Court Opinion

ID: 9829410
Source: CourtListenerOpinion
Date Created: 2023-09-01 19:17:31.060602+00
Date Added: 2024-06-11T07:43:00.873616
License: Public Domain

On Motion for Rehearing.
The principal contentions In the, motion are that, because Mrs. Phillips was in default in her payments, as provided in the contract made with Clark, which contract was made an exhibit to her petition, she was not entitled to maintain this action, because the contract bound her to pay 50 per cent, before she was entitled to an abstract of title; also that the failure of Clark and Mrs. Hall to make the improvements provided for in the contract of sale was no ground for rescission; and it is further contended that the judgment should not have been affirmed,because it permitted a recovery against plaintiff in error of money which defendants in error had paid to Paul Clark, who originally owned the property. This contention was not urged in the original briefs.
As stated in the original opinion, this is a suit to rescind the contract of sale, to recover payments made Tinder the contract, and for foreclosure of an equitable lien upon the lot described in the contract of sale. The amended pleading upon which Mrs. Phillips went to trial declares upon the contract which she made with Paul Clark, the original owner, and the contract itself is made an exhibit to the pleadings. It is then alleged that the lands of which the lot in question is a part were conveyed to Mrs. Hall by Clark, after which Mrs. Hall continued to accept payments on the lot, and repeatedly promised and agreed to carry out all the terms of the contract of sale executed by Clark. Clark’s contract provides: “All money paid on this contract to be refunded if title is not good and merchantable.”
In her amended petition Mrs. Phillips alleges that, at the time of her purchase, Clark fraudulently represented that his title to the property was good and merchantable, and she further alleges that at the time of the sale there was an indebtedness of $40,000 existing against the property, which has never been discharged, and in support of the judgment we must presume, in the absence of a statement of facts, that this indebtedness still exists. We must further presume in support of the judgment that Mrs. Hall, as' alleged, agreed to carry out all the terms of Clark’s contract, which provides, as above stated, for refunding all payments if the title is not good and merchantable.
Further allegation is made with reference to the failure of Mrs. Hall to install and construct the improvements provided for in the contract, such as water, gas, lights, telephones, and gravelled streets. Mrs. Phillips alleges that, when she made her last payment to Mrs. Hall’s agent, the bank in Amarillo, she was informed by such agent that Mrs. Hall had declared that she would not complete the improvements for the Gables addition provided for in the contract. We must presume that the truth of this allegation was established, and it is conceded that these improvements have never been provided.
While it may be true that Mrs. Hall would not be held liable for payments made to Clark prior to the time she acquired the property, under the allegation that she repeatedly promised and agreed to carry out all the terms of the contract, she would become liable if the allegation is established by proof, and, in support of the judgment, we must presume, as stated, that this fact was proven. 3 Tex. Jurisp. 1069, § 753, and authorities cited.
The motion is therefore overruled.