Sterling v. Apple

513 S.W.2d 255, 1974 Tex. App. LEXIS 2444
CourtCourt of Appeals of Texas
DecidedJune 13, 1974
Docket16267
StatusPublished
Cited by5 cases

This text of 513 S.W.2d 255 (Sterling v. Apple) 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
Sterling v. Apple, 513 S.W.2d 255, 1974 Tex. App. LEXIS 2444 (Tex. Ct. App. 1974).

Opinion

EVANS, Justice.

This suit was brought by appellee, Jack W. Apple, Trustee, against defendants, Arthur Williams and wife, Laurence Kelly and Dan Sterling and wife, to specifically enforce an earnest money contract and for related relief.

The Williams’, as seller, and Apple, as purchaser, had entered into an earnest money contract dated February 13, 1968 covering .06 acre of land, more or less, in Harris County which provided for a cash purchase price of $450.00 and earnest money in the sum of $50.00 to be deposited with American Title Guaranty Company. The contract further provided that the purchaser agreed to pay accrued ad valo-rem taxes which the seller represented “to be about $25.00.” The executed contract and earnest money were then deposited in escrow with the title company.

Subsequently on March 20, 1968, Williams gave an option to Laurence Kelly, the agent for the appellants Sterling, covering this same tract of land but providing for a purchase price of $900.00 if the option was exercised. This transaction was consummated by conveyance from the Williams’ to Laurence Kelly dated March 27, 1968 and Kelly in turn conveyed the property to his principals by deed dated April 2, 1968.

In response to special issues the jury found (1) that Apple had relied on his contract with the Williams’ being in force and effect on March 27, 1968 (the date the transaction with Kelly was effected); (2) that Apple, through his representative Lee Sammons, had offered the Williams’, prior to March 27, 1968, to complete their contract; (3) that Williams had repudiated the Apple contract on March 20, 1968; (4) that prior to the consummation of the transaction on March 27, 1968 Kelly had notice that Apple was still claiming the right to complete the purchase under his contract with the Williams’; (5) and that prior to March 20, 1968, the date of the granting of the option from Williams to Kelly, Apple had not abandoned his contract with Williams.

The jury further found that (6) Apple had by a course of conduct between February 13, 1968 and March 20, 1968, led the Williams’ reasonably to believe that he did not intend to complete the purchase of the land contracted for in the earnest money contract; (7) that the Williams’ relied upon this conduct to the extent that they in good faith believed that Apple would not complete the purchase of the property; and (8) that but for such belief Williams would not have granted the option to Kelly.

The jury further found that (9) Kelly as agent for the Sterlings did not act in good faith in purchasing the property and (10) that the reasonable rental value of the property during the period April 1, 1968 to the date of trial was $1500.00.

The trial court entered judgment for Apple, ordering specific performance against appellants Sterling and Kelly, and granting recovery of damages against said appellants, jointly and severally, in the sum of $1500.00 as the reasonable rental value of the premises, and providing that Apple pay to the Sterlings the sum of $900.00, as the purchase price for said property and the sum of $99.48 as the aggregate amount of ad valorem taxes against the property. *257 No relief was awarded as to the defendants Williams and they do not appeal.

Appellants Sterling and Kelly assert the trial court erred, as a matter of law, in entering judgment for specific performance against the Sterlings; in refusing to disregard the jury’s answers to Special Issues 2, 9 and 10 and in adjusting the consideration to be paid by Apple under the contract as set forth above.

Appellee, among other counterpoints, charges that the jury’s answers to Special Issues 6, 7 and 8 have no support in the evidence; are supported by insufficient evidence and are against the great weight and preponderance of the evidence and that the trial court properly entered judgment enforcing specific performance of the contract notwithstanding the jury’s answers to such issues.

“One who, with knowledge, actual or constructive, of the executory contract acquires the legal title under or through a deed or mortgage executed by the vendor subsequently to an executory contract for the sale of land . . ., may be compelled at the suit of the vendee under the executory contract, to perform the contract by conveying the legal title, if the conditions are such that such relief could be granted against the vendor if he had not transferred the legal title”. Langley v. Norris, 141 Tex. 405, 173 S. W.2d 454, 457 (1943); Antwine v. Reed, 145 Tex. 521, 199 S.W.2d 482 (1947); Gohlke v. Davis, 279 S.W.2d 369 (Tex. Civ.App. — San Antonio 1955, writ ref’d n. r. e.).

The trial court’s judgment requiring specific performance of appellants was proper in this case unless the jury’s answers to Special Issues 6, 7 and 8 preclude appel-lee’s entitlement to such relief. Appellants contend appellee is estopped because the jury found, in reference to such issues, that appellee by course of conduct prior to March 20, 1968, led Williams to believe he did not intend to complete the purchase of the property and that this belief was relied and acted upon by the Williams’. Assuming these issues would form the basis for an estoppel, we reach the basic question of whether the jury’s answers have eviden-tiary support.

Following the execution of the earnest money agreement on February 13, 1968 and the deposit of the earnest money with the title company, there was apparently no contact, either in person or by telephone, between Mr. Apple and the Williams’.

Mr. Sammons, the agent for Mr. Apple, testified he was contacted in the latter part of February by the title company’s escrow officer who informed him of an abstract of judgment shown on the title report; that he called and was advised by Mr. Williams that he was not the same person as named in the abstract of judgment. Mr. Sammons testified he told Mr. Williams there was no need to be concerned about the judgment if Mr. Williams would sign an affidavit stating that he was not the same person as named in the judgment. Sammons testified Mr. Williams said he had not purchased anything from the party holding the judgment but that he was reluctant to sign the affidavit. Sammons also testified he also brought up with Mr. Williams the matter of delinquent ad va-lorem taxes and advised Mr. Williams that the title company records showed approximately $100.00 in back taxes instead of $25.00 as represented in the contract.

Mr. Williams’ testimony confirmed the phone call from Sammons advising about the judgment and taxes. He testified that Sammons told him that he was going to have to pay the excess of back taxes over $25.00, and also testified that Sammons told him his boss wouldn’t buy the property “with those terms against it.”

The closing papers, including an affidavit to be executed by the Williams’ with respect to the abstract of judgment, were apparently mailed directly by the title company’s escrow officer to Apple’s attorney. In her letter of transmittal dated March 13, 1968 the escrow officer stated her un *258 derstanding that either Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
513 S.W.2d 255, 1974 Tex. App. LEXIS 2444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-v-apple-texapp-1974.