King County v. Martin

• Decision Date: 21 November 1915
• Docket Number: (No. 8044.)<SMALL><SUP>†</SUP></SMALL&gt
• Citation: King County v. Martin, 173 S.W. 960 (Tex. App. 1915)
• Parties: KING COUNTY v. MARTIN.
• Court: Texas Court of Appeals

173 S.W. 960

KING COUNTY v. MARTIN.

(No. 8044.)^†

Court of Civil Appeals of Texas. Ft. Worth.

November 21, 1915.

Rehearing Denied January 9, 1915.

Appeal from District Court, Jones County; John B. Thomas, Judge.

Action by King County against George B. Martin. From a judgment for defendant, plaintiff appeals. Affirmed.

Walter S. Pope, of Jefferson City, Sporer & McClure, of Jacksboro, and Carrigan, Montgomery & Britain, of Wichita Falls, for appellant. J. M. Carter, of Aspermont, Browne & Hawkins, of Paducah, Chapman & Coombes, of Anson, Fires & Diggs, of Childress, and Stephens & Miller, of Ft. Worth, for appellee.

CONNER, C. J.

Briefly stated, this suit was instituted by King county to set aside, on the ground of fraud, a sale and conveyance of four leagues of King county school lands for $1 per acre on 20 years' time, with interest at the rate of 3 per cent. per annum, made on the 16th day of February, 1899. The case was submitted to a jury upon special issues, and upon the receipt of the verdict the court rendered a judgment in appellee's favor upon the answers, and King county appeals.

The plaintiff's petition is quite lengthy, but in substance it was alleged that J. M. Martin, the then county judge, and appellee, George B. Martin, conspired together to secure the sale under an agreement between them that George B. Martin should purchase the land with the aid and assistance of J. M. Martin, and that the purchase should inure to the joint benefit of both of the parties. It was also alleged that the character and quality of the land had been misrepresented to the commissioners' court, which representations, through the influence of said J. M. Martin, induced the commissioners to join in the sale. It was further alleged that the sale had been made hurriedly, without advertisement, without giving others an opportunity to buy, and for a grossly inadequate price, by reason of all which it was charged that the act of the commissioners was fraudulent and the sale of no validity. The defendant Martin denied the allegations of fraud and misrepresentations.

The first special issue submitted to the jury, and which embodies the principal ground of fraud having support in the evidence, reads as follows:

"Special Issue No. 1. At the time that the commissioners' court of King county entered the order of February 16, 1899, making the sale of the land in controversy to Geo. B. Martin at a $1 per acre on 20 years' time, with interest at the rate of 3 per cent. per annum, was there an agreement and mutual understanding between the defendant, Geo. B. Martin, and J. M. Martin, county judge, that the defendant, Geo. B. Martin, should take or hold said lands for the benefit of himself and the said J. M. Martin, or that the said J. M. Martin should have some interest in said lands, or the profits or proceeds which might be realized on said lands by the said Geo. B. Martin?"

To this issue the jury answered, "No."

The remaining special issues with the answers thereto that we deem controlling are the third and sixth, reading as follows:

"Special Issue No. 3. State whether the commissioners' court of King county on February 16, 1899, by the use of ordinary care and diligence, could at that time have sold the King county school lands for a better price than $1 per acre on 20 years' time at 3 per cent. interest per annum?"

To this issue the jury answered, "No."

"Special Issue No. 6. What was the market value of the land in controversy, per acre, on or about the 16th day of February, 1899, when sold on 20 years' time at 3 per cent. interest per annum?"

To which issue the jury answered, "$1 per acre."

Without observing the order of the presentation of the assignments, we will first state that appellant offered as a witness J. M. Martin, who testified in accord with the ground of fraud recited in the court's first special issue, but appellee, George B. Martin, categorically denied any agreement of the kind, and denied that J. M. Martin was interested in any way in the sale or in any proceeds that might arise therefrom, and it is not contended on this appeal that the answer of the jury to said first special issue can be set aside for want of evidence to support it. The verdict, however, in answer to the third and sixth special issues, above presented, is so attacked, and it becomes necessary for us to notice, which we will do briefly, the testimony relating to these issues.

