Pace v. Olvey

282 S.W. 940, 1926 Tex. App. LEXIS 418
CourtCourt of Appeals of Texas
DecidedMarch 17, 1926
DocketNo. 2638.
StatusPublished
Cited by4 cases

This text of 282 S.W. 940 (Pace v. Olvey) 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
Pace v. Olvey, 282 S.W. 940, 1926 Tex. App. LEXIS 418 (Tex. Ct. App. 1926).

Opinion

RANDOLPH, J.

This suit was brought by appellant against appellee to recover the sum of $2,000 which had been placed in a bank in Wichita Falls, under and by virtue of the terms of a certain contract — the terms of *941 which contract under the evidence presenting the questions we will discuss herein will be set out later.

On the trial of the case before the court without a jury, judgment was rendered that the plaintiff take nothing by his suit, and that defendant recover on his cross-action against the plaintiff the sum of $2,000 (the trial court herein having found in said judgment that the plaintiff had breached his contract to drill a well), as liquidated damages. From this judgment plaintiff has appealed.

By his first proposition appellant presents as error the action of the trial court in permitting the introduction of certain testimony, as follows:

“The contract in this ease being an assignment to an undivided one-half interest in a certain oil and gas lease, and the title to said lease not being good in John W. Olvey, the defendant, but a one-third undivided interest therein being outstanding in Bee Tidwell, and the plaintiff not being required under the contract to pay the consideration for the lease by drilling a well thereon until the agreement as to the title had been carried out, it was error for the court to allow the defendant to testify that, had the plaintiff gone on the lease and drilled the well, he, defendant, could have gotten all of the other interests in the lease and perfected his title, because the same was a conclusion and an opinion and a self-serving declaration.”

For the purpose of the discussion of this proposition, we will first consider same from the viewpoint urged by the plaintiff; that is, that the contract did not require that the plaintiff pay the consideration for the lease by drilling the well until the agreement as to the title had been performed.

Even if the plaintiff’s construction of the contract be accepted, he is in no position to urge the objection made by him here. The testimony objected to was to the effect that Olvey could and would have rectified the condition of the title to the lease by getting in the outstanding interest of Tidwell. While this particular testimony was objected to, testimony to the same import was admitted in evidence without, objection on the part of the plaintiff. Tidwell testified that he told the plaintiff that he would ratify any trade that Olvey made with him; that Olvey had the right under the understanding he (Tidwell) had with him to make a contract, and have him (Tidwell) ratify or sign it; that he (Tidwell) was willing, able, and ready to all times to give him any ratification that he wanted. This testimony not having been objected to, and being offered to serve the same purpose as that of Olvey complained of, even if 01-vey’s testimony was subject to the objection urged against it, was thus rendered harmless. Texas & Pac. Ry. Co. v. Curry, 64 Tex. 85; W. T. Wilson Grain Co. v. Fitch (Tex. Civ. App.) 208 S. W. 556; St. Louis S. W. Ry. Co. v. Johnson (Tex. Civ. App.) 94 S. W. 162. However, we think Olvey’s testimony was admissible under authority of the case of Armstrong v. Palmer (Tex. Civ. App.) 218 S. W. 627.

We will discuss the question as to whether the plaintiff was required to drill the well before he could insist on the performance by defendant of the contract to convey title in our consideration of later propositions.

Appellant’s second proposition charges that it was error in the trial court’s refusing to allow the plaintiff to prove that no damage could have possibly resulted to the defendant by a few days delay in beginning the drilling of the well on the lease, and that the sum of $2,000 named as agreed liquidated damages was far in excess of any damages that would naturally flow from the breach of the stipulation requiring him to begin drilling operations by a certain date, and this even though both parties had closed the introduction of evidence and were arguing the case.

In this connection we will also discuss the refusal of the trial court to permit the plaintiff to withdraw his announcement of ready for trial “long enough to file a trial amendment making more definite and specific his plea of penalty and waiver.”

The court’s notation on the bill shows that the evidence in the case was closed, and that plaintiff’s counsel had addressed the court for an hour and fifteen minutes; that the defendant’s counsel had spoken for one hour, when plaintiff’s counsel requested that the court reopen the case, as stated, which request was by the court refused. No excuse was offered for the failure to properly plead this defense to such provision being held to be a penalty before the ease went to trial, and no ground of surprise by the unexpected introduction of evidence which the plaintiff could not have anticipated. He was bringing suit with every term of the contract before him, and his suit was one in avoidance of the very terms of the contract; hence he should have been prepared to meet the issue which he had raised by his suit.

In plaintiff’s first amended original petition he alleges:

“Plaintiff avers that the stipulation in said contract hereinabove alleged is in the nature of a penalty and is a penalty and is unenforceable and void.”

By the trial amendment plaintiff enlarges somewhat on this allegation, and makes it read:

“Plaintiff avers that the stipulation in said contract hereinabove alleged is in the nature of a penalty, and is a penalty and is unenforceable and void, in that there were no actual damages sustained, or could be sustained, by a delay of a few days in the beginning of drilling operations.”

In the third paragraph of the contract it is provided:

*942 “It is agreed that, iñ the event the' assignee should fail.to begin actual drilling of said well within the time herein provided for, then and in that event he shall pay to the assignor the sum of $2,000 as liquidated damages, which sum is agreed by and between the parties to be a reasonable compensation for failure to comply with said agreement, and that, in such event, in addition to paying the assignor the sum of $2,000, the assignee shall forfeit all rights acquired under or by virtue of this contract and assignment; and it is further agreed that this contract and assignment shall be deposited with the First National Bank, of Wichita Falls, Tex., and held in escrow by said bank until it has been furnished an affidavit of some responsible person showing that the as-signee has begun the actual drilling of said well within the time provided for in this assignment, or until it has been directed by the assignor herein to deliver such assignment to said assignee: Upon being furnished such affidavit, -or given such instrumentation by the assignor herein, said assignment shall be delivered by said escrow agent to assignee.”

It is within the sound discretion of the trial court to admit evidence and permit the filing of a trial amendment under the conditions recited above. It is true that such discretion is a legal discretion, and that it must not be abused. But in this case there is no excuse, as stated, for the failure on the part of the plaintiff to assert his rights in due season.

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Bluebook (online)
282 S.W. 940, 1926 Tex. App. LEXIS 418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pace-v-olvey-texapp-1926.