MID-TEX CONSTRUCTION CORPORATION v. Passero

430 S.W.2d 515, 1968 Tex. App. LEXIS 2706
Court of Appeals of Texas·Decided June 26, 1968·No. 5938·Published·Cited by 7 cases

Opinion

OPINION

PRESLAR, Justice.

Appellee, as plaintiff, recovered judgment against appellant for the return of earnest money which he had paid to appellant under a contract of sale of real estate. Trial was to the court without a jury, findings of fact and conclusions of law were filed by the trial judge, and certain requested additional findings were refused. We are of the opinion that the judgment should be affirmed.

Appellee was the purchaser and appellant was the seller, and the parties will be referred to as “purchaser” and “seller”, as they were so designated in their written contract.

The contract provided for the purchase of 100 lots out of Terrace Hills Addition in El Paso County, which addition was only on paper at the date of contracting (November 12, 1958), but was to be created out of a larger tract of 410 acres. The seller was to subdivide the larger tract to comply with the terms of the contract in a manner acceptable to the F.H.A. and the City of El Paso, and purchaser was obligated to build houses of a specified minimum size and value. Purchase price was $1,750 for each lot, for a total of $175,000.00, which the contract recited was payable as follows:

“(a) Earnest money in the sum of $8,-750.00 cash paid by Purchaser to Seller, the receipt of which is hereby acknowledged by Seller tc bind this Contract of Sale.
"(b) The balance of $166,250.00 being due and payable as follows: (1) The • sum of $43,750.00 due and payable on ,or before January 10, 1959. (2) The sum of $43,750.00 due and payable on or before July 10, 1959. (3) The sum of $43,750.00 due and payable on or before January 10, 1960. (4) The sum of $35,000.00 due and payable on or before July 10, 1960.”
“II.
“Upon the payment of each installment hereunder the Seller agrees to convey to the Purchaser 25 lots out of said Addition * * *.”

The first installment was met and conveyance made of 25 lots on January 29, 1959, and the purchaser built eleven houses thereon for resale. The second installment and conveyance due July 10, 1959 was never completed, and the end result was the filing of this suit by the purchaser for return of the earnest money. Seller’s efforts to complete this second transaction were first met by the purchaser’s request for additional time and mention of lack of development, followed by his silence, and on October 7th, his complaint that the seller had not done certain paving of access roads nor applied to the City Planning Commission for same; and finally, by letter of October 19, 1959, his assertions that the seller was in default under their contract and requesting return of the earnest money. As indicated, the seller was obligated to make the subdivision in a manner acceptable to the F.H.A. and the City of El Paso. The map and plat of the subdivision was to be approved by the City, and the contract provided:

“The price of the lots shall include rough grading, City of El Paso water main and sewer taps to the curb, street paving and curb in front on said lots, it being the intention of the parties herein that the Purchaser is to be conveyed completed F.H.A. approved building sites * * *
*517 * * * * * *
“Seller agrees to furnish at its own expense grading of lot, as aforesaid, curb, gutter, paving, and installation of water and sewer lines to curb, and other utilities by the time each deed is to be delivered hereunder. Lots shall be staked by Seller by a licensed surveyor.”

Plaintiff-purchaser by this suit alleged that the seller was in default on July 10, 1959, in that water and sewer lines to curb had not been installed for each lot, and paving had not been installed, and the seller being in default was precluded from retaining the earnest money. The trial judge found that the seller was in default in those particulars, that he was in default as to seven lots of the first increment of January, 1959, and that he was in default at all times material to the contract, and the purchaser was not in default. These findings are supported by the evidence.

By his first point of error, appellant urges that the evidence shows that the purchaser had abandoned the contract. We overrule this contention, for it was not raised by the pleadings, and since it is a “matter constituting avoidance”, as it is sought to be employed here, it is an affirmative defense which under Rule 94, Texas Rules of Civil Procedure, must be specially pleaded. Vratis v. Baxter, 315 S.W.2d 331, ref. n. r. e.; Brown Oil Tools, Inc. v. Broughton, 353 S.W.2d 505, ref. n. r. e.

The assignment is made that the court erred in finding that the seller was in default after January 10, 1959, for the reason that the purchaser knew when he accepted that first increment of 25 lots that they were not complete with sewer and water outlets. This would seem to be immaterial and not a controlling issue which would affect the judgment rendered whether we passed on it or not; hence it will not be discussed.

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MID-TEX CONSTRUCTION CORPORATION v. Passero, 430 S.W.2d 515, 1968 Tex. App. LEXIS 2706 (Tex. Ct. App. 1968).

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