Estate of Eberling v. Fair

546 S.W.2d 329
CourtCourt of Appeals of Texas
DecidedDecember 13, 1976
Docket19037
StatusPublished
Cited by22 cases

This text of 546 S.W.2d 329 (Estate of Eberling v. Fair) 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
Estate of Eberling v. Fair, 546 S.W.2d 329 (Tex. Ct. App. 1976).

Opinion

*331 GUITTARD, Justice.

This suit began as an action to establish an undivided interest in 177 acres of land and for partition. Before trial, counsel for all parties attempted to settle the controversy and to that end exchanged four letters. Defendants, however, refused to recognize the letters as a binding settlement. Plaintiffs then amended their petition, alleged that the four letters constituted a binding agreement, and prayed for a declaration of rights. Plaintiffs also filed a motion for partial summary judgment, which the trial court granted, reserving for jury trial issues concerning the effect of one aspect of the agreement. After trial and verdict on these issues, the court rendered judgment for plaintiffs enforcing the agreement as interpreted by the verdict. Defendants appeal. We hold that the four letters do not constitute a binding contract because essential terms are not agreed on, and for like reasons, we hold that they are unenforceable as a memorandum in writing to satisfy the Statute of Frauds, Tex.Bus. & Comm.Code Ann. § 26.01(b)(4) (Vernon 1968).

The four letters are as follows, with our captions and emphasis added:

(1) Defendants to Plaintiffs, April 22,1974
In order to settle the captioned litigation, I am authorized to commit to the ownership of a total of an undivided %th interest by your clients, J. Roll Fair and Roy R. Fair, Jr., in the real estate which is the subject of the captioned litigation, if they will exercise one of the following options in writing within the period of fifteen (15) days following the date of this letter:
1. J. Roll Fair and Roy R. Fair, Jr., together, may specify a dollar value per acre for the subject land and my client will have the option to either buy the ¾ th interest from or sell the 7/⅞⅛ interest to your clients at the dollar value specified, OR
2. Your clients may elect to buy the V»th interest or sell the 2Mh interest and my client will specify the dollar value at which they will buy or sell.
In either instance the party setting the value per acre will be firmly obligated to buy from or sell to the other party depending upon the election of the other party at the elected value.
Please let me have your clients’ election or a response declining this offer at your earliest convenience.
(2) Plaintiffs to Defendants, May 6,1974
I am writing on behalf of my clients, the two plaintiffs in the above styled matter pending in the 95th District Court, Roy R. Fair, Jr., and J. Roll Fair, to accept on their behalf the second option proposed by you in your letter dated April 22, 1974.
Your letter of that date listed two options for settling the above styled litigation in full. The second option in your letter is as follows:
2. Your clients may elect to buy the 7/¾⅛ interest or sell the ¾⅛ interest and my client will specify the dollar value at which they will buy or sell.
It is this option which my clients are accepting as to the land in litigation, that being 177 acres in Dallas County, Texas, near Seagoville, which property is described in full in Plaintiffs’ First Amended Petition on file and which is also described in Exhibit A attached to this letter of acceptance.
With the acceptance by my clients, your client will now specify the dollar value of the 177 acre tract and my clients will then have the option * of either buying out your client’s interest for an amount of money equal to 7/⅞⅛ of the total value of the property as set by your client, or to sell their interest to your client for an amount of money equal to ⅜ th of the total value of the property as set by your client.
EXHIBIT A
(Description by metes and bounds.)
*332 (3) Defendant to Plaintiffs, July 17,1974
On behalf of my client in the captioned matter, pursuant to the procedures instituted by my letter to you of April 22, 1974, I will place a value on the subject tract of $750.00 per acre.
Your letter to me of May 6, 1974, described the land as 177 acres. This area should be reduced by a sufficient area to accommodate the house which is situated partially on the subject tract.
In order to complete the contemplated transaction, please have your clients make their election to buy or sell within twenty (20) days from the date of this letter and advise me in writing of their election.
Within fifteen (15) days from the date of your advice to me mentioned in the preceding paragraph, we will close this transaction by the seller executing a special warranty deed conveying to the purchaser the appropriate interest under our arrangement and the purchaser shall pay to the seller, in cash or certified funds, the appropriate purchase price calculated by using $750.00 per acre times the total area (less the portion agreed upon to accommodate the house) times the appropriate fraction (%ths or Vrths as the case may be).
When the conveyance and payment of the purchase price described in the preceding paragraph are completed, the pending litigation should be dismissed with prejudice as to all parties.
(4) Plaintiffs to Defendants, August 1,1974
Reference is made to your letter of July 17, 1974, wherein a value on the tract of land involved in the above styled and numbered suit was set by your client at $750 per acre.
Within the time provided by the terms of that letter this is to advise that my clients, the plaintiffs, elect to buy the property at the $750 per acre price.
In your letter of July 17, 1974, you refer for the first time to a reduction of the 177 acres ‘ * * * by a sufficient area to accommodate the house which is situated partially on the subject tract.’
In order to give recognition to the %ths interest owned by the plaintiffs in the full 177 acres and at the same time ‘accommodate the house’ owned by the defendants, the plaintiffs should receive ⅜ ths of $750 times the numbers of acres agreed upon to ‘accommodate the house.’ Thereafter, that number of acres shall be subtracted from the 177 total acres and the resulting figure multiplied by $750 per acre times 7/9ths. I am sure this is what you meant in your letter when you said ‘accommodate’ since it would be the only reasonable and fair way in which to set aside part of the total acreage for the house.
I have tried to reach you by telephone in order to discuss with you the amount of land necessary ‘to accommodate the house’

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Bluebook (online)
546 S.W.2d 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-eberling-v-fair-texapp-1976.