Anders v. Johnson

276 S.W. 678
CourtTexas Commission of Appeals
DecidedOctober 28, 1925
DocketNos. 673-4248
StatusPublished
Cited by7 cases

This text of 276 S.W. 678 (Anders v. Johnson) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anders v. Johnson, 276 S.W. 678 (Tex. Super. Ct. 1925).

Opinion

BISHOP, J.

Plaintiff in error, C. D. An-ders, and one Taylor sold to defendant in error, J. W. Johnson, and a number of other persons residing in Hunt county, Tex., shares of stock in a corporation known as the Red Chief Mining Company. The interests and claims of all the other parties having been transferred to Johnson, he filed suit against Anders and others to rescind the sales of the mining stock and to recover the purchase money paid therefor on the ground of fraud. That suit was settled June 22, 1920, by agreement between the parties, and dismissed. The amount that Anders had received for the stock with legal interest to the date of settlement was $6,440, and the settlement was based upon the repayment of this sum. The certificates of stock were transferred and delivered to Anders, who paid Johnson in cash $1,288, and, to satisfy the balance, executed the following contract and agreement:

“No. 12636. J. W. Johnson v. Red Chief Mining Company et al.
“In the District Court of Hunt County, Tex., May Term, 1920.
“This day comes the parties, J. W. Johnson, plaintiff, and C. L. Anders and W. R. Taylor, defendants, and entered the following agreement in full settlement of the matters in controversy in said suit:
“(1) The defendant C. L. Anders, has paid to the plaintiff the sum of $1,288, plus the sum of $58,' being the amount paid by said Johnson for depositions taken in the case, and said Johnson hereby acknowledged receipt of said sums of money.
“(2) Said Anders agrees to transfer an oil lease covering 40 acres of land located within one mile of the J. W. Howse well in Ouachita county, Ark., valued at $1,000, said transfer to be made in accordance with the terms of this instrument within three weeks from this date.
“(3) Said Anders also agrees to transfer an oil lease covering 40 acres of land in Choctaw county, Okl., located within one mile of a well to be drilled by C. L. Anders or his associates, within six months from this date. C. L. Anders guarantees to sell this 40-acre lease for the account of said Johnson-or any one he may name, before the completion of said well, for the sum of $1,000. In case said Anders offers the $1,000, and his offer is refused within five days after it is made, he shall be released from this obligation to sell. The transfer herein mentioned is to be made in accordance with the terms of this instrument, and whenever said well is located; at all events, to be within six months from this date. This lease is valued at $1,000.
“(4) Said Anders is to transfer an oil lease covering 80 acres of land located in Choctaw county, Okl., and to be within 1Yz miles of the well mentioned in paragraph 3 of this contract; and it is understood that said Johnson, or any one acting for or under him, may have the privilege of taking this SO acres in two different tracts of 40 acres each, and on different sides of the well. This lease is valued at $1,000, and the transfer is to be made within the time and in accordance with the provisions of section 3 of this contract.
“(5) Said Anders agrees to transfer an oil lease covering 40 acres of land located in section 5, township 20, range 5, Claiborne parish, La., and to be in the northeast part of said section. This lease is to be transferred within [679]*679three days from this date, and is of the value of $1,000.
“(6) Said Anders agrees to transfer an oil lease covering 40 acres of land located in section 12, township 20, range 6, Claiborne parish, La., and to be located in the northwest part of said section. This lease is valued at $1,000, and is to be transferred within three days from this date.
“(7) C. L. Anders also agrees to deliver a lease covering 40 acres of land to be located within one mile of some ‘drilling well,’ this lease to be transferred within one year from this date.
“(8) It is understood and agreed that each of said leases to be so transferred under the terms of this instrument is to be a valid lease in approved form for oil leases, and is to convey a good and sufficient'title, and is to be accompanied by an opinion of some reputable lawyer to the effect that the lease is valid and the title is good. Each of said leases is to be transferred to Dr. H. E. Yaughan, of Wolfe City, Tex., who is to hold the title thereto in his name.
“(9) In the event said Anders shall fail to transfer either of said leases within the time and in accordance with the conditions specified in this contract, then he is to pay to the said Johnson, at Greenville, Tex., a sum equal to double the value of said lease as specified herein, said sum to be immediately due and payable upon the failure of said Anders to make the transfer in accordance with this instrument within the time mentioned, it being understood that time is the essence of the contract in this respect.
“(10) It is further understood that the Louisiana lease is a community lease which requires the sinking of a well every six months to protect the lease, and the said Anders agrees to do and perform all things necessary to keep said lease, including the lease herein transferred, valid and live; and in case he fails to do so, he is to pay to the plaintiff the damages he' sustains. The Arkansas lease carries an annual rental of 15 cents an acre. The Oklahoma leases carry an annual rental of 25 cents "an acre.
“(11) Said Anders guarantees the existence of the facts stated herein.”

Johnson, on April 13, 1921, filed this suit against Anders to recover damages for his breach of the agreement to convey the oil leases, alleging that this contract was executed in settlement of the former suit. In his amended petition filed March 9, 1923, he sought recovery for breach of the contract, and in the alternative sought to recover the consideration paid by him to Anders for the leases Anders agreed to convey to him. He in substance alleged that at the time of the settlement of the former suit it was agreed that Anders should repay to him the amount received for the stock, with legal interest amounting to the sum of $6,440; that 20 per cent, or $1,288, should be paid in cash, which was done, and that the balance, amounting to $5,152, was the consideration on which the contract to convey the leases was based; and that said consideration was paid by Johnson to Anders when said former suit was settled, and the contract executed. He prayed for judgment for said amount of $5,152, with legal interest from date of said settlement.

Anders pleaded the statute of frauds against the count seeking recovery for breach of the contract, and the statute of two years’ limitation against the alternative plea seeking to recover the consideration paid on the contract to convey said leases.

The district court rendered judgment in favor of Johnson on his alternative plea for the consideration paid by him for the leases, denying any recovery for breach of the con-, tract, on a holding that the contract did not comply with the requirements of the statute of frauds, and there could be no recovery for its breach.

Anders appealed to the Court of Civil Appeals, and the judgment was there affirmed. 263 S. W. 946. The Court of Civil Appeals in its opinion held that the contract was not in contravention of the statute of frauds, and that recovery should have been had for its breach.

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Bluebook (online)
276 S.W. 678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anders-v-johnson-texcommnapp-1925.