Guardian Trust Co. v. Bauereisen

99 S.W.2d 357
CourtCourt of Appeals of Texas
DecidedOctober 15, 1936
DocketNo. 10278
StatusPublished
Cited by3 cases

This text of 99 S.W.2d 357 (Guardian Trust Co. v. Bauereisen) 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
Guardian Trust Co. v. Bauereisen, 99 S.W.2d 357 (Tex. Ct. App. 1936).

Opinions

GRAVES, Justice.

This statement from the appellant’s brief — revised in only two particulars, as suggested by the appellee — is thought to be correct:

“This suit was filed April 17, 1933, by R. J. Bauereisen, son-in-law of W. T. Eldridge, against Nueces Lands Irrigation Company, a corporation, and Guardian Trust Company, Independent Executor under Mr. Eldridge’s will, in the district court of Fort Bend County, Texas. It was tried before the court without a jury, and judgment was entered December 1, 1934, in favor of the plaintiff, and against Guardian Trust Company, in its capacity as Independent Executor under the will of W. T. Eldridge, deceased, for the sum of $40,000.00, and against plaintiff on his claim against Nueces Lands Irrigation Company.
“Appellee, the plaintiff below, declared upon two written contracts, both dated July 26, 1928, copies of which were made exhibits to his first amended original petition, upon which he went to trial. One of these contracts was executed by himself and the defendant Nueces Lands Irrigation Company, and the other by himself and W. T. Eldridge. By the terms of the first [359]*359contract the Irrigation Company employed Bauereisen as its general manager, for a period of five years, beginning September 1, 1928, at a salary of $700.00 per month, and agreed to provide a house, suitable for the occupancy of Bauereisen, and his family, on the company’s property in Dimmit County, Texas. Bauereisen agreed to devote his best efforts and entire time to tile management of the affairs of the company, but the company agreed he might contract for the drilling of wells or other work in Texas if such contracts could be made and performed without causing him to neglect his duties as general manager of the company, provided he first received the written consent of the company through its president. Bauer-eiseu agreed to move his drilling rig to the company’s property in Dimmit County (he then being a resident of Chicago), and to use the same in drilling water wells on said property, and the company agreed to pay the freight and other costs of transporting the rig and tools to its property and the expense of moving his household belongings and office furniture and fixtures to Dimmit County, and to pay him at the rate of 6(⅜ for each foot drilled with said rig and $10 per day for rig work other than drilling.
“In the contract between Bauereisen and Eldridge, Eldridge agreed, as an inducement to Bauereisen to execute the contract with the irrigation company, to give him one-half of all dividends which might be declared within the next five years on stock of the company then belonging to Eldridge, or acquired by Eldridge within that time, and, subject to the other terms of the contract, guaranteed the payment to Bauereisen of the salary specified in his contract with the irrigation company. By an additional provision of said contract, Eldridge agreed further that in the event he foreclosed within said five-year period the liens which he held against the properties of the irrigation company, he would retain Bauereisen as general manager of the company and divide equally with him the net profits realized from the operation or sale of its properties during said five-year period; and that in the event he sold or assigned during said five-year period his stock in and liens against the company, or the company sold all its properties lo a third party, Bauer-eisen 'shall have the election of receiving from first party (Eldridge) the salary for the remaining portion of said five-year period at the rate of $700.00 per month, or of receiving one-half of the profit realized by first party on the transaction, first party receiving his entire investment plus 6% interest before any profit shall be considered to have been earned. Second party’s (Bauereisen’s) right to receive the salary for the remaining portion of said period upon his electing to do so upon the happening of either of the above contingencies, shall be conditional upon his devoting his time and services somewhere in the United States for the benefit of first party as first party may direct.’ Bauereisen agreed that Eldridge should receive one-half of all net profits realized during said five-year period from any operations he conducted in drilling wells or selling well equipment.
“Bauereisen alleged that after the afore-described contracts were executed, he entered upon the performance of his contract with the irrigation company and continued in its employ until April 19, 1929, and would have continued performance for the full five-year term thereof, but the company refused to perforin the contract after said date and to pay him the stipulated salary of $700.00 per month, except that by an agreement made in December, 1929, a certain sum of money was accepted by him in satisfaction of his claims which had accrued prior to June 1, 1929, without prejudice to any claims arising after that date; and the company also required him to vacate the house which he occupied on its premises and thereby compelled him to secure another at a cost of $100.00 per mouth during the remainder of the contract term. Bauereisen further alleged in substance that he had at all times been willing and ready to perform the contract with the irrigation company; that during the period since the contract had been breached he had been able to earn not to exceed $6500.00; that thereby the irrigation company had damaged him to the extent of $40,000.00; that W. T. Eld-ridge was liable to him as guarantor of the salary agreed to be paid him by the irrigation company, and that he having died August 20, 1932, and Guardian 'Trust Company having been appointed and qualified as Independent Executor under his will, it was liable to him in such capacity.”

In its first amended original answer, Guardian Trust Company, as independent executor under the will of W. T. Eldridge, deceased, appellant herein, interposed a [360]*360general demurrer and general denial to the aforementioned petition, and alleged: “That on or about April 1, 1929, W. T. Eldridge sold to the Sugarland Industries all of his stock in and notes and liens against Nueces Lands & Irrigation Company and promptly thereafter notified plaintiff of such sale. Upon being notified of such sale, plaintiff elected to receive from First Party the Salary for the remaining portion of said five-year period at the rate of Seven Hundred ($700.00) Dollars per month. Said W. T. Eldridge arranged for the plaintiff to be employed in the State of Oklahoma by a corporation known as ‘Texas Fig, Inc.’, in which the said W. T. Eldridge was substantially interested, such employment to be performed by the plaintiff under and in fulfillment of a contract between the said W. T. Eld-ridge and the said Texas Fig, Inc., for which services the said W. T. Eldridge agreed to pay plaintiff the salary of $700.00 per month, in accordance with the terms and provisions of Section 4 of the contract between the plaintiff and the said W. T. Eldridge. Plaintiff, however, breached the condition of the guaranty plead by him herein and declined and refused to accept the employment and declined to devote his time and services for the benefit of the said W. T. Eldridge as the said W. T. Eldridge requested and directed. Plaintiff, therefore,, having breached and refused to perform the contract under which the guaranty was given to him by the said W. T. Eldridge forfeited and terminated all right to claim payment thereunder.”

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Bluebook (online)
99 S.W.2d 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guardian-trust-co-v-bauereisen-texapp-1936.