J. C. Engelman Land Co. v. La Blanco Agr. Co.

239 S.W. 937, 21 A.L.R. 1535, 1922 Tex. App. LEXIS 621
Texas Commission of Appeals·Decided April 5, 1922·No. No. 254-3461·Published·Cited by 2 cases

Opinions

MeCLENDON, P. j.

This suit, as originally brought, was for specific performance of a conditional contract to convey land, and in the alternative for damages for its breach. By amended petition it was alleged that defendant had so dealt with the land as to render performance by it impossible, and as a consequence the action for specific performance was abandoned and that for damages only retained. The trial court sustained a general demurrer to plaintiff’s petition and overruled a general demurrer 'to defendant’s answer. Plaintiff declined to amend, and the suit was dismissed. The Court of Civil Appeals affirmed the trial court’s judgment upon the holding that the general demurrer to plaintiff’s petition was properly sustained, but did not pass upon the correctness of the trial court’s ruling upon the general demurrer to defendant’s answer. 220 S. W. 653.

The questions presented call for the construction of two written contracts. The parties to one of these contracts were J. C. En-gelman Land Company, plaintiff below and plaintiff in error here, and La Blanco . Agricultural Company, defendant below and defendant in error here. The other contract was executed by the latter company and one B. H. Hooks, as first parties, and one John T. Beamer, as second party. These contracts will be referred to respectively as plaintiff’s contract and the Beamer contract. The rights of plaintiff under its contract arc made conditional upon the default of Beam-er under his contract. The primary question for determination is whether Beamer was required to procure a certain contract for irrigating the land before November 1, 1917, or whether the procuring of such contract on November 1, 1917, was a compliance with his contract. If this question be determined adversely to Béamer’s rights under his contract, then the further question arises whether plaintiff is precluded from recovery under a provision of its contract whereby defendant reserved the right to determine by vote of its stockholders any reasonable question which might arise as to whether Beamer had failed to comply with any conditions of his contract. Other questions decided by the Court of Civil Appeals will be mentioned later.

For the purposes of this decision it will only be necessary to set out certain material provisions of the two contracts.

The Beamer contract recited that Beam-er was indebted to defendant and B. H. Hooks upon certain notes secured by vendor’s lien upon certain lands; that in a suit in which defendant was plaintiff, Hooks was intervener, and Beamer. and others were defendants, judgments of foreclosure had been taken by'defendant and Hooks against Beam-er for the amount of the notes, with foreclosure of the vendor’s lien. The agreement then provided for stay of execution for three successive periods; each succeeding stay being dependent upon Beamer’s doing certain things. Beamer agreed on or before October 15, 1917, to execute or cause to be executed certain instruments conveying the land to "the defendant and to place these instruments in the hands of Stuart R. Smith, defendant’s attorney. Failure to comply with this provision gave defendant the right to proceed with execution. The agreement then provided:

“If, however, said instruments are placed, as above required, in the hands of the said Stuart R. Smith, then the first parties agree to stay and postpone any attempt to execute said judgments until the 1st day of November, 1917, on which date said La Blanco Agricultural Company and B. H. Hooks shall be free to go forward with the execution of their said judgments, the same as if this instrument had never been executed, unless by said date, to wit, November 1, 1917, the said Beamer himself has entered into, made bond for, and secured a contract in every way ready to go to work under it, with the Donna irrigation district, Hidalgo county, No. 1, to construct ready for use a system of ditches and laterals adequate to conduct the water supply for irrigation to consumers for all the land foreclosed upon in said judgments, said contract and the security of its performance to be satisfactory to the first party, or shall then own or control such a contract, in which event any steps to execute said judgments shall be further stayed, until the 15th ■day of December, 1917, after which day these agreements shall not in any way affect the rights of the first parties to proceed to the execution of said judgment.”

In case of compliance by Beamer with the last-quoted provision there was a further-provision requiring him to pay certain sums of money on or by December 15, 1917. The ■ last paragraph of the contract reads:

“It is agreed that, in case a failure of the second party to comply with this contract at any time so as to give the first parties freedom to -proceed with the execution of said judgments, then the instruments hereinbefore provided to be placed in the hands of Stuart R. Smith shall take full effect and force, according to their face, effect, and tenor, and shall [939] obviate and render unnecessary, if so deemed by tie first parties, the sale under foreclosure of said lands, such instruments being intended, should they take effect under this agreement, to take the place of any judicial sale of said land, and when accepted, which acceptance shall be evidence by the recording thereof, by the first party as reconveyances and acquittances of said lands, the same shall constitute a discharge of the parties grantors in said instrument of any personal liabilities whatever existing by reason of said judgments, it being understood that such instruments are not to be placed of record until by'the terms of this instrument they may become effective.”

The Beamer contract was in terms made a part of plaintiff’s contract, and was executed on the same day. The latter was an agreement by defendant to convey to plaintiff the lands described in the Beamer contract upon certain terms and conditions, its binding effect to be conditional, however, upon the default of Beamer under his contract. After providing for the contingency of Beamer’s default in depositing the instruments with Smith, the contract reads:

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J. C. Engelman Land Co. v. La Blanco Agr. Co., 239 S.W. 937, 21 A.L.R. 1535, 1922 Tex. App. LEXIS 621 (Tex. Super. Ct. 1922).

239 S.W. 937 (J. C. Engelman Land Co. v. La Blanco Agr. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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