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Larry D. Harris v. Sentry Title Company, Inc. v. Travis Ward
727 F.2d 1368
5th Cir.
1984
Check Treatment

*1 regard claims based With to Timberlake’s court express warranty, totally that record is devoid

noted “[t]he any express that

evidence made [Robins] warranty agree, [Timberlake].” judgment granted the summary

thus affirm this issue. Robins

V. Conclusion.

Because the record of this case demon- there is material factual

strates dispute,

issue in Robins is entitled favor judgment in its as matter summary

we court’s affirm

judgment.

AFFIRMED.

Larry HARRIS, Plaintiff, D.

v. COMPANY, INC., et TITLE

SENTRY

al., Defendants-Appellants,

v. WARD, Defendant-Appellee.

Travis 82-1108.

No. Appeals,

United Court of States

Fifth Circuit. 12,

March 1984.

Certiorari Denied June 1984.

See 104 S.Ct. 2679.

Rehearing Rehearing En Banc

Denied June Tibbals, Debusk,

Vetter, Bates, J. Lee & Tibbals, Dallas, Kroemer, Michael Albert J. Tex., defendants-appellants. Co., injury personal Welding Mfg. application of the Code & ent with Morton Texas F.Supp. (S.D.Tex.1976), we been on a case note claims have resolved Manufacturing holding Welding case. & are not bound Morton v. basis. See Moreover, persuaded the Gar- we are 610 S.W.2d at 462. We ....” Co. do “approved Morton cia court’s reference be an endorse this reference to consider holding” as the latter Timberlake ment of Morton. “Conceptual in the difficulties inherent asserts: *2 Houston, Tex., Crump, for David amicus specific tributed certain sums money of Producers, Independent curiae Texas for the purchase of the property at issue and defendant-appellee. any judgment should provide that Ward was entitled to for reimbursement those Dallas, Tex., Shields, ami- Charles O. for of judgment sums out the rendered in favor Realtors, cus curiae Dallas Bd. of Greater Sentry of Title. Inc., for defendant-appellee. Sentry Title files a motion to recall the Eastland, Jackson, Jr., Miss., Hiram C. claiming right mandate the to interest on Rohde, How, Chapman, Ford & Michael F. the proceeds from the sale of property, the Rohde, Wells, Dallas, Lawrence McDonald which were Ward from the Tex., for defendant-appellee Travis Ward. of the district court following judgment the Keeton, Page Watson, Austin, Kirk P. of the district which Sentry sums Tex., for Goggans. Title is now entitled judgment to under the of this Court.

The facts of this fully ease are reported in our cited above. We do not repeat ON FOR RECALL them here. On the MOTIONS fundamental is- sue by appellee OF MANDATE raised asserting that we were in error in refusing impress a con- JOLLY, Before and WILLIAMS Circuit structive trust the proceeds on the of of sale *, Judges, Judge. and WILL District issue, the tract at the Dyckman property, PER CURIAM: we follow our prior deny decision and the motion recall Appellee mandate. we In reversed and rendered the argues, as do amici curiae the Texas Inde- impressing decision of the district court pendent Royalty Producers and Owners As- appellee, constructive trust in favor of Tra- sociation and the Greater Dallas Board Ward, vis on the proceeds from sale of Realtors, that we misapplied Texas law by Sentry owned Title. 715 F.2d requiring prior relationship (5th Cir.1983). Suggestion for rehear- confidence between parties “long du- ing en banc and motion for panel rehearing ration” before a constructive trust could Ward, by appellee, were denied October recognized. In this case whatever was the 26, 1983. 5th Cir. 719 F.2d 404. No- On Whatley, 16,1983, vember we deny- entered an Order involved, parties long it was not of appellee’s ing motion for stay mandate. duration. We now have before us appellee’s motion for recall of mandate under Fifth emphasis upon Circuit long duration 41.2, Local Rule provides: “A man- relationship of trust and confi date once except issued shall be recalled dence between the from comes injustice.” to prevent grounds Two are wording various Texas decisions. It important ground factor, claimed. The first and a controlling at all the assertion that our in refusing decision one clearly factor be considered. We impress a constructive trust in favor recognized original this in our A decision. against Title on the proceeds reading careful of our opinion reveals that from the sale of upon requirement long the land involved was we did not rely ground erroneous. This prior relationship constitutes duration of same attack the contrary our decision that was confidence. To at the begin panel rehearing made in ning the motion for of our discussion at issue and suggestion for en In rehearing issue, banc. end our discussion of the we addition, appellee moves for long recall of the did not refer to duration of the rela ground beginning mandate on the that Ward con- at all. At tionship * nois, Judge sitting by designation. of Illi- District the Northern District Dyckman tract deal and

