Peters v. Lerew

139 S.W.2d 321, 1940 Tex. App. LEXIS 251
CourtCourt of Appeals of Texas
DecidedMarch 21, 1940
DocketNo. 10940
StatusPublished
Cited by10 cases

This text of 139 S.W.2d 321 (Peters v. Lerew) 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
Peters v. Lerew, 139 S.W.2d 321, 1940 Tex. App. LEXIS 251 (Tex. Ct. App. 1940).

Opinion

CODY, Justice.

The Court instructed á verdict against plaintiffs, who have appealed.

The suit was brought by appellants against M. Lerew and wife, and against E. S. Loomis and John Owens to recover 1,117.71 acres of land in Brazoria County. The suit, in addition to being brought in formal trespass to try title, was brought by appellants to set aside a deed given by them to M. Lerew on January 3, 1934. Appellants alleged, as grounds to set aside such deed and for equitable relief: That in the middle of the year 1933 one Barth and one Sallee were acting as real estate agents for appellants; and that these two real estate agents associated with themselves one John Owen; and that John Owen asso-cited with himself as a real estate agent E. S. Loomis; and that E. S. Loomis later associated with himself M. Lerew, to whom appellants executed the deed of January 3, 1934, aforesaid; and that each of said real estate agents became the agent of appellants to sell the land aforesaid, and owed appellants the good faith attached to such relationship. Appellants further alleged that Lerew, Loomis and Owen, while acting as apellants’ agents, learned that the land was greatly more valuable than $15 an acre, the asking 'price, and learned of oil, gas and mineral leasing and developments likely to occur from which property would be worth greatly in. excess of $15 per acre, but they corruptly concealed such knowledge from appellants. Appellants further allege Lerew, Loomis and Owen, while appellants’ agents, conspired to obtain the property for themselves; that they made no good faith effort to sell such land, but misled appellants into believing the land was not salable at the asking price, and entered into this fraudulent scheme: Lerew was to act as purchaser and obtain the property at an inadequate price, and to give merely his promise to pay therefor, which promise was in fact worthless ; that Owen and Loomis, though purporting to be appellants’ agents, were to have an interest in the land when conveyed to Lerew and the profits derived from a re-sale thereof; and that Lerew, Owen ■ and Loomis were to induce appellants to think the property could not be sold to others and induce such sale to be made to Le-rew. Appellants then • alleged the consummation of such fraudulent scheme and conspiracy, and that contemporaneously with the execution of the deed to Lerew, he gave a deed of trust to secure his notes, and entered into a written agreement to cultivate 150 acres of the land in cotton, and 50 acres in corn. Appellants ask for rescission, etc.

We believe that no serious contention is made that Loomis and Owen were hostile parties to appellants at the trial, except in form, and, as they have not appeared, their pleadings will not be given.

Appellees, Lerew and wife, answered by general demurrer, special exceptions, general denial, and plea of not guilty, and specially denied conspiracy and fraud, and that Loomis or Owen had any interest in the property or income to be derived from it, and that appellant Peters relied on his own judgment and knowledge of land; and that no one had any knowledge of oil value at the time; and that the sale was satisfactory to appellants; and pleaded a ratification ; and further pleaded the two and four year statutes of limitation, and by way of cross-action sued in statutory trespass to try title to recover title and possession of the land.

Appellants then answered the Lerew pleading with a general demurrer, special exceptions, and specially denied any knowledge of the facts giving a right to rescind at the time they accepted payments, or any knowledge of oil possibilities, and pled reliance upon representations of Lerew, Loomis and Owen. Appellants pleaded not guilty to the Lerew’s trespass to try title.

At the conclusion of the trial, the court, „ in response to a motion by the Lerews, gave a peremptory instruction in their [324]*324favor, and judgment was accordingly rendered in favor of the Lerews, and against all parties; and Peters and wife appeal.

The sole question is, was there any evidence that supported the allegations of appellants’ petition to go to the jury.

In late spring of 1933 Mrs. Peters took this land in cancellation of notes she held against it after Peters had gone over and inspected it. He advertised this land for sale for about a month in one of the Houston papers in May for $14 an acre, and in September for $13.50 per acre. He was seeking to raise money to help a bank in which his wife was interested. In the fall he saw Barth, who is a real estate agent at Alvin, and who takes applications for Federal farm loans. Peters spoke to Barth about a loan of $10,000 on the land, and they went out to look-at it, and Barth. thought it was worth from $12 to $15 per acre, but it was not in cultivation, and was not eligible for a loan. Peters told Barth that he wanted to sell the land and asked him to send him any prospects; he did not give Barth any right to sell the land, and did not put any price on the land at which he would sell it. Barth understood that if he sent Peters a prospect and Peters sold the land to the prospect that Barth would be paid a commission, but Peters never agreed to pay any commission. Barth told both Sallee and Owen, who were real estate agents at Alvin, about the land, and it was understood that if either of them got a prospect who bought the land, that he would split the commission with Barth. Owen told Loom is about the land being for sale and it was understood that if Loomis should get a prospect who bought the land that Owen would split his part of the commission with Loomis. Loomis told Lerew about the land being for sale and ‘‘enlisted” his aid to sell it; if Lerew should produce a prospect who would purchase the land, he was to share' in the commission. In short, the most that Peters ever asked of Barth (from whom the rights to a commission of the others was considered as being derived, except as hereinafter indicated) was to see if he (Barth) could get somebody interested in the land, and if so, to submit the price or proposition to Peters and he would consider it. Had Barth produced a prospect and Peters had sold the land to him, the evidence is undoubtedly sufficient to support a judgment in Barth’s favor for a commission. But, as stated in T. A. Hill & Son v. Patton & Schwartz, Tex.Civ.App., 160 S.W. 1155, 1157: “It is not true that every ordinary real estate broker with whom land is listed for sale occupies the position of trust and confidence, upon whom rests the duty to obtain the highest price obtainable for his principal’s land.” (Citing authorities.) “If the duty of the broker is that of mere middleman to bring the parties, together that they may treat with each other and make their own bargain, the posi-tin of the broker is in no wise improper or inconsistent.” (Citing authorities.) “There is no dispute here that the employment of appellees by Dr. Dew was simply to receive and submit to him cash offers for his property. They were not vested with any discretion of any nature, and their only duty was to advise the land owner of possible opportunities to sell.”

In Johnson v. Edrington, Tex.Civ.App., 53 S.W.2d 69, 72, the court said: “An ordinary real estate broker with whom land is listed for sale does not necessarily occupy such a position of trust and confidence as to authorize him to offer price and terms of sale nor impose upon him the duty of actively participating in such negotiations.

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Bluebook (online)
139 S.W.2d 321, 1940 Tex. App. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peters-v-lerew-texapp-1940.