Food Machinery Corp. v. Moon

165 S.W.2d 773
CourtCourt of Appeals of Texas
DecidedOctober 26, 1942
DocketNo. 5471
StatusPublished
Cited by16 cases

This text of 165 S.W.2d 773 (Food Machinery Corp. v. Moon) 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
Food Machinery Corp. v. Moon, 165 S.W.2d 773 (Tex. Ct. App. 1942).

Opinion

STOKES, Justice.

This suit was instituted by the appellant, Food Machinery Corporation, against the appellees, Carroll W. Moon and his wife, [774]*774upon a contract under which appellant agreed to drill an irrigation well on ap-pellees’ land in Hale County and install therein a pump and equipment for which appellees agreed to pay appellant the sum of $1,570. The contract price was evidenced by a note, payable 90 days after date, secured by a mechanic’s lien on the land, and the contract provided it was to be paid out of the proceeds of a loan to be procured by appellees from the Federal Land Bank of Houston.

Appellees answered by the general issue and specially alleged that appellant never completed the well; that the casing placed in the well by appellant was rusted, rotten, and worthless and that on account of the rusted and rotten condition of the casing, it collapsed and the well caved before it was completed which resulted in the destruction of the well and complete loss of the pump and equipment; that appellant was guilty of negligence in using the worthless casing and its negligence was the proximate cause of the loss; that they had received nothing for the obligation sued upon and the consideration for the contract had failed. They further alleged that the loan for which they applied to the Federal Land Bank had never been approved nor granted by the Federal Land Bank and they were, therefore, not liable to appellant for any portion of the contract price stipulated in the contract.

The case was submitted to a jury upon special issues, in answer to which the jury found that the casing placed in the well by appellant was rotten or worthless; that appellant was guilty of negligence in using the casing which it placed in the well; and that such negligence was the proximate cause of the loss of the well, casing, and other materials placed therein. The court rendered judgment denying appellant any .relief and, its motion for a new trial being overruled, it has perfected an appeal to this court.

Appellant contends the judgment should be reversed, first, because the court erred in overruling its objections to the submission of special issues pertaining to the question of negligence upon the ground that the cause of action pleaded by appellant was based upon a contract, and appellees’ answer thereto was based upon failure of consideration and not upon a tort or cross-,action for negligence resulting in damages; and, secondly, because there was no evi.dence to support the finding of the jury that the placing of defective casing in the well was the proximate cause of the loss of the well and pumping equipment.

The record shows that appellant employed the services of an independent contractor to drill the well and install the casing. The well was approximately 225 feet deep and the casing was 15 inches in diameter and was manufactured in the appellant’s shop at Plainview from steel procured from discarded or used oil tanks. All of the witnesses testified that the steel from which the casing was made was rusty, and most of them testified that it was badly corroded. The contractor who drilled the well and installed the casing said that the steel was rusted and of different grades; that some of the joints were good enough to make a well and some of them were not so good; that there were many pits caused by the rust and that at numerous places the rust had created holes that extended entirely through the steel sheeting. He said that the holes were of various sizes, some of them being as large as hens’ eggs, and that around the edges of the holes the casing was reduced to a mere shell and greatly weakened. This witness further testified that upon discovering the condition of the casing fie went to the appellant’s shop where the casing was manufactured and told the appellant’s employes that he was afraid the casing would give way and he did not want to place it in the well. He said they replied that it was all the casing there was and instructed him to go ahead and place it in the well and they would take care of the well. There was a great deal of testimony concerning the necessity of equipping such wells with substantial casing and the result which follows when they are equipped with casing composed of weak and faulty material. The testimony further shows that within a few days after the well was drilled and the pump installed, but while appellant’s employes were still working on it in an effort to clear the machinery of sand and complete the construction and equipment of the well, it caved in and the casing collapsed which resulted in the complete loss of practically all of the casing, the pump, and most of the equipment.

As we have said, the jury found that the casing was rotten and worthless and that appellant was guilty of negligence in using it as casing for the well. They also found that such negligence was the proximate cause of the loss of the well and the pump[775]*775ing equipment. Appellant contends that the manner and theory adopted by the court in submitting the special issues was error because the question of its negligence, which sounded in tort, could not be used as a defense against appellant’s cause of action, which was upon a contract.

We think the question of whether or not appellant was negligent in placing the rusted casing in the well was not material, but we fail to conceive of any injury that could have resulted to appellant by the submission of that issue. Appellees had pleaded failure of consideration as a defense to appellant’s cause of action and prayed for a cancellation of the mechanic’s lien and contract. If they were entitled to prevail because the consideration had failed, it would not matter whether, in doing or suffering to be done the things which caused the failure of consideration, appellant was guilty of negligence. The jury found, in effect, that the use of the rotten and worthless casing was the proximate cause of the loss. The question is, therefore, whether the consideration moving to appellees under the contract failed. The law is well settled that want or failure of consideration is ground for cancellation or rescission of a contract, because as to a person who receives nothing whatever of value in exchange for property or money, the transaction operates as constructive or legal fraud. Radford et al. v. Snyder Nat. Farm Loan Ass’n et al., Tex.Civ.App., 121 S.W.2d 478.

The contract entered into by the parties contemplated that appellant would drill and equip the well with irrigating machinery, including casing for the well, the pump, and all of the accessories necessary for an irrigation system. That was the consideration for which appellees executed the contract and gave a mechanic’s lien upon their land. The testimony shows that before its completion the entire enterprise was abandoned and the casing, the pump, and a large portion of its equipment were left buried or fastened in the well and it was impossible to extricate them therefrom. Appellees therefore received nothing whatever for the note and mechanic’s lien executed by them. This constituted a failure of the consideration and was a legal ground of defense against appellant’s cause of action, both upon the contract and the mechanic’s lien. J. B. Colt Co. v. Knight & Perry et al., Tex.Civ.App., 3 S.W.2d 879; Cundiff v. McLean et al., Tex.Sup., 8 S.W. 43; Culver v. Haggard, Tex.Civ.App., 270 S.W. 846; Rutherford v. White, Tex.Civ.App., 174 S.W. 930; Adams Nat. Bank v. Stone, Tex.Civ.App., 284 S.W. 989; Farrell v.

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165 S.W.2d 773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/food-machinery-corp-v-moon-texapp-1942.