Smith v. Chipley

287 S.W. 156
CourtCourt of Appeals of Texas
DecidedOctober 13, 1926
DocketNo. 2692. [fn*]
StatusPublished
Cited by5 cases

This text of 287 S.W. 156 (Smith v. Chipley) 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
Smith v. Chipley, 287 S.W. 156 (Tex. Ct. App. 1926).

Opinion

JACKSON, J.

This suit was instituted by Lora A. Cbipley and her husband, H. D. Chip ley, plaintiffs, in the district court of Lubbock county, Tex., against Morton J. Smith, W. S. Posey, O. L. Slaton, and the First National Bank of Lubbock, Tex.', as defendants.

The plaintiff Lora A. Chipley alleges:

That she was formerly the wife of R. Taylor Woodson, who died about February 24, 1923, leaving a will naming her as independent executrix of his estate. That the will was duly probated, and she qualified as such executrix, and as such, as well as in her individual capacity, she instituted this suit. That, since the death of her former husband, R. Taylor Woodson, she had married H. D. Chipley.

That about. February 8, 1921, Mrs. Minnie Slaughter Yeal and her husband, G. T. Yeal, entered into a written contract with H. D. Chipley, by the terms of which they agreed to sell, and he agreed to buy, 19,617.28 acres of land. That H. D. Chipley was to divide the east half of the entire body of said land into labors, and the consideration for said east half of said land was $15 per acre, to be paid $2 per acre cash, and the balance in ten equal vendor’s lien notes against each tract, payable, ¡respectively, in one to ten years after December 31, 1922, with interest thereon at 7 per cent, per annum. That Chipley was given the right to sell, and required to sell, the east tier of labors first, and, after 80 per cent, of the east tier of labors were sold, the adjacent tier west should be sold, and so on until the entire east half of the whole body of land was sold or paid for by Chipley. That the minimum price at which he was to sell was $20 per acre, $3 cash, $2 of which should be paid to Mrs. Yeal, and the balance of $17 evidenced by ten equal vendor’s lien notes, due respectively, one to ten years after D'eeember -31, 1922, with 7 per cent, interest per annum, all of which should be consummated by said date. That, in the event the said east half of the entire body of 'land was sold, Mrs. Veal should transfer, without recourse, to H. D. Chipley consecutively numbered vendor’s lien notes selected by her, aggregating $4 per acre, or all over $15 per acre for which the east half of said tract of land should sell, with the further agreement that, if the notes should not make the exact amount due Chip-ley, the difference should be paid in cash.

That thereafter H. D. Chipley conveyed to Morton J. Smith and Frank Vaughn a one-half interest 'in said contract, and the land described therein, and in consideration therefor Smith and Vaughn assumed one-half the obligation of the contract, and agreed to assist in the resale of the lands, and to divide the profits, 50 per cent, to Chipley and 50 per cent, to Smith and Vaughn. That on January 3, 1922, Frank Vaughn sold and assigned his interest in said contract to Smith. That on July 3, 1922, Chipley, for a valuable consideration, sold and conveyed to R. Taylor Woodson an undivided one-fourth interest in the contract and the lands covered thereby, and in consideration therefor the said Wood-son agreed to assume one-fourth of the obligations of the contract, and to work in the resale of said lands and receive one-fourth of all profits arising from the handling and sale of the 19,617.28 acres, and pay one-fourth of all expenses and losses, if any, of the venture. That by reason of the foregoing Wood-son became the owner of a one-fourth interest in the contract, and entitled to one-fourth of the profits arising from the sale of the Ve$l lands. That he performed everything incumbent upon him in carrying out the contract with Mrs. Veal, and performed all the duties owed to Smith in the venture. That thereafter Chipley sold to Smith his remaining one-fourth interest in the contract, and R. Taylor Woodson and Morton J. Smith became the joint owners of said contract for the purchase and sale of the Veal lands, and entitled to the profits thereof, one-fourth to Woodson and three-fourths to Smith. That Smith recognized Woodson as a part owner of, and entitled to, his proportionate part of the proceeds under the contract. That Wood-son and Smith sold all the east half of said lands to other parties, except labors 7 and 8 in league 102, and labors 25 and 26 in league 103, which were conveyed to Morton J. Smith. He executed the vendor’s lien notes required, and the deeds were for the benefit of Smith and Woodson. That as a result of the sales of the east half of the Veal lands there accrued to Morton J. Smith and R. Taylor Woodson profits amounting to $40,001.37, and in settlement thereof Mrs. Veal and her husband, by their authorized agent, paid to Morton J. Smith $618.17 in money, and transferred to him vendor’s lien notes amounting to $39,383.20, among which wore the notes given by Smith against labors 7 and 8 and 25 and 26 above described. The notes are then described, giving the maker, the amounts, the dates, and the land against which they were executed. That the money paid and the notes delivered by Mrs. Veal and her husband to Morton J. Smith belong, one-fourth to the plaintiff Lora A, Chipley, and three-fourths to the defendant Morton J. Smith. That no part of said money or notes has been paid or delivered to the plaintiff. That all of said notes were received and taken into possession by Smith, and he and the other defendants have at all times refused and still refuse to deliver to plaintiff one-fourth of said notes, and plain *158 tiff is informed, and upon sucli information alleges, that some or all of said notes have been delivered by Smith to, and are now held by, the defendants W. S. Posey, O. L. Slaton, and the First National Bank of Lubbock, Tex., and all of said parties refuse to deliver the notes, or any of them, to the plaintiff. That the one-fourth interest of plaintiff in said notes is of the value of $10,000.34, which bears interest from January 1, 1923, at the rate of 7 per cent, per annum. That the labors 7 and 8 in league 102, and labors 25 and 26 in league 103, aggregating 739.2' acres, deeded to the defendant Morton J. Smith, were by him platted into a townsite called Morton, and divided into small tracts, with streets and alleys which were dedicated to the public, and he released the vendor’s lien notes against said labors, showing a clear title of record in the defendant Smith. That tie defendants deny plaintiff’s right to any of the money and notes received, and Morton J. Smith, the record owner of the notes, having released the lien on the labors above described, which he took subject to plaintiff’s rights, said labors are impressed with a trust in her favor to the extent of the value of her entire interest in the notes and money.

She prays that she have judgment against the defendant Mortoñ J. Smith for one-fourth of the sum of $618.90, with interest thereon from January 1, 1923, and judgment against all the defendants for the sum of $10,000.34, which is one-fourth of the value of the notes delivered to Morton J. Smith by Mrs. Yeal, with interest from January 1, 1923, -at the rate of 7 per cent, per annum, and costs, together with a foreclosure of her lien on said labors 7 and 8 in league 102, and 25 and 26 in league 103, and all lots, blocks, and tracts of said labors in and adjacent to the town-site of Morton, Tex., and that said property be sold in satisfaction of her judgment as under execution.

The defendant Morton J. Smith answered by general demurrer and general denial, and pleaded a verified denial of partnership and a verified failure of consideration.

At the conclusion of the testimony the court directed a verdict in favor of the defendants W. S. Posey, O.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marston v. Hill
32 S.W.2d 520 (Court of Appeals of Texas, 1930)
Smith v. Chipley
16 S.W.2d 269 (Texas Supreme Court, 1929)
Smith v. Chipley
24 S.W.2d 87 (Court of Appeals of Texas, 1928)
Chipley v. Smith
292 S.W. 209 (Texas Commission of Appeals, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
287 S.W. 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-chipley-texapp-1926.