St. John v. Fitzgerald

281 S.W.2d 201, 1955 Tex. App. LEXIS 1973
CourtCourt of Appeals of Texas
DecidedJune 24, 1955
Docket3171
StatusPublished
Cited by8 cases

This text of 281 S.W.2d 201 (St. John v. Fitzgerald) 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
St. John v. Fitzgerald, 281 S.W.2d 201, 1955 Tex. App. LEXIS 1973 (Tex. Ct. App. 1955).

Opinion

GRISSOM, Chief Justice.

In February, 1952, D. D. St. John and Norman D. FitzGerald formed a partnership known as Saxon Drilling Company. On December 5, 1952, they, executed a contract for dissolution of said partnership effective January 10, 1953, in which it was agreed that FitzGerald and certain Fitz-Gerald trust estates should take as their share of the assets of the partnership the note of Norman D. FitzGerald for $200,000 payable to Saxon Drilling Company on or before January 10, 1953, and that St. John should take the physical property of said *202 company and accounts receivable and pay the debts of said partnership. After dissolution of the partnership St. John filed this suit against FitzGerald for damages, alleging that FitzGerald at the time of the execution of the dissolution agreement on February 5, 1952, had falsely represented that the unpaid bills of the partnership amounted to only $6,000 when the partnership owed about $16,000. FitzGerald took the deposition of St. John and then filed a motion for summary judgment based on the ground that St. John had testified in his deposition that he did not rely on FitzGerald’s representations that unpaid bills amounted to only $6,000.00; FitzGerald exhibited said deposition and alleged St. John had unequivocally and specifically testified therein that he did not rely on said representations when the dissolution agreement was executed and, therefore, St. John was not induced thereby to enter into said contract and suffered no damage thereby and FitzGerald was entitled to a summary judgment. Plaintiff answered that a summary judgment should not be rendered because an issue of fact was presented. He filed therewith a counter affidavit to the effect that a material point in the case was whether he relied on FitzGerald’s representation that the unpaid bills amounted to only $6,000.00 and that he did rely thereon when he signed the dissolution agreement. St. John stated in his counter affidavit that when FitzGerald first told him that $6,000.00 constituted all the debts of the partnership he did not rely thereon. The affidavit then continued as follows:

“ * * * however, during the negotiations and at the same time; "that is, at the same meeting that affiant herein had his attorney, the defendant had his bookkeeper, and additional records were secured and the checkbook was produced, and the envelope was produced including the bills that Norman D. FitzGerald said were the total bills in the amount of $6,000.00; and that after affiant’s attorney had questioned the defendant and his bookkeeper and after affiant’s attorney had discussed the matter with them, in my presence, I felt that after they had produced the checkbook and what he said were the bills in the envelope, that under such circumstances, and where my attorney was present, that then his representations in regard to the unpaid indebtedness of the partnership would be materially true. And it was then, and under such circumstances, that I was willing to go ahead and sign the dissolution agreement because I thought that under the existing circumstances and since my attorney was then satisfied and not that I had not been, but after my attorney was satisfied, well, then, I thought that I could rely on the representation as being true, and did rely on it, and later found out that the representation was not true and that there was more money than had been reported to me and that I had been damaged thereby as a partner for one-half of said indebtedness.”

All of Mr. St. John’s deposition directly pertinent to the question of whether he relied on said alleged representation of Mr. FitzGerald is as follows:

“74. Now, what was said to you by Mr. FitzGerald about the indebtedness of the partnership at that time * * * that would be * * * (interrupting). A. Fie told me * * *
“75. * * * the 5 day of December. A. He told me several days before that — he and Leland Kelley both — that we had enough money in the bank to pay all the debts and have $1,500.0(1 left over.
“76. Where did he tell you that? A. His office. His building.
“77. His building? A. Yes, sir.
“78. What was the occasion of him telling you that? A. We were discussing.
“79. Discussing what? A. How much the company owed.
“80. Is that the time dissolution was . talked — contemplated? A. I think it was probably.
*203 “81. You just think it was? A. It’s been quite a while ago. I don’t know.
“82. You don’t know specifically? A. I was fixing to get away from him. I had all I wanted.
“83. Don’t volunteer anything. Just answer the questions. A. That’s what I’m trying to tell you — I can’t tell whether it was or not.
“84. You can’t say positively you discussed dissolution at that time ? At the time they made that statement to you. A. I couldn’t say. I don’t know.
“85. At the time, two or three days later, you were in the office with your lawyer and this contract was prepared —what statement or representation was made in regard to the indebtedness of the partnership? A. The best I recall, he brought an envelope up here, and said there was approximately $6,000.00 worth of bills. We had a contract coming in for $5,900.00 — (interrupting)
“86. The Gilchrist contract? A. Yes. I figured that would offset it. Mr. Harrell asked him the direct question: he said, ‘Is this all the bills?’ and he said, ‘Yes.’
“87. He said that was all the bills, or all he knew of? A. He said 'All the bills.’
******
“104. At that time, you say Mr. Harrell asked Mr. FitzGerald what question? A. He asked if this was all the bills.
“105. What did Mr. FitzGerald say? A. He said ‘Yes.’
“106. Mr. Harrell asked that question? A. Yes, he asked that direct question.
“107. All right. A. And he stubbed the check book at the same time.
“108. Who did? A. Mr. Harrell.
“109. Did you have the check book there with you ? A. Yes, sir.
“110. Who sent for the check book? A. Mr. Harrell.
“111. Your representative sent for it? A. Yes, sir.
“112. Why did you send for it? A. To try to find out how much money was in the bank — see there were no more checks.”
******
“118. In other words, you did have the check book before you? A. Yes, sir.
“119. You did some checking? A. I didn’t know which bills were unpaid or had been paid.
“120. You did some checking? A. Yes, sir.
"121. Then you didn’t rely on what Mr. FitzGerald told you? You checked yourself? A. I wouldn’t rely on it.
“122.

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Bluebook (online)
281 S.W.2d 201, 1955 Tex. App. LEXIS 1973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-john-v-fitzgerald-texapp-1955.