Frank v. Gaffney

2 S.W.2d 885
CourtCourt of Appeals of Texas
DecidedJanuary 24, 1928
DocketNo. 9093.
StatusPublished
Cited by9 cases

This text of 2 S.W.2d 885 (Frank v. Gaffney) 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
Frank v. Gaffney, 2 S.W.2d 885 (Tex. Ct. App. 1928).

Opinion

DANE, J.

' This suit was brought by J. G. Frank against Thomas E. Gaffney to recover a one-half undivided interest in three and one-half- acres of land near to, or inside of, the limits of the city of Houston, or for certain profits alleged to be due him in making sales of portions of said land, and for an accounting. •

For cause of action, the plaintiff alleged that in 1921 he began negotiations with Miss Halff, who then owned the land in controversy, with a view of purchasing the same, foreseeing that it afforded a profitable investment, but, being unable to make the cash payment of $1,000 demanded by Miss Halff as a first payment on the purchase price of $2,875, he told the defendant about the land and his conclusion that the purchase thereof would be a good investment; that defendant told him that, if the investment was as good as plaintiff said it was, defendant would go in with him in the purchase of the land; that it was agreed by and between 'him and defendant that, if the property was purchased, it was to be deeded to defendant, but that one-half thereof was to be held by defendant in trust for plaintiff; that defendant paid the first payment of $1,000 on the purchase price in cash, and executed his notes payable to Ella Halff for the sum of $1,875, the balance of the purchase price, and that, in consideration of the aforesaid payment and execution of said notes, Ella Halff executed a deed conveying to defendant the land; that, at the time, and prior to the time, of purchase of the land, it was agreed by and between plaintiff and defendant that, in the event said property was purchased, it would be subdivided into residential lots, and designated as “Frank second addition,” and thereafter it should be sold for such prices as might be agreed upon by the parties, and that, out of the proceeds of such sale or sales, the defendant should be fully reimbursed for the $1,000 paid by him, together with 8 per cent, interest per annum thereon, and also the notes executed in part payment for the land; that'all property and proceeds arising from sales of parts of the property remaining after such payments were made should be the property of plaintiff and defendant in equal portions; that it was agreed by and between the parties that, after such subdivision was made, plaintiff was to have exclusive charge and control of the property; that, after the property had been purchased, the property was subdivided, as agreed upon, into 40 lots, numbered from 1 to 40, inclusive; that thereafter ‘plaintiff advertised the property for sale, and sold 29 of the 40 lots to various parties for the aggregate sum of $11,375;-that plaintiff collected of said sum $2,656,- and turned .the same over to defendant, except $200. He alleges that practically all of the purchasers would have carried out their- *886 contracts and have paid all the purchase money for their several purchases had not defendant informed them that he could not convey to them good title. He alleged that the unsold lots were worth $5,000; that on or about the 1st day of June, 1924, defendant repudiated his agreement with plaintiff, toot possession of the property and all outstanding obligations of the purchasers of parts thereof. ,

The plaintiff prayed for an accounting to determine his share of the profits which had arisen or to arise from the sale of the land, and that, if it be held by the court that he is not entitled to one-half of the land, then he be awarded one-half of the net profits derived from the sale of the land.

Defendant answered by general demurrer, special exceptions, by sworn denial of partnership, and by general denial, and by way of special answer alleged:

“That at plaintiff’s solicitation he employed plaintiff to plat and sell the property of defendant described in plaintiff’s petition upon the terms that plaintiff was to attend to the details of platting, and obligate himself to sell out the property completely at not to exceed 90 days from the time he became defendant’s agent for such purpose; was to collect all deferred payments, and to remit same promptly to defendant; and, from the sales of defendant’s property by plaintiff and collection thereon by plaintiff, defendant should first deduct the cost of said property to himself — defendant owning said property and having paid the total consideration therefor — together with 8 per cent, interest on his investment and reimbursement for any time and expense which defendant should be put to, and plaintiff, as agent for defendant, and as compensation for his services, was to receive one-half of the amount remaining, if any; and alleging various and sundry breaches on the part of defendant of the alleged agreement and cross-action for damages.”

A jury was selected and sworn to try the case, but, when the plaintiff had offered his evidence and closed, the court, upon motion of defendant for peremptory instruction in his behalf, gave such instruction. The jury returned its verdict in accordance with such instruction, and judgment was accordingly rendered. From such judgment the plaintiff has appealed.

We cannot sustain appellant’s contention that there were pleadings and evidence which made it the duty of the trial court to submit to the jury the question of whether or not appellee held one-half of the land in controversy in trust for appellant, or that the same was held by appellee under a partnership agreement entered into between the two parties. We do not think there was either pleading or evidence calling for such submission. We think the effect of the petition, when read as a whole, is to allege, first, that the title to the land went into the defendant, Gaffney, and that only when he repaid himself the purchase money, together with 8 per cent, per annum interest thereon, and other expenses incident to- the development of the property, out of proceeds derived from sales of á part or all of the property, the remainder of same, if any, would become impressed with a trust in favor of plaintiff, and that, if no lots were sold, or if all were sold at such prices as would not enable the defendant to repay to himself such purchase money and expenses, then no trust interest would vest in the plaintiff.

The effect, then, of the petition is not to allege that there was a parol express trust engrafted on the deed by which Ella Halff conveyed the land to the defendant at the time or before the same was executed, but it in effect alleges that a trust was to arise and take effect only in the event a sale of a part of the land would produce a sufficient sum to pay to the defendant the purchase price of the land.

There is no allegation that plaintiff paid, or obligated himself to pay, any consideration for an agreement on the part of defendant to hold for him any interest in the property, and therefore, if made without consideration, it would create no legal obligation, and no express trust could result therefrom. We are also of opinion that the evidence goes no further towards showing the existence of an express trust than does the pleadings of the plaintiff.

In the circumstances shown it is apparent that there can be no character of resulting trust in the present case. Allen v. Allen, 101 Tex. 362, 107 S. W. 529; Alliance Milling Co. v. Eaton, 86 Tex. 409, 25 S. W. 614, 24 L. R. A. 369; Brotherton v. Weathersby, 73 Tex. 473, 11 S. W. 505; Arnold v. Ellis, 20 Tex. Civ. App. 262, 48 S. W. 883; Goodrich v. Hicks, 19 Tex. Civ. App. 528, 48 S. W. 798; Wade v. Cohen (Tex. Civ. App.) 173 S. W. 1168; Colla v. Brown (C. C. A.) 144 E. 744.

In Allen v.

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Bluebook (online)
2 S.W.2d 885, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-v-gaffney-texapp-1928.