National Resort Communities, Inc. v. Cain

479 S.W.2d 341, 1972 Tex. App. LEXIS 2879
CourtCourt of Appeals of Texas
DecidedApril 12, 1972
Docket11890
StatusPublished
Cited by8 cases

This text of 479 S.W.2d 341 (National Resort Communities, Inc. v. Cain) 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
National Resort Communities, Inc. v. Cain, 479 S.W.2d 341, 1972 Tex. App. LEXIS 2879 (Tex. Ct. App. 1972).

Opinion

O’QUINN, Justice.

Decision in this case turns on whether the doctrine of promissory estoppel will defeat appellants’ plea that oral promises given at the making of certain written contracts to purchase lots in a lakeside subdivision are not now enforceable because descriptions of the lots were insufficient in the writings to meet requirements of the Statute of Frauds.

The subdivisions are part of a resort project developed on Lake Travis, in Travis County, following creation of the lake by construction of a dam across the Colorado River for operation by the Lower Colorado River Authority.

Kenneth L. Cain and wife, together with three other married couples and one single person, 1 brought this lawsuit to enforce promises made by an agent of appellants 2 that plaintiffs, as purchasers of lots designated in the contracts, would be buying lots having water frontage in a proposed new section of a subdivision.

Appellants have not denied the representations made by their agent in connection with the several contracts made between March 18 and June 25 in 1969. After the making of the contracts, when appellants platted the new subdivision, frontage on the lake waters was not assured because lot boundaries extended westerly toward the lake only to a contour line 715 feet above sea level, which was the highest elevation of the overflow easement held by the Lower Colorado River Authority. The lots did not reach the water’s edge, and did not, as was prom *344 ised, extend to the center of the channel of the Colorado River as the river existed prior to construction of the dam impounding the lake waters.

Appellants’ position is that “Appellees having chosen to press for rights which were not within the contemplation of the developers of the subdivision [appellants have] no choice but to stand on the unenforceability of such claims by virtue of the Statute of Frauds.”

The parties entered into stipulations as to many relevant facts, among them being that early in May of 1969 Lago Vista, Inc., acquired “title to the lands encompassing the lots which are the subject of this controversy” and that title included the lands below the 715-foot contour “to the center of the old Colorado River bed, subject to innundation [sic] rights of the Lower Colorado River Authority . . . ”

In addition to the extended stipulations, oral testimony was heard and considered by the trial court, after all parties withdrew requests for trial by jury.

The trial court entered judgment in favor of plaintiffs and ordered specific performance by appellants in keeping with the promises that the purchasers should have deeds of lots extending into the lake and to the center of the original channel of the Colorado River. We will reverse the judgment of the trial court and remand the cause to the trial court.

Each of the five contracts involved in this case followed a general pattern common to all.

Cain and his wife entered into a written contract in March to purchase Lot No. 408 for $5,500, paid $550 down, and agreed to monthly installments of $75 commencing with June of 1969. On the same date a written “Sales Deposit Receipt” was executed by the parties, setting out the lot number, the total consideration, amount of down payment, and terms of later installment payments. In addition, under “Other terms and conditions,” the receipt recited,

“Buyer herein may transfer equity to stake [d] parcel in new area for 6500 total purchase price Lake Front At Lease [sic] 100 x 125 As witness by TM Irvin”

The Donald M. Yarbrough contract was executed in the latter part of March, by which the purchasers agreed to buy Lot No. 607 for $5,500, with $550 down, and the balance at $74 monthly commencing in June. On the same date a written “Sales Deposit Receipt” was executed reciting the consideration and payment terms, and stating as “Other terms and conditions” that, “Customer has Option to Exchange this lot on lot where StaK on New Section of Country Club Water Front price at $6500— 100 x 125 at least”

In a similar procedure Irene B. Yar-brough contracted early in April to buy Lot No. 426 for $5,500, with down payment of $550 and monthly installments of $74 commencing in June. Written into this contract was the statement, “Customer Has option to Exchange for Water Front lot in New Section 'CC.” In addition, in the “Sales Deposit Receipt,” the parties agreed, “Customer has option to Exchange this lot for Water Front lot in New Section Country Club at $6500— 100 x 125 above the Water line 715—”

The Youngs made two contracts in June to purchase Lots 755 and 757 for a consideration of $6,500 for each lot, with down payments of $650 and monthly installments of $87 commencing in September. The “Sales Deposit Receipt” on Lot No. 755 stated, “Customer has Option on 772 773 At Same Price [$6500]”, and the receipt on Lot No. 757 stated, “Customer has option on 772 and 773 At Same Price.”

The Nelson contract was executed in June for purchase of Lot No. 775 at $6,-500, with down payment of $650, and monthly installments of $87 commencing in August. This lot was identified on a preliminary plat as being in the new section, and Nelson and his wife visited Lot No. 775 as staked on the ground. The “Receipt” stated, “Customer has option on *345 two lots Staked on Hill not a Water front or Golf Fair Way at $5500 Each.”

All contracts and each “Sales Deposit Receipt” executed contemporaneously were made a part of the stipulations of the parties. By the stipulations it was agreed that the Cains, the Yarbroughs, and Irene Yarbrough, before making their contracts, visited and selected a platted lot named in the contract, which were hillside sites, and also selected a site in the unplatted area which was identified by a single stake with the name of the purchaser on the stake.

The parties further stipulated that T. M. Irvin represented to these purchasers in each instance “that if they executed a contract for a lot in the platted portion . they would be given the right to apply whatever equity accrued under the contract towards the purchase of a lot of their choice in the as yet unpurchased and un-platted portion of Lago Vista, when the same was purchased and platted.” The parties also stipulated in each instance that the lot of the purchasers’ choice was identified as a certain numbered lot in the new section, and that “Irvin represented that the lot when platted would extend either to the water’s edge or to the center of the old Colorado River bed and it was understood that the lot when platted which encompassed the stake would be the lot to which the . . . [purchasers] could apply their equity.”

By the time the Youngs and the Nelsons visited Lago Vista and entered into contracts in June of 1969 a preliminary plat had been prepared, the new section having been acquired by Lago Vista in May.

With respect to the Young contracts, the parties stipulated that “ . . . Irvin represented to [the Youngs] that if they executed contracts to purchase Lot Nos. 755 and 757 they would be given the right to purchase Lot Nos.

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Bluebook (online)
479 S.W.2d 341, 1972 Tex. App. LEXIS 2879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-resort-communities-inc-v-cain-texapp-1972.