Parker v. Naylor
Parker v. Naylor
Opinion of the Court
This is the second appeal in this case. At the former trial the suit was for specific performance of a contract to convey lands, and in the alternative for damages for breach of the contract, and appellants recovered upon their alternative prayer for damages. Naylor v. Parker, 139 S. W. 93. Upon reversal, appellants, plaintiffs below, filed their second amended petition in which they abandoned that part of their cause of action seeking specific performance, and sued only for damages for breach of contract. The contract is copied in full in the former opinion, and. in so far as it is important to the questions to be considered upon this appeal, its provisions and recitals are that the appellees, S. A. Naylor and Arthur Lile, in consideration of $1 paid, granted unto the appellants an option to buy four leagues of land known as the Sherman county school lands, situated in Cochran county, for a period of 15 days from the date of the contract, which was February 17, 1909; that, if appellants should determine to buy the land under the agreement, they should within 15 days deposit in the Western National Bank at Hereford, Tex., $1,500 in escrow, pending the fulfillment of the agreement; that the purchase price should be $5 per acre for the entire tract, plus an additional sum of $500. It is further recited in the contract that the appel-lees owed Sherman county an average of $2 per acre, plus $500 for said land, and that the amount due Sherman county should be *1098 deducted and the land “deeded to said Parker, subject to said indebtedness” ; that, upon the acceptance by Parker’s attorneys of the title and conveyance to him by the sellers, lie should pay an additional sum of $13,500, making a total cash i)ayment of $15,000; and that the remainder should be divided into three equal payments, due on or before one, two, and three years from date, respectively, with interest at the rate of S per cent, per annum. After setting up the stipulations of the contract in full, the petition alleged that, before the expiration of the 15 days provided in said contract, appellant Parker exercised his option to buy the lands by making the $1,500 deposit in the bank specified, and gave appellees notice of such deposit and requested appellees to send forward for examination the abstracts of title as provided in the contract; that appellee' Naylor forthwith advised appellee Lile that appellant Parker had exercised his option and demanded the carrying out of the contract’; that appellees and each of them had refused to furnish the abstracts of title for examination, had declined to consummate the contract to sell the lands, and prior to the filing of said petition had expressly repudiated the same and arbitrarily, willfully, and fraudulently declined to comply with its terms. It is further alleged that appellants since the execution of said contract, had an opportunity of selling a half interest in the land to one J. N. Bolard at an advance of $2.50 per acre, and that, at the time the contract sued upon was executed, the appellees were duly advised and notified that appellant, when contracting for an option on the land, was doing so for the purpose of reselling the same at a profit; that, at the time appellees breached the contract, the lands were of the reasonable market value of $8 per acre, and that by said breach appellants were damaged generally, in addition to the special damages alleged, in the sum of $60,000. It is further alleged that the contract was executed by S. A. Naylor, acting for himself and as the co-owner with Lile; that, before or at the time of the consummation of their purchase of said lands from said county, appellees formed a partnership for the purchase, handling, and sale of said lands, by which they were to pay equally the purchase price and to share equally the expense, burden of holding, handling, and selling the same, and were to share equally the income, revenues, and profits derived from said lands and the sale thereof; that each of them, as such partner, was authorized to make a valid contract for the sale of the lands; and that the contract in question was signed by ap-pellee Naylor individually, and also with the partnership name of Naylor & Lile, and that, in so signing said contract, he was authorized to bind both himself and the said Lile. It is further alleged that, if the appellants should be mistaken in alleging that appellees were partners, they nevertheless had an understanding and agreement by which either of them was authorized to represent the other to sell the lands; that appellee Naylor was the owner of an undivided one-half interest in the lands, and by virtue of the facts already set out was bound to convey to appellants the said undivided half interest therein; that he undertook and bound himself to cause said Lile, who was the owner of the other half interest, to convey the same to appellant Parker according to said contract, and breached his obligation in that particular to the further damage of appellants in the sum of $30,000. It was further alleged that, at the time appellee Naylor made said contract, he represented and warranted to appellant Parker that he was authorized to make the contract for the sale of said lands on behalf of himself and as co-owner, knowing full well the extent and limit of his authority, and that, if he was not authorized to represent said lile, he knowingly, fraudulently, and willfully misrepresented his authority and induced appellant Parker to rely thereon; that appellant Parker was in fact misled and did rely upon appellee Naylor’s representation, and that Naylor willfully, wrongfully, and knowingly exceeded his authority in making said contract, if he was not authorized to represent his co-owner, to the damage of appellant in the sum of $30,000; that appellee Lile, having been informed by his co-owner immediately after the making of the contract that appellant Parker had exercised his option to purchase said lands, took no steps to repudiate the same or to deny the authority of Naylor to make the contract on behalf of them both, 'but on the contrary said Lile, after receiving full notice and with knowledge of all the facts, proceeded to ratify and confirm the contract, permitted Parker to act upon the same and deposit said $1,500 in part performance thereof, and addressed a letter to the bank with which said deposit had been placed, stating that he was informed that the option contract had been executed by appellee Nay-lor, demanding that appellant Parker close up said purchase by executing additional contracts which he inclosed with said letter, and by these acts and others ratified and confirmed the said contract and estop-ped himself to deny the authority of appel-lee Naylor to execute the contract for him.
