Nichols v. Lorenz

237 S.W. 629, 1922 Tex. App. LEXIS 224
CourtCourt of Appeals of Texas
DecidedJanuary 18, 1922
DocketNo. 6664.
StatusPublished
Cited by2 cases

This text of 237 S.W. 629 (Nichols v. Lorenz) 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
Nichols v. Lorenz, 237 S.W. 629, 1922 Tex. App. LEXIS 224 (Tex. Ct. App. 1922).

Opinion

'COBBS, J.

Appellant sued appellee for the cancellation of a note for $12,000, and for judgment in the sum of $5,115.10, with interest thereon, and, in the alternative, if the note be not canceled, then for judgment for $13,731. The suit grows out of a contract of sale, wherein appellee sold an undivided one-third interest to appellant in a certain stock of steers, known as Russell, Browne & Vasbindor steers, in Live Oak county, Tex. The bill of sale for said cattle recites a prior existing lien on the property conveyed to appellants to secure a certain indebtedness. The note was made nonnegotiable. A partnership was theretofore formed consisting of Browne, Russell, and Lorenz, for the purpose of disposing of the cattle at the price of $50 per head, and providing when the cattle were sold the partners were to participate in one-third of the profits each, and in computing profits before division should be in the following manner:

*631 (a) Interest charges since August 2, 1917, until sold.

(b) Wages to one man for looking after cattle.

(c) Necessary expenses for caring for and handling the cattle.

Appellant charged: That the number of cattle was not known when he purchased a one-third interest, actually numbered at about 520 head, and at the time of the purchase of the approximate value of $80 per head. That at the time of executing the note for a one-third interest in the purchased cattle they were estimated by appel-lee at that time to be 450 head, valued at $80, and he fraudulently represented to appellant that he owned a full one-third interest in all of said 450 head of cattle. That, if Lorenz only owned a one-third interest in the profits of said cattle, appellant was not so informed, and did noi know of it, and would not have paid said sum of $12,000 if Lorenz only owned a one-third interest in the profits — that is, in all, interest over and above $50 per head and expenses, instead of the cattle themselves. That by said contract and bill of sale subsequently executed, and the oral representations made to “him, it was understood that said one-third interest in said cattle, known as the Vasbinder steers, would be freed from all liens, and that appellant was not to be a party to the indebtedness or lien on the cattle.

That appellee represented that said $12,000 was to be the full amount that appellant was to pay for the one-third interest in the cattle, which was equivalent to an express agreement on the part of appellee to free said cattle of the lien. Then he urged, in the alternative, if appellee did not agree to pay off the lien then existing against the cattle, yet he did do so by expressly agreeing " and representing that $12,000 was to be the full consideration to be paid for said steers to entitle appellant to acquire the one-third undivided interest, freed from the lien, and thereby impliedly agreed he would pay off the note so that appellant’s interest in the cattle would be freed from said liens. That Browne & Russell sold 469 head of said cattle for $52,190.93, and since have sold 51 head for the sum of $4,700, and refused to recognize appellant’s full interest, but insist on carrying out their contract with Lorenz, and now appel-lee, Lorenz, claims that he did not sell a full, undivided one-third interest in the cattle, simply sold his equitable interest therein, and now all parties refuse to pay him one-third of the purchase price brought by •the first 469 head, but offer a one-third interest in the profits over $50 per head on 712 head of cattle. After deducting $41,879.31 in the sale of said first 469 head, they paid to appellee and credit on said note the sum of $3,384.07, which appellee received as a correct settlement, and the firm has since paid the appellant one-third of said $4,700.37, brought by the sale of 51 head of the cattle, amounting to $1,566.79.

That if appellant had not expressly or impliedly agreed to pay off the lien, and if the agreement does not so show, then said ■agreement and bill of sale are ambiguous and uncertain, and do not express the true and real intention of the parties, which was that appellee agreed to pay off and discharge the lien against said cattle and deliver them free of all liens to appellant.

Appellant charges appellee was guilty of fraud in the sale by representing he owned a full one-tliird interest in said cattle and that he fraudulently represented he would pay off the lien, and because of which he was induced to make, execute, and deliver the note, for which reason the note was made nonnegotiable; that at the time of making said representation appellee had no intention of making good, but knew he would not pay off said lien, and has not done so. 1-Ie made said representation for the purpose of inducing appellant to enter into the contract for the purchase of the cattle, but failed to write the express stipulation in the contract as to what should be done with the lien on .the cattle, but the misrepresentations so made induced appellant to so act, and he did act by reasbh thereof in entering into said contract and agreement to pay $12,000 for said steers, which he would not otherwise have done, and would have only paid .or have agreed to pay the market value of the appellee’s interest herein. He also represented that the lien on the cattle sold him would not exceed $50 per head, all of which representations were false, and made for the purpose of deceiving him; that appellee did not own a third interest in the cattle, only one-third interest in the profits, after paying $50 per head and carrying charges on 712 head of cattle, and never himself received title to same from Vasbinder & Co., being only entitled to a part of the profits at the time the cattle were sold.

Appellant represents that the representation made to him by appellee of the ownership of the undivided one-third interest in the cattle sold and appellee’s promise to pay off the lien were material representations, including the representation as to the amount owing on said lien, for appellant did not know the amount of the lien against the cattle or appellant’s ownership of the cattle, and were part of the cause inducing appellant to enter into the contract.

The plea of failure of consideration under oath was also filed.

Appellant charges the appellee is liable to him for the amount of the lien against the cattle for the one-third of the amount so *632 charged, to wit, $13,731.03, which, after deducting amount owing by appellant on said note, loft the sum of $5,115.10 owing to appellant, allowing interest on both amounts. So, in the event the note was not canceled, it left the sum of $13,731.03, and interest due to appellant, for which he sued.

Appellee’s answer consisted, among other things, of both general and special exceptions, not necessary now to be set out, but which will appear in our opinion later.

The case was tried with a jury. The court sustained all the exceptions to appellant’s pleadings, including appellant’s defenses to the note, after which rulings the appellant refused to amend, and the cause was dismissed.

After the note and the various contracts were read in evidence appellee filed a motion for an instructed verdict on his cross-action; thereupon the court instructed the jury to find in favor of appellee against appellant for the sum of $10,125.53, principal, interest, and $1,012.55 as attorney’s fees.

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Bluebook (online)
237 S.W. 629, 1922 Tex. App. LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-v-lorenz-texapp-1922.