Cotton v. Coit

31 S.W. 1061, 88 Tex. 414, 1895 Tex. LEXIS 490
CourtTexas Supreme Court
DecidedJune 24, 1895
DocketNo. 313.
StatusPublished
Cited by17 cases

This text of 31 S.W. 1061 (Cotton v. Coit) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cotton v. Coit, 31 S.W. 1061, 88 Tex. 414, 1895 Tex. LEXIS 490 (Tex. 1895).

Opinion

BROWN, Associate Justice.

—On the 17th day of April, 1880, Noyes Band, Frances W. Abney, Bichard W. Dorphley, P. B. Delaney, and Clarence B. Ehrman, parties of the first part, and Frank B. Cotton and his associates, parties of the second part, entered into *416 an agreement, the substance of which, so far as necessary to the decision of this case, we state below. The associates of Frank B.'Cotton were George H. Cotton, Walter G. Cotton, E. B. Buckingham, and William P. Hunt, but they were not named in the instrument.

By the terms of the contract, all mineral lands theretofore or thereafter acquired by the parties of the first part, in Texas, were to be held for the benefit of the parties to the agreement, in the proportion of one-half interest to the parties of the first part and the other half-interest to the parties of the second part.

Frank B. Cotton and his associates were to furnish the money to pay for the lands, not exceeding $30,000, and for paying expenses of the parties in selecting the lands, a sum not exceeding $3000, which last sum was to be reimbursed out of the earnings of the enterprise; and also to furnish such other amounts of money as might be necessary in developing the lands to be purchased under the agreement, that might be decided upon by the parties, for which they were to be reimbursed out of the earnings of the enterprise, before any dividends were declared.

Noyes Rand and Frances W. Abney were to give their personal attention to the purchase and selection of the lands, and to secure the services of Clarence B. Ehrman to assist them.

When the lauds had been selected and the titles approved they were to be conveyed to a corporation, to be formed under a charter to be obtained under the laws of Texas, or some other State, to be decided upon. The capital stock of such corporation was thereafter to be determined upon, and to be transferred to the respective parties, in the proportion of one-half to the parties of the first part, and the other half to the parties of the second part, “'or in such other divisions as the respective parties thereto may agree among themselves.”

Under' this agreement the parties acquired about eighty-seven sections of mineral lands in El Paso County, which were deeded, according to the terms of the contract, to Frank B. Cotton and E. B. Buckingham, as trustees for all of the parties. The corporation was never formed as agreed upon.

On the 21st day of December, 1880, Frank B. Cotton, for himself and his associates not named in the contract, that is, George H. Cotton, Walter G. Cotton, E. B. Buckingham, and William P. Hunt, as parties of the first part, and Noyes Rand and Richard W. Dorphley, as parties of the second part, entered into another agreement, in substance, that all the lands acquired west of the Mississippi River, not embraced in the first contract, after November 19, 1880, by either of the parties of the second part or their associates, were to be held for the joint account and interest of all the parties to the contract; said interest to be apportioned, two-thirds of all profits arising from such purchases to accrue to Frank B. Cotton and his associates, and one-third of such profits to Hoyes Rand and R. W. Dorphley and their associates. The land was to be deeded to Frank B. Cotton, trustee for all the parties. *417 The party of the first part to furnish the money necessary to purchase the land under the agreement, and a sum not exceeding §3000, for the purpose of paying expenses.

Under this agreement the parties acquired a tract of land near the city of El Paso, afterwards known as the “Cotton addition” to the said city. Frank B. Cotton acquired the interest of his associate, William P. Hunt, in all the land acquired under both contracts, and Samuel Coit purchased the interest of George H. Cotton, Walter G. Cotton, and E. B. Buckingham in the land acquired under both contracts, and the interest of Frances W. Abney in the mineral lands.

Samuel Coit filed suit in the District Court of El Paso County against Frank B. Cotton, as trustee, and personally, to recover certain moneys alleged to have been paid by the plaintiff in settlement of taxes upon the land known as the “Cotton addition,” and to establish the right of the plaintiff in the lands acquired by the purchase from the parties before mentioned, under both contracts, claiming that Frank B. Cotton, as trustee, denied his right under said contract. That E. B. Buckingham acknowledged his right thereto.

Upon trial before the court, judgment was entered in the District Court in favor of the plaintiff, adjudging that the “plaintiff, Samuel Coit, is the owner in fee simple, as against the defendant, Frank B. Cotton, of an undivided three-fifths of an undivided two-thirds in and of the following described real estate;” describing the land called “Cotton addition;” and also a similar judgment in favor of Samuel Coit, against the same defendant, for four-tenths of the land acquired under the first contract.

Judgment was also rendered in favor of the plaintiff for §3606.14, for the lien on the “Cotton addition,” for the sum of §1935.44 of that amount.

The Court of Civil Appeals affirmed the judgment as to the lands, but reformed it as to the amount recovered in money, requiring a remittitur to be entered, so as to leave the amount recovered §1235.10.

The plaintiff in error presents a number of objections to the judgment of the District Court and Court of Civil Appeals, but we shall only notice such as we deem necessary in order to dispose of the case here, the other questions having been properly disposed of by the Court of Civil Appeals.

The defendant in the court below excepted to the plaintiff’s petition, because the parties at interest, who were necessary parties to the proceeding, were not made parties, either plaintiff or defendant. We think that this exception was well taken as to a part of the subject matter of the suit.

There are embraced in the petition of plaintiff three distinct causes of action: The first, a suit for three-fifths interest in two-thirds of the profits arising under the second contract, and in which the one-third interest is in no way involved. In regard to this tract of land, all the parties interested in the two-thirds interest in litigation are *418 made parties to this suit. Samuel Coit owns three-fifths and Frank B. Cotton two-fifths of the two-thirds interest in litigation. The right claimed in this two-thirds interest was derived under the second contract, and in no way connected with the first, nor are there any facts which are common to the two different causes of action.

The second cause of action is a right claimed by the plaintiff of four-tenths in eighty-seven sections of land, situated in El Paso County, acquired under the first contract, and known as the mineral lands. Under the first contract, the interest of the parties is in the land itself, and it was divided, so to speak, one-half to the persons who composed the party of the first part, and one-half to those who composed the party of the second part. Plaintiff, Samuel Coit, claimed to be the owner of three-fifths of the half which belonged to the parties of the second part, and one-fifth of the half belonging to the party of the first part. Frank B.

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Bluebook (online)
31 S.W. 1061, 88 Tex. 414, 1895 Tex. LEXIS 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cotton-v-coit-tex-1895.