Golob v. Stone

322 S.W.2d 560, 1959 Tex. App. LEXIS 2293
CourtCourt of Appeals of Texas
DecidedFebruary 26, 1959
DocketNo. 3601
StatusPublished
Cited by1 cases

This text of 322 S.W.2d 560 (Golob v. Stone) 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
Golob v. Stone, 322 S.W.2d 560, 1959 Tex. App. LEXIS 2293 (Tex. Ct. App. 1959).

Opinion

TIREY, Justice.

Appellees brought this suit for legal services rendered to the defendant Sidney Golob and to Ewell Thompson, an alleged trustee. Appellees went to trial on their first amended petition and first amended answer to the cross-action. Among other things appellees alleged that on the 28th day of April, 1952, there was created by and between Ewell Thompson and Sidney Golob a trust relationship arising out of a written instrument executed by such parties, which created an express trust with Thompson as sole trustee, and Golob as sole beneficiary; that ap-pellees, at the request of Thompson and Golob, rendered personal and legal services to such trust existing between the parties, and expended certain sums of money from their bank account on which a systematic record of such services and expenditures was kept, and that these services were expended in their capacity as attorneys for such trust and for the benefit of Golob; that appellees assisted Thompson in his capacity as trustee and Golob in connection with negotiations, preparation and compliance with a contract of sale and purchase between Mrs. Ruth Reed McCullough, individually and as independent executrix of J. R. McCullough, deceased, and George F. Sunkel and Ray Howard, doing business as McCollough, Sunkel and Howard, Pig-gly-Wiggly, as sellers, and Ewell Thompson, trustee for Sidney Golob as purchasers, such contract being dated May 1, 1952, and performable according to its terms and conditions. Appellees set out specifically the items of expenses necessarily incurred by them in the discharge of their duties as attorneys for the parties, and alleged that a reasonable attorneys’ fee for such service was the sum of $7,500, and they prayed for such sum plus their expenses and charges incurred in this behalf.

Appellant Golob went to trial on his first original amended answer and cross-action, in which he entered a general denial, and further specifically denied that he received the benefits of the services alleged by ap-pellees, and averred that appellees’ services were rendered in behalf of Ewell Thompson and not for him. Golob, in his cross-action, alleged that such attorneys, acting through Emerson Stone, Junior, were actually representing Thompson but undertook and agreed to represent him. The cross-action alleged substantially that Stone devised a plan purporting to be a trust instrument, whereby it was agreed that Thompson would purchase certain grocery stores in his own name and hold them as trustee for Golob; that cross-plaintiff entrusted to Thompson the sum of $50,000 to be used as earnest money in connection with the purchase of the grocery stores, and it was further agreed between them that Golob, acting on his own, would procure an additional loan to take care of the balance of the purchase price; that it was agreed that the cross-defendant was to act as attorney for Golob, and that Thompson was to act as agent or trustee on behalf of Golob in connection with the purchase of the grocery stores; that Stone, by accepting employment as attorney, did place himself in a fiduciary relationship to Golob and that this relationship imposed upon Stone the highest degree of honesty and fair dealing in representing the exclusive interest of Golob, and that Stone was bound and obligated by virtue of his oath as an attorney, and by acceptance of employment, to serve his best interests in the purchase of the grocery stores; that Stone, in attempting to carry out his duties under the contract, entered into a conspiracy with Thompson whereby Thompson was to gain an equal control in behalf of himself in the grocery stores, and that Stone knew that such achievement would be adverse and in conflict with his interest, and that Stone, in the discharge of his duties, failed and refused to represent his best interest. Golob further alleged that because of the acts and conduct of Stone, that he suffered damages to the extent of $25,000, and the further sum of reasonable attorneys’ fees in the amount of $2,000, and he prayed for such relief.

[563]*563The jury, in its verdict, found substantially: (1) that Emerson Stone performed legal services in connection with Golob’s attempt to purchase certain mercantile stores; (2, 3, 4, 5, 6, and 7) that these services were performed on behalf of Golob and with the knowledge and consent of Golob, and that Stone acted in good faith, and that such services were with the knowledge of Thompson as trustee for Golob, and with Thompson’s consent; (8) that the reasonable value of the services performed by Stone in connection with the Golob matter was the sum of $6,500; (9) that the reasonable expenses incurred in this behalf was $195; (10) that Stone did not act in behalf of the interest of Thompson in matters adverse to Golob. (11) “What amount of money, if any, if paid now in cash, do you find from a preponderance of the evidence, if any, will reasonably compensate Sidney Golob for damages, if any, sustained by him as a natural result of Stone and Stone’s acting adverse to his interest, if you have so found? Answer in dollars and cents, if any”, to which the jury answered “None.” (12) “Do you find from a preponderance of the evidence, if any, that the services, if any, of Stone and Stone during the time in question, were rendered solely for Ewell Thompson, individually? Answer ‘Yes’ or ‘No’”, to which the jury answered “No.”

The judgment followed the verdict, and it decreed that appellees recover judgment against Golob and against the defendant, Thompson, as trustee only for Golob, for the sum of $6,695, and that Golob recover nothing against appellees on his cross-action. The judgment further provided that it bear 6% interest from date it was entered, and it further decreed that all costs shall be paid by Golob and Thompson as trustee only for Golob, jointly and severally.

The court overruled defendant Golob’s amended motion for new trial, and he has perfected his appeal to this court. Thompson did not appeal.

The judgment is assailed by twenty-three points. They are substantially to the effect that the court erred (1) in permitting witnesses to testify to the legal conclusions that Thompson was a trustee, and in trying the case and submitting issues on the theory that Thompson was a trustee; (2) in entering judgment against Golob when the evidence shows as a matter of law that Stone and Stone breached their fiduciary relationship as attorneys for Golob, thereby rendering void their contract of employment, and represented adverse and conflicting interests at the same time; (3 and 4) in permitting the witnesses Stone, Chandler, Rounsville and Thompson to testify to legal conclusions and in compelling Golob to testify to legal conclusions and the court’s comments thereon, in the presence of the jury, and in permitting hearsay evidence; (5) in permitting Stone to testify concerning the trip to Florida in May, 1952, and as to services performed by him after June 16, 1952, and as to services performed after June 22, 1952; (6 and 8) in permitting the witnesses Chandler and Rounsville to testify as to the character and reputation of Stone, and his law firm, and in permitting such witnesses to answer hypothetical questions as to the value of the attorneys’ services ; (7) in excluding the letter written by Dallas Rupe & Son, as shown by Bill of Exception No. 1; (9, 10, 11, 12, 13 and 14) in refusing appellant’s Requested Special Issue No. 1, inquiring as to whether Golob received any benefits from the services of Stone and Stone, and in refusing appellant’s Issue No. 3, inquiring as to whether the services in question were rendered partly for the benefit of Thompson, individually, and in refusing Issue No.

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Bluebook (online)
322 S.W.2d 560, 1959 Tex. App. LEXIS 2293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golob-v-stone-texapp-1959.