Barclay v. Sharrock

166 S.W.2d 211
CourtCourt of Appeals of Texas
DecidedOctober 23, 1942
DocketNo. 2300
StatusPublished

This text of 166 S.W.2d 211 (Barclay v. Sharrock) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barclay v. Sharrock, 166 S.W.2d 211 (Tex. Ct. App. 1942).

Opinion

LESLIE, Chief Justice.

W. R. Sharrock instituted this suit against A. O. Barclay for specific performance of the execution and delivery of an oil and gas lease, and in the alternative for damages for failure to do so. Barclay denied liability, and in a trial before the Court without a jury, plaintiff was awarded $300 damages for breach of the alleged contract. At request of appellant, the trial court filed findings of fact and conclusions of law.

The appellent’s main contentions are (1) that the alleged contract was unenforceable under the Statute of Frauds (Article 3995) That the undisputed evidence in this case shows that none of the parties sought to be held executed any contract or memorandum in writing to make the lease and neither did they authorize the appellant, A. O. Barclay, to make such contract; and (2) that the evidence failed to disclose any market value for the lease, and that the judgment was erroneous in awarding $300 damages.

In the light of the first group of contentions, .it appears that about December 29, 1940, Sharrock and Barclay entered into negotiations involving the purchase by Sharrock of a 20-acre oil and gas lease, owned by Barclay, his brother and sister. The land was situated in close proximity to [212]*212a drilling- wildcat well. At the time of the alleged contract Sharrock agreed, among other things, to pay Barclay $200 in cash, or $10 per acre, and $200 in oil if such was struck in a well he was contracting to drill under certain conditions. After oral negotiations and the delivery of abstract and instruments relating to title, plaintiff, Sharrock on December 30, 1940, sent by mail to defendant Barclay at Fort Worth, a typewritten letter signed by plaintiff reading in part as follows: “Enclosed you will find the mineral lease which I have had drawn up in accordance with our agreement”. In this letter plaintiff instructed the defendant to send the lease, when executed, to plaintiff’s bank to be delivered upon the payment of the $200 and he further stated in such letter: “Please make it clear to the bank that I am only to pay $200.00 upon the delivery of the lease.”

Upon receipt of the plaintiff’s letter and the enclosed lease, Barclay redrafted it, leaving out of it (1) the option granting to Sharrock the right to lease the balance of the tract of land owned by lessors, and (2) reciting a term of two years; but otherwise the lease, as redrawn by Barclay, embraced the conditions that were in the lease plaintiff had sent him.

In redrafting the lease and with reference to the option to lease the balance of the land, Barclay in his letter of December 31, 1940, replying to Sharrock’s letter of December 30, 1940, stated: “The refusal of the balance of the land for lease still goes with me, but it has no place in the lease, so I have omitted that”. Barclay further stated in that letter: “I hope that this lease is satisfactory to you, and that you will return the same to me so that we may sign.”

On receipt of Barclay’s letter of December 31st, containing the redrafted lease, plaintiff Sharrock promptly approved the lease, placed $200 on deposit in the bank to pay for same, and in a letter to Barclay dated January 1, 1941, he returned said approved lease (as redrafted) to Barclay, stating in such letter: “Your letter and lease received today and the revised lease is OK, so am mailing it to you by return mail.” Defendant Barclay was also instructed to send the lease when executed to the bank for delivery.

After such negotiations and the exchange of the above letters and other instruments, Barclay, his brother and sister, executed the lease which Sharrock okayed in his letter of January 1st.

Under the circumstances developing the plaintiff Sharrock was naturally eager to close the deal, because he was expecting a producer to be drilled in soon on adjoining property. It is alleged, and the evidence shows, that such prospective producer affected favorably the market value of the lease involved. Appellant Barclay’s testimony shows as much and also discloses that the contemplated lease was in or near a locality of early and possibly favorable development. While on the witness stand he testified to the communications and instruments involved in the transaction, admitting that he redrafted the lease, that he and his brother and sister executed the same, and that it was tendered for delivery in the cross action. This effort at delivery was after the wildcat failed to produce.

Concerning a conversation about the lease with Mr. Joe Overton, agent of Shar-rock, Barclay testified:

“Q. When you wouldn’t return this lease to Mr. Sharrock, after he had approved it and sent it back to you, he talked to you over the phone, didn’t he? A. On Sunday morning; the same day I had the conversation with Mr. Overton.
“Q. He talked with you? A. Yes, sir.
“Q. One week later? A. Yes, sir.
“Q. When you were talking to Joe Overton, over the phone, and Joe Overton told you that they had conferred and advised with his attorneys, you told him that if they had advised with attorneys that you were not going to let them have the lease for any price, didn’t you? A. You want his conversation?
“Q. Please answer the question; did you tell him that? A. Yes, sir.
“Q. You told him if he had gotten advice from attorneys you would not let him have the lease for any * * *. ..A. Not advice — I said if they had to go consult an attorney to hold me to something that I did not mean, why I would just withdraw the lease and lease it to anybody I wanted.
“Q. When you told him if he had to consult a lawyer you would not lease it to him at any price, you meant it? A. Yes, sir.
“Q. And you told him you was not going to let him have the lease,.didn’t you? Is that so? A. Yes, sir.
[213]*213“Q. This is the very lease that he approved? A. Yes, sir.
(The lease later tendered by Barclay)
“Q. And you never got into the notion of making this léase, until he sued you, did you? A. No. We didn’t intend to make that lease.
“Q. And if these dry holes hadn’t come in and changed the conditions, where nobody would offer you anything, you wouldn’t have ever made this lease in March would you? Tell the Court, isn’t that so ? A. I don’t have any idea I would.
“Q. Yes, And you thought that would stop this suit didn’t you? A. Yes, sir.
“Q. And you thought that by sending him a worthless lease, after the dry holes had come in here that you could make it all right with Roy Sharrock for your refusing to give him a lease because he had consulted a lawyer? A.

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Bluebook (online)
166 S.W.2d 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barclay-v-sharrock-texapp-1942.