Duncan v. Stevenson

120 S.W.2d 305
CourtCourt of Appeals of Texas
DecidedSeptember 19, 1938
DocketNo. 4923.
StatusPublished
Cited by8 cases

This text of 120 S.W.2d 305 (Duncan v. Stevenson) 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
Duncan v. Stevenson, 120 S.W.2d 305 (Tex. Ct. App. 1938).

Opinion

FOLLEY, Justice.

' The appellants, Ivy Duncan and Carl M. Smith, have appealed from a judgment rendered against them in a suit in which they sought to recover as real estate brokers a commission of $952 alleged to he due them from the appellee, N. A. Stevenson, for services rendered by them in connection with the sale to the Skelly Oil Company of an oil and gas lease on 952 acres of land in Hutchinson County, Texas, belonging to the appellee.

In response to special issues the jury found that the appellants were not the procuring cause of the sale of the lease on appellee’s land, and that they had abandoned their attempt to sell the oil and gas lease to the Skelly Oil Company prior to the time the sale was actually made. By appropriate assignments the appellants attack the sufficiency of the evidence to support such findings.

The record reveals that the transaction involved in this case began some time in April; 1936, presumably about two weeks prior to April 27, 1936. During such time, Duncan and Smith were associated together in the city of Pampa, Texas, in the purchase and sale of oil and gas leases, royalties and real estate in the Panhandle oil field. The negotiations began with Duncan calling to see Stevenson at the latter’s home in Hutchinson County, Texas. From such visit it appears that Stevenson agreed with Duncan that he would lease the 952 acres of land for $12.50 per acre in money and an additional $12.50 per acre to be paid in the sale of oil from such land upon a contract to drill an oil well in connection with the lease. Prior to his association with Duncan, Smith had been an employee of the Skelly Oil Company and was well acquainted with the officials of that company. It was, therefore, understood between Duncan and Stevenson that the appellants would attempt to interest, among others, the Skelly Oil Company in the purchase of the lease.

In . pursuance to such understanding, Smith called by telephone Richard T. Lyons, manager of the Skelly Oil Company at Tulsa, Oklahoma. Lyons testified by deposition upon the trial that in this conversation with Smith the land was priced to his company at “$15.00 or $20.00 per acre cash, around $25.00 per acre out of oil, and a well required to be drilled in sixty or ninety days.” Several days elapsed after such conversation and no reply was received by appellants from the Skelly company. On April 23, 1936, two telegrams were sent by Smith to the Skelly company. The first telegram merely sought the “status” of the “Stevenson deal.” No reply having been received to this first telegram, about an hour later a second was dispatched by Smith informing the *307 company that Stevenson would give such company until 1:30 P. M. the next day to accept or reject the original proposition. On Friday, April 24, 1936, Lyons telephoned. Smith at Pampa that the Skelly Oil Company was not interested in his ■deal on the Stevenson land, especially the requirement to drill the well.

On the same day, about four o’clock P. M. and after his conversation with Lyons, Smith contacted the appellee on the streets of Stinnett and told him the substance of his conversation with Lyons. It was then agreed between these parties that a new proposition would .be submitted to the. Skelly company by Smith for an ordinary ten year commercial lease on the property without a drilling contract. Stevenson’s version of this new agreement was that he would accept $12.50 per acre for the lease, but Smith understood that the price would be $12, however, such discrepancy' becomes immaterial in view of the record in this case. It was undisputed, however, that if the Skelly company accepted the lease, Smith, in connection with- his colleague Duncan, would be paid a commission of $1 per acre.

After such understanding with Stevenson, Smith returned to Pampa and sent a night letter telegram, dated April 24th’ at 10:11 P. M., to Richard T. Lyons of the Skelly, Oil Company at Tulsa. Such telegram was as follows: “Another conference Stevenson stop wire me if can use the open acreage sections four and eight approximately nine hundred acres under one lease ten year term dollar rentals commercial lease at price fifteen dollars per acre. Carl M Smith.” On Monday, April 27, 1936, Lyons sent Smith the following telegram in reply: “Not interested 'Stevenson land at fifteen dollars thanks. Richard T Lyons.” In the interim between the tele-' grams just quoted, no communications were had between the appellants and the Skelly Oil Company or between the appellants and the appellee.

The record further reveals that a few days prior to April 27, 1936, the Skelly Oil Company discovered oil in a wildcat well known as No. 1 Herring in Hutchinson County, located in the same vicinity as the Stevenson land. At .such time, one B.. B. Hays was employed as utility land man for the Skelly Oil Company, working out of the Tulsa office. Formerly, he had been working out of the Pampa office of such company on a temporary assignment following the resignation of the appellant Smith from his employment- with the Skelly company. After the discovery of oil in the Herring well, Hays was dispatched by the company to Hutchinson County to check the unleased acreage on trend with the Herring well and instructed to lease such lands as might be available. At no time was Hays instructed by the company to investigate the Stevenson land. His authority was general to purchase leases in the indicated area at around $10 per acre, but usually, before closing a trade, Hays would call Lyons by telephone for certification that his procedure was satisfactory.

On Monday morning, April'27, 1936, the appellee was, attending some sort of a farmers’ meeting at the .court house at Stinnett in Hutchinson County. At such time he had heard nothing from appellants concerning the lease. On, this same .Monday morning Hays was in the court house at Stinnett examining the county records.. Hays and the appellee were introduced to each other by Mr. Malcolm McCormick in the court house. Hays told the appellee that he was the Skelly land man and was looking for the Stevenson lease. That Hays was looking for such land on his own initiative, and .without instructions from his company, is established by the testimony of Lyons. Hays produced a map and Stevenson showed him where the Stevenson land was located. Hays then asked Stevenson what he wanted for the acreage and the appellee priced it to him at $12.50 per acre. .Hays agreed to call his Tulsa office and submit the offer to his company. Hays and the appellee then drove to Borger where the former called Lyons at Tulsa and told him of his conversation with the appellee and that he thought he could buy the lease at $12.50’ or $10 per acre. Lyons, agreed with Hays that the latter should make the trade, preferably at $10 per acre. As a result of these various conversations, that same afternoon the appellee and Hays agreed on a price of $10 per acre for ap-pellee’s land, drove to Amarillo to the office of the attorneys of the Skelly company and entered into a formal written contract leasing the land at $10 per acre to the Skelly company. It was . not until after such deal was made that Lyons informed Hays that the appellant, Carl Smith had submitted a proposition on the Stevenson land.

*308 From the above facts and the record before us, it becomes necessary for' us to determine only whether or not there was a controverted issue of fact to submit to a jury on the question of the appellants being the procuring cause of the sale of the lease on appellee’s land.

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120 S.W.2d 305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duncan-v-stevenson-texapp-1938.