Simon v. Watson

• Decision Date: 05 August 1976
• Docket Number: No. 5560,5560
• Citation: 539 S.W.2d 951
• Parties: Jim SIMON, Appellant, v. Sandra Elaine (Perry) WATSON, Appellee.
• Court: Texas Court of Appeals

Page 951

539 S.W.2d 951

Jim SIMON, Appellant, v. Sandra Elaine (Perry) WATSON, Appellee.

No. 5560.

Court of Civil Appeals of Texas,

Waco.

Aug. 5, 1976.

Rehearing Denied Aug. 19, 1976.

William Andress, Jr., Andress, Woodgate & Lodewick, Dallas, for appellant.

R. Jack Ayres, Jr., Kelsoe, McDonald & Ayres, Dallas, for appellee .

OPINION

JAMES, Justice.

This is a suit by a woman against a man for money and property growing out of and after the termination of an illicit relationship between them. Pursuant to a jury verdict favorable to the woman, the trial court entered judgment in favor of the woman, from which the man appeals. We affirm.

Plaintiff-Appellee Sandra Elaine Watson brought this suit against Defendant-Appellant Jim Simon, among other things, for certain real estate, a 1969 Rolls Royce automobile, a 1973 Jaguar automobile, and $100,000 actual damages, which prayer for relief included the setting aside of a purported letter agreement of February 12, 1973, as well as instruments whereby title to the two automobiles above referred to were assigned from her to him.

Sandra Elaine Watson's maiden surname was Perry, and she was an heiress of her grandparents' estate. She grew up in Lufkin, Texas, and when she was fifteen years of age her parents sent her to Hockaday School for Girls in Dallas, Texas. After completing her studies at Hockaday, she graduated from Southern Methodist University in Dallas. Shortly after graduation, she married a schoolday sweetheart; however, this marriage was unsuccessful and ended in divorce. Thereafter she lived alone in Dallas, her testimony showing she was lonely and depressed.

In December 1969 she met the Defendant Jim Simon who represented himself to be a successful business man who owned and operated 'Jamie's,' a chain of restaurants, and who drove a 1969 Rolls Royce automobile. After they dated for a time, they began living together . She testified that she was very much in love with him, and that he proposed marriage to her, and that she accepted; that he took over the management of substantially all of her money and business affairs; that he investigated her financial holdings and that of her family, and convinced her that her father was wrongfully withholding from her what was rightfully due her. She said that he told her he would see to it that she was protected and that she would get what was coming to her, and that he succeeded in isolating her from her family and what friends she had.

In August 1970, he conducted the purchase of a piece of residence real estate located at 5055 Lake Hill Court in Dallas, Texas, and took title thereto in Sandra's name. This is the real property in controversy which was sued for by Plaintiff-Appellee. Simon arranged for a $60,000.00 loan with First Federal Savings and Loan Association of Dallas to pay the purchase price. Additionally, a $10,000.00 loan with First Federal was made to pay for improvements on the Lake Hill Court property which was secured by a $10,000.00 certificate of deposit put up with Sandra's money. About a year later, when the $10,000.00 note came due, it was not paid, and First Federal foreclosed on the $10,000.00 certificate of deposit.

At or about the same time the Lake Hill Court property was purchased, Simon arranged for Sandra to put up another $10,000.00 certificate of deposit to secure a $10,000.00 note owing to the Bank of Dallas. The proceeds of this loan were used to build a swimming pool and to make other improvements on the Lake Hill Court property. Ultimately this note was not paid, and the Bank of Dallas foreclosed upon this $10,000.00 certificate of deposit.

The parties moved into and lived together in the Lake Hill Court property until August 1972, when she moved out. She testified he forced her to leave, whereas he testified she left voluntarily.

In March of 1971, he told her he owed $35,000.00 on the Rolls Royce automobile in connection with the purchase thereof; whereupon she helped him get a $35,000.00 loan with the Lakewood Bank and Trust Company by purchasing with her money a $35,000.00 certificate of deposit with said Bank. Six months later, this note to the Lakewood Bank not having been paid, said Bank foreclosed upon this $35,000.00 certificate of deposit. The title of the Rolls Royce was put in Sandra's name. Not long after this Simon bought a Jaguar automobile for $6100.00 and it is disputed how much of this was his money and how much was her money. At any rate, he had the title to the Jaguar put in her name. Later on, Simon got her to sign the titles on the Rolls Royce and Jaguar to his name, after which he mortgaged them for a $15,000.00 loan.

