Texas Imports v. Allday

649 S.W.2d 730, 41 A.L.R. 4th 382, 36 U.C.C. Rep. Serv. (West) 491, 1983 Tex. App. LEXIS 4212
CourtCourt of Appeals of Texas
DecidedMarch 24, 1983
Docket12-81-0062-CV
StatusPublished
Cited by13 cases

This text of 649 S.W.2d 730 (Texas Imports v. Allday) 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 Imports v. Allday, 649 S.W.2d 730, 41 A.L.R. 4th 382, 36 U.C.C. Rep. Serv. (West) 491, 1983 Tex. App. LEXIS 4212 (Tex. Ct. App. 1983).

Opinion

COLLEY, Justice.

These appeals result from a take-nothing judgment non obstante veredicto entered by the trial court against both parties in a breach of contract suit instituted by appellant Texas Imports, a general partnership comprised of L.F. McCollum, James H. Chadwick and Ronald P. Cuenod (hereafter TI), against Edwin Allday (Allday died pending this appeal and his widow, Mrs. Doris Fondren Allday, in her capacity as independent executrix of his estate was substituted as appellee). Allday urged a counterclaim in the suit. The contracts between the parties involved in this appeal were for the sale and purchase of Simmental cattle, an exotic or elite breed of cattle imported from France. TI went to trial on its second amended original petition which alleged three causes of action for breach of contracts to purchase the cattle. The first cause of action pertained to a contract memorialized by writings which consist of an original letter of agreement signed by the *733 parties dated July 2,1974,1 and two written amendments to the original writing signed by the parties on July 19, 1974.2 and January 27,1975.3 These writings were referred to at trial as involving the “first shipment” of cattle. The second and third causes of action asserted by TI against Allday were referred to at trial as pertaining to the “second shipment” of cattle. No complaint is made by TI of the take-nothing judgment rendered against it with regard to the cause of action asserted in TI’s pleading respecting the “second shipment” of cattle. However, since the parties to this appeal referred to the two transactions as “first shipment” and “second shipment" both at trial and in their respective briefs in this court, we likewise so refer to them for the sake of clarity.

TI, owner of forty-nine purebred Simmental cattle (three bulls and forty-six heifers) located on Soda Ranch in Hokkaido, Japan, agreed to sell the animals to Allday. The agreement provided that Allday would, at his own expense, travel to Japan to inspect the cattle, “... their pedigrees and other pertinent documentation ...,” and notify TI as to whether or not the agreement was confirmed or terminated; it further provided that if Allday was “... satisfied with the foregoing inspection ...,” then “... the agreement shall continue in full force and effect, Texas Imports shall be bound to sell the subject cattle and the undersigned [Allday] shall be bound to purchase same upon the following terms.”

The rest of the agreement consists of twelve numbered paragraphs. Paragraph 1 sets forth the purchase price at $25,000.00 per head. Paragraph 2 states that the manner of payment of the purchase price would be 10% of the total amount due when the agreement was confirmed after the inspection in Japan by Allday, and provided that the balance was due and payable when the cattle are delivered to Allday “... in sound healthy condition” accompanied by appropriate documents showing pedigree of the animals acceptable to the American Simmental Association. Paragraph 3 of the original letter of agreement provided for delivery to Allday after a period of quarantine in the continental United States at the United States Department of Agriculture Quarantine Station in Clifton, New Jersey. This paragraph 3 was later amended by the parties to provide for delivery at Allday’s Pitchfork Ranch near Crockett, Houston County, Texas, allowing Allday a three-day period following delivery of the cattle to inspect the same. Paragraph 4 required TI to use diligence to protect and care for the cattle and maintain the animals in a healthy and sound condition until delivery to Allday. Paragraph 5 obligated TI at its own expense to maintain the cattle during the periods of quarantine both in Japan and the United States in accordance with the law and the rules and regulations of the United States Department of Agriculture. Paragraph 6 permitted Allday to request breeding of the heifers in Japan prior to importation into the United States and provided that TI would be obligated, with the approval of their Japanese agent Soda and the United States Department of Agriculture, to cooperate in any manner to accommodate the request of Allday for such breeding or impregnation of the animals. Paragraph 7 provided that TI shall warrant title arid shall warrant that the cattle “.. . are in a good, sound and healthy condition at the time of delivery ...” to Allday. That paragraph also contains provisions for fertility testing of both the male and female animals by Allday, with the agreement of TI as to the selection of the veterinary authority, and sets forth a time frame for the testing. Paragraph 8 relates to investment tax credits which are not pertinent here. Paragraph 9 speaks to the failure to perform by TI due to the death or sickness of any cattle, or the failure of any cattle to successfully meet the requirements of quarantine or to meet the fertility test, and provided for a per head adjustment of $25,000.00 against the purchase price and return of all such animals to TI upon which an adjustment is made. Paragraph 10 concerns the failure of either party to perform *734 and provides each damaged party shall have the right and resort to such relief as provided by law or equity for breach of the contract. Paragraph 11 provides for a refund of the 10% down payment made by Allday to TI if TI fails to perform. Paragraph 12 provides for status reports to be made by TI and will be hereinafter quoted in toto in connection with the jury’s answers to Special Issues 7 and 8.

Trial was to a jury, which was selected on November 19, 1979, and the case was submitted to the jury on December 4, 1979. The jury’s verdict was received by the court on December 5, 1979. Nine special issues were submitted to the jury, with respect to the “first shipment” of cattle, upon which the jury made the following findings, to-wit:

SPECIAL ISSUE NO. 1
That TI substantially performed its agreement to deliver Allday forty-nine head of cattle [first shipment] in good, sound and healthy condition;
SPECIAL ISSUE NO. 2
That TI undertook the management for resale [of the first shipment of cattle] in good faith and in a commercially reasonable manner;
SPECIAL ISSUE NO. 3
That TI incurred reasonable expenses in transportation, care and custody of First Shipment cattle between the dates of January 29, 1975 and November 28, 1979, in the amount of $82,512.00;
SPECIAL ISSUE NO. 4
The jury found $0 was a reasonable amount of attorney’s fees incurred by TI in the suit on First Shipment of cattle;
SPECIAL ISSUE NO. 5
That one or more of the forty-nine head of cattle were not in a good, sound and healthy condition when delivered to Allday’s ranch on January 29, 1975;
SPECIAL ISSUE NO. 6
That ten head of cattle were not in good, sound and healthy condition when delivered by TI to Allday’s ranch on January 29, 1975;
SPECIAL ISSUE NO. 7
That with regard to one or more head of cattle [First Shipment] delivered to Allday’s ranch, TI failed to comply with the requirements of paragraph 12 of the written contract which reads:

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Bluebook (online)
649 S.W.2d 730, 41 A.L.R. 4th 382, 36 U.C.C. Rep. Serv. (West) 491, 1983 Tex. App. LEXIS 4212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-imports-v-allday-texapp-1983.