discussion, stated, “In between 715 F.2d County bidding. The critical Tarrant a constructive recognizing serve to is that land deal cannot County for of this case Tarrant purposes have a confidential establish from It follows there was relationship prior apart land deal. *3 is men- question.” relationship transaction There no of trust and pre-existing in Whatley Then relationship. a and length tion of such between Ward confidence state opinion at the where we to the 490 dealings began end their obtain fore County by way our in the section entitled “Conclu- holding, acre tract from Tarrant ,bid. sion”, Then, the district deal and say: “We find that the Athens land both confi- finding pre-existing inextricably court erred in a were tract deal Dyckman Ward, What- business relationship dential between with that fundamental interwoven from separate Hart to and ley, relationship, and business transactions.” Id. Dyckman parties. tract between the there conclusory 950. In that final section Dyckman on the agreement Since requirement a is no reference whatsoever to oral, it not based and since was tract was “long duration”. confidential upon pre-existing independent separate and rela- involving in recognize that the Texas parties, the Statute tions between fraud, almost control places the absence of deal, force to that applied with full Frauds upon the that ling emphasis created. trust could be and no constructive confidential pre-existing there must be original opinion, our this be As we stated in and confidence trust kind of situation the Statute very which the dealings tween before to There is a was meant control. was Frauds give trust. There rise to a constructive of discussion of the Statute this noticeable lack relationship in no such reveal, purpose its in the briefs rela of Frauds and clearly As facts case. that recognize on this issue. We appellees confidence between tionship of under Texas law turns its each case dealings Whatley began with Ward The facts were established serving as Ward’s own facts. relating Whatley to under those by the found to on the 490 acre tract owned “front” bid requisites to the establishment facts the County. Both the other real Tarrant by in Texas law were the constructive tied dealings question directly are estate They not met. into that fundamental transaction. dealings. independent separate are motion for recall of the Appellee Ward’s agreement first of these is the is enti- ground mandate on the Whatley taking up an

which Ward aided Whatley to tled to certain funds advanced Athens, Texas. to some land in option buy purchase of the tract for the agree is clear from the record this It it Court felt was GRANTED. The quid pro quo by ment Ward was its that those sums could clear from bidding on the Tarrant Whatley for Ward when the other sums retained Ward County land. registry which Ward had received judg- the district court's is at issue in of the court after The land deal which Whatley in ac- deal, directly ment turned over tract was were cordance with our mandate. In view undertaking purchase related Ward, tell now made we cannot It was claims County tract. understood Tarrant from the record the amount precisely if could ob- parties that Ward between the to which Ward is entitled. land, What- involved again using money tain re- modify the mandate to “front”, We therefore might help Ward in his as a ley so rather than render concerning the mand County with Tarrant dispute precision determine that sum with court can 490 acre tract. One could bidding on the findings. of its This conclusion on the basis close knit relation- imagine more hardly is also related the modification of our lawsuit. 715 F.2d at 948. The majority mandate to reverse and remand contained necessarily accepted also the District additional, Court’s paragraph. unchallenged the next finding fact, Bolin, see 153 Tex. Smith of appellant We GRANT the motion Sen- (1954), S.W.2d that those earlier busi- try Title recall mandate. We reverse ness a fiduciary created relation- allow and remand to the district court to Whatley. 715 F.2d determine any payable what interest if at 949. its recovery Title in from Ward of held, however, The majority pri- the sums to which it is entitled under our relationship between Ward and decision after the amount in the long standing of sufficient pursu- the district court was to Ward justify imposition of a constructive ant to the judgment of the court. trust: *4 In summary: recall our mandate in a plain- To show constructive a this case. The judgment of the district show, tiff first preponderance must a is court REVERSED and REMANDED to evidence, of the ... the had the district court for further proceedings a long-standing or fiduciary confidential entry judgment of in accordance with relationship trusting unrelated to the opinion. this original Our decision in this subject transaction ... or whether (5th Cir.1983), 715 F.2d 941 stands relationship fiduciary question exists is unchanged except as follows: The case is fact, of ... but whether a relationship returned to the district court for the solely sufficiently longstanding support im- (1) court to money determine the amount of position of a constructive trust is a ques- appellee which Ward is entitled to deduct as tion of law.... We find as a of matter out-of-pocket expenditures, his actual plus dealings law the between Ward and interest in of the the discretion in were Whatley sufficiently this case in connection with the Dyckman longstanding support purchases tract complies as he with the application court’s of a constructive trust. of pay mandate the Court to over [Emphasis added.] Title the proceeds from the sale of the 715 F.2d at Dyckman tract, and for the court to deter- again, majority And the said: (2) mine the interest paid which should be one the Even if were to count addition- to Sentry Title on the sum Ward al during Whatley’s time compa- which Sentry Title is entitled our tract, nies the held would difficult as proceeds mandate from the on the facts of this case to find a lon- tract after deduction Ward’s actual costs glasting independent relationship be- purchase advanced in the and maintenance Whatley tween his compa- or in title tract and commenc- [Emphasis nies.” added.] ing plus on the date the funds accrued Ibid. at 949. interest were of the to appellee

