Ward v. Ward

68 S.W.2d 1071
CourtCourt of Appeals of Texas
DecidedFebruary 8, 1934
DocketNo. 2439.
StatusPublished
Cited by5 cases

This text of 68 S.W.2d 1071 (Ward v. Ward) 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
Ward v. Ward, 68 S.W.2d 1071 (Tex. Ct. App. 1934).

Opinion

O’QUINN, Justice.

Appellant, John C. Ward, Jr., brought this suit in the Fifty-Eighth district court of Jefferson county, against appellees, H. D. Ward, Wesley Kyle Ward, Jack S. Wax'd, Carroll E. Ward, Mrs. Nena Ward Martin and her husband, H. E. Martin, Mrs. Seawillow Ward Stafford, a feme sole, Mrs. E. B. Kelso and •her husband, E. B. Kelso, Marshall King Ward, J. H. McCorkle, Mrs. Eva McFarland Lentz and her husband, L. L. Lentz, Mrs. Belle Carroll Ward, a feme sole, Paul Tullos, W. M. Carroll, and the First National Bank of Beaumont, Tex., to cancel and annul the following instruments: (I) A certain deed from said John C. Ward, Jr., said Wesley Kyle Ward, said Jack S. Ward, said Carroll E. Ward, and said J. H. McCorkle, by them executed and delivered to said H. L. Ward, conveying their respective undivided interests in the J. O. Ward estate and in the properties of said estate; (2) a pledge of certain shares of corporate capital stock formerly belonging to said John C. Ward estate made by said H. L. Ward to said W. M. Carroll; (3) a deed of trust covering certain lands formerly belonging to the said John C. Ward estate and delivered by the said H. L. Ward and the said Mrs. Belle Carroll Ward to said Paul Tullos for the benefit of said First National Bank; (4) a certain tiust agi-eement made by and between the owners of undivided interests in said John C. Ward estate and said H. L. Ward. And for grounds alleged: (a) That said instruments were executed and delivered for an unlawful purpose and consideration; (b) were in contravention of the public policy and the statutes of the state of Texas; (c) and same were executory, unperformed, and that appellant, John O. Ward, Jr., was not in pari delicto with said appel-lees, or any of them.

Appropriate answers were filed by the several defendants, which were replied to by supplemental petition of appellant. At the conclusion of the testimony, an instructed verdict was returned in favor of defendant W. M. Cai-roll. The ease was then submitted to a jury upon special issues, upon the answers to which judgment was rendered in favor of appellees.

As reflected by the record, this suit originated out of the following matters: Wesley Kyle Wax'd, a brother of most of the appel-lees, was an officer of the First National Bank of Beaumont, one of the appellees, and was found to be short with the bank in the sum of about $05,000. This defalcation was made known to the appellees, member's of the Ward family, by Wesley Kyle Ward himself, and said appellees immediately called a family conference to discuss the matter and determined to make good the shortage. LL I* Ward, one of the brothers, was in Chicago, *1072 and was called by long distance telephone and immediately prepared to come to Beaumont. Prior to his arrival, O. E. Ward, another of the brothers, took the initiative in the matter and at once went to see P. B. Doty, president of the First National Bank, in relation to making good the shortage, telling Doty that the Ward family desired to make restitution in. full. Wesley Kyle Ward’s liability to the bank was covered by a surety company bond in the sum of $50,000. In the course of the discussion of the matter, Mr. Doty told O. E. Ward that unless the defalcation was made good within ten days, the time required in the bond for notice of any shortage on the part of the assured, the bank would have to and would report the shortage to the surety company, and that in any event the! bank would have to report the shortage to the bank examiner. H. L. Ward arrived, and after other family consultations, it was determined to arrange with the bank to fully cover the defalcation. O. E. Ward went on with the preparations to carry out the arrangement which culminated in the execution of the various instruments herein sought to be canceled. After the execution of said instruments, H. L. Ward, as trustee of the properties affected, executed a note to the bank securing the balance of the shortage not covered by cash payments and a deed of trust upon certain property of the estate to secure the payment of said note; whereupon the bank, although having had to notify the bonding company in the meantime, made noi claim against the bonding company, but relied upon the note against the Ward estate executed by O. E. Ward, as aforesaid. The bank had also duly notified the ¡bank examiner of the shortage. Wesley Kyle Ward was thereafter indicted and tried in the Federal District Court, and received a four-year suspended sentence. After this trial, on May 7, 1932, H. L. Ward and the other members of the family entered into a declaration of trust wherein the property of said Ward estate was conveyed to said H. L. Ward in trust, and in which said instrument the agreements, in regard to the trust, were fully set forth, showing that the trust was to terminate as soon as the indebtedness incurred was paid, and that each' member was to receive his proportionate share of the remainder of the property. This trust agreement was executed by all of the parties, including plaintiff John O. Ward, Jr., after considerable discussion and redrafting its terms so as to meet the approval of all the parties executing it, and, as before stated, after the indictment, trial, and conviction of Wesley Kyle Ward.

This suit was filed .by John C. Ward, Jr., after all the above matters were agreed to and the instruments executed and delivered, for the purpose of canceling and ■ annulling the said instruments, to wit, the deed he executed to H. L. Ward, the declaration of trust, which was subsequently executed in regard thereto, and the note and deed of trust to the bank, executed by I-I. L. Ward, as trustee, based upon allegations of duress 'and undue influence, which he claimed the other appel-lees, members of the Ward relationship, and especially H. B. Ward and O. E. Ward, exerted upon him, whereby he was caused to sign the deed of October 31, 1931, in which he conveyed his interest in the Ward estate to H. It. Ward, along with the other Ward heirs owners of interests in said estate; and also on the ground that the transaction was an illegal transaction because of an alleged agreement of the First National Bank not to prosecute Wesley Kyle Ward in case the deeds were made.

The case was tried to a jury. There were twenty-seven special- issues submitted, only eight of which were answered, the answers to which, under the charge of the court, rendered the other issues immaterial, and were not to be and were not answered. Those answered were:

Issue No. 1. “Do you find from a preponderance of all the evidence that prior to the execution and delivery of the deed of trust, exhibited in evidence before you, the officers of the First National Bank of Beaumont, Texas, or either of them, expressly or impliedly, made a threat to Carroll E. Ward and H. E. Ward, or either of them, to prosecute Wesley Kyle Ward unless the money which Wesley Kyle Ward had embezzled was paid back to said bank or unless arrangements were made to pay said money back to said bank? ” The jury answered: “No.”

Issue No. 6. “Do you find from a preponderance of all the evidence that prior to the execution and delivery of the deed from John Ward, Wesley Kyle Ward, Jack S. Ward, Oar-roll E. Ward, and J. I-I. McCorkle, to H. L. Ward, which has been exhibited in evidence before you, the officers of The First National Bank of Beaumont, Texas, or either of them, expressly or impliedly, made a threat to Carroll E. Ward and H. L.

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Bluebook (online)
68 S.W.2d 1071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-ward-texapp-1934.