Gordin v. Shuler

704 S.W.2d 403
CourtCourt of Appeals of Texas
DecidedNovember 27, 1985
Docket05-85-00309-CV
StatusPublished
Cited by20 cases

This text of 704 S.W.2d 403 (Gordin v. Shuler) 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
Gordin v. Shuler, 704 S.W.2d 403 (Tex. Ct. App. 1985).

Opinion

704 S.W.2d 403 (1985)

John T. GORDIN, Appellant,
v.
Harold R. SHULER, Trustee and/or Assigns, Appellees.

No. 05-85-00309-CV.

Court of Appeals of Texas, Dallas.

November 27, 1985.
Rehearing Denied January 20, 1986.

*404 Joe Bailey Hyden, Dallas, for appellant.

Thomas K. Boone, Stollenwerck, Moore & Silverberg, Dallas, for appellees.

Before AKIN, ALLEN and DEVANY, JJ.

AKIN, Justice.

John T. Gordin appeals a judgment ordering him to specifically perform a real estate contract that he had entered into with appellee, "Harold R. Shuler, Trustee and/or Assigns." Although the contract of sale provided that appellee was the purchaser, the evidence adduced at trial established that the actual buyers were to be Harold Shuler and Louis Reese, who were also the agents who negotiated the sale for Gordin. *405 They were to purchase the property in the name of Shuler-Reese & Company, a general partnership in which each was a 50% partner, or in the name of Beaulieu Condo, Inc., a corporation wholly owned by them.[1] Accordingly, the various special issues submitted to the jury inquired about the actions of Shuler, Reese, Shuler-Reese & Company, or some combination thereof, as appropriate.

On appeal Gordin contends: (1) that the trial court erred in granting specific performance because certain conditions precedent had not been performed or excused; (2) that the trial court erred in granting specific performance because the written approval to the conveyance of Boston Mutual Life Insurance Company, the first lien holder on the property at issue, was procured by Shuler-Reese & Company's failure to disclose material information; and (3) that the trial court erred in disregarding the jury's answer to Special Issue Thirty-Two, whereby the jury refused to find that Gordin's agent, Shuler-Reese & Company, fully disclosed to Gordin that Shuler-Reese & Company was to be the actual purchaser rather than Harold Shuler, Trustee and/or Assigns.[2]

By cross-points,[3] appellee contends that there was no evidence, or alternatively insufficient evidence, to support the jury's finding that Shuler-Reese & Company's failure to disclose material information to Boston Mutual was made with the intention that it should be acted upon.

We hold that the trial court erred in granting specific performance because there was no evidence that all conditions precedent were performed or excused and because the written approval of Boston Mutual was procured as a result of Shuler-Reese & Company's failure to disclose material information. We also hold that the trial court erred in disregarding the jury's refusal to find that Shuler-Reese & Company fully disclosed the identity of the actual purchaser to Gordin. Further, we hold that the trial court erred in granting specific performance because of Shuler-Reese & Company's failure to so disclose. With respect to appellee's cross-points, we hold that there was sufficient evidence to support the jury's finding that Shuler-Reese & Company's failure to disclose to Boston Mutual was made with the intention that it should be acted upon. Accordingly, we reverse the judgment of the trial court and render judgment for Gordin.

In early 1979 Gordin was approached by Jack Petruccelli, a real estate salesman for Shuler-Reese & Company, who inquired whether Gordin was interested in selling his 24-unit apartment complex known as the Versailles Apartments. After negotiation, a contract of sale was signed on April 28, 1979. Shuler-Reese & Company was Gordin's agent in negotiating the sale. The purchaser named on the contract was "Harold Shuler, Trustee and/or Assigns." The sale price was $432,000; the down payment was to be $125,280 and a wrap-around note was to be executed for the balance of $306,720. The property was already subject to a first lien in favor of Boston Mutual. A deed of trust and a promissory note bearing interest at the rate of 9¼ with a principal amount of $213,000 from Gordin to Boston Mutual were also already in existence. These were to remain in effect and the contemplated $306,720 note to Gordin was to "wrap around" Gordin's note to Boston Mutual.

