Texas Farm Bureau Cotton Ass'n v. Kyle

281 S.W. 629
CourtCourt of Appeals of Texas
DecidedFebruary 11, 1926
DocketNo. 3119.
StatusPublished

This text of 281 S.W. 629 (Texas Farm Bureau Cotton Ass'n v. Kyle) 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
Texas Farm Bureau Cotton Ass'n v. Kyle, 281 S.W. 629 (Tex. Ct. App. 1926).

Opinion

HODGES, J.

The appellant is a nonprofit association, incorporated by authority of an act passed in 1921 by the Thirty-Seventh Legislature (Acts 37th Leg. c. 22 [Vernon’s Ann. Civ. St. Supp. 1922, arts. 14%-14%yy]). It is composed of an association of cotton growers, formed for the purpose of marketing cotton at the best obtainable prices. In order to carry out its purpose, the association enters into contracts with growers by which it agrees to buy and the grower agrees to sell and deliver to the association all of the cotton produced or acquired by him or for him (the grower) in Texas during the years 1921, 1922, 1923, 1924, and 1925. . The *630 association binds itself to endeavor to sell the cotton gradually as the spinning industry requires it, or at the best possible price before another crop is produced. There are many other stipulations' embraced in such contracts, which need not here be mentioned. The contract also provides that, should the grower fail to sell and deliver all of his cotton to the association, he shall pay to the association for all cotton delivered, sold, consigned, withheld, or marketed by or for him, other than in accordance with the terms of his agreement, the sum of 5 cents per pound, middling basis, as liquidated damages for the breach of his contraat; and further agrees that, in the event of a breach, or a threatened breach, by him of any provision regarding the delivery of cotton, the association shall be entitled to an injunction to prevent the breach, or further breach, of the contract. He agrees also that, in the event the association brings any action whatsoever by reason of the breach or threatened breach of the contract, he shall pay to the association all costs of court, costs for bonds and otherwise, expenses of travel, and all expenses arising out of or caused by the litigation, and any reasonable attorney’s fees expended or incurred by the association in such proceeding.

The appellee owns a farm consisting of approximately 600 acres, situated in Bowie county. On June 28, 1921, he signed one of the contracts above referred to, by which he agreed to deliver to the association all cotton grown by him or for him during the years previously mentioned. He failed to deliver any cotton at any time to the association, and this suit was filed in the district court óf .Bowie county by the association to recover damages, attorney’s fees, and expenses aggregating the sum of $6,100.

The appellee pleaded as a defense that he did not produce, directly or indirectly, any cotton during the years 1921, 1922, 1923, or 1924 which he was required to deliver to the association under his contract. The - court submitted two special issues, in response to which the jury found that the appellee had not produced, directly or indirectly, any cotton during the years 1921 or 1922, and that the appellee did not during those years have control over any commercial cotton, or any interest therein, which he was required by his contract to deliver to the appellant. The remaining issues of fact were determined by the court.

The appellant requested a peremptory instruction in its favor. It also requested the court to set aside the findings made by the jury and render judgment in its favor.. The contention on this appeal is that, under the uncpntradicted evidence a judgment should have been entered against the appellee upon all the issues of fact.

The evidence consisted of the testimony of the appellee and his tenants. This, in substance, showed that most of appellee’s farm was planted in cotton during the years 1921 to 1924, inclusive. The land was cultivated by tenants, who paid as rent one-third of the grain and one4Eourth of the cotton when the tenant furnished the teams and tools. When the landlord furnished the' teams and tools, the tenants paid one-half of the crops. The appellee testified that about one-third of the land was cultivated by share croppers; that

is, those who paid one-half, and the other by tenants who paid one-third and one-fourth. There was grown on the premises during the four years above mentioned something over 400 bales of cotton. In the course of his examination, he stated:

“I have cultivated that place ever since 1910. I cultivated it by tenants in 1921. Some of them worked on third and fourth, and some of them were half hands. I couldn’t say how much cotton was raised on that place by tenants in 1921. I haven’t kept up with it. I expect there was as much as 100 bales in 1921. The cotton was marketed at Hooks. All the hands that raised it saw to the sale of it. I helped get buyers for it. As to the negroes there- on the place, they never sold without seeing me, and I never sold without seeing them about it. We worked together in selling it. * * * The contract I made with those half tenants that rented in 1922 was that they were to do the work and I to furnish the teams and tools, and they were to get half the money. ■They were to- sell the cotton when they got i'eady, and leave my money in the bank. They have always taken the tickets to the bank, and the cashier figured it up and left my part there. The cashier always did the dividing. That was the contract I always made. My contract with third and fourth croppers was that they were to leave the fourth dollar in the bank. They were to give the tickets to the cashier, and he was to divide it. They always sold their own cotton. They just paid me one-fourth of the cotton. There was never any agreement between me and any man that worked on my place that I was to have one-half of the cotton. I have always taken one-half of the cotton. I have always taken one-half of the cotton, and they would not have it any other way. You could' hardly divide it fairly because maybe one bale was big and the other a little one, and one bale a good middling and the other a low .middling. I was to have my part of the cotton as rent. I never did take any of the tenants’ cotton and sell it without their consent. I always asked, and talked with them about it. Whenever they got ready to sell, we would get in the car and drive it to Hooks. Sometimes they would have the buyers go down there and look it over, and maybe be a week or two in selling it.”

Again be said:

“I had that same contract with the tenants when I signed this marketing agreement. Of course, I’ always had the cashier to deduct whatever the hands owed me out of the proceeds of the cotton. I always had the orders for the cashier to handle it in the way I have mentioned.”

*631 The evidence further showed that during the years 1923 and 1924 the appellee had made a contract by which he leased about 400 acres of his land to his brother, who had it worked upon practically the same terms as those which the appellee himself had adopted in previous years. The contract with his brother provided for a cash rental of $2,500 per year, payable on or before November 15 of each year, to be paid out of the money derived from the sale of the first cotton sold each year. In addition to furnishing the land, appellee, as the lessor, agreed to supply his brother with 8 mules, of horses and all wagons, tools, etc., necessary for use in cultivating the land. He retained a lien upon all crops grown on the land, to secure the payment of the rental.

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Bluebook (online)
281 S.W. 629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-farm-bureau-cotton-assn-v-kyle-texapp-1926.