Neigut v. McFadden

278 S.W.2d 218, 1955 Tex. App. LEXIS 2610
CourtCourt of Appeals of Texas
DecidedMarch 16, 1955
DocketNo. 5083
StatusPublished
Cited by1 cases

This text of 278 S.W.2d 218 (Neigut v. McFadden) 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
Neigut v. McFadden, 278 S.W.2d 218, 1955 Tex. App. LEXIS 2610 (Tex. Ct. App. 1955).

Opinion

HAMILTON, Chief Justice. ■

This suit was filed by appellant Neigut in the 41st District Court of El Paso County in October 1950 against David L. McFadden, appellee. Judgment was entered in 1952 by the trial court on defendant’s (ap-pellee’s) motion for summary judgment, decreeing that plaintiff (appellant herein) take nothing. The case was appealed to this court, and the judgment of the trial court was reversed and remanded. Neigut v. McFadden, Tex.Civ.App., 257 S.W.2d 864. Trial was before a jury, and the trial court entered judgment on the jury findings for defendant, (appellee herein) decreeing that plaintiff take nothing, from which judgment appellant Neigut has appealed.

Plaintiff’s cause of action was based on an alleged written agreement signed by the defendant, which was as follows:

“I will pay five per cent commission on sale of Food Mart stores and Texas Wholesale -Company, fixtures at book value, inventory at cost, good will will be $200,000.00. : - • ■
“All over $200,000.00, (for good will) will be on a fifty-fifty basis with Mr. ■Neigut.
' “(Signed) D. L. McFadden.”

After the agreement was entered into appellant produced a prospective purchaser, J. Spencer W.eed, a resident of New York state. 'Neigut brought Weed to El Paso in the first part- of April 1949, and they spent several days with McFadden, trying to work out a deal whereby Weed would purchase the Food Mart Stores-and Texas Wholesale Company-at a price based-on .inventory cost, .fixtures at book value, and good will at $300,Q00ij It was contemplated 'that whatever deal was made would be reduced to writing. When it was thought the parties were about together and they adjourned to McFadden’s attorney’s office to draw up the contract, Neigut was requested by McFadden not to accompany them to the office. McFadden and Weed went to the office pf Thornton Hardie, who drew up the proposed contract. However, after the contract was drawn, Weed said he was not ready to. sign it; that he wanted to take it to New York to be approved by his attorney and by his associates. When notified by Weed, appellee McFadden and-his attorney Thornton Hardie-went to New York in the first part of May, 1949, where they further carried on negotiations • f.or several days. On May 5, 1949, McFadden and Hardie left New York, not having entered into any contract with Weed. McFadden told Neigut on his return to El Paso that he was unable to trade with Weed, saying •that Weed did not want to pay the price fhat -he asked1 ¡for the businesses, Weed’s particular objection being that the good will of the business was not worth more than $100,000. McFadden, soon afterwards, informed Neigut that he had taken his businesses off the market and they were not for sale to anyone. In September he wrote á letter to Neigut withdrawing the listing of the - property from him. ' Later, in January 1950,- Weed came to-El Paso and reopened- negotiations with McFadden for [220]*220the purchase of the same businesses which had been the subject of the negotiations in El Paso and New York early in 1949. A contract of sale was entered' into and the propérty was sold to Weed Márch 29, 1950, on substantially the same terms upon which the properties had been offered to Weed in April and May of 1949. There was no evidence that McFadden sought or had any negotiations with Weed between May 7, 1949. and January 10, 1950.

Appellee McFadden in- the former appeal of this case took the position that even though-it was- undisputed that ap-pellee sold the property in March 1950 to a purchaser with whom appellant Neigut had1 initiated negotiations for the sale; it was likewise true that before' the sale of March 1950 appellee had notified the appellant that 'the listing was cancelled, and that therefore' as a matter of law'Appellant Neigut could not recover a commission. This court in its opinion on said appeal held in effect that if the negotiations that had been carried on in New York were not broken ■ off in good faith, but were in reality- still pending with or without collusion with the proposed purchaser, then the cancelling of the1 listing would not prevent the appellant from being the procuring cause of the sale made or consummated between McFadden and Weed, citing Goodwin v. Gunther, 109 Tex. 56, 185 S.W. 295, 195 S.W. 848. This court further held in effect that the fact' that McFadden did sell to the purchaser who had been produced by Neigut on terms satisfactory to himself was some evidence that the negotiations in New York were not broken off in good faith, and that the withdrawal of the listing was not in good faith, and that therefore the court erred in rendering summary judgment in favor of appellee. - .

The court submitted in the instant case the following Special Issues:

“Question No. 1: Do you find from a preponderance of the evidence that David L. McFadden during the months of April and May, 1949, in good faith used due diligence in endeavoring to close the sale of the Food Mart and Texas Wholesale Company assets to J. Spencer Weed on the terms of sale which McFadden and Neigut had agreed -should, be submitted to Mr. Weed? Answer yes or no.

“We answer (Signed) yes.
“Question No. 2: Do you find from a preponderance of the evidence that the negotiations for a sale of Food- Mart and Texas Wholesale Company assets to J. Spencer Weed upon the terms agreed -to between McFadden and ‘Neigut were, in good faith, broken off in May, 1949, because of the • unwillingness, if any, of J. Spencer Weed to purchase such assets upon such terms? Answer yes or no. .
“We answer (Signed) yes.
“If you have answered either of the above two questions ‘no’, then, but not otherwise, answer the following question:
“Question No. 3: Do you find from a preponderance of the evidence in this case that the efforts of the plaintiff Neigut were the procuring cause of the sale made by David L. McFadden and his associates to Food Mart, Inc., about April 1st., 1950? Answer yes or no.
■ “We answer--
“Question No. 4: Do you find from a preponderance of the evidence that at the time of -the meeting between J. Spencer Weed,- David L. McFadden, and Wm. A. Neigut, on or about April 5th., 1949, in the Cortez Hotel in El Paso, Texas, J. Spencer Weed was ready, able and willing to buy Food Mart and Texas Wholesale Company on terms and at the price agreeable to David L. McFadden? Answer yes or no.
“We answer (Signed) No
“Question No. 5: Do you find from a preponderance of the evidence that the deal between J. Spencer Weed and David L. McFadden was complete on April 5, 1949, but the closing of it was put off until a later date? Answer yes or no.
“We answer (Signed) Nq.
[221]*221“If -you have answered ‘No’ to- the preceding question, then, but not otherwise, answer this additional question:
“Question No. 6r Do you find from a preponderance of the evidence that the only reason the deal between J. Spencer W.eed and David L. McFadden was not closed on or about April 5, 1949, was. the insistence of David L. McFadden’s lawyer:. .that J. Spencer Weed put up fifty thousand .doR lars in escrow? .Answer yes or.no.-

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Bluebook (online)
278 S.W.2d 218, 1955 Tex. App. LEXIS 2610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neigut-v-mcfadden-texapp-1955.