Keels v. Metzler

94 S.W.2d 799, 1936 Tex. App. LEXIS 563
CourtCourt of Appeals of Texas
DecidedMarch 18, 1936
DocketNo. 10180.
StatusPublished
Cited by3 cases

This text of 94 S.W.2d 799 (Keels v. Metzler) 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
Keels v. Metzler, 94 S.W.2d 799, 1936 Tex. App. LEXIS 563 (Tex. Ct. App. 1936).

Opinion

LANE, Justice.

This is a suit instituted in the court below by Ella Metzler, joined pro forma by her husband, E. A. Metzler, against Carl O. Keels, Perry V. Cook, and Hou-Tex Lease & Royalty Corporation, to cancel a certain deed from Ella Metzler, joined therein by her husband, conveying to Carl O. Keels minerals under an undivided one-fourth interest in SO acres of the Joseph House League in Montgomery county, Tex., owned by her. Plaintiffs likewise prayed for the cancellation of a subsequent lease from Keels to Hou-Tex Lease & Royalty Corporation, and a judgment against all defendants for the title and possession of said lands. The grounds alleged for cancellation are, substantially, as follows: (1) That defendants Cook and Keels, acting together, fraudulently represented to plaintiffs that the minerals under said lands were worth not more than $40 per acre at the time of the execution of said mineral deed, when, as a matter of fact, said minerals had a reasonable market value of $5,000 or approximately $320 per acre; (2) that defendants Cook and Keels induced plaintiffs to execute said mineral deed by fraudulently representing to them that same conveyed only one-half of the interest actually conveyed; (3) that said Cook, who took the *801 acknowledgment to said deed, was pecuni-arily interested in the transaction, and was therefore disqualified to take the acknowledgments thereto, for which reason the instrument, being a conveyance of Ella Metz-ler’s separate property, was invalid; (4) that Perry V. Cook, the notary, did not examine the plaintiff, Ella Metzler, separately and apart from her husband.

Plaintiffs tendered an uncashed' check for $140, representing all but $100 of the purchase price given for the deed, and prayed as above set out.

Defendants answered by general demurrer, special exceptions, all of which were overruled, general denial, a disclaimer on the part of Keels, a denial that Cook had a pecuniary interest in the transaction, he having merely lent to Keels the money with which the lands were purchased, a plea of ratification and estoppel, and a cross-action in trespass to try title.

The plaintiffs answered to the cross-action by general demurrer and general denial, and filed a supplemental petition containing general demurrer, special exceptions, general denial, and specific denial of some facts pleaded.

All demurrers and exceptions were overruled, and the cause was tried before a jury upon special issues submitted by the court.

At the close of the evidence, all defendants moved the court for an instructed verdict in their favor and in favor of said defendants on their cross-action against Ella Metzler, which motion was refused.

In answer to the special issues the jury found: (1) That defendant Perry V. Cook (the notary) was financially interested in the purchase and in the consideration paid for the deed; (2) that said Cook did not examine Ella Metzler privily and apart from her husband, nor did he explain to her the tenor and effect of said deed, nor did he ask her if she acknowledged the instrument to be her act and deed, and if she willingly signed the same for the purposes and consideration therein expressed, and if she wished to retract it; (3) that Ella Metzler did not answer to said notary the statutory questions for a wife’s separate acknowledgment, in accordance with law, for a proper execution of the deed; (4) that Carl O. Keels and Perry V. Cook represented to plaintiffs that said deed conveyed only one-half of the one-eighth royalty interest owned by Mrs. Metzler, and that the plaintiffs believed such representations to be true and relied thereon in executing the deed, and would not have done so had they not so believed; (5) that plaintiffs were induced to execute and deliver the deed without reading it by reason of representations made to them by Keels and Cook that the deed conveyed one-half of the minerals under the land.

Upon the verdict of the jury and the evidence, the court rendered judgment for the plaintiffs as prayed for by them against all of the defendants, canceling the two deeds as prayed for by the plaintiffs, and decreeing that plaintiff Ella Metzler, joined by her husband, recover from all defendants, in her separate right, the title and possession of the land sued for, which is fully described in the judgment, and for a writ of possession. It is further recited in the judgment as follows:

“Plaintiffs having tendered into the Court the check of the Hou-Tex Lease and Royalty Corporation, of date March 17, 1933, and drawn on the Houston National Bank of Houston, Texas, payable to the order of the plaintiffs in the sum of $140.00, same is hereby cancelled, and annulled as an obligation payable to plaintiffs.
“It is further ordered, adjudged, and decreed that defendants recover nothing on their cross-bill herein, and that as to it, the plaintiffs go hence without day and recover their costs.”

All the defendants have appealed.

The plaintiffs substantially alleged that the property in controversy, at the time of the transaction, was of the reasonable market value of $5,000; that plaintiffs were uneducated and unlearned people and totally ignorant of the market value of the minerals under the land; that defendants at the time were well-informed traders in oil. and mineral interests, and made the buying and selling thereof their sole and only business and occupation; that defendants knew the land in controversy was underlaid with a rich oil-bearing sand, by reason whereof the land had a reasonable market value of $5,000; that the defendant Carl O. Keels had been acting as the agent and attorney in fact for the plaintiffs in respect to other property owned by them in the C. N. Pillot survey and had obtained their confidence and trust; and that defendants knew that plaintiffs were ignorant of the value of the mineral interest in the land, and acting together and for the mutual benefit of all defendants, and for the fraudulent purpose of taking advantage of plaintiffs’ ignorance in that respect, and, for the fraudulent purpose *802 of acquiring the mineral interest of Ella Metzler in said land for an inadequate consideration, falsely represented to plaintiffs that the minerals of Ella Metzler in said land were not of any particular value and were not worth more than $40 per acre; that plaintiffs, relying on such representations, executed the deed, which they would not have done had they not so relied.

Defendants specially excepted to these allegations upon the ground that same did not constitute actionable fraud; the statement of the vendee of the value of the property he was about to purchase not constituting grounds for the cancellation of the instrument thus procured.

This special exception was by the court overruled, to which defendants in open court excepted.

Appellants insist that in overruling such special exception the court committed reversible error, in that, since defendant Keels was dealing with plaintiffs as purchaser of land owned by Mrs. Ella Metzler as her separate property, such alleged fraud did not in fact constitute actionable fraud; that the statement of the vendee of the value of the property he was about to purchase did not constitute grounds for t'he cancellation of the deed in question so procured.

We overrule appellants’ contentions.

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Bluebook (online)
94 S.W.2d 799, 1936 Tex. App. LEXIS 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keels-v-metzler-texapp-1936.