M. L. C. Loan Corp. v. P. K. Foods, Inc.

541 S.W.2d 902, 1976 Tex. App. LEXIS 3201
CourtCourt of Appeals of Texas
DecidedSeptember 30, 1976
Docket7831
StatusPublished
Cited by13 cases

This text of 541 S.W.2d 902 (M. L. C. Loan Corp. v. P. K. Foods, Inc.) 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
M. L. C. Loan Corp. v. P. K. Foods, Inc., 541 S.W.2d 902, 1976 Tex. App. LEXIS 3201 (Tex. Ct. App. 1976).

Opinion

KEITH, Justice.

Defendant below appeals from an adverse judgment rendered non obstante ve-redicto in a suit to recover damages suffered as a result of wrongful eviction from leased premises. We will refer to the parties as they appeared in the trial court.

On April 14, 1972, W. K. Dill and Morty Kester entered into a lease agreement covering a building in Killeen, Texas, which was used to transact the business of “Morty’s Pizza King”. Dill sold the property in question to defendant subject to the terms of the lease and it recognized Kester’s assignment of the lease to the plaintiff.

Kester continued to operate the pizza business in the leased premises until he had a heart attack in July, 1974. About August 17, 1974, according to Philip Juarez, president of the plaintiff corporation, P. K. Foods, Inc., he learned that the taxes had not been paid and that the pizza business in Killeen was in bad shape. He said that he fired all of the employees and closed the business. On August 21, Elmer Douglas, the local manager of the defendant lessor, wrote a letter to Juarez and Kester advising of the nonpayment of the rent due on the premises since August 15 and advising them that they had ten days within which to pay the delinquent rent or vacate the premises. A few days later, on August 23, 1974, defendant’s lawyer, Clinkenbeard, wrote a letter to Juarez stating that the premises had been abandoned for a period in excess of five days in violation of the lease agreement and that the lessee's interest in the premises would terminate ten days following the date of the letter.

Juarez testified that he sent one of his associates to Killeen on August 31 with his personal check payable to defendant for the amount of the delinquent rent and the associate said that he attempted to deliver the check to defendant’s agent Douglas on August 31 but that the payment was refused. It is undisputed that defendant took possession of the premises on October 2, 1974, and that plaintiff never at any time after August 17, 1974, attempted to resume possession thereof.

The jury found that the plaintiff had abandoned the premises and the other issue (which comes to us without complaint) found plaintiff’s damages; but, the trial court set aside the abandonment finding and entered judgment for plaintiff’s damages as found by the jury.

Defendant contends, and properly so under the authorities, that a trial court is authorized to grant a judgment non obstan-te veredicto only when there is no evidence of probative nature supporting the finding of the jury. The leading case is Leyva v. Pacheco, 163 Tex. 638, 358 S.W.2d 547, 550 (1962), following Burt v. Lochausen, 151 Tex. 289, 249 S.W.2d 194, 199 (1952). The rule laid down in these two cases by our supreme court still prevails. See, e. g., Coffee v. F. W. Woolworth Co., 536 S.W.2d 539, 541 (Tex.1976). Having recognized the rule, we turn now to an examination of the record.

We find no evidence of probative force supporting the jury’s answer to special issue number one that plaintiff had abandoned the leased premises. 1 Defendant’s agent Douglas testified that Kester *904 came by and told him that he was having to close the business and discharge all of the employees; but, Kester denied having made such statements, claiming that he was confined to his home from the effects of a heart attack at the time Douglas testified Kester made the statement.

Moreover, plaintiff’s president, Juarez, testified, without contradiction, that Kester was not an employee of the plaintiff at the time he is alleged to have made the statements. In any event, it is not shown that Kester’s statements, assuming that they were made, were within the course and scope of his employment with the plaintiff. See, generally, 2 C. McCormick & R. Ray, Texas Law of Evidence § 1164, at 54-57 (2d Ed. 1956).

In the absence of authority, Kes-ter’s statements to Douglas constituted hearsay testimony as to the plaintiff. And, it is clearly established in our jurisprudence that hearsay testimony is not competent testimony and can never form the basis of a finding of fact or a judgment of a court. Texas Co. v. Lee, 138 Tex. 167, 157 S.W.2d 628, 631 (1941); Hebert v. Loveless, 474 S.W.2d 732, 737 (Tex.Civ.App.—Beaumont 1971, writ ref’d n. r. e.).

It is generally conceded that abandonment is a question of intention; and, for there to be an abandonment, there must be evidence that there was an intention to abandon the property or the right before it can be lost. See, e. g., Lone Star Gas Company v. Murchison, 353 S.W.2d 870, 879 (Tex.Civ.App.—Dallas 1962, writ ref’d n. r. e.); 1 Tex.Jur.2d Abandonment § 10, at 8 (1959).

Moreover, defendant made no serious effort to dispute the fact that plaintiff’s check for the payment of the delinquent rent was tendered and refused by defendant before the expiration of the time for payment of the rent had expired. It is not likely that a tenant had fixed intention to abandon premises while tendering the rent which would have entitled him to another half month’s uninterrupted occupation of the premises.

Defendant’s testimony, other than that attributed to Kester, was confined to the cessation of use of the leased premises. Plaintiff’s corporate officer, on the other hand, denied any intention to abandon the premises, although it must be conceded, he did not offer any evidence of affirmative intent or overt act to reopen the business. As plaintiff points out, the language found in Humble Oil & Refining Co. v. Cook, 215 S.W.2d 383, 387 (Tex.Civ.App.—Austin 1948, writ ref’d n. r. e.), is pertinent:

“The most that can be said of the well is that the owners, having damaged the well, failed to repair and operate it. This is mere nonuser which is not sufficient to constitute abandonment.”

So it is in the case at bar. Evidence of nonuser for a few days will not support an abandonment of a leasehold under the record which we review. Point one is overruled.

Defendant contends that the trial court applied an erroneous standard in granting plaintiff’s motion for judgment non obstan-te veredicto in that he held that the defendant’s evidence of abandonment did not meet the standard of “clear and satisfactory” evidence. The trial court submitted an instruction along with special issue number one which read:

“You are instructed that the standard of proof for abandonment is by clear and satisfactory evidence rather than preponderance of the evidence and imposes a stricter standard of proof. ‘Clear’ means *905

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541 S.W.2d 902, 1976 Tex. App. LEXIS 3201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-l-c-loan-corp-v-p-k-foods-inc-texapp-1976.