Leyendecker v. Strange

204 S.W.2d 845, 1947 Tex. App. LEXIS 749
CourtCourt of Appeals of Texas
DecidedJuly 24, 1947
DocketNo. 11906
StatusPublished
Cited by12 cases

This text of 204 S.W.2d 845 (Leyendecker v. Strange) 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
Leyendecker v. Strange, 204 S.W.2d 845, 1947 Tex. App. LEXIS 749 (Tex. Ct. App. 1947).

Opinion

MONTEITH, Chief Justice.

This action was brought by appellee, Willard A. Strange, for the recovery of damages alleged to have been sustained as the result of the breach of a contract of employment with appellants, J. B. and C. B. Leyendecker.

Appellee alleged that appellants were the owners of the U. S. Truck Line, and that J. B. Leyendecker had made repeated offers to him to work for the U. S. Truck Line, and that in conformity with such offer he and his partner, O. F. Bright, sold their truck line to appellants; that as a part of the consideration for such sale, appellants agreed to pay him for his services with the U. S. Truck Line the sum of $500 per month as salary and to pay him in addition thereto 2% of the annual gross income of the U. S. Truck Line and to pay him 1% of the gross earnings of the U. S. Truck Line if and when it purchased the M. C. M. Truck Line; that such employment under the terms alleged would continue so long as appellee’s services were satisfactory to appellants. Appellee alleged that such services were satisfactory and that they continued for a period of one year.

Appellants’ main contention on appeal is that appellee’s cause of action for compensation for his services is an attempt to add to and vary by parol the terms of the written contract of sale of appellee’s truck line to appellants. They complain of the action of the trial court in admitting evidence seeking to vary and alter the terms of the written contract of sale by attaching thereto an unwritten contract of employment.

Appellants owned and operated the U. S. Truck Line. Appellee and his partner, O. F. Bright, owned and operated the Bright Truck Line. Appellee testified that appellants had made repeated offers to him to work for the U. S. Truck Line; that pursuant to these offers he discussed the matter with his then partner, O. F. Bright, and that as a result thereof he and Bright negotiated a written contract of sale of the Bright Truck Line to the U. S. Truck Line for the sum of $28,000; that as a part of the agreement and contemporaneous therewith, and as a part of the consideration therefor, a collateral oral agreement was entered into between appellee and Bright and appellants that both appel-lee and Bright should work for U. S. Truck Line.

Appellee contends that the collateral contemporaneous oral agreement to employ him and to pay him a commission on the gross earnings of the U. S. Truck Line and his subsequent acceptance of employment with the U. S. Truck Line was part of the original contract for the sale of the Bright Truck Line to appellants, only a part of which, namely, the contract of sale of equipment, was reduced to writing, and that it was permissible to introduce evidence of such agreement.

In 32 C.J.S., Evidence, § 997, pages 970, 971, it is said that:

“The parol evidence rule does not preclude the admission of extrinsic evidence of [847]*847a valid prior or contemporaneous parol agreement which is collateral both in form and substance, in that, although related in a general sense to the written instrument in question, it is independent thereof and does not vary or contradict the express or implied provisions thereof nor invade the particular field which the instrument undertakes to expressly or impliedly cover,.but instead has for its subject a matter which the parties might naturally deal with separately.
“ * * * Except where, as shown infra, § 999, the writing expressly excludes oral agreements, evidence of a parol collateral agreement may be received, regardless of whether or not the written agreement contains any reference to such collateral agreement, or whether or not the oral contract refers to the written contract, and whether the action is at law or in equity. Proof of such an agreement must be clear and precise, and the existence of the alleged collateral agreement is a question for the jury.
“Although, to justify admission of evidence of an oral agreement as a collateral one, the agreement must be collateral in form, form alone is not sufficient, for, if it were, written contracts might always be modified by parol, it not being difficult, where a contract contains several promises on each side, to put anyone of them in the form of a collateral agreement. Substance, and not form, is the test; and in applying this test the policy of the courts of the particular state should be considered, such as a policy, more strict than that of some other jurisdictions, of upholding the parol evidence rule and not lightly or easily adopting modifications thereof. To be collateral, the agreement may and must be such as the parties might naturally make separately and would not ordinarily be expected to embody in the writing; and it must not be so clearly connected with the principal transaction as to be part and parcel thereof.”

This exception to the parol evidence rule has been uniformly followed in Texas.

In the case of Geyser Ice Co. v. Sharp, Tex.Civ.App., 87 S.W.2d 883, the court held that where an original contract was verbal and only a part of it was reduced to writing, parol evidence was admissible to make it complete, though such evidence shows a separate oral agreement about matters as to which the writing was silent but which are not inconsistent therewith, citing authorities, including 17 Texas Jurisprudence, 817 et seq., Sec. 366. The court held that another recognized exception to the parol evidence rule permits proof and enforcement of an independent parol agreement which is shown to have been entered into as an inducement to the making of a written contract, though not mentioned therein.

While it is a general rule that, in the absence of fraud and mistake, parol evidence is not admissible to contradict, vary, alter, add to, or detract from, the terms of an instrument complete upon its face and unambiguous, yet where the written instrument does not evidence the complete contract, parol evidence, consistent with the written instrument, is admissible to show the full agreement. Chadwick Machinery Co. v. Kelley, Tex.Civ.App., 60 S.W.2d 555.

In the case of New York Life Ins. Co. v. Thomas, 47 Tex.Civ.App. 149, 104 S.W. 1074, 1075, it was held that where an independent parol agreement has been made as an inducement to the making of a written contract the oral agreement may be proved and enforced, though not referred to in the written contract. In that case the court in its opinion said:

“It is the settled rule of law that one contract may be the consideration of another, the inducement to the execution thereof, and, where an independent parol agreement has been made as an inducement to the making of a written contract, the former may be proved and enforced, though not referred to in the latter”, citing authorities.

The following authorities recognize the above rule: Martin v. Hemphill, Tex.Com.App., 237 S.W. 550; Allen v. Herrick Hardware Co., 55 Tex.Civ.App. 249, 118 S.W. 1157; Harness v. Luttrall, Tex.Civ.App., 225 S.W. 810; Stuart v. Meyer, Tex.Civ.App., 196 S.W. 615, writ refused; Chapman v. Witherspoon, Tex.Civ.App., 192 S.W. 281.

[848]*848In the instant case appellee testified, in substance, that prior to the execution of the contract to appellants for sale of his interest in the Bright Truck Line, Mr.

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204 S.W.2d 845, 1947 Tex. App. LEXIS 749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leyendecker-v-strange-texapp-1947.