H. W. Broaddus Co. v. Binkley

54 S.W.2d 586
Court of Appeals of Texas·Decided October 27, 1932·No. No. 2738.·Published·Cited by 6 cases

Opinion

HIGGINS, J.

Appellant brought this suit against J. B. Binkley and Dr. R. B. Homan to recover a broker’s commission. Dr. Homan in writing submitted an offer to exchange certain lots owned by him in the city of El Paso, upon which four business houses are situate, for lots in said city owned by Binkley upon which an apartment house is situate. This offer was, in writing, accepted by Binkley. Appellant acted as/agent in negotiating the contract; each defendant agreeing to pay it a commission for its services. Bater a supplemental agreement relative to the contract of exchange was entered into between the defendants. Thereafter Binkley declined to carry out the contract.

In justification of his refusal to finally consummate the contract, Binkley set up various defenses, all of which were found against him except the issue of fraud. This issue is sufficiently indicated by special issues 5, 6, 7, 8, and A, submitted by1 the court. These issues, with the answers returned, read:

“Question No. Five: Do you find from a preponderance of the evidence that Plaintiff, acting through J. M. Broaddus, represented in substance to the defendant, Binkley, prior to the time he signed said contract of exchange, that the three tenants who had leases on portions of the property of the said R. B. Homan were all financially responsible? Answer: ‘Yes.’
' “Question No. Six: Do you find from a preponderance of the evidence that such representation, if same was made, was false? Answer: ‘Yes.’
“Question No. Seven: Do you find from a preponderance of the evidence that the said J. B. Binkley believed such representations and relied thereon? Answer: ‘Yes.’
“Question No. Eight: Do you find from' a preponderance of the evidence that such false representations, if such representation was made and was false, operated as a material inducement to the said J. B. Binkley to sign the said contract of exchange? Answer: ‘Yes.’ ”
“Special Issue ‘A’: Do you find from a preponderance of the evidence that the defendant, Binkley on the date of executing the the supplemental agreement relating to the exchange of property had notice of the falsity of such false representations, if any false representations-were made? Answer: No.”

Upon the findings shown,, judgment was rendered in favor of defendants.

J. M. .(Morgan) Broaddus represented appellant in submitting to Binkley the Homan offer and in procuring Binkley’s acceptance thereof. At that time the business houses upon the Homan property were under lease to and occupied by different parties.

It was contended by Binkley he was induced to enter into the contract to exchange by false and fraudulent representations made by Broaddus concerning the financial responsibility of Homan’s tenants.

It is contended by appellant that the representations, if any, made by Broaddus were, as a matter of law, mere expressions of opinion rather than representations of fact; or, in any event, it was a question of fact whether the representations were expressions of oifinion or representations of fact, and the court erred in refusing to submit an issue requested by it inquiring whether the representations were made by plaintiff as mere expressions of opinion and received as such by Binkley.

Statements of the character here involved are not infrequently equivocal in their nature and are susceptible of different interpretation. Each case .in large measure depends upon its own facts. When the statement is so equivocal that it cannot be determined as a matter of law, whether it is made as a representation of fact or as the expression of an opinion, then the question is one of fact for the jury.

On the other hand, the statement may be of such character and made under circumstances as to stamp it, as a mattér of law, as a representation of fact or expression of opinion as the case may be. 12 R. O. L. 446. With reference to the statements made to him by Broaddus concerning the tenants, Binkley testified substantially that he (Binkley) asked about them; whether they were good tenants. Broaddus said they were all good tenants; that he had made the leases himself; he inquired why the doors of the Brownlee Laundry -were closed. Broaddus said Brownlee had been sick, he was a good tenant; that he had investigated Brownlee and found he was a rich man, and you need not worry about him because he was not doing business; they were *588 all Al, good tenants because he had looked them all up and found them — their credit— in Al condition; that he made the leases himself and knew the people; “he had looked up every one of them and found them to be financially responsible.” “I asked him what he meant by good tenants and he said tenants that had been investigated and found to be responsible” and that they were paying their rent as it became due.

This testimony shows Broaddus undertook to state facts concerning the financial responsibility of the tenants based upon investigation made by him; that he negotiated the leases. He assumed to speak with knowledge of the facts, and what he stated was in our opinion, as a matter of law, a representation of fact rather than expression of opinion.

It is true Broaddus denied making any statement concerning any of the tenants except Brownlee, but it merely raises the issue as to whether he made the statement as testified to by Binkley. He admits making a statement concerning Brownlee, but the variance between his testimony and Binkley’s concerning Brownlee merely raises the issue of whether he made the statement concerning Brownlee as testified to by Binkley.

If Broaddus made the statements testified to by Binkley, they are, as a matter of law, to be treated as representations of fact concerning the financiál responsibility of the tenants. Hoyt v. First Nat. Bank (Tex. Civ. App.) 247 S. W. 637; Boles v. Aldridge, 107 Tex. 209, 175 S. W. 1052; Gardner v. Dorsey (Tex. Civ. App.) 272 S. W. 266; Riggins v. Trickey, 46 Tex. Civ. App. 569, 102 S. W. 918.

They are not of that uncertain character which would carry to the jury the issue of whether they were made as representations of fact or the expression of opinion.

Appellant objected to the eighth question submitted by the court upon the ground that it did not place upon Binkley “the correct burden,” and in connection with such objection requested the court to submit this issue; “Do you find from a preponderance of the evidence that such false representations, if said representations were made and the same were false, operated as a material inducement to the said J. B. Binkley to sign such contract of exchange, without which such false representations the defendant Binkley would not have signed such contract of exchange?”

The court gave this instruction:

“By the term ‘material inducement’ as used in the issues submitted to you is meant:
“That the representations in question operated materially to induce the execution of the contract in question; it need not be the sole inducement leading the party to execute the contract but it must have a material effect in inducing said' party to execute such contract.”

The refusal of the requested issue is assigned as error.

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H. W. Broaddus Co. v. Binkley, 54 S.W.2d 586 (Tex. Ct. App. 1932).

54 S.W.2d 586 (H. W. Broaddus Co. v. Binkley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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