First National Bank at Lubbock v. John E. Mitchell Co.

727 S.W.2d 360, 1987 Tex. App. LEXIS 6850
CourtCourt of Appeals of Texas
DecidedMarch 31, 1987
Docket07-85-0164-CV
StatusPublished
Cited by28 cases

This text of 727 S.W.2d 360 (First National Bank at Lubbock v. John E. Mitchell Co.) 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
First National Bank at Lubbock v. John E. Mitchell Co., 727 S.W.2d 360, 1987 Tex. App. LEXIS 6850 (Tex. Ct. App. 1987).

Opinion

COUNTISS, Justice.

This is a suit to remove a cloud on the title to real property. Appealing from a take nothing judgment, appellants First National Bank of Lubbock, Marvin McLarty, Jr. and Dorothy McLarty (hereafter collectively “the Bank”, unless otherwise indicated) contend the evidence is legally and factually insufficient to support the verdict and also contend the jury’s findings are in irreconcilable conflict. Appellee John E. Mitchell Company (“the Company”), after responding to the Bank’s points, advances three cross-points, contending it was entitled to recover attorney’s fees and obtain jury findings on various issues under section 24.02 of the Texas Business & Commerce Code, and arguing that the McLar-tys are not before us because they did not perfect their appeal. We reverse and remand.

In 1975, Jesse and Betty Shaw purchased a house and lot in Lubbock. They subsequently moved into the house and claimed the property as their homestead. In September of 1979, the Company took a default judgment against Jesse Shaw for over $46,000.00 plus attorney’s fees, interest and costs, and abstracted the judgment in Lubbock County in October of that same year. On May 4, 1982, the Shaws sold the property to the Bank and in February of 1983, the Bank sold the property to the McLartys. The Bank and the McLartys then brought this suit to remove the cloud on the title caused by the Company’s abstracted judgment. The Company responded with various defensive pleadings, including allegations that the Shaws abandoned their homestead before the property was sold to the Bank and the sale was an attempt to defraud creditors. The Company also alleged a counterclaim that is not material here, and asked for attorney’s fees.

*362 The case was submitted to the jury on two special issues. The pertinent parts of the issues, and the jury’s findings, are as follows:

SPECIAL ISSUE NO. 1
Do you find from a preponderance of the evidence that from the period of November, 1978 to May 4, 1982 that the property located at 3312 24th Street was the homestead of Jesse and Betty Shaw?
* * * * * *
ANSWER “YES” OR “NO.”
ANSWER: Yes.
If you have answered Special Issue No. 1 “Yes,” then answer Special Issue No. 2; otherwise do not answer Special Issue No. 2.
SPECIAL ISSUE NO. 2
Do you find from a preponderance of the evidence that during the period from November, 1978 to May 4, 1982 that Jesse and Betty Shaw abandoned the property at 3312 24th Street as their homestead?
* * * * * *
ANSWER “YES” OR “NO.”
ANSWER: Yes.

In this Court, the Bank attacks the evi-dentiary support for the jury’s answer to special issue number two, by its first two points. It then contends, by its third point, that the answers to issues one and two are in such irreconcilable conflict that a judgment cannot be written in the case. We agree with the Bank that the special issues are in irreconcilable conflict, and that a judgment cannot be written from the jury’s findings. That conclusion, discussed more fully below, renders unprofitable a meaningful discussion of the Bank’s factual and legal sufficiency points. We make the following observation, however, for the benefit of counsel upon retrial. If we were passing on the legal and factual sufficiency of the evidence to support a finding that the Shaws had abandoned the property as their homestead at the time when they sold it to the Bank, 1 we would conclude, applying the review standards of Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965), that there was some evidence of abandonment, 2 thus foreclosing rendition of judgment for the Bank by this Court. Applying the review standard of In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660, 661-62 (1951), however, we would further conclude that the evidence was factually insufficient to support such a finding, and would remand the case for new trial, as we are doing by sustaining the third point.

When a court must decide whether jury findings are in conflict, the threshold question is whether the findings pertain to the same material fact. Pearson v. Doherty, 143 Tex. 64, 183 S.W.2d 453, 455 (1944). If they do, the court must then determine whether they can be reconciled. Little Rock Furniture Mfg. Co. v. Dunn, 148 Tex. 197, 222 S.W.2d 985, 989 (1949). Apparent conflicts must be reconciled if it is possible to do so, taking into consideration the pleadings, evidence, manner of submission and other findings. Ford v. Carpenter, 147 Tex. 447, 216 S.W.2d 558, 562 (1949). Thus, if the issues can be given more than one reasonable construction, that which avoids a conflict in the answers is usually adopted. See Merritt v. King, 66 S.W.2d 464, 466 (Tex.Civ.App.—Texarkana 1933, writ ref’d). The rule was well summarized in Bender v. Southern Pac. Transp. Co., 600 S.W.2d 257, 260 (Tex.1980): “We do not determine whether the findings may reasonably be viewed as conflicting; to the contrary, the question is *363 whether there is any reasonably possible basis upon which they may be reconciled.”

We have applied the foregoing principles to the issues in question here. We cannot, however, rescue the verdict. Initially, we note that the two special issues pertain to the same material fact, the Shaws’ homestead. By the first issue, the jury found that the property was the Shaws’ homestead “from ... November, 1978 to May 4,1982” (emphasis added), the latter date being when the property was conveyed to the Bank. The jury then found that “during ... November, 1978 to May 4, 1982 ... Jesse and Betty Shaw abandoned the property ... as their homestead.” (emphasis added).

The second finding is in direct conflict with the first finding. The property could not have been the Shaws’ homestead from 1978 to 1982 and have been abandoned as homestead during the same time. We have applied all of the tests set out above, but we still reach the inevitable conclusion that there is not a reasonably possible basis upon which the issues can be reconciled. Because they are irreconcilable, it is impossible to write a meaningful judgment. As pointed out in Pearson v. Doherty, supra

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Bluebook (online)
727 S.W.2d 360, 1987 Tex. App. LEXIS 6850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-at-lubbock-v-john-e-mitchell-co-texapp-1987.