Cotton v. Rand

51 S.W. 838, 93 Tex. 7, 1899 Tex. LEXIS 199
CourtTexas Supreme Court
DecidedJune 19, 1899
DocketNo. 786.
StatusPublished
Cited by21 cases

This text of 51 S.W. 838 (Cotton v. Rand) 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. Rand, 51 S.W. 838, 93 Tex. 7, 1899 Tex. LEXIS 199 (Tex. 1899).

Opinions

GAINES, Chief Justice.

The defendant in error, Noyes Rand, brought this suit against plaintiff in error, Frank B. Cotton, and others, on the 12th day of September, 1893. He obtained a judgment, which was reversed by the Court of Civil Appeals. Cotton v. Rand, 29 S. W. Rep., 682. The cause was again tried upon a fourth amended original petition, filed May 4, 1898, and again resulted in a judgment for the plaintiff. That judgment having been affirmed by the Court of Civil Appeals, this writ of error has been sued out to reverse it.

The suit was brought to recover a salary alleged to have been earned by the plaintiff as agent under a contract made by F. B. Cotton, for himself and others, and also for certain expenditures claimed to have been made by plaintiff as such agent. The alleged agency grew out of certain joint ventures of the parties to this suit and others in certain mineral and suburban lands. The first venture had its origin in a written agreement entered into in April, 1880, by the plaintiff, Noyes Rand, Francis W. Abney, Richard W. Dorphley, P. B. Delaney, and Clarence P. Ehrman, as parties of the first part, and by defendant Cotton, for himself and others (whose names are not disclosed in the writing), as parties of the second part. The stipulations of that agreement were as follows:

*15 “First. That all options now held by said parties of the first part, or any of them, for the purchase of mineral lands in the State of Texas, as well as all options for such purchases as they may hereafter secure, and any and all such purchases as they may hereafter make, and all mineral lands already .located or that may hereafter be located by them, in the State of Texas, shall be for the joint benefit of the parties to this agreement in the proportion of one-half interest to the parties of the second part.

“Second. That said parties of the second part will furnish the necessary amount of money, not exceeding thirty thousand ($30,000) dollars, to pay the cost of such lands as may be selected by the parties of the first part out of any such as are now controlled, or as may be secured hereafter, ánd that they will send a representative to such point as may be designated by parties of the first part, to examine said lands as soon as so required to do, such representative to be authorized to pay for same as soon as he shall examine and approve of them, and .the proper deeds and titles shall be furnished; said deeds to be made in the name of Frank B. Cotton and Edwin B. Buckingham, as trustees, for the respective parties to this agreement.

“Third. That parties to the second part hereto will pay to the parties of the first part the sum of seventeen hundred and twenty-three ($1723) dollars, to reimburse outlays already incurred by them, including the cost of about six tons of ore now in transit from St. Louis, Mo., to Philadelphia, Pa., which ore shall thereupon become the property of the parties hereto for their joint benefit, such payment to be made upon the execution of this agreement and the delivery of said ore at such point as may be indicated by the parties of the second part hereto.

“Fourth. That the parties of the second part will advance the sum of not exceeding thirty-five hundred ($3500) dollars to meet the cost of outfit and the necessary expenses of their aforesaid representative, and of such of the parties of the first part as may go to Texas to attend to this business, and to pay them for their service in such employment, which advance shall be reimbursed out of the future earnings of this enterprise.

“Fifth. That parties of the second part will furnish such further amount of money as the parties hereto may decide as needed for developing the lands under this agreement, and for carrying out the plans to be hereafter agreed upon by said parties hereto, the entire amount so furnished to be reimbursed out of the net earnings of the enterprise before any dividends shall be declared on the capital stock of the company to be formed as hereinafter provided.

“Sixth. That said parties of the first part agree that Noyes Rand and Francis W. Abney will personally go to Texas at once and attend to the purchase of the lands, as aforesaid, and to carry out the plans of the parties hereto, for the space of three months from date of this agreement, if necessary, receiving as compensation for their service while so employed, two hundred ($200) dollars each per month, besides the cost *16 of their outfit and necessary traveling and other expenses, and will also secure the services of Clarence P. Ehrman at the rate of one hundred ($100) dollars per month and expenses to assist them; such payments to be met out of the advance hereinbefore provided to be made by the parties of the second part.

“Seventh. That as soon as the parties of the first part shall have secured such lands as they may decide upon, and the deeds therefor shall have been executed and received, a meeting of all-the parties hereto, in person or by proxy, shall be held in such place as may be mutually agreed upon, and a company organized under a charter to be obtained under the laws of Texas, or of such other State as may be decided upon, with such an amount of capital stock and of such par value per share as the parties hereto may determine, and directors and oEcers shall be elected to manage' the business of said company, each of the respective parties hereto having an equal representation in the board of directors, but the oEcers to be of the party of the second part, or such as may be acceptable to them of the parties of the first part; thereupon the titles to all lands that may have been purchased shall be properly vested in said company in due legal form; and full paid stock of the company shall thereupon be issued to the respective parties hereto in the proportion of one-half of the entire capital stock to the parties of the first part, or in such other divisions as the respective parties may agree among themselves.

“Eighth. That all lands that may be located or patented under this agreement shall be assigned to the hereinbefore named trustees by the individual in whose name they are to be located, under a written agreement to be executed at the time of authorization of such location in his name.

“Ninth. It is further agreed that none of the individual members of the respective parties hereto shall directly or indirectly operate in mineral lands or mineral products of the State of Texas, within the district which this agreement is intended to cover, unless by consent of the other party hereto.”

The second contract was entered into December, 1880, by F. B. Cotton, of the first part, and Rand and Dorphley, of the second part. Its stipulations are as follows:

“That all purchases of land, leases, mining rights, and interests or real estate in. general west of the Mississippi River (not embraced in a certain contract between the parties hereto and their associates, bearing date April 17, 1880), which may be made after November 19, 1880, by either or any of the parties of the second part hereto, or their associates, shall be for the joint account and interest of the parties hereto and their associates and no others, during the continuation of this agreement or any contract that may be executed in accordance with it, said interest to be apportioned as follows:

“Two-thirds of all profits arising from such purchases to accrue to

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Bluebook (online)
51 S.W. 838, 93 Tex. 7, 1899 Tex. LEXIS 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cotton-v-rand-tex-1899.