Morgan v. Young

203 S.W.2d 837, 1947 Tex. App. LEXIS 1134
CourtCourt of Appeals of Texas
DecidedJuly 21, 1947
DocketNo. 4386
StatusPublished
Cited by38 cases

This text of 203 S.W.2d 837 (Morgan v. Young) 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
Morgan v. Young, 203 S.W.2d 837, 1947 Tex. App. LEXIS 1134 (Tex. Ct. App. 1947).

Opinions

WALKER, Justice.

E. D. Morgan, referred to hereinafter as plaintiff, brought this action against Danis Young, referred to hereinafter as defendant, to recover the sum owed on the promissory note of August 10, 1944, quoted below, and also to foreclose two liens securing this note, to wit, a deed of trust on defendant’s farm in Newton county and a chattel mortgage on five per cent of defendant’s 1944 and 1945 rice crops grown on that farm. By amendment, plaintiff limited his prayer for foreclosure to the deed of trust.

Defendant filed an answer, and also filed a cross action against plaintiff wherein he prayed recovery of $18,000 damages for plaintiff’s breach of a contract he made with defendant on November 17, 1944, to lend defendant money with which to raise a rice crop on defendant’s farm during 1945. Defendant’s answer alleges that defendant was not liable to plaintiff on the note of August 10, 1944, because he made another note to plaintiff on November 17, 1944, which extended the time for paying sums due under the August 10 note; and further, in effect, that damages accruing to him under plaintiff’s breach of contract had discharged his debt to plaintiff under the November 17 note.

Plaintiff filed a supplemental petition in reply to defendant’s cross action. He denied that any note was made on November 17, 1944. Fie admitted that he made an agreement with defendant on that date to lend defendant money with which to produce a rice crop in 1945, but the contract alleged by him is materially different from that alleged by defendant. He plead that he was never obliged to pay over any money to defendant because defendant failed to perform two conditions on which plaintiffs duty to perform depended.

The cause was tried to a jury who assessed defendant’s indebtedness on the August 10 note at $2,661.63. Other findings established plaintiff’s breach of the contract, as defendant described that contract; and under still other findings the trial court fixed defendant’s damages from this breach (net profit and certain expenses) at the sum of $7,020. From this the trial court deducted three items, namely, the amount of defendant’s indebtedness, ($2,661.63), the value of rice produced by defendant in 1945 ($262.50), and the sum of $900 (which the jury found to be the sum defendant earned, or by the use of “reasonable diligence” could have earned “by engaging in a similar or different business or work after April 1, in 1945 until the end of that year”); and for the balance, to wit, $3,-195.87, the trial court rendered judgment against plaintiff.

Plaintiff appealed from this judgment and has-assigned 18 points of error for reversal. We make the following preliminary statement as a basis for our disposition of these points:

The evidence shows that plaintiff and defendant had been acquainted for several years prior to the transactions from which this litigation arose. Plaintiff was a carpenter and a roofing contractor who resided in Lake Charles, Louisiana; but his testimony shows that he knew, or claimed to know, a good deal about rice farming. Defendant was a rice farmer and had been for many years. He owned and resided upon a large tract of land in Newton county on which he grew rice in 1944 and 1945, and he apparently began to farm this land for rice as early as 1938 or 1939. Prior to that time he had been a rice farmer in Louisiana “south of Lake Charles.” Plaintiff had loaned defendant money for use in de-fenant’s Newton county farming operations over a period of time beginning in 1941 or 1942.

The course of dealing between the parties before 1944 was not shown in detail, but at various times during 1944, beginning on February 23, plaintiff loaned defendant sums of money totaling $7,309.82, with which to conduct his rice farming operations on the Newton county farm. On August 10, 1944, these advances amounted to $3,029.31, and on. that date defendant executed and delivered to plaintiff the follow[842]*842ing promissory note for that sum, and also for other sums to he advanced to him by plaintiff to complete the 1944 crop:

“$10,000.00 No.-August 10, A.D. 1944
March 1, 1945 after date, for value received, I, Danis Young, promise to pay to the order of E. D. Morgan Ten Thousand ($10,000.00) * * * Dollars at Newton, Texas with 5% per cent interest per annum from-until paid.
And in the event default is made in the payment of this note at maturity, and it placed in the hands of an attorney for collection, or suit is brought on the same, or same is collected through the Probate Court, then-agree that an additional amount of ten per cent on the principal and interest of this note shall be added to the same as collection fees.
S/ Danis Young
Due March 1, 1945. Address-.”

Defendant also executed and delivered a deed of trust on his farm to secure the payment of this note.

Thereafter, on August 10 and subsequently down to and including November 17, 1944, plaintiff advanced to defendant on loan under this note nine separate items of funds totalling $4,274.70, and on December 20, 1944, charged defendant with an item of $5.81, for certain materials which he furnished defendant.

At some time not clearly shown by the evidence, defendant paid all of his indebtedness under this note except $2,661.63, the sum found to be owing by the jury; and on November 17, 1944 plaintiff and defendant made an agreement whereby the time for paying this sum was extended.

The agreement of November 17,1944, was oral, excepting the chattel mortage of that date. The object of the parties was to provide defendant with funds to raise a rice crop in 1945 and presumably to provide plaintiff with an investment; and the extension of time for paying the balance owed under the August 10 note was only a part of this agreement (as the jury in effect found tinder Issues 1 and 6). The record exhibits some uncertainty by each party regarding the terms of his promise; each proved a contract materially different in one or more respects from the contract he alleged.

There is much conflict regarding some terms of this agreement and defendant’s performance thereunder; but many material facts pertaining to the agreement were undisputed.

It ⅛ agreed that plaintiff did promise defendant on November 17, 1944, to lend him money to be used in growing defendant’s 1945 rice crop, and that, when defendant became entitled to receive the money, the funds were to be paid over to him as required.

The evidence raises the issue that the agreement of November 17,1944 was a bilateral contract between plaintiff and defendant, wherein plaintiff promised to lend to defendant, and defendant promised to borrow from plaintiff the money defendant needed to raise his 1945 crop. We quote from defendant’s testimony: “Q. Did you and he jointly plan for you to grow a crop in 1945 and him to finance it? A. Yes, sir.” We think this is the general sense of the testimony of both parties. Each testified in detail regarding assets available to defendant on November 17, 1944, for growing defendant’s 1945 crop, and each contemplated that defendant would actually grow a crop in 1945, that he would eventually require additional funds for use in this enterprize, and that he would procure these funds from plaintiff.

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Bluebook (online)
203 S.W.2d 837, 1947 Tex. App. LEXIS 1134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-young-texapp-1947.