Boten v. Brecklein

452 S.W.2d 86, 1970 Mo. LEXIS 1049
CourtSupreme Court of Missouri
DecidedMarch 9, 1970
Docket54316
StatusPublished
Cited by88 cases

This text of 452 S.W.2d 86 (Boten v. Brecklein) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boten v. Brecklein, 452 S.W.2d 86, 1970 Mo. LEXIS 1049 (Mo. 1970).

Opinion

HOLMAN, Judge.

This case arises out of a Managers Agreement relating to three Jackson County, Missouri, oil leases entered into between plaintiffs and defendants on April 17, 1963. The agreement was terminated by defendants on July 8, 1964. Plaintiffs’ petition is in three counts. Count I sought actual and punitive damages for alleged fraud of defendants in obtaining plaintiffs’ interests in the leases. Count II sought damages for breach of the contract, and Count III alleged that plaintiffs were entitled to recover on quantum meruit. At the conclusion of the evidence the court sustained defendants’ motion for a directed verdict on Counts I and III. The jury returned a verdict for plaintiffs on Count II in the amount of $95,000. Defendants have appealed from that judgment. Plaintiffs have appealed from the judgment for defendants on Count I.

Plaintiffs have filed a motion to dismiss the appeal of defendants, alleging that their brief fails to comply with Civil Rule 83.05(c), V.A.M.R. That motion is overruled.

The transcript in this case contains more than 1,100 pages. Much of the evidence relates to the issue as to whether plaintiffs performed the conditions of the managers agreement in the operation of the leases. There was considerable evidence to the effect that they did properly perform, and defendants offered a great deal of evidence which would warrant a finding that they did not. The jury found that issue in favor of plaintiffs. We see no reason for including that evidence in our factual statement. Also, as will hereinafter appear, we will not consider plaintiffs’ appeal relating to Count I. We will therefore endeavor to omit facts relating solely to that Count.

Since plaintiffs prevailed in the trial court the facts, to a large extent, will be stated in the light most favorable to them. -Matters here involved concern oil leases upon the Longview, Nave, and Jones farms located in Jackson County, Missouri, constituting a total of 2,000 acres. The leases were obtained in 1944 by Raymond Bradford who originally discovered oil thereon and operated the leases until 1961. In that year the leases were assigned to Jacomo Oil Company which had recently been formed. Bradford owned 34 shares in the company, Isaac Zoglin, who agreed to furnish the money for further development, owned 34 shares, and plaintiffs Ray and Sanford Boten each owned 17 shares. The Botens paid no money for their shares but received them for work they had performed, and agreed to perform, in operating the leases. In 1963 Zoglin purchased Bradford’s stock so that he had a total of 68 shares, but at that time he agreed that after he was reimbursed for his expenditures he would convey 17 shares to the Bo-tens so that they would own one half of the stock. The Botens drilled three wells for Jacomo which were all producers, and there were 20 old wells, some of which were still producing when Jacomo took over the leases.

In late 1962 Ray Boten became acquainted with defendant Fell while drilling some *89 gas wells for him in Clinton County, Missouri. They discussed the matter of Fell purchasing Zoglin’s interest in the leases, or in the corporation. In April 1963 Ray approached Zoglin and discussed the purchase of his interest with the result that an agreement was worked out whereby Zog-lin would cause the corporation to sell the leases to Ray for $31,000, with the Botens to surrender their stock in Jacomo so that Zoglin would get all the money. Plaintiffs had an understanding with Fell and his partner, defendant Brecklein, that Ray would immediately transfer the leases to them and that they would furnish the $31,000. In consummating the transaction Attorney William Brandom, a friend and neighbor of Fell, prepared the contract here in question and some of the other papers, and Attorney Kenneth Simon represented Jacomo and Zoglin. There was evidence that the Botens claimed that they should retain a half interest in the leases but that Brandom and Fell stated that could not be done because of tax matters and that they (the Botens) would have to be silent partners. At any rate, the management contract was entered into whereby plaintiffs were to manage the leases without compensation and would have an opportunity to obtain a one-half interest later under provisions of the contract herein set out. Provisions of the management contract that are particularly pertinent to the issues of this case are as follows :

“1. Managers [plaintiffs] shall be responsible for the pumping, treating, gathering, collection, storing, distribution, loading and delivery of oil, including the operation and maintenance of equipment used in connection therewith; but, Managers shall not incur any expense without the approval and consent of Lessees.
"2. Lessees shall, in the event and at such time as all of the conditions of this Agreement having been complied with and total receipts from .the gas and oil produced on the above-mentioned premises shall equal the total amounts expended, including, but not limited to, capital expenditure, royalty payments, drilling expenses, maintenance production and marketing expenses, taxes, in connection with the developments and operation thereof, plus the sum of Thirty-One Thousand ($31,000.00) Dollars. Then Lessees shall assign to Managers an undivided One-Half (½) interest in the leases on said premises, together with equipment thereon, owned by Lessees and used or useable in connection with the operations.
“3. Managers may, during the term of this Agreement, at their option and upon payment of a sum equal to One-Half (1/2) of the total amounts expended by Lessees less receipts as stated in Paragraph 2 hereof, purchase the undivided One-Half (½) interest as provided in Paragraph 2 hereof.
“4. The Managers shall operate the property covered hereby in an efficient, economically and workmanlike manner and at all times shall be subject to all valid rules and regulations of any duly constituted authority having jurisdiction in the premises.
“6. Drilling of additional holes by Managers will be conducted under such terms and upon such terms including compensation as may be then mutually agreed by the parties.

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Bluebook (online)
452 S.W.2d 86, 1970 Mo. LEXIS 1049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boten-v-brecklein-mo-1970.