In addition to the above transactions, during the times material to this controversy, she put up a cashier's check for $10,296.79 to try to save Simon's residence property on Bowser Street in Dallas, Texas, from foreclosure; also, in August 1972 when she moved out of the Lake Hill Court place she signed two checks in blank. Simon made out one of these checks to his brother, Sam Simon, for $5,000.00 and the other was made out in his own children's name for $10,000.00. In addition thereto, through Simon's efforts, her money went into such things as house payments on the Lake Hill Court place, child support payments for Simon's children (he had been married and divorced), additional improvements on the Lake Hill Court place, and various living expenses.

To summarize these financial aspects, Plaintiff showed that during the time they lived together, there came into her hands $102,336.07, and by August of 1972 when she moved out of the Lake Hill Court place, all of this money was gone except $500.00.

The record shows that Simon was in serious financial difficulties from as far back as prior to the time he and Sandra met; that he had several lawsuits against him by creditors, some of which had been reduced to judgments. In some of these previous lawsuits he testified that he owned no interest in the Lake Hill Court property, the furniture and furnishings contained therein, the Rolls Royce, the Jaguar, or in any other property except some stock which proved to be of questionable value. Moreover, his testimony in these previous lawsuits was at serious variance with his income tax returns.

Plaintiff-Appellee testified that during her relationship with Defendant-Appellant, she was very much in love with him, but at the same time she was afraid of him; that sometimes he was nice and at other times he was mean to her; that he had told her of his underworld connections; that she was at all times under his domination and control partly out of love and partly out of fear. Her mental and emotional relationship toward Simon was corroborated by a Dr. John T. Holbrook, M.D., a psychiatrist who had examined her and who testified about these matters. Although she had studied business and accounting courses in school, she was yet emotionally unstable, which instability prevailed over what training and knowledge she may have possessed. Moreover, she had for most of her life prior to meeting the Defendant led a sheltered existence, first at home and later at college, and had never before been confronted with the harsh realities of life. Of course all of these aspects of the case were hotly disputed by the Defendant-Appellant.

On February 12, 1973, the parties signed a so-called 'letter agreement' dated January 25, 1973, which had been prepared by Simon's attorney, and which purported to settle the property problems between the parties. This instrument will be hereinafter referred to as the 'letter agreement', and reads as follows:

NOTE: OPINION CONTAINS TABLE OR OTHER DATA THAT IS NOT VIEWABLE

NOTE: OPINION CONTAINS TABLE OR OTHER DATA THAT IS NOT VIEWABLE

hereafter, on June 26, 1973, Sandra went down to a bank at Simon's request and transferred the title of the Jaguar over to Simon's name. Then on September 12, 1974 at his request she transferred the title of the Rolls Royce over to Simon's name. She testified that he told her that signing these papers had something to do with the insurance on these automobiles, and that she did not know that she was transferring the titles over in his name. Simon denied that he made any such representations to her.

At some time after their separation of August 1972, and before this suit was filed in November 1974, each of the parties married third parties. Sandra married a man named Watson, hence the name used by her in this litigation. The record does not show whom Simon married.

Trial was to a jury, which found:

(1) That Plaintiff executed the letter agreement as the result of undue influence by the Defendant;

(2) That she executed the letter agreement as the result of duress by the Defendant;

(3) That she executed the letter agreement as a result of Defendant's fraud;

(4) That she transferred the title to the Rolls Royce as the result of fraud by the Defendant;

(5) And as the result of undue influence by the Defendant;

(6) And as result of duress by the Defendant;

(7) That she transferred the title of the Jaguar to Defendant as the result of fraud by the Defendant;

(8) And as the result of undue influence by the Defendant;

(9) And as the result of duress by the Defendant;

(10) The jury failed to find that Plaintiff had made a gift to the Defendant of the household goods, furniture and furnishings at the Lake Hill Court property;

(11) That Plaintiff made payments to or for the Defendant other than the $35,000.00 paid for the Rolls Royce and the $20,000.00 paid for the house improvements;

(12) in the amount of $20,000.00.

Pursuant to and in harmony with the jury verdict, the trial court entered in favor of Plaintiff-Appellee Sandra Watson against Defendant-Appellant Jim Simon, which judgment contains the following:

(1) The court found as a matter of law that there was no consideration for Plaintiff's execution of the letter agreement, and that such agreement is void and unenforceable. Appellant...