O'Neal Furniture Co. v. Tyrrell-Wilson Investment Co.

282 S.W.2d 104, 1955 Tex. App. LEXIS 2027
CourtCourt of Appeals of Texas
DecidedJune 23, 1955
DocketNo. 5058
StatusPublished

This text of 282 S.W.2d 104 (O'Neal Furniture Co. v. Tyrrell-Wilson Investment Co.) 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
O'Neal Furniture Co. v. Tyrrell-Wilson Investment Co., 282 S.W.2d 104, 1955 Tex. App. LEXIS 2027 (Tex. Ct. App. 1955).

Opinion

R. L. MURRAY, Chief Justice.

The appellee, Tyrrell-Wilson Investment Company, a Texas corporation, brought this suit- against appellants, O’Neal Furniture Cómpany, a partnership composed of M. Greenspan and Otis Allen, and Greenspan and Allen, individually.

By the appellee’s amended petition, on which it went to trial, it alleged that on or about August 29, 1947, appellants were in possession of certain premises belonging to appellee in the City of Beaumont, Jefferson County, Texas, as tenants of appellee, [105]*105and that on such day a written letter or memorandum of verbal negotiations for a new ten year lease was signed by all parties, the letter being set out in haec verba. That appellee made the repairs, referred to in such letter at a cost, of $13,091.65, same being completed on pr prior to March 1, 1948, and that appellants accepted such improvements. Appellee then alleged that while such improvements were being constructed, it delivered to appellants a written lease contract in the same form and terms as its “Exhibit A” attached to its First Amended Original Petition, but that appellants never returned such lease contract, but permitted the appellee to continue with the construction of the improvements; and that such lease contract provided for the rental to begin March 1, 1948, in accordance with the letter memorandum dated August 29, 1947, including the amortization of the cost of improvements, amounting to $655 per month and that appellants paid such sum of money each month and occupied the premises from March 1, 1948, to July, ,1953. That appellants were estopped to deny the validity of the letter memorandum and the unsigned lease agreerrient, “Exhibit A”, by using said premises for such long period of time and paying the sum ®f $665 per month as rental, and also by such acts ratified both the letter memorandum and unsigned “Exhibit A”. Ap-pellee then closed with prayer for judgment for rent in the sum of $665 per month from August 1, 1953, to the d.ate of trial, and further general and special relief.

Appellants by their First Amended Original Answer, specially excepted to appellee’s pleading by four special exceptions, setting out inconsistencies in such pleadings and pleading the Statute of Frauds, a general denial, further specially pleaded that the letter memorandum was not an executed lease contract, but an executory agreement to enter into a lease contract at a later date; that the sum of $500 per month paid by appellants for October, November, December, 1947 and Ja'nuary and February, 1948, was a deposit made to appellee pending such construction and to be applied as a credit on the cost thereof; that appellants, after March 1, 1948, the date of re-entry in the premises, paid $500 rent, and 'during the months of March and April, 1948, paid $160 and $170 additional to make up rent of $500 'per month on .rental and $165 per month or amortization of improvements, as demanded by appellee, and that about the middle of May, 1948, the appellee submitted the proposed written lease, “Exhibit A”, which, was objected to-by ap- ' pellants and returned to ■ appellee, who ■ through its officers promised to correct such ■written lease when appellee’s .attorney re- ■ turned to the City; that appellants continued to wait for such corrected lease from appellee until July, 1953, and continued to pay the money demanded by appellee pending such correction during such time. Appellants prayed for an accounting as to the money paid during such interim of time ■and for proper credits; appellants further specially pleaded the Statute of Frauds, that appellee from lack of diligence and admission of errors on its part was not entitled to equitable relief: The cross action of appellants was based upon the refusal of appellee in July of 1953 to execute a mutually agreeable lease contract in compliance with the letter memorandum, and the breach of such agreement to enter into a mutually agreeable lease resulting in damage to appellants in having to'remove from such premises by reason of appellee’s breach.

The appellee by its supplemental pleading interposed two and four year ■ Statute of Limitations, Vernon’s Ann.Civ.St. arts. 5526, 5529, and Statute of Frauds, Vernon’s Ann.Civ.St. art. 3995, as to appellants’ answer, and two and four year Statute of Limitations and Statute of Frauds as to appellants’ cross action; and in further answer to,, appellants’ cross action alleged failure of appellants to tender a written lease, a general denial, estoppel and failure of appellants to do equity.

The appellee’s special exceptions were overruled and the cause went to trial on ■the above pleadings before the court without a jury. The court rendered judgment for appellee for the sum of $9,659.16. [106]*106The appellants have excepted and have duly perfected their appeal by a supersedeas bond. At the request of the appellants the trial court filed findings of fact and conclusions of law, which were as follows:

“Findings of Fact
“1
“That on and prior to August 29, 1947, M. Greenspan and Otis Allen, as partners in the firm known as O’Neal Furniture Company, were operating a furniture store on lots Nos. 416 and 417, Block 58, old Town of Beaumont in Jefferson County, Texas, located on the corner of Park and Forsythe Streets in said City and known also as 680, 690 and 692 Park Street and No. 506 Forsythe Street, and that such premises were so occupied and used under the terms of a ten-year lease from Tyrrell-Wilson Investment Company which expired by its terms on August 31, 1947.
“2
“That long prior to said date the parties entered into negotiations for another ten-year lease on said premises involving certain improvements which were to be paid for by lessees over the ten-year period by amortizing the same on a basis of six per cent (6%) interest per annum in addition to a base rental of Five Hundred ($500.00) Dollars per month net to the lessor and the cost of additional insurance and taxes over that paid in 1947.
“3
“That on August 29, 1947, the parties entered into the following letter agreement confirming such previous negotiations:
“ ‘August 29th, 1947
“ ‘O’Neal Furniture Company “ ‘680 Park Street “ ‘Beaumont, Texas
“ ‘Gentlemen :
“ ‘This letter is to confirm our verbal agreement of some ten days ago that we will execute a new 10-year lease on your present location on the corner of Park and Forsythe Streets, with the following commitments and considerations:
“‘(1) An improvement program on the building which will be undertaken by this Company to comprise a general remodelling of the premises to cost approximately $10,-000.00, the details of which will be determined by mutual agreement.
“ ‘ (2) The above improvement program for rental purposes shall be amortized on a basis of 6% interest per annum.
“‘(3) The consideration of this lease to be based on this Company’s receiving a net return on the property of $500.00 a month, after amortization charges have been made.
“‘(4) You agree to reimburse this Company for any increases in taxes or insurance on this property above those currently paid for 1947.

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Bluebook (online)
282 S.W.2d 104, 1955 Tex. App. LEXIS 2027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oneal-furniture-co-v-tyrrell-wilson-investment-co-texapp-1955.