Blumrosen v. Burke

37 S.W.2d 1070
CourtCourt of Appeals of Texas
DecidedFebruary 19, 1931
DocketNo. 1002.
StatusPublished
Cited by9 cases

This text of 37 S.W.2d 1070 (Blumrosen v. Burke) 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
Blumrosen v. Burke, 37 S.W.2d 1070 (Tex. Ct. App. 1931).

Opinion

ALEXANDER, J.

This was a suit brought in the district court of Navarro county, Tex., by Mose Blum-rosen against J. Afton Burke and Sol Gott-lieb, to recover from the defendants one-third of the funds which they had received from the sale of an oil and gas mining lease, in which the plaintiff claimed an undivided one-third interest. This is the second time the case has been tried before a jury and in each instance the verdict of the jury was for the defendants. Eor the former appeal see (Tex. Civ. App.) 296 S. W. 987.

The case arose in this manner: In 1923 Mrs. Esther Blumrosen, mother of the plaintiff, owned the land in question, consisting of forty acres. Her son, the plaintiff, acting under a supposed power of attorney, and for a consideration of $2,000 paid by Burke and Gott-lieb, executed and delivered a lease on the land in question to J. Afton Burke, under an agreement whereby the defendants Burke and Gottlieb were to each own an undivided one-third interest in the lease, and the defendant Burke was to convey to Mose Blum-rosen a one-third interest therein. In this manner each of the three parties were to hold a one-third interest in the lease. It was the contention of the defendants that this scheme was devised, not for the purpose of investing in the plaintiff Mose Blumrosen a one-third interest in the lease for his own use and benefit, but merely to invest him with the legal title thereto for the use and benefit of his mother, who was the grantor in the lease. Burke immediately executed to Mose Blum-rosen an assignment of the one-third interest in the lease. About the time the lease was executed and delivered, a discovery well came in near the land in question and shortly thereafter Mrs. Blumrosen, the grantor in the lease, claimed that she had been overreached and that she had not been given the benefit of all the facts concerning the development in the field at the time she executed the lease. She threatened to bring an action to have the lease set aside on account of fraud. Negotiations were begun between Mrs. Blumrosen and the holders of the lease with the view of adjusting the differences between them on account of the alleged fraud. A settlement was finally reached by which it was agreed that *1072 Mrs. Blumrosen was to retain the $2,000 that had been paid to her by Burke and Gottlieb, and the further understanding that Mrs. Blumrosen’s son-in-law Garonzik, as agent for all of the- parties, was to sell the lease on a commission of 10 per cent for himself, and Mrs. Blumrosen was to receive one-half of the net proceeds obtained from the sale of the lease. Garonzik sold the lease in parcels to various parties and after deducting his 10 per cent., paid one-half of the remainder to Mrs. Blumrosen and one-half to Burke and Gott-lieb. Mose Blumrosen brought this suit' against Burke and Gottlieb to recover one-third of the amount paid to them for the sale of said lease.

The case was submitted to a jury on the following special issues and the issues were answered by the jury as follows:

“Question No. 1. Was the Plaintiff, Mose Blumrosen, and the Defendants, J. Afton Burke and Sol Gottlieb, partners in the 40 acre oil lease that is the subject of this controversy? Answer Yes or No. Answer: No.
“Question No. 2. Did the Plaintiff, Mose Blumrosen, have conveyed to him a one-third (⅛) interest in said 40 acre lease in trust for the use and benefit of his mother, Mrs. Esther Blumrosen? Answer Yes or No. Answer: Yes.
“Question No. 3. Did Mrs. Esther Blum-rosen ratify the contract and lease entered into between Mose Blumrosen, acting as her agent, and J. Afton Burke, which contract is of date January 8th, 1923? Answer Yes or No. Answer: No.
“Question No. 4. Did Mrs. Esther Blum-x’osen, acting through her agent Will Garon-zik, for a valuable consideration, enter into a new contract with J. Afton Burke, and Sol Gottlieb in settlement of her controversy, if any, with them. Answer Yes or No. Answer: Yes.
“Question No. 5. Did the Plaintiff, Mose Blumrosen, by written conveyance, sell, transfer, assign, surrender or relinquish his right to his portion of the proceeds, if any, received from the sale of the -lease, on the 40 acres of land described in the Plaintiff’s petition? Answer Yes or No. Answer: Yes.
“Question No. 6. Did the defendant, Sol Gottlieb, before the Plaintiff, Mose Blum-rosen had signed an agreement with some of the oil companies purchasing a legal title to the mineral estate in his mother, make a statement to, or assure the Plaintiff, that he would receive his interest in the proceeds of the oil lease, which was then being made? Answer Yes or No. Answer: No.”

Based on these findings, the court entered a judgment for the defendants. _ The plaintiff appealed.

-Appellant, in his brief, contends that there was no evidence to support the verdict of the jury. It is appellant’s contention that since Burke, after obtaining the lease from Mrs. Blumrosen, assigned to appellant a one-third interest in the lease, and since appellant never by any written instrument assigned or released his interest therein to the appellees that he (the appellant) still owned his interest therein and was entitled to his share of the proceeds of the sale thereof. It appears that the assignment from Burke to Mose Blumrosen of a one-third interest in the lease was never recorded. After the horn-promise agreement was brought about between Mrs. Blumrosen and the holders of the lease, the appellant, in order to consummate the sales made by Garonzik, assigned to his mother the legal title held by him in the lease as to twenty-eight acres of the land and permitted Mrs. Blumrosen and Burke and Gott-lieb to assign to the various purchasers the lease on all of the land in question. As stated above, it was the contention of the ap-pellees that the appellant never actually owned any interest in the lease but that at the time he acquired the assignment from Burke to a one-third interest therein he took the same in trust for the use and benefit of his mother who owned the fee. They further contended that at the time the compromise agreement was had with Mrs. Blumrosen, she actually owned the beneficial interest in the one-third interest that had been assigned by Burke to appellant and that under ap-pellees’ agreement with Mrs. Blumrosen, by which she received one-half of the proceeds of the sale of the lease as her share thereof, the appellees acquired the fuli right to the other one-half of the net proceeds of said sale. The jury, in answer to special'issue No. 2, found that at the time the appellant had conveyed to him a one-third interest in the 40 acre lease, he took the title to the same for the use and benefit of his mother. The evidence on this issue was conflicting and it thus became an issue of fact for the jury. There was sufficient evidence to support the verdict of the jury on this issue.

If Mose Blumrosen actually held the one-third interest in the lease for the use and benefit of his mother, as found by the jury, then1 he had no beneficial interest therein, but held the mere naked title thereto under a dry' trust for his mother, and his mother had the right to make a valid contract for the disposition of the consideration received for the resale of said lease. Moore v. City of Waco, 85 Tex. 206, 20 S. W. 61, at page 63; Brown v. Harris, 7 Tex. Civ. App. 664, 27 S. W. 45; 39 Cyc. pp. 30, 207, 219; Tinsley v. Magnolia Park Co. (Tex. Civ.

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Bluebook (online)
37 S.W.2d 1070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blumrosen-v-burke-texapp-1931.