Appellee Naylor excepted generally, pleaded the general issue and specially in substance as follows: That in January, 1909, prior to the signing and delivery by him of the contract sued on, he was the owner of an undivided half interest in the lands in question; that appellee Lile was the owner of the other half interest, and that in the month of January, 1909, appellee Naylor was approached by appellant Parker, who in- *1099 quireil of him the ' price. and. terms upon which appellees were willing to sell their interest in said lands; that appellee Nay-lor, without knowledge and consent of Lile, or without any authority from Lile, proposed to accept the sum of $3 per acre over and above the amount then due and owing by himself and Lile to Sherman county, or a gross sum to appellees of $52,145; that the terms of said offer were substantially that appellant Parker was to pay the said sum of $15,000 in cash and execute and deliver to appellees his certain promissory notes in the amounts and payable at the times agreed upon, and in addition thereto was to become liable and bound to assume the payment to said Sherman county the amount of money then due and owing said county; that at said time said Parker did not say whether he would or would not purchase said land, and no final agreement was reached between said appellant and appellee Naylor; that at said time he told said Parker that he (Naylor) only owned an undivided half interest in the land; that Parker well knew that the offer on the part of appellee to sell the land was conditioned upon the agreement of said Lile, and that any sale that might be made was conditioned upon and subject to said Lile’s approval, and it was then and there understood and agreed between Naylor and Parker that, before any offer on his part to sell should become binding upon him or upon Lile, it would have to meet the approval of Lile; that thereafter on the 17th day of February, 1909, Parker again approached Naylor with reference to the purchase of lands and requested an option for 15 days, and, if at the expiration of said 15 days he desired to purchase, he (Parker) would do so, upon the conditions, at the price, and upon the terms theretofore agreed to between himself and the said Naylor; that Parker took from his pocket some papers which he informed Naylor were contracts, written in duplicate, to be executed by himself, Parker, and the appellees, and then and there assured appel-lee Naylor that said written contracts embodied and contained all the terms, conditions, stipulations, and agreements theretofore forming the tentative agreement made between himself, Parker, and appellee Nay-lor at said January conference and none other; that, at the time the contracts were exhibited to him, the train on which Parker desired to leave Ohilicothe (Naylor’s home where the contract was made) was almost due to leave; that Parker expressed a desire not to miss the train, and together with this appellee read and compared said duplicate contracts in a hurried manner; that appellee Naylor’s experience in drafting, phrasing, and wording written contracts is limited, he not having occasion to study the meaning of technical phrases, not being a lawyer skilled in such matters, but for the greater part' of his- life having beén a 'farmer, almost wholly ignorant of the meaning, as well as of the binding force and effect, of legal and technical phraseology; that he had known appellant Parker for a number of years and had implicit confidence in his honesty and integrity, and was willing to believe, and did believe, all the statements and representations then and there made to him about the contents, wording, and meaning of the contract, and that said contract ■was made and delivered upon the same conditions as the tentative agreement theretofore had between them; that Parker was a president of a bank, highly educated, shrewd business man, and assured Naylor that the written contract was made upon the same conditions and had embodied in it all of the material provisions and stipulations in accordance with their verbal agreement, and specially assured appellee Naylor, who was induced to believe his representations, that, by the terms of the written contract, appellant was to assume the debt due him by himself and his codefendant Lile to Sherman county as part of the purchase money for the land. It is further alleged that the contract as actually signed does not assume the payment of the sum due said county or any part thereof; that the limited time in which he had to examine said contract was not sufficient in which to secure the services of a lawyer to advise him in the matter; that he relied almost wholly on the statements of appellant Parker as to the contents thereof, which statements were untrue in fact and induced him to sign the contract; that said representations were that said contract was drawn in accordance with the tentative agreement theretofore had with appellant Parker and this appellee, and had the effect to mislead and induce appellee to sign the contract, said appellant well knowing at that time thpt appellee would not execute and deliver the contract if he knew that appellant was not bound to assume the payment of said debt to Sherman county; that he (Naylor) was wrongfully deceived and misled by appellant in 'said representations into believing that appellant had’obligated himself to assume the payment of said indebtedness to Sherman county; that, acting thereon, he signed said alleged contract; that he would not have §igned the same had he not been misled. Appellee Naylor further pleaded that he never represented or warranted to appellants or either of them that he was authorized to sell or make contract to sell the interest of said Lile in said land; that he explained to said Parker at said January conference, and also when the contract was signed, that he owned an undivided one-half interest in the land, and that it was understood between appellee and the said Parker that the said contract would not be binding upon Lile unless he (Lile) should approve the same; that said Parker *1100 well knew at all times that appellee Naylor liad no authority, was not presuming, and had not agreed to convey Lile’s interest iu said lands unless the said Lile should consent thereto; that nevertheless, when Parker produced said contract for this appel-lee’s signature, he asked appellee to sign the same “Naylor & Lile”; that this