Southwest Inv. Co. v. Partin

83 S.W.2d 766, 1935 Tex. App. LEXIS 632
CourtCourt of Appeals of Texas
DecidedMay 31, 1935
DocketNo. 2754.
StatusPublished
Cited by1 cases

This text of 83 S.W.2d 766 (Southwest Inv. Co. v. Partin) 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
Southwest Inv. Co. v. Partin, 83 S.W.2d 766, 1935 Tex. App. LEXIS 632 (Tex. Ct. App. 1935).

Opinion

O’QUINN, Justice.

This suit grew out of a certain paving contract and the issuance of certain paving certificates by virtue of said contract relative to paving certain streets in the city of San Augustine, Tex.

The city of San Augustine let a contract to Brown & Root to pave, among others, certain, portions of .Columbia street and Main street in said city in accordance with specifications furnished by the city. Appellees, W. R. Partin and his wife, owned lots 134, 135, and 136 in block 18 fronting 200 feet on the south side of Columbia street, and lots 185, 186, 187, and 188 in block 18 fronting 320 feet on the north side of Main street, in said city, which were included in the paving therein provided for in the contract. Before the paving was begun, appellees, Partin and wife, executed mechanics’ liens on said lots for the purpose of better securing the payment of the certificates authorized to be issued by the city to the contractors for the paving when completed and accepted by the city. In the mechanics’ liens executed by appellees it was provided that appellees convey the lots mentioned to Edgar Monteith in trust with power of sale for the benefit of said contractors or their assigns in the event ap-pellees failed to make payment for the paving. The paving was done by the contractors and accepted by the city. Ap-pellees did not pay the first-installments falling due for the paving in front of their property, and the contractors having assigned their certificates to appellant Southwest Investment Company, it elected to mature all of the installments evidenced by the certificates, and the trustee, Edgar Monteith, advertised the property for sale in accordance with the power of sale in the deed of trust in connection with the mechanics’ liens executed by ap-pellees. This suit was brought by appellees to enjoin the sale and to cancel the mechanics’ liens and deed of trust and paving certificates against their property, and to remove cloud from their title to the lots. Temporary injunction was issued pending the trial of the case. As grounds for the injunction, and the relief sought, appellees alleged:

(a) That the execution of the mechanics’ liens and the deed of trust, with power of sale by them to better and further secure the payment of the paving certificates to be issued against their property by virtue of the paving contract, was obtained by fraud, in that the contractors represented and caused to be represented to them that said contractors were to and would, under the paving contract, execute a. good and sufficient bond to care for and properly maintain the paving for a period of five years after its completion and acceptance by the city, when in fact no such undertaking was had and no such bond was ever executed and delivered for said purpose or for any purpose; that they believed and relied upon such representations, and but for same would not have executed the said liens and deed of trust.

(b) That the consideration for the certificates sought to be enforced and col *768 lected had wholly failed because Brown & Root, the contractors, had neither performed nor substantially performed their contract with the city in constructing the improvements, in that same was not done nor substantially done in accordance with the plans and specifications provided and required in the contract with the city, pleading the manner and instances in which they failed to comply with the contract.

(c) That the city council had exceeded their authority when they accepted the paving for in that said paving was not done in compliance nor substantial compliance with the plans and specifications provided in the ordinance authorizing the paving, nor with the contract under which the paving was done, fully setting out the particulars in which the requirements were ignored.

(d) That the city council did not act in good faith and with due regard for the rights of property owners of which ap-pellees were a part, in accepting the paving work, as done, because said work was not done in compliance with, nor substantial compliance with, the plans, specifications, and requirements of the ordinance authorizing the paving and the contract under which same was done, fully specifying the delinquencies and departures from the specifications called for in the ordinance and the contract.

Appellants, Southwest Investment Company and Edgar Monteith, answered by general demurrer, general denial, and by cross-action alleged that they had substantially complied with the contract in constructing the paving, had used the material furnished by the city, and that the defects in the streets were due to the inherent unsuitability of the material furnished for the construction of the paving; that no fraud was practiced in procuring the execution of the mechanics’ liens by appellees. By their cross-action appellants sought judgment on-their certificates and foreclosure of the mechanics’ liens.

By supplemental petition appellees answered the cross-action against them, and alleged that if the city furnished any material for the construction of the paving that was not called for by the contract, that it exceeded its authority and in so doing perpetrated a fraud upon them; that they had matured all the installments sued for more than two years prior to the filing of the cross-action, and hence the action, if any they had, was in all things barred by the two years’ statute of limitation; and that after notice of hearing was given by the city and after the hearing had been had, the plans and specifications upon which the original hearing was had, were changed by the city without conforming to legal requirements, and the assessments against appellees’ property was increased, wherefore same was not in compliance with law, and a o fraud upon them.

■ The case was tried to a jury upon special issues, in answer to which they found:

(1) That McRae Thomason, acting as agent of Brown & Root, the contractors, represented to W. R. Partin, appellee, that said contractors, Brown & Root, “had given a five year maintenance bond on the street improvement work proposed to be done.”

(2) That W. R. Partin believed and relied upon said representations, and but for his belief in the truth of same would not have executed the mechanics’ lien contracts to secure the payment of the cost of paving fronting his lands.

(3) That the contractors, Brown & Root, in the manner they constructed the paving, failed to substantially perform their contract with the city according to the plans and specifications made part of the contract.

(4) That the city council exceeded their authority in accepting the paving work, as done.

(5) That the city council failed to act in good faith and with due regard to the rights of property owners in accepting the paving work as done.

Upon the verdict of the jury, judgment was rendered for appellees granting them all the relief prayed for. Motion for a new trial was overruled, and the case is before us on appeal.

The jury found that the execution of the mechanics’ liens by appellees upon the property involved, to secure the payment of the cost of paving the property, was obtained by fraud. This finding is not contested by appellant, and it relies only upon the paving contract as its right to recover.

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Bluebook (online)
83 S.W.2d 766, 1935 Tex. App. LEXIS 632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwest-inv-co-v-partin-texapp-1935.