Gulf, Colorado & Santa Fe Railway Co. v. Settegast

15 S.W. 228, 79 Tex. 256, 1891 Tex. LEXIS 1216
CourtTexas Supreme Court
DecidedJanuary 16, 1891
DocketNo. 2861
StatusPublished
Cited by63 cases

This text of 15 S.W. 228 (Gulf, Colorado & Santa Fe Railway Co. v. Settegast) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf, Colorado & Santa Fe Railway Co. v. Settegast, 15 S.W. 228, 79 Tex. 256, 1891 Tex. LEXIS 1216 (Tex. 1891).

Opinion

GAINES, Associate Justice.

This action was brought by appellees to cancel an assignment of a lease which had been made by them to the Texas Western Railway Company, and which had been assigned by the latter to the Gulf, Colorado & Santa Fe Railway Company, and to recover [260]*260damages. Both companies were made parties defendant. There was a verdict against the appellant for $8000 in favor of appellees, and against the latter in favor of the Texas Western Railway Company. Judgment was rendered in accordance with the verdict.

On the 26th day of December, 1881, the plaintiffs below leased to the Texas Western Railway Company 31-g- acres of land lying contiguous to the city of Houston, for the term of ten years. In consideration of the stipulations in its favor that company, obligated itself to pay to the lessors an annual rent of $300, the first year’s rent to be paid the 1st day of January, 1883, and that of each succeeding year to be paid on the 1st day of January next thereafter ensuing. It was also stipulated that at the end of the term the railroad company should pay the lessors for the land included in the right of-way at the rate of two and one-half cents per square foot, and at the same time the lessors were also to convey to the company forty lots of fixed dimensions at a stipulated price, to be paid upon a uender of a deed. The company also had the privilege of buying other lots, at a price to be determined by appraisement. The company bound itself to pay for any timber taken from the land except such as was found upon its right of way, hot to remove any earth which was outside of its right of way, and upon the termination of its lease “to deliver to” the lessors “such portion of said premises as they may not purchase in as good condition as when received.” The Texas Western Railway Company entered under the contract.

In May, 1883, the Texas Western Railway agreed to convey “all its right, title, and interest in and under its contract and lease made with W. J. & J. J. Settegast” to the Gulf, Colorado & Santa Fe Railway Company, the latter agreeing “to pay the yearly rental therein specified” until the termination of the lease, and at that time to pay for the former company’s right of way.

On the 7th day of January, 1884, the attorneys of the Gulf, Colorado & Santa Fe Railway Company tendered to W. J. Settegast a draft of which the following is a copy:

“ $300. . Houston, Texas, January 7, 1883.
“At sight pay to the order of W. J. Settegast & Bro. the sum of three hundred dollars, the same being, for one year’s rent from January 1, 1883, to January 1,1884, of land leased from them by the Texas Western Railway Company and upon which land the Gulf, Colorado & Santa Fe. Railway Company have built their road.
[Signed] _ “Jones & Garnett,
“Attorneys for G. C. & S. F. Ry. Co.
“To Walter Gresham, Galveston, Texas.”

It was admitted that the date 1883 in the draft was a mistake for 1884. The draft was accepted by W. J. Settegast and was paid. Gresham was at the time thé appellant’s agent. W. J. Settegast testified as follows:

[261]*261“The draft (by which he received the rent for 1883) was paid to me by Mr. -Garnett; my understanding was that he paid it for the Texas Western Railway; I objected to receiving it because it was not written exactly as I wanted it; Mr. Garnett assured me it would not impair any of my rights against the Santa Fe Railway; I never did claim that the Santa Fe was my tenant; when Mr. Garnett presented the draft to me he just told me he wanted to pay that rent; I told him I did not like the way the draft was drawn, I was afraid it might impair my rights against the ' Texas Western Railway; he told me it did not impair my rights; I objected to the draft because I was afraid it might impair my rights against the Texas Western Railway; that I did not recognize the Santa Fe Railway; I did not know when I received the money that the Gulf, Colorado ■& Santa Fe was paying it; Mr. Garnett did not tell me when he tendered me the draft that it was the rent of the land that the Gulf, Colorado & Santa Fe Railway proposed to pay; I told him that I did not recognize the Santa Fe.”

Counsel for appellees, as a reason why appellant should not claim any rights under the assignment of the lease, insist that the contract between the companies is not operative because it was not in writing and signed by the party to be charged, as required by the statute of frauds. But the authorities seem to be agreed that the invalidity of a parol contract within the statute can not be set up by a stranger to it. The defense is personal to the party sought to be charged. League v. Davis, 53 Texas, 14; Lee v. Wilmerding, 57 Texas, 444; Lavander v. Hall, 60 Ala., 214; Norton v. Simonds, 124 Mass., 19; Cowan v. Adams, 10 Me., 382; Ryan v. Tomlinson, 39 Cal., 644; Babinean v. Cormier, 1 Mart. (La.), N. S., 459; Cunningham v. Patton, 6 Pa. St., 357; Chicago Dock v. Kinzie, 49 Ill., 289; Bohannon v. Pace, 6 Dana, 194; Sneed v. Bradley, 4 Sneed, 301; Records v. Cunningham, 4 Neb., 301; Anderson v. Simpson, 21 Ia., 404; Clary v. Marshall, 5 B. Mon., 269.

But in this case there was a distinct proposition by the Santa Fe Company by letter to the Texas Western Company showing all the terms of the contract, and there was evidence to show that the latter company accepted also by letter. This ansrvered every requisite of the statute. Watson v. Baker, 71 Texas, 739; Reed on Stat. of Frauds, sec. 341, et seq.

Besides, the Santa Fe Company having gone into possession and having made improvements (valuable at least to itself) and having paid a year’s rent, there was such a part performance as would enable it to enforce a specific performance of the contract as against the Texas Western Company.

' Proceeding -with the questions in their logical order, the next we shall consider is presented by counsel for appellan t. They submit that the contract between the two railway companies was an assignment, and that as such it was not prohibited by our statute. In so far as they claim that [262]*262the contract was an assignment, this ground is well taken. When the lessee conveys his entire term in the whole or a part of the demised premises, it is an assignment of the lease; but when he lets the premises for a less time than the period of his unexpired term, it is an underlease. But we do not concur in the proposition that the statute does not apply to an assignment. It reads as follows: “If lands or tenements are rented by the landlord to any person or persons, such person or persons renting said ' lands' or tenements shall not rent or lease said lands or tenements during the term of said lease to any other person without first obtaining the consent of the landlord, his agent or attorney.” Rev. Stats., art. 3122. The language employed in this article leads us to the conclusion that the person who framed it did not have in mind the technical distinction between an assignment and an underlease, and that it was not the intention to-prohibit the one and to allow the other. Both are equally within the evil which was sought to be remedied; and while an assignment does not come: strictly within the letter it is within the spirit of the statute.

What the remedy of the landlord may be when the tenant has assigned or sublet without his consent the statute does not indicate.

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Bluebook (online)
15 S.W. 228, 79 Tex. 256, 1891 Tex. LEXIS 1216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-colorado-santa-fe-railway-co-v-settegast-tex-1891.