Lewis v. Brown

321 S.W.2d 313, 1959 Tex. App. LEXIS 1905
CourtCourt of Appeals of Texas
DecidedFebruary 6, 1959
Docket15960
StatusPublished
Cited by15 cases

This text of 321 S.W.2d 313 (Lewis v. Brown) 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
Lewis v. Brown, 321 S.W.2d 313, 1959 Tex. App. LEXIS 1905 (Tex. Ct. App. 1959).

Opinion

BOYD, Justice.

On October 19, 1949, J. C. Williamson' and wife, Sue Adeline Williamson, executed a contract to sell to Warren H. Brown a 30 acre tract of land; and on the same day they executed to said Brown an option to buy an additional 24.9 acres contiguous to the 30 acre tract. On November 15, 1949, the Williamsons executed a deed to-Brown covering the 30 acre tract.

By the option contract the Williamsons bound themselves, their heirs, executors, and administrators “to give said Second Party the option to buy and to convey to' him by general warranty deed at any time within three years from the date hereof, for the sum of One Thousand Dollars ($1,000.00) per acre, in cash or on terms acceptable to First Parties,” the tract described therein.

On February 11, 1952, Warren H. Brown, joined by George R. Brown, executed a contract to convey the 30 acre tract and the optioned tract to H. D. Lewis and E. P. Lamberth for the sum of $1,600 per acre. This contract provided that “Warren H. Brown and George R. Brown agree to immediately exercise their option to ‘Tract 2’ in accordance with their option agreement now of record; and, that on obtaining title to said ‘tract 2’ they agree to convey the land to H. D. Lewis and E. P. Lamberth in accordance with this contract, it being understood and agreed that the Seller shall have 6 months from the date of exercising his option before conveying Tract 2 to said H. D. Lewis and E. P. Lamberth.”

*315 In February, 1952, Warren H. Brown exercised his option on the 24.9 acre tract and tendered to the Williamsons the $1,000 per acre purchase price. The Williamsons refused to execute a deed. On March 7, 1952, Warren H. Brown and wife conveyed the 30 acre tract to Lewis and Lamberth. On April 12, 1952, Lewis and Lamberth called upon the Browns and the William-sons to execute the deeds contemplated by their contracts relating to the optioned tract, and tendered performance on their part. The Williamsons again refused to execute a deed.

On October 17, 1952, Lewis and Lam-berth filed this suit against the Browns and the Williamsons, asking for specific performance of their contracts, and in the alternative for damages. The Browns answered that they were willing but unable to perform because of the refusal of the Wil-liamsons to convey the tract to them, and that “plaintiffs’ remedy of specific performance should be allowed.” The Williamsons pleaded that Lewis and Lamberth were not in privity of contract with them and had no standing in court to enforce performance of the Williamsons’ contract with Warren H. Brown, and further that “at all material times” the optioned tract was part of their rural homestead.

Before the trial, Lamberth and J. C. Williamson died, and their heirs and legal representatives were made parties.

By an instrument in writing executed on November 1, 1957, the Browns undertook to “sell, transfer, assign, set over and convey to the said H. D. Lewis and E. P. Lam-berth, their heirs and assigns forever, the option agreement and contract” which had been entered into by the Williamsons and Warren H. Brown.

Trial was to the court, and judgment rendered that plaintiffs take nothing. Lewis and the Lamberth heirs and legal representatives appealed as to all parties, and will be referred to as appellants; Warren H. Brown and George R. Brown appealed as to all parties, but join in the brief for Lewis and Lamberth, and will be referred to as the Browns; Sue Adeline Williamson and the heirs and legal representatives of J. C. Williamson will be referred to as appel-lees.

The Browns did not ask for specific performance against the appellees, and at the outset we are met with appellees’ contention that appellants cannot maintain the suit against appellees. They insist that the Browns’ contract with appellants did not constitute an assignment of the option, and that without such assignment appellants are not in privity with appellees.

We have reached the conclusion that regardless of whether the option contract has been assigned to appellants, they have an equitable right to maintain the suit.

When the Browns exercised their option to buy, the option contract was converted into an executory contract of sale. McCaleb v. Wyatt, Tex.Civ.App., 257 S.W.2d 880; Northside Lumber & Bldg. Co. v. Neal, Tex.Civ.App., 23 S.W.2d 858; San Antonio Joint Stock Land Bank v. Malcher, Tex.Civ.App., 164 S.W.2d 197. The Browns thereby became the equitable owners of the land, which interest they conveyed to appellants by their contract of sale. 43-A Tex.Jur., p. 84, sec. 73; 91 C.J.S. Vendor & Purchaser § 13, p. 863.

We think one succeeding to the rights of the purchaser may enforce a contract against the seller by joining the purchaser in the suit, so that the seller will be relieved of the danger of future liability, and by performing or offering to perform all the obligations incurred by the purchaser to the seller. Allison v. Shilling, 27 Tex. 450; Cheney v. Bilby, 8 Cir., 74 F. 52; Geo. V. Clark Co. v. New York, New Haven & Hartford R. Co., 279 App.Div. 39, 107 N.Y.S.2d 721.

“A suit for specific performance of a contract may be maintained by a party or privy to the contract, who has performed his part thereof; or, in the absence of inter *316 vening equities, by a person claiming under such party, in privity of estate, representation, or title; or by a person who has an interest in the subject matter of the contract and suit.” 81 C.J.S. Specific Performance § 23, p. 456.

In Townshend v. Goodfellow, 40 Minn. 312, 41 N.W. 1056, 1057, 3 L.R.A. 739, an owner contracted to sell land; before the conveyance was made, the purchaser contracted to sell it to another, who sued the seller for specific performance. The court said: “ * * * one who has an equitable estate merely under an executory agreement may offer the premises for sale without waiting until he has obtained a deed. Tiernan v. Roland, 15 Pa. 429. But it is further suggested that in this case plaintiff was at the time a mere subpur-chaser, having himself no contract with the executors, and both contracts remained wholly executory. Not being a party to the first contract, he is not bound by its terms, and could not compel the parties thereto to fulfill the same as between themselves, nor would the fact that they neglected to do so give him a right of action by virtue thereof. McCarthy v. Couch, 37 Minn. 124, 33 N.W. 777. But he necessarily purchased the equitable title of the first vendee subject to that contract, although, as between him and the latter, he did not assume its obligations; and, having purchased the entire interest of the first vendee, equity will interfere to protect his interest and enforce a deed to him from the vendor holding the legal title, upon a proper showing and tender of performance of the conditions subject to which it is so held, if the application is seasonably made. When a contract is made for the sale of an estate in land, the purchaser is treated in equity as the owner, and as trustee of the purchase money for the vendor, and the latter is considered the trustee of legal title for the purchaser.

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Bluebook (online)
321 S.W.2d 313, 1959 Tex. App. LEXIS 1905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-brown-texapp-1959.