appellee then and there told Parker that he did not understand that he had a right to sign Lile’s name to said contract, and then and there told Parker and gave him to understand that he did not want to sign Lile’s name thereto, and that he did not know what about so signing “Naylor & Lile” to said contract, but Parker urged him to sign and told him that it would he all right to so sign it; that but for said representation on the xiart of Parker, and the fact that Parker urged him to sign said contract and told him that it would he all right to do so, he would never have signed Lile’s name to said contract; that he had confidence in Parker’s honesty and integrity, and was persuaded by him to so sign said contract; that Parker well knew that he (Naylor) was not claiming any authority to execute said contract on behalf of Lile, and did. not intend to convey said land except and unless the same should be approved by Lile; that from the very first conference in January, 1009, whether or not a sale of said lands should be finally consummated was dependent upon Lile’s approval thereof, and, when the alleged contract sued upon was signed, it was with the understanding that Parker would take the land subject to the agreement on the part of Lile to the contract; that at said January meeting, Parker stated that he wanted to buy all the land or none; that it was understood and agreed at the time of signing the contract that Parker was not buying this appellee’s undivided interest, but was buying, all the land subject to the approval of said Lile as to the sale of his portion, and that there was never at any time any offer on the part of Parker or any agreement between Naylor and Parker for the sale of Naylor’s undivided interest in said -land alone; that said Parker asserted that he was offering to buy and would buy all the land or none; that, after said contract was signed, said Parker again at Hereford, about the 22d day of March, 1909, asserted to appellee that he had bought all the land from him; that he did not want only his undivided interest, but had bought it all and would hold this appellee to a conveyance of all the land or none; that it was never in contemplation of the parties that Naylor’s interest in said land should be conveyed to said appellant unless said Lile should also agree to convey his interest. The answer further denies the agency of Naylor and the allegation of partnership.
Appellee Lile adopted the answer of his codefendant and alleged specially that the contract was not executed by him or by any-person authorized to execute it for him; that it is not his act or deed; and that he-is in no sense bound thereby. The case was tried by a jury and resulted in a verdict and judgment for the appellees. The briefs contain numerous assignments which will not be necessary to consider in detail in the disposition we make of the case.
In I. & G. N. Ry. Co. v. Shuford, 36 Tex. Civ. App. 251, 81 S. W. 1189, where appellee was induced to sign a release of damages by fraudulent representations of a physician, the court used this language: “But, however, the twenty-eighth assignment of error raises the question that, as the appellee had an opportunity to read and understand the release, she was bound by it when she signed it, and that, as she freely and voluntarily executed it, it is conclusive of her rights. If we conceded that she did voluntarily sign it, and that at the time she did not read it but fully understood its nature and legal effect, and that it is ever so binding and conclusive in its terms against her, still if its execution was procured by reason of false and fraudulent representations of material nature that induced her to execute it, she at the time believing in the truth of such statements, and, acting upon such belief, signed the release, equity would cancel it.” It is shown that, while Naylor read the contract before signing it, he did not understand the legal effect of the language used, and under the circumstances the jury was warranted in believing him upon that point.
As was said by Pleasants, Justice, in Fish *1102 er v. Dippel, 46 Tex. Civ. App. 266, 102 S. W. 450; “The first assignment complains of tlie ruling of the trial court in not sustaining plaintiff’s exceptions to defendant’s answer on the ground that said answer affirmatively shows that the alleged false representations of plaintiff were not material and were not relied upon by the defendant. The proposition that a false representation which is not material or relied upon by the party intended to be influenced thereby cannot be availed of by such party as a ground for avoiding his contract is sustained by the authorities ; ■ but the answer of defendant does not show that the alleged false representations of plaintiff were not material or that they were not relied on by the defendant, and therefore the trial court did not err in overruling the exception. The representations alleged were as to the essential character and value of the subject-matter of the contract; the representations as to value not being the mere expression of an opinion, but made as a statement of fact and with knowledge that defendant had not seen the property and would not investigate the truth of said representations before acting upon plaintiff’s offer. AVe think the materiality of such representations cannot be questioned. It is repeatedly averred in the answer that defendant relied upon the representations made by plaintiff, -and the allegation there, ‘He was not aware that by accepting Eisher’s offer and closing the deal by telegram that a binding contract, enforceable in law under ordinary circumstances, had been entered into by him; that it was his intention at all times to see and examine the property before the trade was finally concluded by the execution of deeds, in order to verify the representations of plaintiff’ — does not indicate that he did not rely upon such representations. It means no more than that he was ignorant of the legal effect of his acceptance of plaintiff’s offer, and, if he had known that his acceptance by telegram of said offer constituted a binding contract for the conveyance of his land, he would not have closed the contract before seeing the land, and this is not inconsistent with the allegations that in accepting plaintiff’s offer he relied upon the truth of plaintiff’s representations as to the character and value of the land and the improvements.”
