Campbell v. Galloway

47 N.E. 818, 148 Ind. 440, 1897 Ind. LEXIS 235
CourtIndiana Supreme Court
DecidedOctober 8, 1897
DocketNo. 18,401
StatusPublished
Cited by7 cases

This text of 47 N.E. 818 (Campbell v. Galloway) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell v. Galloway, 47 N.E. 818, 148 Ind. 440, 1897 Ind. LEXIS 235 (Ind. 1897).

Opinion

McCabe, C. J.

The appellant sued the appellees to compel specific performance of a contract concerning real estate.

The issues formed were tried by the court, resulting in á special finding of the facts, upon which the court stated conclusions of law favorable to the defendants, and rendered judgment accordingly, over the plaintiff’s motion for a new trial.

The conclusions of law, and the action of the court in overruling the plaintiff’s motion for a new trial are assigned for error. The other assignment for error is waived by appellant in not discussing the same in his brief.

[441]*441The substance of so much of the special finding as is material to the determination of the case is as follows:

The appellee, John Galloway, a resident of Jamestown, New York, on August 17, 1893, visited Wells county, Indiana, on behalf of himself, personally, and E. H. Jennings and Brothers, of Pittsburg, Pa., to secure leases upon lands for the purpose of operating for natural gas and petroleum, and on that occasion procured J. C. & J. W. Holloway to execute to defendants an instrument in writing in these words and figures, to-wit:

“In consideration of the sum of f200.00, the receipt of which is hereby acknowledged, we, John W. Holloway and Jonathan O. Holloway, of Wells county, Indiana, of the first part, hereby grant to E. H. Jennings & Bro. and John Galloway second party, all the oil and gas in and under the following described premises, together with the right to enter thereon at all times for the purpose of drilling and operating for oil or gas, and to erect and maintain all buildings and structures and lay all pipes necessary for the production and transportation of oil and gas taken from said premises. Excepting and reserving, however, to first party the one-eighth 0 part of the oil produced and saved from said premises to be delivered in the pipe line of which second party may connect his wells, namely: (then follows a description of sixty-seven acres, of land in said county) To have and to hold the above premises on the following conditions: If gas only is found in sufficient quantities to transport, second party agrees to pay first party one hundred dollars for the product of each and every well so transported, and the first party to have gas free of cost to heat five stoves, and light ten jets in the dwelling house. Whenever first party shall request it, second party shall bury all oil and gas lines, and pay all damages done to growing crops [442]*442by reason of burying or removing said pipe lines. In case no well is completed within six months from this date, this grant shall become null and void unless second party shall pay to first party thirty-three and fifty one-hundredths dollars for each six months thereafter such completion is delayed. The second party shall have the right to use sufficient gas, oil, or water to run all machinery for operating said wells, and also the right to remove all its property at any time.

“The rentals are payable at the Parmer’s Deposit Bank, at Montpelier, Ind. The party of the second part have the right to surrender this grant at any time and be released from any further fulfillment of any stipulations that the grant may contain. Any well producing forty barrels or over of oil per day, the first party to have the one-sixth* royalty instead of the one-eighth, during the same. Less than forty barrels per day shall be one-eighth. It is understood between the parties to this agreement that all the conditions between the parties hereto shall extend to their heirs, successors, executors, and assigns.

“In witness whereof the parties hereto set their hands and seals this 17th day of August, A. D. 1893. John W. Holloway, Jonathan G. Holloway, E. H. Jennings & Bro., John Galloway.”

This instrument was duly acknowledged by the Holloways.

The interest of the defendants in the lease of the lands described therein was fixed by an agreement of said Galloway on the one hand, and E. H. Jennings & Brother on the other, and was that an undivided one-fourth part thereof was owned by the defendant, Galloway, and E. H. Jennings & Brother the remainder-; and neither of said owners had any authority to sell, nor contract to sell, the interest of the other, and such lease-hold estate was not held or owned by the defendants as partnership property.

[443]*443On May 21, one James O. Gibney, then unacquainted with any of the defendants, being a resident of Montpelier, Indiana, .mailed and addressed to defendant a letter reading as follows, to-wit:

“Mr. John Galloway, Pa. — Dear Sir: I am in the real estate business in this place and devoting my time principally to dealing in leases and productions. I have enquiries occasionally for leases, and might perhaps find a purchaser for your Holloway lease in Nottingham township, Wells county, Indiana, if it is for sale. Please notify me if it is for sale and what the price and terms are, and what there is in it for me. Yours very truly, James O. Gibney.”

This letter was received by said Galloway, in due course of mail, at Pittsburg, Pa., on May 24, 1894, when said Galloway was preparing to start on a business trip to Tennessee, and hurrying to enter on said journey.

Upon reading said Gibney’s letter, defendant Galloway, in the absence and without the knowledge of defendants Jenningses, directed a clerk in the employ of the latter to reply to the letter by writing to said Gibney that he, Galloway, would not join in selling the said lease for less than $250.00, and that on his return from Tennessee he would visit Indiana and examine the leased premises; that said clerk then wrote a letter to said Gibney in the following words and figures, to-wit:

“James O. Gibney, Esq. — Dear Sir: Your letter of the 21st at hand. I paid $200.00 for the lease and will not sell it for less than $250.00 net to me. All. over that sum you can have. Yours truly, John Galloway, ‘K.’ ” This letter was written and sealed up by said clerk, whose name was Kemp, during the temporary absence of defendant Galloway, and without the knowledge and consent of the defendants, Jenningses, and with[444]*444out being seen or its contents known by defendant Galloway, whose name was signed thereto by Kemp with his own initial “K;” that presently on the return of Galloway, and in the absence of the other defendants, said Kemp informed said Galloway of the contents'of said letter, which had not yet been mailed, whereupon said Galloway repudiated said letter, directed said Kemp not to mail nor send said letter, and said Galloway thereupon at once departed for Tennessee, where he remained for some days; and during his absence, without the knowledge of any of the defendants, said letter was by some means mailed and reached said Gibney.

Said Gibney thereupon, in the absence and without the knowledge of the defendants or any of them, executed to the plaintiff, Campbell, the writing set out in the complaint as the exhibit of the contract sought to be specifically enforced; and said Campbell delivered to said Gibney a check for $250.00, signed by said Campbell, and payable to said Gibney, upon the Penn-ville Bank, of Pennville, Jay county, Indiana.

The contract referred to reads thus: “Know ye that this contract made and entered into on the 28th day of May, 1894, by and between John Galloway, by James C.

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Bluebook (online)
47 N.E. 818, 148 Ind. 440, 1897 Ind. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-galloway-ind-1897.