Ballouz v. Higgins

56 S.E. 184, 61 W. Va. 68, 1906 W. Va. LEXIS 154
CourtWest Virginia Supreme Court
DecidedDecember 11, 1906
StatusPublished
Cited by1 cases

This text of 56 S.E. 184 (Ballouz v. Higgins) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ballouz v. Higgins, 56 S.E. 184, 61 W. Va. 68, 1906 W. Va. LEXIS 154 (W. Va. 1906).

Opinion

SaNders, Judge:

This is an appeal from and sitpersedeas to two decrees of the circuit court of Wetzel county, entered in a cause in which A. C. Ballouz and others were plaintiffs and Frank Cook and others were defendants.

Brauman Higgins, being the owner of a tract of land in Wetzel county, on March 2, 1893, entered into an agreement with Jackson Hays, evidenced by a receipt, which recited that Hays had paid Higgins five dollars in cash, and that upon the payment of a certain sum additional, Hays was to receive a conveyance for an undivided one-half of the royalty in the oil and gas underlying said tract of land. Higgins never conveyed the land to Hays, but in 1896 he conveyed it to A. C. Ballouz. The appellants are the owners of the title of Ballouz, whether by conveyance immediately from him does not appear, but he divested himself of all title to the property in question by deeds with covenants of general warranty of title, and the appellants have acquired the property.

On the Fifth day of September, 1900, the appellants executed an oil and gas lease covering the land to the South Penn Oil Company, which Company, by virtue of the lease, [69]*69entered upon the property and drilled three oil wells from which large quantities of oil have been produced. After this property had been developed, Hays made claim against the South Penn Oil Company and also against the appellants for the undivided one-half of the oil royalty, reserved in the lease to the South Penn Oil Company, basing his claim upon the receipt given to him by Higgins. Thereupon the South Penn Oil Company and the Eureka Pipe Line Company, in whose possession the oil was, declined to account for, and deliver to, the appellants the royalty produced from said wells.

On the 12th day of November, 1901, an agreement was entered into between Prank Cook, Joseph Thomas, Falila Thomas, Djavid Abraham, Kalila Abraham, Moses Simon, George Shine, and Ballouz, who is one of the appellees, by the terms of which Ballouz agreed to undertake, at his own cost and expense, to silence the claim of Jackson Hays, and in consideration therefor he was to receive one-fourth of the royalty oil produced from the first three producing wells on said property. He was also to receive one-half of any money which might be recovered from Higgins upon any warranties made by him in his conveyance to Bal-louz. It was further provided in said agreement that in the event of being unsuccessful in his efforts to defeat the claim of Hays, Ballouz was to receive one hundred dollars for his services, and the appellants acknowledged receipt of any and all sums of money to which they might be entitled by reason of the breach of any and all covenants in the deeds executed by Ballouz in relation to the land on account of the claim of Hays.

At December rules, 1902, Ballouz, joining himself with the appellants, filed the original bill in this cause, the purpose of which was to cancel and declare null and void the receipt which was the basis of the claim of Hays. The South Penn Oil Company and the Eureka Pipe Line Company interposed formal demurrers and answers to the bill, but no demurrer or answer was filed by Jackson Hays.

On the 6th day of June, 1903, the appellants filed the amended bill in this cause. This bill adopted many of the allegations of the original bill; attacked the contract of November 12,1901, for fraud, misrepresentation, want of con[70]*70sideration, and failure of consideration, and prayed for a cancellation of this contract, as well as for the cancellation of the Hays’ receipt.

On the 4th day of March, 1905, the circuit court entered a decree, adjudging that the contract between appellants and Ballouz was not obtained by fraud. On the first day of July, 1905, another decree was entered, nullifying the claim of Hays, and adjudging that Ballouz was entitled to three-fourths of one-thirty-second of the oil produced from the first three wells. Ballouz was not decreed the entire one-thirty-second of the oil, for the reason that the court found that Joseph Cook, attorney in fact for David and Kalila Abraham, did not have authority to execute the agreement on their behalf. Hays has not appealed from the action of the court in regard to his claim; neither does Ballouz complain that he was not allowed the entire amount of the royalty claimed by him. Hence, the only question to be determined is, whether or not the. contract of November 12, 1901, was obtained by fraud, as claimed by the appellants, who are all the parties to the agreement, except Ballouz and David and Kalila Abraham.

All the parties to this controversy are natives of Syria. The appellants claim that at the time the contract was entered into, they were not able, owing to their limited knowledge of the English language, to understand it, and that they relied upon Ballouz to explain it to them, and that he pretended to do so. But they say that in all the negotiations leading up to the preparation of the contract, and in the conversations had at the time of its execution, Ballouz represented to them that the purpose for which he wanted it was to show his authority to attack and defeat the claim of Hays, and that by signing the contract in question the appellants incurred no liability whatsoever, and that in it no consideration was expressed as moving from them. It is manifest from all the facts and circumstances that the appellants reposed great confidence in the justice, integrity and sound judgment of Ballouz. He had resided in this country a greater length of time than the appellants, and was regarded as a man of probity by his people. He states in his answer that he had the confidence and respect of appellants. Under these circumstances, it is apparent that the parties [71]*71were not dealing on equal terms, and that if the contract obtained bjr Ballouz is claimed to be tainted with fraud, he must show by a preponderance of the testimony that it was entered into by the appellants with a thorough understanding on their part of all its provisions. “ When the relation existing between contracting parties appears to be of such a character as renders it certain that they do not deal on equal terms, but that on- the one side, from overmastering influence, or on the other side, from weakness, dependence,, or trust justifiably reposed, unfair advantage is rendered probable, then the transaction is presumed void, and it is incumbent upon the party in whom such' confidence is reposed to show affirmatively that no deception was used, and that all was fair, open, voluntary, and well understood.”' Stepp v. Frampton, 179 Pa. 284; Page on Contracts, section 216; Beach, Modern Equity Jurisprudence, section 114, p. 125. The burden being upon Ballouz to show that the transaction was in all respects bona fide, we are to consider whether or not he has established the fact that the appellants entered into the contract understandingly. The allegations of the bill as to what Ballouz stated at the time the contract was entered into are fully sustained by the evidence of the appellants. Immediately upon the discovery of what Ballouz was claiming under the contract, the appellants instituted suit to declare it null and void — a circumstance tending to sustain their contention that they did not theretofore know of such claiiri. That the appellants had a very limited knowledge of the English language is apparent.

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Cite This Page — Counsel Stack

Bluebook (online)
56 S.E. 184, 61 W. Va. 68, 1906 W. Va. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ballouz-v-higgins-wva-1906.