration & Production Co.
783 S.W.2d 707 (Court of Appeals of Texas, 1989)
Swest, Inc. v. American Airlines, Inc.
694 S.W.2d 399 (Court of Appeals of Texas, 1985)
Muhlbauer v. Muhlbauer
686 S.W.2d 366 (Court of Appeals of Texas, 1985)
J.M.R. v. A.M.
683 S.W.2d 552 (Court of Appeals of Texas, 1985)
B.A.L. v. Edna Gladney Home
677 S.W.2d 826 (Court of Appeals of Texas, 1984)
Palmer v. Liles
677 S.W.2d 661 (Court of Appeals of Texas, 1984)
Various Opportunities, Inc. v. Sullivan Investments, Inc.
677 S.W.2d 115 (Court of Appeals of Texas, 1984)
NRC, INC. v. Pickhardt
667 S.W.2d 292 (Court of Appeals of Texas, 1984)
First City Bank-Farmers Branch v. Guex
659 S.W.2d 734 (Court of Appeals of Texas, 1983)
Porter v. Irvine
658 S.W.2d 711 (Court of Appeals of Texas, 1983)
Ellis v. Waldrop
656 S.W.2d 902 (Texas Supreme Court, 1983)
Ryan Mortgage Investors v. Fleming-Wood
650 S.W.2d 928 (Court of Appeals of Texas, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
627 S.W.2d 791, 1982 Tex. App. LEXIS 3821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-waldrop-texapp-1982.