WL Moody & Company, Bankers v. Yarbrough

510 S.W.2d 396, 1974 Tex. App. LEXIS 2347
CourtCourt of Appeals of Texas
DecidedMay 9, 1974
Docket16320
StatusPublished
Cited by7 cases

This text of 510 S.W.2d 396 (WL Moody & Company, Bankers v. Yarbrough) 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
WL Moody & Company, Bankers v. Yarbrough, 510 S.W.2d 396, 1974 Tex. App. LEXIS 2347 (Tex. Ct. App. 1974).

Opinion

EVANS, Justice.

This is an appeal from a judgment entered by the District Court of Galveston County, Texas, which recites that it is based upon a' compromise and settlement agreement made between the parties. Appellant, W. L. Moody & Co., Bankers, in two points of error, asserts the trial court erred in holding, as a matter of law, that a letter agreement dated May 25, 1972 and certain subsequent oral agreements constituted a legally enforceable settlement agreement and in refusing to empanel a jury to determine whether the minds of the parties met with respect to such agreement.

Appellant Moody filed the suit in July, 1971, alleging that appellee, Donald B. Yarbrough, as attorney for Moody, had acquired legal title to certain real property *397 for Moody’s benefit and that without Moody’s authority or knowledge, appellee deeded the property to Fidelity International Land Company and as President of that corporation had transferred ownership to Roane Interests, Inc. Moody sought to have the conveyances set aside and a constructive trust declared. Roane filed a disclaimer stating it had conveyed the property to appellee Yarbrough.

Appellee Yarbrough entered a general denial and then filed an amended answer to which he attached exhibits showing unsecured loans due in large amounts to Moody. Moody’s attorneys, being concerned of possible adverse effects if the exhibits were made public, appealed to the District Judge who caused the pleadings to be removed from the District Clerk’s office to avoid their being made public. Appel-lees’ attorney then agreed to withdraw the pleading upon the understanding that a serious effort to settle the case would be made so that a settlement could be consummated prior to June 1, 1972. Appellant Moody executed the letter to appellee’s attorney dated May 25, 1972 wherein he stated his acceptance of appellee’s compromise settlement offer on certain terms and conditions. These conditions were that certain real property would be divided and selection of lots made as specified in the letter; that a loan to appellee from the First State Bank of Hitchcock in the principal amount of $25,000.00 would be repaid by appellee over a period of 30 months, with credit given appellee for $6,000.00 as a principal reduction in the note; that all documents, files and papers in appellee’s possession would be returned to Moody and that joint and mutual releases would be executed between the parties. The letter concluded with the statement that “many of the details as to the particular points of settlement will have to be worked out in the future by the respective attorneys.”

On January 19, 1973, appellee Yarbrough filed motion for entry of judgment to which he attached, as an exhibit, a copy of the letter agreement of May 25, 1972. In this motion it was alleged that pursuant to the provisions of said letter agreement, the parties had divided the real estate in question; that appellee Yarbrough stood ready to execute a new note to the First State Bank of Hitchcock in accordance with the terms of the letter; that appellee Yar-brough had been ready to execute joint and mutual releases with Moody as provided in said letter and to perform all other terms and conditions in accordance therewith. Said motion was set for hearing for May 29, 1973, but no hearing was had on that date and the docket sheet shows the hearing was reset for June 6, 1973. In July, 1973 appellant’s counsel were permitted to withdraw as attorneys for appellant Moody and their present counsel substituted.

On August 9, 1973 appellant filed motion for continuance asserting that he had not received the files in the case until August 2, 1973; that he needed at least thirty days to review the files and requested the court continue the case for at least thirty days from the present setting of August 20, 1973. On that same date appellant Moody paid a jury fee and the docket sheet recites that “Plaintiff demands a jury.”

On August 20, 1973 a hearing was had on the appellee’s motion for entry of judgment at which time appellant’s counsel presented its motion for continuance seeking a thirty day delay, which was denied. Appellant’s bill of exceptions and the statement of facts reflect that the hearing was held over appellant’s objections that no compromise settlement agreement had been effected and its demand for a jury to determine the issues of whether the minds of the parties had met on a settlement. The statement of facts contains some 292 pages of testimony elicited from the parties and their attorneys pertaining to the settlement negotiations.

At the conclusion of the August 20, 1973 hearing, the trial court took the case under advisement. On November 15, 1973, appel-lee was granted leave to file his first amended original answer wherein he as *398 serted that the parties had entered into a compromise and settlement as set forth in the aforementioned letter. That same date, the court also granted appellee’s motion for judgment.

The trial court filed findings of fact to the effect that the parties had executed a valid and binding compromise and settlement agreement dated May 25, 1972; that such agreement was clear and unambiguous but incomplete in that the parties had made subsequent oral agreements regarding the subject matter and implementation of the settlement. The trial court further found that the parties had agreed to divide the lots in question and to repay the loan in the manner set out in the agreement but that they had orally agreed that Moody would be responsible for the interest accruing on the indebtedness. The court further found that all of the documents provided in the agreement had been delivered to James E. Day who was appellant’s agent for accepting delivery and that appellee and Day had executed joint and mutual releases and that appellee had executed a release to Moody. The court further found that appellee had at all times been willing to implement and conform to the agreement but that appellant had failed and refused to do so. The trial court concluded, as a matter of law, that the letter agreement constituted a valid, binding and legally enforceable compromise and settlement agreement and that the oral agreement concerning the payment of interest on the note was also a valid, binding and legally enforceable contract between the parties the effect of which was to impose upon appellant Moody the obligation of paying interest on the debt as it accrued. The court further found that the lots had been selected by the parties in accordance with the agreement and that appellee’s conduct had been such as to discharge all his obligations under the letter agreement.

Rule 11, Texas Rules of Civil Procedure, provides:

“No agreement between attorneys or parties touching any suit pending will be enforced unless it be in writing, signed and filed with the papers as part of the record, or unless it be made in open court and entered of record.”

In McDonald, Texas Civil Practice, revised 1971, Vol. 4, § 17.22, p. 107, it is stated:

“To constitute a binding stipulation, the agreement for judgment must be in writing and filed in court or its terms must be announced in open court and be entered of record. Moreover, ‘[t]o constitute an enforceable agreement for judgment, there should be left nothing for adjustment between the parties relating to the subject-matter of the agreement.

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Bluebook (online)
510 S.W.2d 396, 1974 Tex. App. LEXIS 2347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wl-moody-company-bankers-v-yarbrough-texapp-1974.