Puckett v. Hoover

202 S.W.2d 209, 146 Tex. 1, 1947 Tex. LEXIS 117
CourtTexas Supreme Court
DecidedMay 21, 1947
DocketNo. A-1158
StatusPublished
Cited by54 cases

This text of 202 S.W.2d 209 (Puckett v. Hoover) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puckett v. Hoover, 202 S.W.2d 209, 146 Tex. 1, 1947 Tex. LEXIS 117 (Tex. 1947).

Opinion

Mr. Justice Simpson

delivered the opinion of the Court.

L. H. Puckett, the petitioner here, agreed to purchase one-half the minerals in a section of land in Lipscomb and' Ochil-tree Counties from Ed Hoover, Jr., and Miss Evaleen Henson, the respondents, for $1,850.00 cash. On July 2, 1945, Puckett handed the respondents a draft on himself for this sum and the respondents handed him an executed deed. The draft reads:

“Amarillo National Bank

“On or before 30 days from date and approval of title as full consideration for one-half minerals under sec. 470, H. & T. C. Ry. Co., Block 43.

“Amarillo> Texas, July 2,1945.

“Pay to the order of Ed Hoover, Jr., and Evaleen Henson, $1850.00 “Eighteen Hundred Fifty and No/100 Dollars.

“To L. H. Puckett,

“Amarillo Nat’l Bank, Amarillo, Txas.

“(Signed) L. H. Puckett.”

The parties disagree as to what happened next. The respondents’ version is that Puckett saw them on July 3, 1945, and said he had just come from the county seat town of Lipscomb where he had found that respondents “conveyed this land away in 1926,” that they did not “own it” and that “the deal was off.” The petitioner’s version is that he investigated the records, found the respondents owned only one-fourth of the minerals, and informed them that “they didn’t own this interest”; that [3]*3Hoover told Mm the conveyance of 1926 which reduced respondents’ interest to one-fourth was in effect a mortgage and should not have been recorded,” that Hoover would “get it straightened up and delivered,” and upon this representation Puckett waited until October for the respondents to perfect their title, which they did not do. Then, Puckett contends, he concluded to accept title to the one-fourth interest which respondents did own, with a proportionate reduction of the consideration, and so filed the deed for record.

The respondents sued Puckett to quiet title to one-half minerals in the land in question, and by cross action Puckett sought to quiet the title in himself to one-fourth of the minerals, tending* into court one-half the original consideration. Tried to the court without a jury, the judgment was in favor of Hoover and Miss Henson.

The Court of Civil Appeals reversed the judgment because of the error of the trial court “in holding that because the parties had contracted with reference to one-half of the minerals the appellant could not elect to take and pay for one-fourth of them upon the failure of appellees’ title to the other fourth,” and remanded the cause for a new trial because the lower court had refused to make a finding upon the issue of whether Puckett rejected title and terminated the contract of purchase on July 3, 1945, as the respondents contend. 197 S. W. (2d) 602, 604.

This writ of error was granted upon petitioner’s point that: “The Court of Civil Appeals erred in holding that the delivery of the deed by respondents to petitioner, the grantee named herein, was not effectual to pass title.” In. granting the writ we inclined to the view that the challenged holding would trench upon the well-settled rule that there can be no delivery of a deed in escrow to the grantee. This principle is stated in 7 Thompson, Real Property (permanent ed.) sec. 4196:

“The delivery of a deed in escrow may not be made to the grantee. The depositary must be a stranger. If the delivery be to the party to whom it is made, though upon express condition, not appearing upon the face of the deed, that it is to take effect only upon certain conditions, whatever may be the form of words, the delivery is absolute and the deed takes effect immediately.”

Chief Justice Stayton applied this rule in Heffron v. Cunningham, 76 Texas 312, 13 S. W. 259, and it has been consistently [4]*4followed in this jurisdiction since that decision, the latest expression on the point being found in Denman v. Hall, 144 Texas 633, 193 S. W. (2d) 515. Also see 14 Tex. Jur., Deeds, sec. 61; 17 Tex. Jur., Escrow, sec. 7.

But further appraisal of the record leads to the conclusion that the Court of Civil Appeals did not in any way qualify this principle. There was no attempt in this case to deliver the deed to petitioner in escrow. Indisputably, what the parties did was to make an executory contract to the effect that Puckett would buy one-half the minerals in question at the agreed price if he found the title was good. He certainly never accepted the deed with the intent that it pass title to him presently. To the contrary, the stipulations in the draft that he handed the respondents necessarily imply that he had thirty days within which to approve the title. This draft effectively protected Puckett against paying for the property if he disapproved the title, since Hoover and Miss Henson could never have collected on the draft, drawn as it was upon Puckett himself, without the latter’s acceptance. Moreover, it is undisputed that immediately after the exchange of the instruments Puckett went about investigating the record title and on the following day made a report to the respondents of what he had found. Of course the contemporaneously exchanged draft and deed should be construed together. 16 Am. Jur., Deeds, sec. 175. The Court of Civil Appeals correctly announced that:

“He [the district judge] properly held that the instruments and their simultaneous exchange exhibited the intention of the parties that the deed was handed to appellant for the purpose of placing it in his possession pending his decision to accept it. The acceptance was conditioned upon his approval of the title. The handing of a deed to a grantee for retention by him, pending his determination to accept it, does not constitute delivery.” 197 S. W. (2d) 602, 604.

The distinction between delivering a deed in escrow to the grantee and entrusting the manual possession to him without the intention necessary to constitute a delivery has been criticized as somewhat fine by one eminent writer. 1 Williston, Contracts (rev. ed.) sec. 212. Nevertheless, the distinction exists in this jurisdiction and appears to rest upon grounds which are quite tangible and reasonable. Bell v. Rudd, 144 Texas 491, 191 S. W. (2d) 841.

The law of delivery of deeds comprehends, among its many elements, an acceptance by the grantee. One should not- be [5]*5obliged to accept an estate without his consent and contrary to his wishes. Precisely, the law as it applies to Puckett’s situation is thus written in 26 C. J. S., Deeds, sec. 51:

“Where the grantee imposes certain conditions precedent to acceptance, title does not pass under the deed until the ful-filment of such conditions; and there is only a conditional ac-. ceptance where the purchaser at the time of the execution and delivery of the contract of sale receives, a deed, not with the intention of having title vest at that time, but with the intention of retaining the deed and having title vest if the abstract shows a merchantable title.”

See also 16 Am. Jur., Deeds, sec. 153; 7 Thompson, Real Property (permanent ed). secs. 4116 and 4145.

So the conclusion necessarily follows from all the facts that Puckett had no intention of accepting the estate described in the conveyance unless he approved the title. Accordingly, there was no completed delivery of the deed when the parties exchanged it and the draft on July 2, 1945.

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Bluebook (online)
202 S.W.2d 209, 146 Tex. 1, 1947 Tex. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puckett-v-hoover-tex-1947.