National Resort Communities, Inc. v. Cain

512 S.W.2d 367
CourtCourt of Appeals of Texas
DecidedAugust 14, 1974
Docket12158
StatusPublished
Cited by4 cases

This text of 512 S.W.2d 367 (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, 512 S.W.2d 367 (Tex. Ct. App. 1974).

Opinion

SHANNON, Justice.

The opinion of this Court filed on June 26, 1974, is withdrawn, and the following opinion replaces it.

This is an appeal from the judgment of the district court of Travis County and involves a suit for reformation of a number of contracts for the sale of land and for specific performance.

The appellant, National Resort Communities, Inc., will be referred to as the “vendor.” 1 Appellees, Kenneth L. Cain and wife, Betty R. Cain, Donald M. Yarbrough and wife, Joan B. Yarbrough, Irene B. Yarbrough, Richard W. Young and wife, Genevieve Young, and Paul P. Nelson, Jr. and wife, Adell Nelson, will be termed “purchasers.”

Previously, this Court reversed the district court’s judgment in favor of the purchasers upon the basis that the descriptions in those contracts of sale were insufficient to satisfy the Statute of Frauds. National Resort Communities, Inc. v. Cain, 479 S. W.2d 341 (Tex. Civ.App. 1972, writ ref’d n. r. e.). In remanding the cause for another trial, this Court observed that the vendor and the purchasers might have been mutually mistaken in their belief that the descriptions used in the contracts of sale were sufficient to describe particular and identified lots in the new subdivision, and upon the authority of Morrow v. Shotwell, 477 S.W.2d 538 (Tex.1972), suggested that if such had been the fact, the purchasers would have been entitled to reformation of the contracts. 479 S.W.2d 341, 349.

Upon remand, the purchasers amended their pleadings, asked that the contracts be reformed because of mutual mistake, and sought specific performance of the contracts as reformed.

The facts relating to the description of the property appearing in the contracts of sale and the “Sales Deposit Receipts” are set out in the previous opinion of this Court. Reference is also made to that opinion for the facts concerning the representations of the vendor’s sale’s agent, T. M. Irvin. It should be here stated that subsequent to the time of the signing of the contracts of sale the purchasers caused to be made a survey extending the lines of the platted lots westerly to the channel of the old river.

The case was tried to a jury. In response to five special issues, the jury answered that the vendor, acting by and through its agent, T. M. Irvin, and each of the respective purchasers were mutually mistaken in the belief that the descriptions used in the contracts of sale were sufficient to describe the respective lots and the extensions thereof westerly to the channel of the old river.

Based on the jury verdict, judgment was entered in favor of the purchasers reforming the contracts of sale to satisfy the Statute of Frauds, and decreeing specific performance of those contracts, as reformed. The judgment recited that there was no mistake between vendor and the respective purchasers as to the identity of the property involved, but that there was a mutual mistake between the parties as to the sufficiency of the descriptions of the property used in the contracts of sale.

The vendor attacks the judgment by four points of error, the first two points being that there was no evidence, or insufficient evidence, to support the answers of the *370 jury that the parties were mutually mistaken in the belief that the sales documents were sufficient to describe the particular and identified lots awarded to the purchasers in the judgment. The vendor’s third .point complains that there was no evidence and no jury finding of a “mistake” as to it, as a principal and contracting party. The fourth point claims error by the court in failing to submit “ . . . an essential fact issue herein, whether the parties reached definite agreements as to particular and identified lots at the time of the execution of the sales documents and intended to describe such lots in the sales documents.”

It is not argued by the vendor that the written contracts entered into were insufficient as binding agreements as to lots in the new section as platted and extending westerly, toward the lake, but not closer to the water’s edge than the 715-foot contour line. The controversy grows out of the refusal by the vendor to honor the representations of their agent that the purchasers by entering into the written contracts would have the right to receive deeds, when the lots were paid for, conveying to the purchasers waterfront lots, extending westerly beyond the 715-foot contour line into the lake and to the middle of the old river.

It is the vendor’s precis that to permit reformation under the circumstances of this case would destroy the Statute of Frauds. We would agree that the allowance of reformation of contracts of sale of land does diminish the impact of the Statute of Frauds. We would also add that the wisdom of permitting reformation in those circumstances is not now an open issue as that matter was settled by a unanimous court in Morrow v. Shotwell, supra.

As we understand the rule, a contract for sale of land, though insufficient in description of the land to comply with the Statute of Frauds, may be reformed by the court, if it is shown that the parties intended to describe a particular and identified tract in the contract, and were mutually mistaken in the belief that the description used was legally sufficient for that purpose. Morrow v. Shotwell, supra. In the suit for reformation, the contract may be reformed by including the field notes prepared by the surveyor after the date the contract was signed. Shotwell v. Morrow, 498 S.W.2d 432 (Tex.Civ.App. 1973, writ ref’d n. r. e.). Upon reformation, if the contract then is sufficient to comply with the Statute of Frauds, the court may order specific performance.

Under its points one, two, and four, the vendor argues that the rule in Morrow v. Shotwell, supra, is nevertheless inapplicable to the case at bar for the reason that the purchasers and the vendor did not agree upon particular and identified lots.’ The vendor then argues, in effect, that the Supreme Court by employing the terms, particular and identified, imposed a requirement upon the remedy of reformation, with respect to the description of land, quite as stringent as that imposed by the Statute of Frauds. We think the language' of Morrow v. Shotwell, supra, concerning the necessity that the parties agree upon a particular and identified tract is but a reflection of the rule of equity that the parties shall have come to an understanding of the essential terms of their agreement before reformation is allowed. 13 Willis-ton on Contracts § 1548 (3rd Ed. 1970). Stated another way, the remedy of reformation presupposes that the parties came to a mutual agreement, but that in the execution of the writing a mistake was made either as to the words included or as to their legal effect.

We are of the opinion that each purchaser and the vendor’s agent came to a complete mutual understanding of all the essential terms of their bargain.

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512 S.W.2d 367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-resort-communities-inc-v-cain-texapp-1974.