court Ward. Finally, majority re-emphasized its position opinion: later in its AND REMANDED. REVERSED The dealings business WILL, Judge, dissenting: District nature, whatever their Whatley, were not intensity just- of sufficient duration or September opinion In its ify imposition of a constructive trust. matter, majority panel accepted of this The first the two to es- requirements unchallenged finding the District tablish a constructive trust was not met. below that the business be- Court [Emphasis added.] Travis Ward and Alan tween Ibid. at 949. any those two had dis- gan months before acquiring Dyck- about I September cussion so-called would not have dissented on subject-matter (1) man of this 1983 had it not been the case property, undis- Whatley, as a matter of 18. Trusts Ward and fact, relationship pri- puted law, whether or not fidu- Under acquire or their decision to relationship question exists is ciary fact, that, (2) considering this relationship fact, whether suffi- of a imposition permit, support Texas law would ciently longstanding imposi- without, majority’s question as the constructive constructive trust tion of held, an absolute opinion clearly [Emphasis law. added.] relationship prior that the requirement first however, finds, Now, majority con- “long-standing,” “long-lasting,” have been fact, that undisputed there was trary to or of “sufficient duration.” confidential relation- prior fiduciary appears to concede majority now parties: between these view the Texas law its earlier recognize that the Texas incorrect: fraud, places absence of almost con- reading careful of our reveals emphasis requirement

A trolling rely upon that we did not pre-existing there must be a confi- long duration trust and dential confi- contrary trust and confidence. To dence between the before beginning our discussion dealings which rise to a constructive give and at the end discussion of issue There was no such trust. issue, long we did to the not refer this case. *5 duration of the at all. Opinion Per Curiam at 1370. Opinion 1369. With all due Per Curiam as a fact The district court found cate-

respect, majority opinion stated that a disputed appeal was not on confiden- “long- that a gorically quoted as above fiduciary relationship tial or existed rela- standing” “long-lasting” fiduciary or Whatley prior tween Ward and to and is, law, under the first re- tionship Texas from their apart deal- quirement of a constructive trust. majority what ings. On basis now can Moreover, the headnotes for the finding, that undisputed reverse fact I do published 716 indicate opinion, F.2d not understand. majority that the so held. that, majority suggests also because 1 Headnote No. reads: acquisition re- “directly was parties’ to the prior lated” 1. Trusts 91 separate “not from those independent” reme- equitable “Constructive trust” is somehow, dealings, prior can infer relation- dy fiduciary-like not, fiduciary relationship will under Texas purpose ship within transaction for law, trust. I support constructive Ibid. justice can be im- promoting and that holding. can find no Texas so In addi- whose course of conduct posed critical, tion, ignores undisputed suggests long, preexisting period over that Ward did not discuss fact relationship of and trust confidence contemplate until acquiring subject by parties was assumed action. months after their [Emphasis added.] Moreover, the major- been established. had 17No. reads: Headnote that, current insistence order to ity’s 110 17. Trusts impose a constructive deal- Texas show constructive To have ings “separate” must been show, by prepon- law, must first plaintiff subject light transaction ironic in evidence, derance law that a construc- confidential, fiduciary or longstanding may imposed tive where subject unrelated trusting transaction is within the subject scope [Emphasis transaction. added.] Rankin parties’ prior dealings. v. Naf- talis, (Tex.1977). 944 Headnote No. reads: S.W.2d agreement I am partial with the grant

of appellee Ward’s motion to recall

mandate since it an- recognition reflects

other of errors in original opinion

which I referred in dissent. my But

basic error of the majority holding remains

uncorrected. A who admittedly man

breached his fiduciary duty is still to be

rewarded receiving appears what now $400,000

be in excess when neither

uncontested facts nor justify, the Texas law require,

much less unjust ineq- such an

uitable result.

Having apparently abandoned its earlier

effort to majori- rewrite the Texas

ty now seeks to rewrite the undisputed

facts of this case. For the reasons stated

my original herein, dissenting I opinion and

deplore and, again both efforts accordingly,

dissent. America,

UNITED STATES

Plaintiff-Appellee, HENRY,

Harold Donald

Defendant-Appellant.

No. 83-1366

Summary Calendar.

United States Court of Appeals,

Fifth Circuit.

March 1984.

Opinion Granting Rehearing En April 23,

Banc

Case Details

Case Name: Larry D. Harris v. Sentry Title Company, Inc. v. Travis Ward
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Mar 12, 1984
Citation: 727 F.2d 1368
Docket Number: 82-1108
Court Abbreviation: 5th Cir.
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