King v. Matteson

432 S.W.2d 155, 1968 Tex. App. LEXIS 2083
CourtCourt of Appeals of Texas
DecidedSeptember 19, 1968
DocketNo. 371
StatusPublished
Cited by2 cases

This text of 432 S.W.2d 155 (King v. Matteson) 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
King v. Matteson, 432 S.W.2d 155, 1968 Tex. App. LEXIS 2083 (Tex. Ct. App. 1968).

Opinion

DUNAGAN, Chief Justice.

The First National Bank, Perryton, Texas, appellee herein, sued appellants, Jimmy Lee King and wife, Evelyn King, in trespass to try title, alleging an oral contract to convey real estate, the taking of possession in good faith by the bank, and the expenditure of approximately $16,000.00 to complete a dwelling on the tract of land involved in this lawsuit. The bank also pleaded that Jimmy King was estopped to deny a superior equitable title in the bank and, in the alternative, pleaded for an equitable lien securing its expenditure in excess of $16,000.00, and for foreclosure of such lien. The case was tried to the court without the aid of a jury. Judgment was entered vesting title to the property in the bank and the sum of $1,050.00 as rental for the use thereof. From this judgment, the appellants have duly perfected their appeal.

The appellants made no request for findings of fact and conclusions of law and none have been filed.

By Points of Error 1, 2 and 3, appellants contend the trial court erred in rendering judgment for the bank because (1) there was no evidence, (2) or insufficient evidence to establish a completed oral contract between Jimmy King and appellee, First National Bank, Perryton, Texas, and (3) the finding that there was a completed oral contract between Jimmy King and the bank would be against the great weight and preponderance of the evidence so as to be manifestly wrong and unjust.

In August of 1966 Jimmy King was a building contractor, doing business as King Construction Company in Perryton, Texas. At that time, he was constructing five houses in or near Perryton, Texas, including the house that is involved in this lawsuit. The bank was providing his interim construction finance and at that time, Jimmy King owed the bank about $103,000.00. Because of the poor health of Jimmy King’s wife in the summer of 1966, he and his wife moved to Houston, Texas. The uncontradicted evidence shows at that time Jimmy King was broke. In fact, he testified that he “was about as broke as you could be.’’

On August 12, 1966, Jimmy King gave his brother, Lloyd King, a power of attorney, giving his brother the full power and authority, in his absence, to operate the business known as the King Construction Company which included the completion of the unfinished houses then under construction. Included in the houses was the house here involved. At that time, Jimmy King’s [157]*157financial condition was such that he could not maintain the insurance policies in effect on these properties and notices of cancellation of insurance had been sent to him on several of the houses. The power of attorney was revoked by Jimmy King on September IS, 1966. During the existence of said power of attorney, Lloyd King attended the meeting of the creditors on August 30, 1966. The next meeting of the creditors on September 10, 1966, Jimmy King attended, representing himself and making certain representations in his own behalf. There were numerous conferences concerning the property between Lloyd King and the bank’s attorney before the power of attorney was revoked.

On August 17 or 18, 1966, Jimmy King retained an attorney to file a bankruptcy petition for him. Such petition in bankruptcy was filed on August 22, 1966. It was dismissed on October 7, 1966, on the motion of petitioner, Jimmy King.

In September, 1966, the bank initiated a meeting of Jimmy King’s creditors for September 10, 1966. This meeting was called by the bank in an attempt to make arrangements to complete the five unfinished houses and dispose of them. At this meeting, the bank offered to furnish funds with which to complete the five properties without any interest charge. This offer “pleased” Jimmy King, and he regarded it as valuable help at the time. The bank even made some payments on some first mortgage loans on some of Jimmy King’s properties for several months. At that time, Jimmy King was interested in seeing that his creditors’ losses were reduced or possibly eliminated.

At the meeting called by the bank in an attempt to make arrangements to complete the five unfinished houses and dispose of them, Jimmy King told the creditors present that he would be willing to turn over all of his assets except his pick-up, car, hand tools, equipment that he worked with, and his furniture. There is some testimony that Jimmy King made this offer on the condition that all the creditors approve, which they did not. This testimony was rebutted by other evidence which the trier of the facts could have accepted in rendering judgment. He further agreed to convey his homestead and his offices to the bank as a trustee for his creditors at that time. Jimmy King testified he made this offer and agreement because he did not have the money to keep the payments up on them. He gave the following testimony:

“Q Now, you even agreed to convey your homestead and your offices to the bank as a trustee for your creditors at that time, did you not ?
“A Yes, sir.
“Q Why did you agree to do this, Jimmy?
“A Because I didn’t have the money to keep the payments up on them.
“Q All right. You couldn't make the payments on either your homestead or your warehouse and you were hoping that the bank would make those payments for you and hoping that they could be disposed of and an equity realized for the benefit of your creditors?
“A Yes sir.”

There is testimony in the record that the bank, through its attorney, relied primarily on these express representations of Jimmy King. Also through its attorney it relied upon the numerous conferences of its attorney with Lloyd King.

When Jimmy King left Perryton in August, 1966, the house, which is the subject of this lawsuit, was at the “weathered-in point.” The roof was on, it was sheet-rocked, taped and textured, had not been bricked, the trim had not been commenced, it had no carpet or linoleum, no light fixtures, no plumbing facilities in the kitchen or bathroom, and had not been painted. There was no insurance policy in effect on it. It was a “speculative” house in that King did not have a buyer for it, but was [158]*158building it contemplating selling it to someone when it was completed. Jimmy King was unable to complete this property, or any other of his properties. Several Mechanic’s & Materialman’s Liens had been filed by people working on the house but King had no way of paying them, and unless some arrangement had been made to complete this property, there would have been a foreclosure of liens and it would have been sold under a foreclosure sale. At the time of the creditors’ meeting, King knew that the bank would complete the houses, including the house here in controversy, and attempt to make a disposition of them.

In fact, Jimmy King testified that he “wanted” the bank to furnish the funds with which to finish his unfinished houses. The bank did so, but on or about December 31, 1966, Jimmy King and his family moved back to Perryton and into the house here in question and was living there at the time of trial.

At the time Jimmy King filed his bankruptcy petition, he had an unrecorded deed to the property here in question. The deed was dated March 25, 1966, filed for record. November 28, 1966, and had been in his possession since shortly after its execution. It was in his possession at the time he signed his sworn bankruptcy petition, but it was not listed on the petition.

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Bluebook (online)
432 S.W.2d 155, 1968 Tex. App. LEXIS 2083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-matteson-texapp-1968.