Sanger v. Futch

208 S.W. 681, 1918 Tex. App. LEXIS 1391
CourtCourt of Appeals of Texas
DecidedDecember 11, 1918
DocketNo. 5963.
StatusPublished
Cited by8 cases

This text of 208 S.W. 681 (Sanger v. Futch) 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
Sanger v. Futch, 208 S.W. 681, 1918 Tex. App. LEXIS 1391 (Tex. Ct. App. 1918).

Opinion

BRAD'S, J.

Appellant’s brief contains a statement of the nature and result of the suit, which is accepted by appellee as substantially correct, and which we adopt, as follows:

“This suit was instituted by J. J. Futch as plaintiff in the court below, seeking the cancellation of two deeds executed and delivered .by J. J. Futch to O. L. Sanger on November 19, 1912', covering two tracts of land in Waco, Mc-Lennan county, Texas, which were described by field notes in Ms said petition, plaintiff alleging that in each of said deeds the consideration was recited at $1,500.00 cash in hand paid, and that' at the time that the said deeds and conveyances were made and executed, that plaintiff and defendant each understood, knew, and agreed that said deeds and transfers were not in fact and truth made as bona fide deeds and conveyances, but, on the contrary, were made for the following purposes and consideration; that the defendant, C. L. Sanger, was then, and had been for a length of time prior thereto, engaged in the business of what is commonly known as a dealer in cotton futures, and the plaintiff had contracted with said defendant as such cotton broker to sell and buy through the brokerage of defendant, at sundry times and prices, sundry and numbers of bales of cotton; that it was never in the contemplation 'of plaintiff or defendant that the actual delivery of said cotton should be made, but, on the contrary, was to be settled in dollars and cents, according to the rise or fall of the market prices of said cotton; and that by reason of said buying and selling of cotton futures as alleged, that the defendant did on or about the 19th day of November, 1912, falsely and fraudulently represent to plaintiff that he, the said Sanger, was then in great need of money, and if this plaintiff would execute and deliver to him the deeds to the land described that he, the defendant, could and would use said deeds and title to said premises for security for himself in the furtherance of said business; and that, by reason of said representations so made by the defendant, plaintiff did execute, sign, and deliver said deeds, but the same were not at any time a settlement or closing of the gambling contracts of plaintiff and *683 defendant for the settlement of any debt or claim due defendant by plaintiff.
“Plaintiff further alleged that the considerations recited in said deeds were false and fictitious, and that the recited consideration of $1,500.00 in each of said deeds, or no other amount, was paid at the time of said transfers, but that the said deeds and conveyances were executed and delivered as a matter of accommodation of plaintiff to defendant.
“Plaintiff prayed that said deeds he canceled, and that the cloud cast upon plaintiff’s property by said deeds be removed, and for general relief.
“The defendant answered said petition, first, by general demurrer; second, by general denial; and, third, by special answer, denying that he was engaged in the business of cotton futures or personally interested in any of the transactions set out in his answer, but alleged the facts to be that on September 3, 1912, plaintiff came to defendant, and represented that he desired to engage on his own account in the spot cotton business in the city of Waco; that in order that he might do such business with profit, and protect himself against losses, that it would be necessary that he be able to make arrangements to get money to buy cotton, and in addition that he be able to make arrangements wherein and whereby he could hedge his cash purchases of cotton or contracts by selling futures against such contracts; that he desired to obtain credit and a guaranty from defendant; that defendant, being desirous of assisting plaintiff, agreed with him that if he would execute two notes, one in the sum of $1,500.00, and one in the sum of $500.00, due and payable May 1, 1913, which notes were to be secured by a lien upon the same real estate that was subsequently deeded to defendant, that the defenda'nt would furnish plaintiff, Futch, means and credit for the conduct of his business to the amount and extent of $2,000.00, and thereafter might furnish him additional means and credit to the amount and extent of $2,000.00.
“That plaintiff duly executed the two certain promissory notes of $1,500.00 and $500.00 each to plaintiff, and on the 9th day of September, 1912, plaintiff and his wife executed a deed of trust on the two tracts of land subsequently deeded to defendant, to secure defendant in the payment of said notes and the additional amount of $2,000.00 which might be furnished; that on the same date, to wit, September 9, 1912, defendant gave plaintiff his three certain instruments in writing, worded as follows:
“ ‘To Whom It may Concern: This is to inform you that I hereby guarantee the account of J. J. Futch to an amount not exceeding $500.-00, this guaranty to be good until the 1st of May, 1913;’ which instruments were signed by defendant.
“That in addition to the execution and delivery of said guaranties, that the defendant guaranteed the account of Futch in the purchase and sale of cotton for hedging purposes with the firm of Kahn & Ettelson, of New York; that said purchases and sales made in New York were made in the name of this defendant, but were the purchases and sales of Futch, and were made by him and not by this defendant.
“That thereafter Flitch made his certain future transactions with Kahn & Ettelson in New York, and on the 19th day of November, 1912, that the said Futch, as a result of his transactions through Kahn & Ettelson, had made losses on such transactions, and this defendant, by virtue of his guaranties to such transactions, was indebted to Kahn & Ettelson in the sum of $3,076.00, which sum he paid; and that the defendant called on said Futch to pay said amount, and that said Futch thereupon agreed to pay same, provided that the defendant would advance him $1,000.00 additional, or guarantee him future purchases through Kahn & Ettelson to that amount and extent. He agreed that he would pay such amount by executing and delivering to the defendant the deeds to the two pieces of real estate described in plaintiff's petition, and upon which defendant then had a deed of trust as above set forth.
“That defendant accepted said proposition, and on said day and date the said Futch executed two certain warranty deeds to said premises, and delivered said deeds and possession of said land to defendant, and that defendant did advance the sum of $1,000.00 additional for Futch to Kahn & Ettelson, and that said funds were thereafter lost by plaintiff in his cotton transactions.
“The defendant further alleged that the plaintiff conducted all of said transactions and negotiations, received the benefits of such transactions as were in his favor, and ratified and confirmed the payment of all losses which he made.
“Defendant further alleged that he was in no manner interested in said transactions, and there was no profit therein for him in any manner on said transactions, either in the way of commissions or otherwise.

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Bluebook (online)
208 S.W. 681, 1918 Tex. App. LEXIS 1391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanger-v-futch-texapp-1918.