Fry v. Harkey

141 S.W.2d 662, 1940 Tex. App. LEXIS 459
CourtCourt of Appeals of Texas
DecidedMay 22, 1940
DocketNo. 10643
StatusPublished
Cited by3 cases

This text of 141 S.W.2d 662 (Fry v. Harkey) 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
Fry v. Harkey, 141 S.W.2d 662, 1940 Tex. App. LEXIS 459 (Tex. Ct. App. 1940).

Opinions

NORVELL, Justice.

This is a suit to remove cloud from, title of approximately 303 acres of land in Zava-la County, Texas, owned by appellant, plaintiff below; the purported cloud being evidenced by a letter addressed to appellee, Federal Land Bank of Houston, purporting to grant an easement for irrigation purposes in favor of a certain 215-acre tract belonging to appellee, H. L. Harkey.

Trial was to a jury, but at the conclusion of the testimony both sides moved for an instructed verdict and agreed “that the court should withdraw the case [664]*664from the jury and determine all issues in .the case.” The fact that both sides move for an instructed verdict does not amount to a waiver of a jury. Alexander Co. v. First National Bank of Lagrange, Tex.Civ.App., 119 S.W.2d 718. Here, however, the judgment quoted from above shows that a jury determination of fact issues was expressly waived, and therefore the case must be considered as if no jury had been impaneled. Judgment was against appellant and in favor of appellees upon their cross-action setting up the validity of the disputed easement. No findings of fact or conclusions of law were filed, and it is therefore our duty to uphold the judgment of the trial court, provided the implied findings which the judgment carries with it are supported by the evidence. Moody-Seagraves Ranch v. Brown, Tex.Civ.App., 69 S.W.2d 840.

Briefly stated, the facts giving rise to this controversy are as follows:

During the year 1933 appellee Harkey owned two tracts of land in Zavala County, Texas, one containing 215 acres, and the other, approximately 303 acres. Harkey desired a loan from the Federal Land Bank of Houston upon the 215-acre tract. As a precedent for the making of the loan, the bank required that he secure an easement to use water for irrigation purposes from a well situated upon the 303-acre tract. The latter tract was mortgaged to Rosa, Mathil-da and Eda Wolf. Harkey promised the Wolf sisters that he would do and perform certain things if they would join with him in the execution of the required easement. Harkey and the Wolfs executed the following letter, which was delivered to the Land Bank:

“San Antonio, Texas, August 11, 1933.
“In re: Application No. 120,030, H. L. Harkey.
“The Federal Land Bank of Houston,
“Houston, Texas.
“Gentlemen:
“We, the undersigned owners and holders of liens on lands belonging to H. L. Harkey in Zavala County, Texas, upon which a well used for irrigation purposes is situated, do hereby agree that in the event of a loan being made by said Federal Land Bank of Houston to said H. L. Harkey upon certain 215 acres of land, other than the land upon which the undersigned lien-holders have a lien, we will in writing agree and consent that water from said well, which is located upon the land covered by liens held by the undersigned lien holders, may be used for the purpose of irrigating the lands so to he mortgaged to said Federal Land Bank of Houston, with the understanding, however, that water from said well shall continue to be used to irrigate the lands upon which the undersigned lien holders have a lien.
“Respectfully yours,
“H. L. Harkey,
“Owner.
“Rosa Wolf
“Mathilde Wolf
“Eda Wolf,
“Lienholders.”

The Land Bank knew nothing of the promises made by Harkey to the Wolf sisters in order to secure their execution of the above letter, and advanced its money upon the security offered by Harkey after receiving the letter. Harkey wholly failed to carry out his promises and agreements with the Wolf sisters, and defaulted on his mortgage to them, with the result that the 303-acre tract was foreclosed and acquired: by Bert C. Fry, the appellant here, during the year 1938.

From the record, it also appears that-after the bank received the letter and made-the loan an attempt was made to secure the-Wolf sisters’ execution of a formal written instrument setting out the terms and: conditions of the easement mentioned in. the letter. These attempts failed, and in 1936 Harkey acknowledged the letter be-fore a notary public and the same was recorded in the deed records of Zavala County, giving rise to the alleged cloud upon; title, which appellant sought to remove.

Appellant’s primary contention is-, that as Harkey failed to carry out the-promises and agreements made by him to. induce the Wolf sisters to sign the letter,, the consideration for the easement failed,, and was consequently unenforcible. The-appellant takes the position that the letter-was part of an agreement between the-Wolf sisters on one hand and Harkey on; the other, and that the Land Bank as a.t third party beneficiary can not claim the.benefit of the agreement, because the con-. sideration therefor has wholly failed.

This contention must be overruled. The-letter upon its face purports to he a joint, offer made by Harkey, as the owner of the-two tracts involved, and the Wolf sisters, as lien holders of one tract, to. the Land; [665]*665Bank, offering- to give an easement if the bank would make a loan upon the 215-acre tract. This offer was accepted by the bank and the loan made. The agreement between the Wolfs and Harkey on one hand and the bank on the other was supported by a valid consideration; the advance of the bank’s money upon the security offered, which was a detriment to the bank. Agreements between the Wolf sisters and Harkey, secret in the sense that they were unknown to the Land Bank, do not affect the bank’s rights. James v. Fulcrod, 5 Tex. 512, 55 Am.Dec. 743; Johnson v. Weed, Tex.Civ.App., 52 S.W.2d 917; Mayfield v. Eubank, Tex.Civ.App., 278 S.W. 243.

Appellant also contends that the letter in question should be construed as an offer to negotiate concerning an easement rather than as an unqualified offer to grant an easement. In support of this contention, appellant relies upon the following wording appearing in the letter, “we will in writing agree and consent that water from said well * * * may be used for the purpose of irrigating the lands so to be mortgaged to said Federal Land Bank of Houston.”

The letter, a written instrument, must be construed as a whole in order to determine the intention of the parties. We construe the letter to be an unqualified offer which was accepted by the bank. It was not an offer to negotiate. The letter does not support a construction that no easement or contract should arise unless and until a future written agreement should be entered into between the parties. The mere fact that it may have been contemplated by the parties that a more formal agreement would be entered into between the parties does not prevent the agreement evidenced by the letter from being binding and effective. International Harvester Co. v. Campbell, 43 Tex.Civ.App. 421, 96 S.W. 93, 99; 12 Am.Jur. 522, § 25.

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Bluebook (online)
141 S.W.2d 662, 1940 Tex. App. LEXIS 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fry-v-harkey-texapp-1940.