De Vitt v. Johnson

160 S.W.2d 974, 1942 Tex. App. LEXIS 167
Court of Appeals of Texas·Decided March 2, 1942·No. No. 5428.·Published·Cited by 2 cases

Opinion

JACKSON, Chief Justice.

The Mallet Land and Cattle Company is a private corporation organized under and by virtue of the laws of the State of Missouri with a permit to do business in Texas and will herein be called the company.

In addition to other property the company owns certain land known as Leagues 45, 46, 47, 48, 49, 50, 51 and 52 in Hockley, Cochran, Yoakum and Terry Counties in the State of Texas. The company also owns personal property consisting of ranch equipment and livestock amounting to approximately 1500 head and was engaged in the business of buying, selling and raising cattle.

A part of the land was in oil and gas producing territory and a number of producing wells had been drilled showing that Leagues Nos. 47 and 48 contained oil producing land. Some twenty wells had been drilled by the owners thereof on the land adjacent to the last named two leagues. Such wells were and had been in operation from three to eighteen months producing oil in such proximity to said two leagues that the oil was continuously drained from under the land belonging to the company.

D. M. DeVitt, now deceased, was during his lifetime interested in the property of the company and Mrs. Florence A. DeVitt, his surviving wife, and Christine DeVitt and Helen Secrest, his two daughters, inherited the interest of the deceased in the property.

The company had several opportunities to lease its land im the proven territory for a consideration of three-eighths of the oil or minerals produced thereon by the lessee or lessees, who were experienced operators and producers and ready, willing and able to develop the land with diligence and dispatch.

J. Lee Johnson, Jr., one of the directors of the company, for more than a year prior to making application to the court to appoint a receiver for the property of the company, had been endeavoring to induce the directors to lease its oil and gas land to the most desirable lessee that could be secured, for the greatest consideration that could be obtained and upon the most favorable terms to the stockholders that could be had. Numerous meetings of the directors and stockholders were had at which a lease contract was agreed upon by all the parties except Christine DeVitt, who upon every occasion obstinately refused to agree to any contract and by threats and suits prevented the consummation of any deal by which the oil and mineral lands could be leased.

W. D. Johnson was president of the company and for many years prior to the death of D. M. DeVitt was his partner in business and on account of his kindly feeling for his deceased friend and partner he was unwilling to exercise his official authority for the company against the opposition of Christine DeVitt and continued a policy of appeasement hoping that she would abandon her attitude as an obstructionist and get in harmony with the judgment of the other stockholders and permit leasing of the property but she continued to manifest a desire to be the manager of the company with the exclusive authority to control all of its affairs and without such authority she refused to concur in any deal. She finally instituted suit in the State of Missouri attacking the validity of the recent election of a board of directors, one of whom she was, their authority to act in such capacity, had a temporary writ of injunction issued against them and as a result of such conduct and the pending suit the directors ceased to function and the company was without authority to transact business. She threatened to interfere by suit or otherwise with any lessee or lessees to whom the land should be leased and prevent any development of the property by lessees, who became very dubious about any transaction with the company.

On August 27, 1941 J. Lee Johnson, Jr., one of the directors, individually, and as trustee for Mary Louise and Katherine Frances Johnson, each of whom is a feme sole, and as attorney in fact for Mrs. Floy Johnson North, Mrs. Clay Parker and Mrs. Pattie Byars, made application in the District Court of Lubbock County for the appointment of a receiver for the Mallet Land and Cattle Company with authority to manage its affairs. On this application the court appointed Sam C. Arnett, who, in compliance with the requirement of the court, gave bond as receiver in the sum of *976 $100,000. The bond was approved by the court and Mr. Arnett qualified as receiver of the property.

The court set a hearing to be had on September 5, 1941 and notified all of the parties interested in the property to be present at such time and file any and all objections to the appointment of the receiver and to any and all of the proceedings had. On that day the Mallet Land and Cattle Company, Mrs. Florence A. DeVitt, Ed P. Byars, Union National Bank of Kansas City, William Jewell College, L. S. Secrest and Helen D. Secrest all intervened and adopted and ratified the allegations contained in the petition of J. Lee Johnson, endorsed and approved the appointment of the receiver and prayed that the receivership be continued.

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De Vitt v. Johnson, 160 S.W.2d 974, 1942 Tex. App. LEXIS 167 (Tex. Ct. App. 1942).

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160 S.W.2d 977 (Court of Appeals of Texas, 1942)