Mann v. Fitzhugh-Straus Medina Ranch

640 S.W.2d 367, 1982 Tex. App. LEXIS 5120
CourtCourt of Appeals of Texas
DecidedSeptember 1, 1982
DocketNo. 04-82-00052-CV
StatusPublished
Cited by5 cases

This text of 640 S.W.2d 367 (Mann v. Fitzhugh-Straus Medina Ranch) 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
Mann v. Fitzhugh-Straus Medina Ranch, 640 S.W.2d 367, 1982 Tex. App. LEXIS 5120 (Tex. Ct. App. 1982).

Opinion

OPINION

CANTU, Justice.

This is an appeal from an order of the trial court denying a plea of privilege.

Appellee, the plaintiff below, brought suit in Menard County, Texas, against the appellant, the defendant below, seeking damages for a breach of an alleged written contract executed and performable in Me-nard County and in the alternative for alleged fraudulent misrepresentations that appellant would purchase cattle from appel-lee. Appellant filed a plea of privilege to be sued in Harris County, the county of his residence.

The appellee filed its controverting plea alleging that the action was maintainable in Menard County under Tex.Rev.Civ.Stat. Ann. art. 1995 subd. 5(a) and/or 5(b) (Vernon Supp.1981), as a contractual agreement between the parties executed, entered into and performable in Menard County, Texas, and/or as a contractual obligation to pay money based upon or arising out of a consumer transaction for goods, services, loans or extensions of credit intended primarily for agricultural use.

Appellee further alleged in the alternative that the action was based upon fraud and/or misrepresentation all of which occurred in Menard County, Texas, thus making venue proper in Menard County under Tex.Rev.Civ.Stat.Ann. art. 1995 subd. 7 (Vernon 1964).

After a trial before the court, the plea of privilege was overruled. Thereupon this appeal was perfected.

Appellee is a partnership engaged in the cattle business. This partnership maintained one of its cattle herds on a leased ranch located in Menard County, and owned [369]*369by Olivia Bevans. In the spring of 1980, H.A. Fitzhugh, a partner, made contact with appellant, who was negotiating for the purchase of a ranch in Maverick County, Texas, where one of appellee’s other cattle herds was located. The parties discussed a possible purchase-sale of this Maverick County herd. Appellant, however, advised appellee that he would require a larger herd and appellee offered to show him partnership cattle in Menard County.1

On June 18, 1980, appellant, accompanied by his veterinarian, flew to San Antonio and was met by appellee who drove them to the Bevans Ranch. They spent three and a half to four hours inspecting cattle. Appellant admits that a price was agreed upon and that he represented that he would pay appellee that price, that a representation was made in Menard County that he would take delivery of the cattle in November. The parties also agreed that one-half of the purchase price would be paid down with the other half paid at the time of delivery or January 1, 1981, at the option of appellee. Appellee admitted telling appellant that he would sell him the cattle “provided I can get my lease extended.” Appellant was also requiring that the cattle be inspected for Brucellosis before being delivered to his ranch. Appellee was of the belief that if any of the cattle tested positive for this disease the only requirement would be that he hold the herd for sixty or one-hundred and twenty days and retest. Appellee also admitted that he would have to talk with the other partners as to when the last payment was to be made. No discussions were had as to where the risk of loss would fall while the cattle were being held in Menard County nor where delivery was to be made.

During the course of the day, although the exact time is in dispute, appellant made certain notes indicating prices of various “classes” of cattle, the number of cattle and when payment was to be made, on the back of a printed inventory sheet supplied to him by the appellee. No mention of the lease or testing of the cattle was made in the notes. A copy of these notes was given to appellee some time during the day.

In appellant’s oral deposition, portions of which were read into evidence at this hearing, he admitted that he knew appellee’s lease was running out on the Bevans Ranch and that he was aware that, because of this deal, appellee would have to renegotiate the lease. Before leaving the Bevans Ranch, the parties stopped at the home of Mrs. Bevans. Appellee testified that the purpose of this visit was to renew the lease on the ranch for another year. He also stated that he took the appellant’s notes into Mrs. Bevans’ home as evidence that a deal had been negotiated. No lease was entered into at this time, however, because Mrs. Bevans had to have “time to think about it.” Ap-pellee testified that a new lease was entered into the following day and that this was communicated to appellant on June 20. Appellee testified that he would not have renewed this lease but for the representations made by appellant. He alleged that he had a firm offer from another party to purchase at least a substantial part of the herd but that he cancelled this offer after talking with appellant.

Appellee stated that after he renewed the lease he “guaranteed” the sale of the cattle to appellant. On recross, appellee admitted that after returning to San Antonio and while at the hotel where appellant was staying, more discussions took place and that appellant offered to give him a check for $50,000 to bind the agreement. The offer was refused because appellee stated he could not guarantee that he could “conform” because of the lease situation. His testimony reflects

Q: Is it a fair statement to say that you didn’t have an agreement on the 18th?
A: I didn’t have an agreement, no, I didn’t have an agreement. I didn’t have a lease. I mean, that’s — or an agreement either.
[370]*370Q: Okay. You didn’t have an agreement on the date that this was written, the agreement that you say you have now came into being some time later, a day or so later?
A: Well, the way I — when a fellow tells me I’m going to buy your cattle, I don’t give a darn what day it is, I take it — take him for his word.
Q: I think you testified you were in Bexar County and you called him up and told him you had renegotiated the lease and therefore you had an agreement at the time?
A: That’s right, on the 20th.

Appellee further testified that there was some discussion of the execution of a formal contract but he stated that it was only to include the terms for the delivery and the testing of the cattle by a veterinarian. He insisted that it had nothing to do with the sale. In a letter written to appellant, ap-pellee wrote

As you probably know, Wayne, I have not received your down payment on these cattle to date on the agreement that you were supposed to mail sometime ago and that you probably know that I have leased the Menard Ranch for another year in order to accommodate you and your cattle in this deal.

Appellant testified that while there was an agreement as to certain terms, and a representation that he would purchase the cattle, a formal contract was anticipated and he had told appellee he would have one drawn up in Houston and delivered to ap-pellee in San Antonio. Appellant had delivered a check for the down payment on the cattle to his attorney, however, it was never forwarded. On July 3rd or 4th, appellant contacted appellee’s wife and told her that he was having difficulties closing his ranch deal and that if they had another buyer for the cattle to go ahead and sell. Two days later, appellee contacted appellant and was told of appellant’s difficulties. It was approximately one month later that appellant told appellee the deal was completely off.

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Bluebook (online)
640 S.W.2d 367, 1982 Tex. App. LEXIS 5120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mann-v-fitzhugh-straus-medina-ranch-texapp-1982.