Shields v. Dunlap

174 S.W.2d 642, 1943 Tex. App. LEXIS 573
CourtCourt of Appeals of Texas
DecidedJuly 9, 1943
DocketNo. 2386.
StatusPublished
Cited by9 cases

This text of 174 S.W.2d 642 (Shields v. Dunlap) 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
Shields v. Dunlap, 174 S.W.2d 642, 1943 Tex. App. LEXIS 573 (Tex. Ct. App. 1943).

Opinion

LESLIE, Chief Justice.

Ernest Dunlap sued Oscar N.- Shields to recover $400 deposited by- the latter as so-called forfeit money in event the latter failed or refused to comply with his obligations under a written contract whereby Dunlap agreed to convey certain lands to Shields for a consideration of $5,000. The trial was before the court and jury, and upon answers of the latter to special issues a judgment was entered for the plaintiff for amount in suit.

The plaintiff’s suit is based upon the terms of the contract, made part of his petition, and he charges the defendant with having breached the same in that he refused to accept the conveyance and pay the consideration promised. Plaintiff alleged that he cured all objections to the title and tendered same, by proper deed, to the defendant within a reasonable time after the date of the contract, that the defendant’s failure to accept such conveyance worked a forfeiture of the $400 as liquidated damages'contemplated by the parties in the event of such breach under the circumstances attending the transaction.

Shields entered a general denial and alleged the contract to be indefinite, uncertain, and incapable of performance. He 'further alleged the contract bound the parties to performance “within 15 days” from its date (February 9, 1942) and that the plaintiff failed to perform his obligations under the contract within the time required of him, and that he, the defendant, was at all times ready, able, and willing to carry out the contract during said period. The defendant further alleges that plaintiff failed to furnish him within said 15 days an abstract showing a good and merchantable title to the land. That after plaintiff failed and refused to so perform his part of the contract, he notified plaintiff the deal was off.

The plaintiff Dunlap denied the contract was to be performed within said 15 days or that such provision of the contract was of the essence of the same. Plaintiff also alleged that if such was the meaning of the contract, then defendant waived such compliance and that he, plaintiff, cured the title within a reasonable time after its date and tendered it with sufficient deed to the defendant, who then rejected the same without legal right to do so. Plaintiff further alleged that the defendant, Shields, and his attorney never informed him of any objections to the title till after the 15 days had expired, and also waived the time limit, if any, by continued negotiations toward the consummation of the deal. That the defendant’s final rejection of the title under the circumstances amounted to a breach of the contract on his part, misleading the plaintiff to his injury in the amount sued for.

The plaintiff claimed the $400 as liquidated damages and alleged facts and circumstances tending to make it such, and further alleged, in the alternative, that if it was not so provided by the terms of the contract, then he was, by the conduct of the defendant, put to unnecessary expenses exceeding that amount, and that the actual damages therefrom accruing to plaintiff from defendant’s conduct was in excess of $400 in the aggregate, and that he was entitled to recover the same as actual damages.

The $400 was deposited with the Farmers First National Bank of Stephenville, Texas, and the bank was made party to the suit, and it asks for a judgment and order of the court directing it to pay the sum to the party found entitled to the same.

At the conclusion of the evidence, the plaintiff and the defendant each requested an instructed verdict in his behalf, but the court, considering issues of fact raised by the evidence, submitted various special issues to the jury. In response thereto, the jury found:

(1) That the parties did not intend that the 15-day period of time should be of the essence of the contract. (In connection with that issue, the court defined the term “of the essence” as applied to time for the performance of an agreement, etc.)

(2) That appellee (Dunlap) procured title to the V\x mineral interest and tendered same to defendant (Shields) within a reasonable time.

(3) That appellant waived the 15-day period of time.

(4) That the $400 deposit was intended as liquidated damages.

(5) That the sum of money required to compensate appellee for his loss is $400.

At the close of the testimony, the appellant Shields filed a general motion for instructed verdict, but did not specify the grounds for his motion, as required by Rule 268, Civil Procedure.

*644 There is no contention here that the title finally tendered the appellant was not a good one, but appellant claims it was not tendered within the time contemplated and that he was within his rights in calling the deal off in his letter of March 21, 1942, which was received two or three days later by appellee.

The contract of sale, dated February 9, 1942, provided that Shields should pay $5,000 for the land and also make deposit of the $400 as a guarantee of his performance. In addition, it contained the provision that “said sum of money is agreed to be delivered to the party of the first part within fifteen days and after a deed has been signed and delivered to the party of the second part and after the title to said property has been passed on as good by a competent attorney * * * ”

In the original transaction, Shields was represented by an attorney who wrote said contract, and Dunlap acted for himself till March 9, 1942. Dunlap’s land was covered by a federal farm land mortgage, and he at once procured and tendered his abstract for examination.

In a letter dated February 19, 1942, said attorney, in behalf of Shields, wrote Dunlap as follows: “You may make arrangement to come down to my office Saturday morning, February 21, as I think that I will have everything ready to close the deal between you and Mr. Shields. Be sure and bring your wife along for she will have to sign the deed. I have likewise notified Mr. Shields. Everything looks all right in the abstract except for a few things we will have to straighten out after you all get here.”

If the deal had been confined to the 15-day period following the contract date of February 9, that period would have expired by February 25. However, on March 4, 1942, Shields’ said attorney wrote Dunlap again, saying: “I have written Mr. Shields to come by after you either Monday or Saturday; in order that we may close the deal; therefore you can be looking for him.”

On the evening of Monday, March 9, Dunlap learned for the first time from Shields’ attorney certain 'objections would be urged to his title. Such objections were also evidenced by the attorney’s opinion dated February 20, 1942, but not delivered to Dunlap till March 10, several days after the expiration of the 15-day period mentioned in the contract. On March 10 Dunlap, with Shields’ consent, proceeded to clear the title of such alleged defects and succeeded in doing so by March 23, 1942, On the other hand, Shields, by his letter dated March 21, 1942, and received “a day or two” later, apparently March 23, attempted to call off the deal.

March 18, 1942, Dunlap’s attorney wrote Shields that the title was being cleared of the alleged defects pointed out and that Dunlap would insist on the performance of the contract.

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Bluebook (online)
174 S.W.2d 642, 1943 Tex. App. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shields-v-dunlap-texapp-1943.