Burchill v. Hermsmeyer

212 S.W. 767, 1919 Tex. App. LEXIS 745
CourtCourt of Appeals of Texas
DecidedMarch 8, 1919
DocketNo. 9021.
StatusPublished
Cited by19 cases

This text of 212 S.W. 767 (Burchill v. Hermsmeyer) 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
Burchill v. Hermsmeyer, 212 S.W. 767, 1919 Tex. App. LEXIS 745 (Tex. Ct. App. 1919).

Opinion

CONNER, C. J.

This suit was instituted by appellee against appellants, Belle M. Burchill, Edna Burchill, and the Ft. Worth Oil Development Company, a corporation, to recover $10,000 paid for stock in the oil company named. The right to recover is based upon two grounds: First, on the ground of certain alleged false and fraudulent representations, which will be hereinaft *768 er indicated; and, second, upon the ground that at the time the stock subscription contract, which was in writing, was entered into, appellants Belle M. Burchill aud Edna Burchill orally agreed to return to the plaintiff the said $10,000 in the event oil was, not developed.

The case was submitted to a jury on special issues, which were answered favorably to appellee, and judgment was rendered accordingly in the sum for which he sued.

The record, statement of facts, and appellants’ brief are all voluminous. For the most part, however, the assignments of error go to the action of the court in overruling general and special exceptions to appellee’s petition, and to the failure of the court to sustain appellants’ numerous objections to the evidence offered in support of the supposed objectionable allegations. We think, therefore, that we can probably more clearly dispose of the case by announcing our conclusions in a general way than to undertake a ■discussion of each assignment. So proceeding, we will first address ourselves to the questions which relate to the alleged oral •contract.

To the. petition and to the evidence it was objected that the effect of the oral contract was to vary and change; in material particulars, the terms of the written contracts which had been entered into between the parties. Appellee’s advancements to appellants were at different times and in different sums, all aggregating the sum for which he sued. For some of these sums a brief written receipt was given which recited that the sums advanced were to be applied on stock payments, or to be applied on stock issued when called for, and at yet other times more formal instruments were executed. To the end that the force of appellants’ objections may be more clearly seen, we will set out several of these more extended contracts. The first reads as follows:

“Ft. Worth, Tex.,'Fob. 10, 1916.
“This receipt witnesseth: . That I, Belle M. Burchill, have this day received as trustee, as stated below, from H. C. Hermsmeyer, the sum of one thousand ($1,000.00) dollars, to be applied to the payment of one hundred (100) shares of stock in a corporation to bo by her associates hereinafter organized for the purpose of prospecting for oil and developing an oil field on about thirty five (35) acres of land belonging to said Belle M. Burchill and Edna M. Burchill, situated in Tarrant county, Tex., near the eastern limits of the city of Ft. Worth, and known as a part of the old Burchill homestead, which land is to be hereafter convoyed to said proposed corporation. Said corporation is also to acquire leases on other lands in that vicinity for the purpose of drilling for oil, gas, etc.
“The said sum of $1,000 which is this day paid is to be held by said Belle ⅞1. Burchill as trustee until said corporation is organized and said stock is isnued, when same is to be expended in the development of said field.
“Said H. O. Hermsmeyer shall have the right, at his option, to acquire, if he so desires, an additional five thousand ($5,000) dollars of stock in said corporation at any time prior to April 1, 1916, same to be paid for by him at par as same is taken; all stock to be nonas-sessable.
“The proposed corporation is to be organized and incorporated with a capital stock of not to exceed fifty thousand ($50,000) dollars. The development of said field is to commence within sixty (60) days from this date and is to be tested for oil and gas on said premises by sinking thereon with reasonable diligence a well not to exceed twelve hundred (1,200) feet, but same may be stopped short of that distance if oil or gas be struck in paying quantities at lesser depth. [Signed] Belle M. Burchill.
“Edna M. Burchill.”

On April 19,1916, thereafter, oil not having been developed, within 1,200 feet, as originally contemplated, appellee subscribed for an additional amount of stock, the subscription being evidenced by a written instrument which reads as follows:

“Know all men by these presents that we, H. O. Hermsmeyer and William Hermsmeyer, of Ft. Worth, Tarrant county, Tex., herewith subscribe eight thousand six hundred and fifty dollars for stock in the Ft. Worth Oil & Development Company, said stock to be issued to the above-named parties when paid for at par and non-assessable.,
“Witness our hands this 19th day of April, 1916. [Signed] W. G. Hermsmeyer.
“H. O. Hermsmeyer.”

The payment of the subscription last set out is evidenced by the following instrument executed on July 3,1916:

“The State of Texas, County of Tarrant.
“Know all men by these presents that this agreement this day made and entered into by and between the Ft. Worth Oil & Development Company of Ft. Worth, Tex., party of the first part, and H. C. Hermsmeyer, party of the second part, witnesseth that said parties have agreed and do hereby agree as follows, to wit:
“I. In consideration that the said second party shall pay to the Palo Pinto Oil & Gas Company the balance due it on well drilling by it for said first party near Ft. Worth, which balance is about four thousand ($4,000) dollars, and in further consideration that said second party has heretofore paid said Palo Pinto Oil & Gas Company the further sum of three thousand dollars, which has been applied on the cost of said well, it is agreed that said second party shall have the right and option to demand of said first party that it issue and deliver to him stock in said Ft. Worth Oil & Gas Company equal in amount at its face or par value to the amount so paid by him to said Palo Pinto Oil & Gas Company, which being done, said second party shall be entitled to all the rights and privileges of a stockholder in said Ft. Worth Oil & Gas Development Company. Such demand for the issuance of said stock to him may *769 be made by second party whenever he desires to make same.
“II. It is further agreed that said second party shall, if he so desires, increase his subscription tp the stock of said company to an amount not to exceed fifteen thousand dollars in all, and to demand the issuance of stock therefor at par value upon the payment of the amount so subscribed for.
“III. Whatever amount is so paid by said second party for such stock in excess of the amounts so paid to said Palo Pinto Oil & Gas Company, viz. about seven thousand twenty dollars, shall be expended by said first party in the development of its oil field near Ft. Worth and in the necessary expense of so doing, provided that no part of said amounts so paid and to be paid by second party shall be used to pay agents’ commissions on sale of stock in said development company.

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Bluebook (online)
212 S.W. 767, 1919 Tex. App. LEXIS 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burchill-v-hermsmeyer-texapp-1919.