Holley v. Hooper

205 S.W.2d 120, 1947 Tex. App. LEXIS 782
CourtCourt of Appeals of Texas
DecidedOctober 8, 1947
DocketNo. 9649
StatusPublished
Cited by5 cases

This text of 205 S.W.2d 120 (Holley v. Hooper) 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
Holley v. Hooper, 205 S.W.2d 120, 1947 Tex. App. LEXIS 782 (Tex. Ct. App. 1947).

Opinion

HUGHES, Justice.

This suit was brought for specific performance of a contract for the sale by ap-pellee, W. R. Hooper, and the purchase by appellants, C. R. Holley and Paul F. Melton, Sr., of an undivided % interest in the Naylor Plotel located in San Angelo, Texas.

The contract, as executed by appellee, reads:

“June 21, 1946.

“I, W. R. Hooper, being the owner of three-fourths undivided interest of the Nay-lor Hotel, San Angelo, Texas, do hereby agree to sell my interests in said hotel for three-fourths of the price of $252,500.00 which is the net sale price.

[121]*121“I agree to take care of my pro rata share of taxes, interest, insurance and other obligations at the time the deal is consummated, excepting the mortgages as held by the Western Reserve Life Insurance Company of Austin, Texas.

“I accept $1,000.00 as down payment on the above deal and agree to give C. R. Holley and Paul F. Melton, Sr., until August 1, 1946, to complete this deal.

“I agree to protect the above mentioned parties from any compensation claims or liabilities of W. R. Smith, other than his ■one-fourth interest.

"The buyers agree to pay Mr. GuS A. Doering his commission for handling this transaction.

“(Signed) W. R. Hooper.”

Upon the execution of this contract by appellee and its delivery to appellants, the $1,000 payment, recited in the contract, was made.

On June 25, 1946, appellee, acting through his attorney, wrote the following letter, which was actually received by appellant Holley, July 13, 1946:

“We advise you that Mr. W. R. Hooper has discussed with our firm an agreement entered into by Mr. Hooper on June 21, 1946, purporting to obligate Mr. Hooper to sell his interests in the Naylor Hotel of San Angelo, Texas, and we further advise you that after close study of this contract we have advised Mr. Hooper in our opinion the writing is not a valid contract and is unenforceable.

“Mr. Hooper does not wish to recognize the validity of this writing signed by himself, nor does he recognize the validity of this writing signed by himself as being binding upon him to sell his interest in the Naylor Hotel, and having advised Mr. blooper to that effect, and Mr. Hooper not wishing to further negotiate with you with reference to the purchase of these properties, we have been instructed by Mr. Hooper to return to you the enclosed $1,000 check.”

This letter was answered by appellants, through their attorneys, on July. 22, 1946, the reply reading:

“We have been handed a letter addressed to Mr. C. R. Holley, written by Smith & Pollard, Attorneys of Austin, Texas, in which letter was enclosed a cashier’s check in the sum of $1,000.00, payable to Paul F. Melton, Sr., and endorsed by Mr. Melton to W. R. Hooper. This letter and check was not received by Mr. Holley until Saturday, July 20th. The $1,000.00 cashier’s check represents the $1,000.00 down-payment made by Messrs. Holley and Melton on the purchase price for the Naylor Hotel, San Angelo, Texas. According to the contract signed by you, and according to information furnished us, it is our opinion that the contract is fair, valid and enforceable. We do not believe that ou'r courts will permit a contract entered into in good faith to be so lightly disregarded. Therefore, we arc returning the cashier’s check to you, and this is to inform you that Messrs. C. R. Holley and Paul Melton are ready, able and willing to proceed with the contract according to its terms and provisions.

“We are delivering this letter, in which is enclosed the cashier’s check for $1,000.00, to attorneys Smith & Pollard, Littlefield Bldg., Austin, Texas, for the reason that we do not know your exact address in Austin. We hope you will come -forward so that the sale can be consummated on or before August 1, 1946.”

This suit was filed July 26, 1946. Trial was without a jury. Extensive findings of fact and conclusions of law were made by the trial judge. Upon such findings and conclusions the trial court held that the tender, of the purchase price by appellants was insufficient in amount, the amount of such tender being $60,278.35 and the amount found by the court to be required under the terms of the contract being in excess of $189,375. Judgment was accordingly rendered that appellants take nothing by their suit.

The determining question raised by this appeal is with regard to the purchase price; specifically, as to whether the amount of the mortgages against the property in favor of the Western Reserve Life Insurance Company, about $170,000, should be deducted from the stated “net sale price” of $252,-[122]*122500, or whether such “net sale price” should be paid by appellants, in proportion to ap-pellee’s % interest in the property, in addition to the Western Reserve mortgages, which would remain a charge against the property.

The trial court construed the contract as indicated above and as shown by the following findings of fact and conclusions of law contained in its judgment:

“4. The said written agreement above mentioned is not ambiguous or indefinite, but is specific and definite and subject to specific performance, according to its terms. * * * * * *

“6. The contract provided that defendant, W. R. Hooper, will sell his ¾ undivided interest in the Naylor Hotel of San Angelo, Texas, and the land upon which it is situated, for the net sale price of $189,375 less ¾ of the amount of taxes, interest, insurance and other like obligations, except the mortgages held by the Western Reserve Life Insurance Company of Austin, Texas.

“7. The sales price being stipulated to be the net price, it is not subject to deduction for the amount of such mortgages, and the evidence by parole tending to show such agreement of the parties varies the written terms of the contract, and cannot be given effect.”

In our opinion the contract is ambiguous; this means that the language of the contract is doubtful and Uncertain or susceptible of more than one meaning. 17 Tex.Jur., p. 864.

The contract was not prepared by an attorney. To say that it is not skillfully drawn, is to use a very mild form of expression.

The trial judge evidently considered the phrase, “$252,500 which is the net sale price,” as controlling, with “net” as the key word.

“Net” means free from charges or deductions; obtained after deducting all expenses. Overshiner v. Palmer, Tex.Civ.App., 185 S.W. 387; Turnley v. Micheal, Tex.Civ.App., 15 S.W. 912; Hope v. Shirley, Tex.Civ.App., 211 S.W. 246. These cases all involve brokers’ commissions and are of little help.

No Texas case has been cited or found where the word “net” was used under circumstances resembling those here presented.

The Kansas City Court of Appeals, however, in Sandbrook v. W. L. Morrison Inv. Co., 209 Mo.App. 600, 239 S.W. 543, 544, construed a contract which provided, in part:

“ ‘To W. L. Morrison Inv. Co.: For and in consideration of one dollar ($1.00) the receipt of which is acknowledged I hereby appoint you exclusive agent to make sale of the real property herein described as lots 9 and 10 in block 4 Co’ds Brooklyn Hill Addn. known as 2210 E. 20th st. for the price of $4,000.00 net * * *.

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Bluebook (online)
205 S.W.2d 120, 1947 Tex. App. LEXIS 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holley-v-hooper-texapp-1947.