In Hayes v. Bonner, 14 Tex. 629, which was an action by a vendor against his ven-dee to recover the lands on the ground that the latter refused to pay the purchase money, the defendant alleging that the plaintiff had fraudulently represented to him that he had a good title to the land when in fact he had no title thereto, it was held that the allegation of such fact constituted substantially a good defense to the action, and the pleading was good as against a general demurrer. To the same effect is Morris v. Brown, 38 Tex. Civ. App. 266, 85 S. W. 1015.
The testimony is uncontradicted that when Naylor signed the contract in question he thought its provisions bound Parker to assume the Sherman county debt. Justice Stayton in Lott v. Kaiser, 61 Tex. 671, says: “There is no doubt that relief in equity will be granted when the legal effect of a transaction is misapprehended, if such misapprehension be induced or brought about by misleading statements or acts of the other contracting party, for a court of equity will not permit a person to take advantage of another’s ignorance or mistake even of law, if such person knew of the misapprehension at the time of the contract and did not correct it. For to make the contract under such circumstances would be fraudulent.” Danner et al. v. Ft. Worth Impl. Co., 18 Tex. Civ. App. 621, 45 S. W. 856, was a case where the implement company sought to recover upon two promissory notes and to foreclose the chattel mortgage given to secure them. The defendants, by special answer, set up that the notes were given in consideration of a certain engine guaranteed by the plaintiff to do a certain character of work; that the engine was defective; and that the defects -were hidden until after the engine had been placed in position for doing the work. To this answer the plaintiff replied that the defendants had signed a written order for the machine providing that 10 days’ use of the machine should be conclusive evidence that it fulfilled the warranty. The defendant sought to avoid this clause on the ground that the order which had been signed by them was procured by the fraudulent representation and assurance of plaintiff’s agent that it was only an order for the goods amounting to nothing except to show that the purchasers are acting in good faith and will take the goods if they find them to be as represented. The court sustained a general exception to the defendant’s answer, urging fraud of the plaintiff in procuring the order for the machinery. Tarlton, Chief Justice, reversed and remanded the cause, and said: “In this (sustaining the general exception to defendants’ answer) we think there was error. The allegations show, as against a general demurrer, active and affirmative fraud on the part of the plaintiff, consisting of false representations, misleading and inducing the execution of the order. If these allegations be true, we think they state a ground for avoiding the clause relied upon.” We conclude from the authorities that it was not necessary for appellees, after setting up the representations constituting fraud, to allege specifically how he was damaged, and to have attempted to do so would have been merely the statement of a legal conclusion or at the most the statement of a fact necessarily deducible from the facts stated, neither of which they were required to do.
Rule 62a for the Courts of Civil Appeals (149 S. W. x), recently promulgated by the Supreme Court and effective November 15, 1912, provides: “No judgments shall be reversed on appeal and no trial ordered in any cause on the ground that the trial court has committed an error of law in the course of the trial, unless the appellate court shall be of the opinion that the error complained of amounted to such denial of the rights of the appellant as was reasonably calculated to cause, and probably did cause, the rendition of an improper judgment in the case,” etc. This rule is doubtless one outgrowth of the widespread agitation for reform in court procedure, which has for some time been waged by the press, urged by action of many bar associations and recommended by eminent judges, and upon its face is simple enough. The 'great difficulty is in making the application of the rule to the particular error. It is with some hesitation that we construe it to be applicable to the contentions arising under the fifteenth and sixteenth assignments, and, by authority of that part of the rule quoted above, we overrule said assignments. We frankly confess that more than once during the consideration of the case we have been forced to summon the said rule as a posse eomitatus to assist us in suppressing the appellants’ brawling assignments and their clamorous propositions.
The judgment is affirmed.
Reference
- Full Case Name
- PARKER Et Al. v. NAYLOR Et Al.
- Cited By
- 23 cases
- Status
- Published