Wedgworth v. Smith

178 S.W. 641, 1915 Tex. App. LEXIS 787
CourtCourt of Appeals of Texas
DecidedMay 29, 1915
DocketNo. 8207.
StatusPublished
Cited by1 cases

This text of 178 S.W. 641 (Wedgworth v. Smith) 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
Wedgworth v. Smith, 178 S.W. 641, 1915 Tex. App. LEXIS 787 (Tex. Ct. App. 1915).

Opinion

DUNKLIN, J.

A. M. Smith instituted this suit against V. K. Wedgworth and wife, Mrs. Fannie R. Wedgworth, upon three promissory notes dated June 1, 1909, alleged to have been given in part consideration for certain real estate alleged to have been sold by the plaintiff to Mrs. Fannie R. Wedgworth as her separate property. It was further alleged that the notes were executed by V. K. Wedgworth, and that they provided for the payment of interest upon the principal at the rate of 8 per cent, per annum from date, with the usual 10 per cent, attorney’s fees clauses inserted. From a judgment in favor of the plaintiff against defendant V. K. Wedgworth for the sum of $1,941.30, with a foreclosure of the vendor’s lien alleged in plaintiff’s petition against both defendants, the defendants have appealed-.

The principal defense urged to the suit consisted of allegations, substantially, that during the holidays of 1906-07, plaintiff loaned defendant V. K. Wedgworth the sum of $1,500 under a usurious agreement, by the terms of which Wedgworth was to pay the plaintiff the sum of $3,000 on or about June 1, 1907; that the money was loaned for the pur *642 pose of purchasing certain real estate, including the property which plaintiff alleges he sold to defendant Mrs. Fannie R. Wedgworth; that a one-half interest in the proceeds of the property so purchased by Wedgworth was pledged as security for the payment of said loan. It was further alleged that when the loan became due Wedgworth was unable to pay the same or to dispose of said property, whereupon by agreement between the parties Wedgworth procured a conveyance of the property to the plaintiff, who then executed a conveyance of the same to Mrs. Fannie R. Wedgworth, and defendant V. K. Wedgworth paid to plaintiff cash the sum of $1,000, and executed the three notes sued on for the principal sum of $500 each; defendants alleging that said transaction was for the purpose of showing legality upon its face, and that at the time plaintiff insisted upon his full demand of $8,000, with interest, which Wedgworth refused to pay, and by agreement thé total demand was finally reduced to $2,500, and the transaction last alleged was upon that basis. Defendants further alleged payments to plaintiff in various sums aggregating $1,374.85. They pleaded that, as the original contract with plaintiff for said loan was usurious, the payments so made should be applied upon the principal, leaving a balance due the plaintiff of the sum of $125.15 only, which sum they tendered in their pleadings. Defendants further alleged that all of the payments so made belonged to the separate estate of Mrs. Fannie R. Wedgworth; that the property so conveyed to her was her separate estate; that the lien claimed by the plaintiff constituted .a cloud upon her title to said property, which they prayed should be removed.

Plaintiff, by supplemental petition, denied that during the holidays of 1906-07 he loaned defendant V. K. Wedgworth the. sum of $1,-500 under the agreement alleged by the defendants, and further denied that the three notes in controversy were executed under such an agreement, as was alleged by the defendants. Plaintiff further pleaded specially that during the holidays of 1906-07, defendant V. K. Wedgworth approached plaintiff at his home in the town of Clarendon, and tried to induce him to join Wedgworth in the purchase of a one-fourth interest in certain lots in the Frisco Heights addition to the city of Ft. Worth, which he represented could be purchased for the sum of $3,000, proposing at the time that plaintiff and said Wedgworth each invest the sum of $1,500, and that the purchase be made for their joint benefit; that plaintiff declined the proposition at first, but further informed Wedgworth that he might consider it later if Wedgworth found the title to the property to be good; that thereafter, on January 9, 1907, Wedgworth submitted to plaintiff a proposition in writing for the joint purchase of said property, advising plaintiff at the time that he had investigated the title and found it to be good. Plaintiff further alleged that thereafter he mailed to Wedgworth his Chech in the sum of $1,500, with the understanding and agreement between him and Wedgworth that the same, together with á like amount to be furnished by Wedgworth, was to be invested in the property as had been theretofore proposed by Wedgworth. It was further alleged that on or about June 15, 1907, he was advised by Wedgworth that some 80 of the lots that had been purchased for their joint benefit he had been unable to sell, and that the same had been apportioned to him and Wedgworth as their interest in the town lots mentioned; that thereafter he was advised by Wedgworth that 84 of the lots had been surrendered by those to whom they had been sold, and that one-fourth of the same had been apportioned to him and Wedg-worth jointly. He further alleged that subsequently, on or about April 18, 1908, the record holders of the said lots executed a conveyance to plaintiff and to the defendant Mrs. Fannie R. Wedgworth, jointly, conveying to them 41 lots in the addition, thus placing a fee-simple title in plaintiff to one-half of said 41 lots; that thereafter, upon request of Y. K. Wedgworth, he sold his one-half interest in said 41 lots to Mrs. Fannie R. Wedg-worth for the sum of $2,000, payable as follows : $500 in cash; and $1,500 evidenced by three promissory notes in the sum of $500 each, executed by defendant V. K. Wedg-worth, which are the notes sued on herein.

Plaintiff further denied specifically that the sum of $3,000 was ever at any time mentioned in the initial negotiations between him and V. K. Wedgworth, and specifically denied that he ever at any time demanded that V. K. Wedgworth repay him the sum of $3,000 or any other amount whatsoever. In other words, plaintiff, in effect, denied all allegations contained in the defendants’ answer relative to a loan, and alleged that the deed to Mrs. Fannie R. Wedgworth, and the notes executed in consideration for it, represented a straightforward sale between the parties just as the deed and notes purported to be.

No statement of facts has been brought up with the record to this court. The trial was before a jury upon special issues, and the following special issue requested by the plaintiff was the only issue submitted to the jury :

“Did the plaintiff, A. M. Smith, send to Y. K. Wedgworth in January, 1907, the $1,500 in pursuance of an agreement and contract between them that said Smith should purchase an interest in said lots in the Frisco Heights addition ; or was the agreement and contract between them that said Smith should lend said $1,500 to said Wedgworth, and that said Wedgworth should pay said Smith in return therefor $3,000 on or about June 1, 1907? The burden of proof is on the defendants to establish that said $1,500 was furnished by said Smith as a loan to said V. K. Wedgworth, .and, if they have not done so by a preponderance of the evidence in this case, you will answer said question above to the effect that said $1,500 was furnished by said Smith to purchase an interest in said Frisco Heights lots.”

*643 To that issue the jury returned the following verdict:

“We, the jury, find that the SI .500 was furnished to purchase an interest in lots in Frisco Heights. J. E. Davis, Foreman.”

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Related

Wedgworth v. Smith
213 S.W. 254 (Texas Commission of Appeals, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
178 S.W. 641, 1915 Tex. App. LEXIS 787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wedgworth-v-smith-texapp-1915.