The contract of sale provided that the written approval of Boston Mutual to the conveyance and to the subordinate deed of trust contemplated by the wrap-around note was to be "obtained." Although the contract did not specify which party was to obtain Boston Mutual's written approval, the purchaser undertook this responsibility. The parties assumed (correctly, as they later discovered) that Boston Mutual would *406 seize this opportunity to raise the interest rate on Gordin's note.

Boston Mutual's written approval was eventually communicated to Glenn Justice Mortgage Company, Inc., Boston Mutual's local mortgage-servicing agent, in the form of a letter written by John McGovern, mortgage officer for Boston Mutual, that provided:

Pursuant to the request of Mr. Harold R. Shuler and Mr. Louis G. Reese, our Finance Committee approved the transfer of the property from Mr. Gordin to Messrs. Reese and Shuler. The terms and conditions of the approval are as follows:

1. Mr. Gordin would remain personally liable and would agree to all changes.

2. Messrs. Reese and Schuler [sic] will assume the obligation of our mortgage and will also be personally liable for the loan amount. A suggested assumption agreement is being sent to our attorney.

3. The interest rate of the note is to be modified to 10% or such rate which in the opinion of our attorney would not exceed any usury statute in the state of Texas.

4. New UCC-1 financing statements are to be signed by the borrowers and filed.

5. A new insurance policy will be provided us showing our mortgage interest.

6. A copy of the deed of conveyance should be provided us for our file.

7. Our attorney, James Blanchette, will prepare and be satisfied with all documents. His fees and expenses in this matter will be paid by the borrowers.

Very truly yours, John R. McGovern Mortgage Officer

Gordin, however, steadfastly refused to close the sale. Appellee then sued seeking specific performance of the contract of sale.

NO EVIDENCE OF GORDIN'S AGREEMENT TO CONDITIONS

Gordin contends on appeal that the trial court erred in granting specific performance because certain conditions precedent had not been performed or excused. A condition precedent is an event that must occur or be performed before a right can accrue to enforce an obligation. Bair v. Voelker Realty Co., Inc., 589 S.W.2d 867, 869 (Tex.Civ.App.—Dallas 1979, no writ); Albright v. Texcellere Corp., 561 S.W.2d 533, 538 (Tex.Civ.App.—Corpus Christi 1979, writ ref'd n.r.e.). McGovern's letter from Boston Mutual to Glenn Justice Mortgage Company provided that the first "condition of [Boston Mutual's] approval" was that "Mr. Gordin remain personally liable and would agree to all changes" (emphasis added). The jury found that among the conditions precedent to Boston Mutual's written approval were "[t]hat John Gordin agree to an increase in the interest rate of the Boston Mutual note to ten (10%) percent or such rate which would not exceed any Texas usury statute" and "[t]hat Gordin agree to the Note Amendment and Assumption Agreement."

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Michael A. Bentley v. Chandra L. Bentley
Court of Appeals of Texas, 2024
Kamisha Davis v. Texas Farm Bureau Insurance
470 S.W.3d 97 (Court of Appeals of Texas, 2015)
QUEIROZ v. Harvey
204 P.3d 390 (Court of Appeals of Arizona, 2009)
Carroll Grant v. Laughlin Environmental, Inc.
Court of Appeals of Texas, 2008
DiGiuseppe v. Lawler
269 S.W.3d 588 (Texas Supreme Court, 2008)
Harco Energy, Inc. v. Re-Entry People, Inc.
23 S.W.3d 389 (Court of Appeals of Texas, 2000)
Financial Review Services, Inc. v. Prudential Insurance Co. of America
50 S.W.3d 495 (Court of Appeals of Texas, 1998)
Alan Stewart Cozzens v. Richard Stuart Barstow
Court of Appeals of Texas, 1998
Centex Corp. v. Dalton
840 S.W.2d 952 (Texas Supreme Court, 1992)
Baker Hughes, Inc. v. Schwarz
833 S.W.2d 292 (Court of Appeals of Texas, 1992)
Ramirez Co. v. Housing Authority of City of Houston
777 S.W.2d 167 (Court of Appeals of Texas, 1989)
Fuqua v. Fuqua
750 S.W.2d 238 (Court of Appeals of Texas, 1988)
1st Coppell Bank v. Smith
742 S.W.2d 454 (Court of Appeals of Texas, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
704 S.W.2d 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordin-v-shuler-texapp-1985.