W. M. Lay testified:

That he had known the King county school lands since 1887, and knew the market value of the same in the year 1899; that "the market value of such lands at that time was from 75 cents to $1 per acre"; that the King county school land, as compared with other lands in that county, is about an average of all the land in the county as a whole; and that "the market value of lands of average quality in Lamb county, Tex., in the year 1899, was from 75 cents to $1 per acre."

On cross-examination, among other things, he said:

"I do not know whether King county could have sold these lands to other parties, if they had been properly advertised the time they were sold to George B. Martin or not, had other parties been given an opportunity to bid, at more than $1 per acre on 40 years' time, with interest at 3 per cent. per annum, but I do not think so. * * * Part of the land is good, and part of it is sand. * * * The price of $1 per acre, which I have stated these lands were worth, was upon the usual terms of sale, which was on from 20 to 40 years' time at 3 per cent. interest. There were no lands selling in that country at that time for cash. * * * I do not know what these lands were leasing for at the time Martin bought them, but three cents per acre per year was the usual price."

J. W. Puckett testified:

That he knew the King county school lands in Lamb county and had known them for about 15 years; that he owned lands in Bailey, Lamb, and Cochran counties, and was familiar in a general way with all these lands; that "I know the market value of King county school lands in Lamb county in 1899, and the market value of the same was from 75 cents to $1 per acre. Some parts of the land are sand hills, and other parts are firm lands; but, taking the entire country over, I would say that the King county school lands are about the average, and I know what the market value of lands of average quality in Lamb county in the year 1899 was, and the value of such lands was from 75 cents to $1 per acre."

The witness' testimony showed that he had been on the land a number of times, including the year 1889, saying that "I ranched adjoining Janes Bros.," who had the King county school lands leased. He further stated:

"I do not think it is a fact that these lands could have been sold for more than $1 per acre prior to 1899, as I have no knowledge of any lands in that country selling for more than $1 per acre prior to or during 1899. * * * The land was worth the price I mentioned on long time, with low interest, because no lands were selling for cash. In offering the lands for sale, the length of time in which the purchase money was to be paid, and the terms of sale, the rate of interest, would affect the price per acre for which the lands could be sold. At the time these lands were sold to George B. Martin in 1899, I think they were leasing for three cents per acre."

L. T. Lester testified:

"I have had quite a bit of experience in dealing with lands in the western part of the state of Texas since the year 1890 up to the present time. I know the King county school lands located in Lamb county well, and have known them since 1897. I would say the southwest part of the land is very hard, smooth, grass land, with some lakes, and the southeast part is very broken, and the northeast and northwest parts extend into the sand hills and is very sandy and some extensive sand hills. I worked cattle over the land during 1897 to 1899, and I know the market value of the lands in 1899. It was from $1 to 75 cents per acre. I bought the Crosby county school lands in 1898, paying $1 per acre for same on 20 years' time, at 5 per cent. interest, payable annually."

L. G. Wilson testified:

That he knew the King county school lands, and had known them about 15 years, and that "we ranched on the adjoining lands for a number of years. I know what the market value of said land, taken as a whole, was in 1899, and it was about $1 per acre. * * * I should think that land that was sold on 20 years' time, with no cash payment, but with the provision that the interest shall be payable annually and sold at 5 per cent. interest, would bring a lower price than if the same land was sold at 3 per cent. interest, and that it would affect the price some. I cannot say what would have been the difference in price of King county school lands in 1899, where the interest charged was 6 per cent., and where the interest charged was 3 per cent., interest payable annually, and the principal not to be paid for 20 years, but the land would be worth some more at 3 per cent. than at 6 per cent. I have never heard of any individual or any of the organized counties of Texas selling their lands on 20 years' time with as low a rate of interest as 3 per cent. * * *"

He further stated that the lands to which he referred were leased at from 2½ to 3 cents per acre at the time they were sold to George B. Martin in 1899.

T. W. Morrison testified:

That he had known the King county school lands about 25 years, had ranched in Lamb county for about 15 years, and further that "it is hard to say what the market value of lands in Lamb county were at that time. I know what lands were selling for in 1899. This land was not worth more than $1 per acre in 1899. * * * Interest on deferred payments on lands purchased from the state and counties has been from 3 to 5 per cent. If the rate of interest was 5 to 6 per cent. per annum, the land would be sold for a lower price than it would if the rate of interest were 3 per...