Central State Bank of Abilene v. Godfrey

29 S.W.2d 1015
CourtTexas Commission of Appeals
DecidedJune 25, 1930
DocketNo. 1024—5201
StatusPublished
Cited by12 cases

This text of 29 S.W.2d 1015 (Central State Bank of Abilene v. Godfrey) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central State Bank of Abilene v. Godfrey, 29 S.W.2d 1015 (Tex. Super. Ct. 1930).

Opinion

HARVEY, P. J.

This is a suit brought by the defendants in error, P. S. Godfrey and T. C. Eads, against the Central State Bank of Abilene, to enforce specific performance of an alleged contract to convey certain royalty and mineral .rights in three sections of land in Winkler county. Judgment for the plaintiff in error was rendered by the trial court, on an instructed verdict. The Court of Civil Appeals reversed this judgment. 5 S.W.(2d) 529.

A series of letters which passed between Godfrey and C. T. Hutchison, the latter acting for the plaintiff in error, is relied on as evidencing the contract which is sought to be enforced. The letters are as follows:

“Abilene, Tex., May 18, 1926.
“Mr. P. S. Godfrey,
“Mercantile National Bank Bldg.,
“Dallas, Texas.
“Dear Sir:
“Replying to your letter of the 13th in which you enclose oil and gas lease on the South West ¼ of Section #38 which you agree to lease at the rate of $1.25 per acre will say that between the time that I wrote you and received your letter, I sold the three sections we have been mentioning namely 23-25 and 38 in fee and therefore will not be able to deliver to you this lease unless for some reason this deal fails to mature and I do not think it will. I am sorry that I did not receive your letter before I closed this deal with the other party, however I still have plenty of royalty in the other six sections which are nearer the well same being ' sections 34, 35, 40, 41, 45 and 46 that I could sell you which in many instances is better to buy than lease from the fact that it does not run out as a lease does. If you could use the royalty in any of these sections, I will be glad to name you a price which will run a little cheaper than section No. 41 that you bought on account of it being further away from the well.
“Let me hear from you regarding this matter that I may be able to sell you some royalty in these sections.
“Assuring you that I regret very much having sold the lease before receiving your letter and trust that I may be able to sell you some of the royalty, I am,
“Yours truly, O. T. Hutchison.”
“Dallas, Tex., May 27, 1926.
“Mr. G. T. Hutchison,
“% Central State Bank,
“Abilene, Texas.
“Dear Sir:
“Replying to your favor of May 18th, advising that you had sold the three sections, part of one of which I was desirous of leasing but that you will quote me a cheaper price on the royalty in Sections 34, 35, 40, 45 , and 46 than I paid on Section 41 by reason of their being farther away from the well.
“You, no doubt, know that this well is at present drilling below 1300 feet and has not had a showing of either gas or oil, so that a [1016]*1016man purchasing royalties at this time would not expect to pay as much as when the well was first spudded, as he has lost the play on the first 1300 feet and his chances are now narrowed down to balance of the depth of the well; and usually a well that has any deep oil makes some showing at a shallow depth of either oil or gas. However, if your price is enough cheaper than that I paid on Section 41 to interest me, I might purchase some more royalty from you and would, therefore, suggest that you quote me a price on a one-sixteenth royalty on Section 34; also, on Sections 46 and 35, same to be sold upon you furnishing complete abstract showing good and marketable title in the Central State Bank.
“Kindly let me hear from you promptly on this matter, and oblige.
“Very truly yours, P. S. Godfrey.”
“Abilene, Tex., May 29, 1926.
“Mr. P. S. Godfrey,
“Mercantile Nat’l Bank, Bldg.,
“Dallas, Texas.
“Dear Sir:
“Referring to your letter of May 27th, in which you stqte that you would be interested in buying one-sixteenth royalty in Sections 34, 35 and 46 in Winkler County, would say that I would make you a price of three dollars per acre on the one-sixteenth royalty in the three' above mentioned sections, furnishing you one complete abstract covering the three sections. If this proposition is agreeable to you, please let me hear promptly, and oblige,
“Tours very truly, G. T. Hutchison, “President.”
“Dallas Tex., June 3, 1926.
“Mr. C. T. Hutchison,
“Central State Bank,
“Abilene, Texas.
“Dear Sir:
“Replying to your favor of the 29th ult., advising that you will make me a price of $3.00 per acre ón yie royalty covering the three sections, to-wit: 34, 35 and 46 in Wink-ler County, I suppose by this that you mean you are willing to sell this on a $3.00' basis, or a basis of $3.00' per acre for full royalty, which would be a little less than what I paid in Section 41 which was on a basis of $5.00 per acre.
“My latest information on the Westbrook Well shows this well to be drilling below 1800 feet, and no showing of either oil or gas up to the present time which, of course, does not make things look very favorable. However, if a deal could be closed immediately I would be Willing to pay the sum of $650'.-00 for %oths of the royalty on the above three sections, and you to furnish one abstract showing good and marketable title covering the three sections. This isi very little less than the price you offered to take and is taking %6ths instead of ½6, so I feel that under the circumstances I would be entitled to this reduction. If you care to sell at this price please confirm by return mail, and if you desire I will then prepare contract for both parties to sign and will close the deal in the same manner as the last deal was closed.
“Trusting to hear from you by return mail I beg to remain,
“Very truly yours, P. S. Godfrey.”
“Abilene, Tex., June 4, 1926.
“Mr. P. S. Godfrey,
“902 Mercantile National Bank Bldg., “Dallas, Texas.
“Dear Sir:
“Replying to yours of the 3rd concerning the purchase of some interest in sections 34-35 and 46 in Winkler County will say that I will deliver to you %6ths of ⅛ of the royalty in these-three sections for $650.00. If you would prefer to draw the contract or deed, you may do so and send same to me for my examination and will accept same if it meets with our terms. I would prefer your making the contract because it would be worded in a way that would be satisfactory to you, which I might not do in case I should prepare same.

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Bluebook (online)
29 S.W.2d 1015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-state-bank-of-abilene-v-godfrey-texcommnapp-1930.