Moran v. Midland Farms Co.

282 S.W. 608
Court of Appeals of Texas·Decided February 18, 1926·No. No. 1797.·Published·Cited by 14 cases

Opinion

HIGGINS, J.

Moran filed suit on January 10, 1925, in the district court of Midland county, against the Midland. Farms Company, Oscar J. Francis, trustee and in person, Edward Morris, trustee and in person, his heirs and the heirs of his heirs, John P. Wilson, trustee and in person, Augusta Roth-child and her husband, Maurice L. Rothchild, Ira N. Morris, Maude Morris Schwab and her husband, Henry O. Schwab, Oscar W. Kerr and wife, Minnie Kerr, D. Fasken, Donald S. Trumbull, T. C. Kimber, and W. Harvey.

Succinctly stated, the material facts alleged in the plaintiff’s petition are as follows :

That he is a real estate agent, and defendants Edward Morris, Augusta Rothchild, Maurice L. Rothchild, Ira N. Morris, Maude Morris Schwab, and Henry C. Schwab were the owners of about 223,000 acres of land in Midland, Ector, Andrews, and Martin counties, Tex., known as the G Ranch, and on April 15, 1911, the last-named parties conveyed the same in trust to Edward Morris and John P. Wilson, trustee, with full power to sell and convey, which land is described in deed from said trustees to O. W. Kerr, dated July 1, 1913, filed for record July 14, 1913, and duly recorded in the deed records of Midland county in Book 22, page 217. “Said sale (evidently referring to the conveyance to Kerr) was made for a ■ consideration of 81,431,701.61.” Plior to said sale, the owners listed the land for sale with plaintiff at ?6.50 per acre, first orally and then in writing, agreeing to pay a commission of 5 per cent. On or about July 1, 1913, plaintiff procured Kerr as a purchaser, and the said sale and conveyance to Kerr was effected as above shown, wherefore the defendants became liable for a 5 per cent, commission upon the entire consideration, or 872,475, with interest. Further allegations were made as follows: Defendant Kimber was the immigration agent of the Gould Railways, interested as such agent and in behalf of the Texas & Pacific Railway in settling the lands adjacent to such railway, and procured from plaintiff a description of the land, which he showed to Kerr. Plaintiff showed the land to Kerr, and the activities of plaintiff initiated through Kimber brought about the sale to Kerr, or the O. W. Kerr Company. The remainder of the petition is exceedingly *609 long and involved, but, as we understand tbe same, it amounts to tbis: Tbe purchaser, Kerr, was acting for tbe defendant D. Fasten, wbo furnished tbe money; Fasten, Fas-ken’s agent Harvey, Kimber, Francis, and tbe other defendants entered into a conspiracy to defraud plaintiff of bis commission; Harvey collected tbe commission for tbe benefit of bis principal, Fasten; on July 1, 1913, Kerr executed bis note for §75,000 due in one year to tbe owners of the land, and executed a deed of trust on tbe land to secure said note to Oscar J. Francis, trustee, which was filed for record July 15, 1913, and recorded in Midland county; that tbis transaction was in “secret trust” for tbe plaintiff and to protect tbe owners of tbe land against plaintiff’s claim for commission and was for his benefit, and such deed of trust was a lien upon tbe land for bis benefit; that the defendants bad fraudulently concealed from plaintiff tbe facts concerning tbe transaction, and be was not able to learn until October 1, 1924, that tbe note and deed of trust was for bis benefit; that tbe deed of trust bad been fraudulently released on February 4, 1916, and such release fraudulently withheld from record until January 22, 1921. Just what connection tbe defendant Midland Farms Company has with tbe land is not clearly disclosed by tbe petition.

Tbe prayer was for judgment on tbe §75,000 note and foreclosure of tbe above-mentioned deed of trust, and “for a personal judgment against T. C. Kimber, D. Fasten, O. W. Kerr, and W. Harvey, for their malicious and unwarrantable interference with plaintiff in bis business of collection of bis commission,” and general relief.

According to tbe fiat of tbe judge indorsed thereon, there was presented to him on February 17, 1925, a petition by tbe O Ranch Cotton Lands Company, which be ordered filed and directed tbe issuance of notice to Moran directing him to appear before thé court at 10 o’clock a. m., on February IS, 1925, and show cause why tbe petition should not be granted. Tbis notice was served upon Moran at 10 o’clock a. m. on February 17th.

Tbis petition of the C Ranch Cotton Lands Company (hereinafter referred to as inter-vener or tbe C Company) was in tbe form of an intervention in Moran’s suit. In brief, its material allegations are: Tbe Midland Farms Company (hereinafter called Midland Company) is tbe owner of tbe land described in Moran’s suit. On March 31, 1924, inter-vener and tbe Midland Company entered into a contract by which tbe former undertook to find purchasers for said land at certain prices and upon certain terms; intervener to be entitled to a certain portion of tbe prices paid. The contract required intervener to sell 400 quarter sections, and if it failed to do so tbe Midland Company bad the option to cancel tbe contract and retain all of inter-vener’s equity in deferred payments. That it had purchased two half sections of tbe land, known as the townsite of Fasken, for §32,000, to be paid on or before April 1, 1927. That it was to sell tbe lots and blocks therein and deposit tbe purchase-money notes as collateral to secure its obligation of §32,000. Certain modifications of the above contracts, were pleaded relating to extension of time of performance by intervener. That it bad expended large sums in tbe performance of its contracts, and upon account of the favorable seasons there was then a great demand for said lands at good prices. That plaintiff’s suit bad been filed for tbe purpose of clouding tbe title to said lands and preventing the sale thereof and declaring upon a fictitious lien and forcing a settlement. That plaintiff could not maintain bis suit because it was barred by limitation. That for tbe purpose of further clouding tbe title to said lands and preventing sale thereof, tbe plaintiff bad filed lis pendens notices of said suit in Midland, Andrews, Martin, and Ector counties. Unless tbe cloud upon tbe title to the land was removed, intervener would suffer irreparable damage, because nobody would buy tbe lands and intervener would be unable to carry out its contracts and sustain heavy losses incapable of exact ascertainment, and tbe plaintiff was financially unable to respond in damages. That tbe Midland Company was willing to give bond for the payment of any sum which might be awarded against it, provided tbe court would enter tbe necessary orders removing tbe clouds from tbe title and canceling tbe lis pendens notices. That intervener has no adequate remedy at law.

Tbe prayer was for permission to intervene, that the petition be set for bearing and tbe plaintiff notified thereof, and “on bearing hereof Midland Farms Company be authorized and permitted to file a good and sufficient bond indemnifying plaintiff against any judgment be may recover against it on tbe cause of action alleged in bis petition; that he be enjoined from seeking to fix or establish a lien against said lands; that the lis pendens notice of record in Midland, Martin, Andrews, and Ector counties, Tex., be canceled”; and for costs and general relief.

Tbe Midland Company filed a brief pleading joining tbe C Company in its application and tendering bond.

On February 18th, tbe plaintiff answered tbe plea in intervention. Tbe answer consisted of general and special exceptions and general denial.

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Moran v. Midland Farms Co., 282 S.W. 608 (Tex. Ct. App. 1926).

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