Dayle L. Smith Oil Co. v. Griffin

104 S.W.2d 167, 1937 Tex. App. LEXIS 554
CourtCourt of Appeals of Texas
DecidedMarch 17, 1937
DocketNo. 9869.
StatusPublished
Cited by6 cases

This text of 104 S.W.2d 167 (Dayle L. Smith Oil Co. v. Griffin) 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
Dayle L. Smith Oil Co. v. Griffin, 104 S.W.2d 167, 1937 Tex. App. LEXIS 554 (Tex. Ct. App. 1937).

Opinion

SLATTON, Justice.

This is a suit in trespass to try title, filed in the district court of Hidalgo county, Tex., by Mamie Closner Griffin, joined by her husband, against Dayle L. Smith Oil Company et al., for the title to and possession of seven-eighths of the minerals in and to 1,264 acres of land situated in said county.

The cause was submitted to the jury on special issues, and upon such findings the court entered judgment for Mamie Closner *169 Griffin and against Dayle L. Smith Oil Company et al. The Dayle L. Smith Oil Company alone appealed.

It appears from the record that on February 14, 1930, Juan Lino Garza, the then owner of the 1,264 acres of land described in the appellees’ pleading, executed and delivered an oil and gas lease in the ordinary form, to one L. S. Edwards. On February 21, 1930, L. S. Edwards assigned this lease to V. F. Closner. On the 13th of March, 1930, V. F. Closner in turn assigned the lease to Mamie Closner Griffin, one of the appellees here. On the 31st day of October, 1931, Mamie Closner Griffin, joined by her husband, H. P. Griffin, executed an assignment of the lease to Dayle L. Smith, which was delivered to the bank, together with an escrow agreement. The provisions of the escrow agreement will be hereafter noticed.

We are met at the threshold of this case by a motion, filed by the appellees herein, asking that the appeal be dismissed, assigning that the Dayle L. Smith Oil Company is not shown by the record to have such an interest in the judgment below to be entitled to an appeal.

We think that in a suit in trespass to try title the possession of the interest in land' sued for is alleged to be in the defendant, and where the judgment in the cause divests from the defendant the right of possession, certainly that party is an aggrieved, party and is therefore entitled to prosecute an appeal. It follows that the motion of appellees to dismiss this appeal was heretofore by the court rightly overruled.

The appellant’s first proposition is, in effect, that in a suit in trespass to try title it was error for the court to admit in evidence, over the objection of the appellant, the escrow letter from appellees to the First National Bank of Edinburg, in the absence of a special pleading entitling appellees to affirmative equitable relief.

It seems to us that there are cases by the appellate courts of this state which lay down the rule that in a trespass to try title suit, without special pleading, there can be granted no affirmative equitable relief ; and there are cases by our appellate courts which lay down a contrary rule. However this may be, under our view of the pleadings of both parties to this record, and the evidence introduced thereon, it is not necessary for us to determine that interesting question. It is a sufficient answer to say that the matters objected to were specifically alleged in the pleadings of the appellant. Among other things, the escrow agreement stipulates: That on or before January 1, 1932, actual drilling operations on a test well for oil and gas on lands owned by Osea Daskam in porcion 45, in Hidalgo county, Tex., should be commenced and diligently prosecuted to a depth of 4,500 feet, etc.; that on or before sixty days from the date of completion of said test well on the Daskam land, a well should be begun on the land in the lease; that before the delivery of said lease and assignment Dayle L. Smith, her heirs, or assigns, shall execute and deliver a good and sufficient transfer and assignment of lease to certain acreage out of said lease to the appellees, etc.; and, fourth, the assumption of the payment of the rentals on the lease.

We think the delivery by appellees of the assignment did not of itself pass any title whatever to the assignee, until the stipulations contained in the escrow agreement, as aforesaid, were fully performed by the assignee. In 17 Tex.Jur. p. 92, § 5, it is said: “The instrument deposited becomes effective on the fulfilment of the conditions, though no actual delivery be made by the depositary. But, until the conditions have been performed, or the event has happened upon which the instrument is to be delivered, no right or title passes; until that time the contract is executory.”

In the case of Blue v. Conner, 219 S.W. 533, 534, the Amarillo Court of Civil Appeals say: “A deed so delivered in deposit does not convey the title until the conditions of the deposit are performed.”

The same court, in Davis v. Lyons, 274 S.W. 288, 291, say: “When the second half interest in the lease was conveyed to Davis, the assignment was delivered in escrow, and until he had paid the purchase price in accordance with its terms, the contract was executory, and it did not have the effect of conveying title to him.”

Our Supreme Court, in Steffian v. Milmo National Bank, 69 Tex. 513, 518, 6 S.W. 823, 824, opinion by Judge Gaines, used this language: “It is elementary law that the delivery of a deed is requisite to its validity as a conveyance. To take effect, it is quite as necessary that it should be delivered as that it should be signed. To complete a delivery in fts legal sense, two elements are also essential. The instrument must not only be placed within the control of the grantee, but this must be done by the grantor with the intention that it shall become operative as a conveyance.”

*170 This court, in Manton v. City of San Antonio, 207 S.W. 951, 952 (writ refused), after stating that the delivery of a deed in escrow to be delivered upon the performance of a condition is a delivery on condition precedent rather than condition subsequent, said: “If there had been no delivery of the deed to the bank to be held as an escrow, the law as to conditions subsequent would undoubtedly be applicable, and a substantial compliance with the terms of the condition would satisfy the law and prevent a forfeiture of the title. The law, much less equity, does not favor forfeitures, but, in the case of conditions precedent, it will not permit the title to pass until the condition is performed. Conditions subsequent are strictly scrutinized and rigidly construed. In cases of conditions precedent, however, it is ordinarily the case that the purchase money has not been paid and no title vested, and this is especially the case in connection with conditions precedent which are usually contained in escrow deeds.”

The Austin Court of Civil Appeals, in Norman v. Wilson, 41 S.W.(2d) 331, 332 (writ refused) say: “It is now well settled that placing a conveyance in escrow to be delivered upon performance by the grantee of certain conditions passes no title to the property until delivered. And the grantee is not entitled to delivery until he has fulfilled the conditions imposed by the escrow agreement” — -Citing authorities.

The jury having found, under appropriate instructions by the court, that the conditions of the escrow agreement were not complied with, the trial court was fully warranted in entering judgment in favor of appellees and against the appellant.

It seems clear to us that the appellees retained the legal and equitable title to the minerals described in the assignment placed in escrow and that nothing passed to the assignee until all the terms and conditions of the escrow letter were fully complied with.

In Hardy v. Beaty, 84 Tex. 562, 19 S.W. 778, 780, 31 Am.St.Rep.

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104 S.W.2d 167, 1937 Tex. App. LEXIS 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dayle-l-smith-oil-co-v-griffin-texapp-1937.