Elliott Jones & Co. v. M. K. Towns Production Co.

283 S.W. 246, 1926 Tex. App. LEXIS 456
CourtCourt of Appeals of Texas
DecidedApril 2, 1926
DocketNo. 8841.
StatusPublished
Cited by16 cases

This text of 283 S.W. 246 (Elliott Jones & Co. v. M. K. Towns Production Co.) 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
Elliott Jones & Co. v. M. K. Towns Production Co., 283 S.W. 246, 1926 Tex. App. LEXIS 456 (Tex. Ct. App. 1926).

Opinion

PLEASANTS, C. J.

This appeal is from an interlocutory order of the district court sustaining a plea of privilege to be sued in Caldwell county, the county of its domicile, presented by appellee in a suit brought by appellant against appellee and the Rio Bravo Oil Company, a corporation having its domicile in Harris county.

This suit was one to recover damages for the alleged breach by appellee of a contract by which it agreed to- sell and deliver to appellant all of the oil to be produced by appel-lee from January 10, 1924, to March 1, 1924, on oil leases held and operated by it on lands situated in Caldwell county. After alleging the execution of the contract by appellee, plaintiff’s petition alleges that, on or about the 22d of January, 1924, appellee and the Rio Bravo Oil Company—

“entered upon and formed a conspiracy between themselves, and, acting together to ^wrongfully, and unlawfully deprive plaintiff of the benefits to accrue to it from the contract hereinafter set out, and to bring about and to cause said production company to breach and violate its contract with plaintiff, and to cause said production company to fail and refuse to comply therewith, and to deliver said oil to plaintiff as agreed, and to cause said production company to sell and deliver said oil to said oil company, after January 27, 1924, in violation and. disregard of said contract and of plaintiff’s rights thereunder and. to cause said oil company, and to enable it, to convert said oil to its own use and benefit, to the great harm and detriment of plaintiff, so that said production company might and should receive for said oil a greater amount than plaintiff had agreed to pay for the same and a greater amount than said, produc-. tion company had agreed to accept, and to the end, further, that said oil company should make- *247 large profits from its (the) resale thereof, to the damage Qf plaintiff, and that said production company should receive more for its said oil,- that pursuant to and in furtherance of said conspiracy and to accomplish and bring about the wrongs and injuries contemplated and intended by thQm, the said defendants, acting together, did the following things: Both said defendants knew of the existence of the contract herein set out between plaintiff and said production company, and of plaintiff’s rights thereunder, and, notwithstanding such knowledge, tlie'y began negotiations between themselves, having for their object and purpose the sale of said oil to said oil company, at and for a price to plaintiff unknown, and the resale thereof by said oil company. That said negotiations resulted, on or about the 2Sth day of January, 1924, in the maldng of a contract between said defendants, the exact terms and nature of which is unknown to plaintiff, and said- defendants, and each of them, are notified to produce said contract on the trial of this cause' or secondary evidence of its contents will be offered in evidence. ’ Plaintiff alleges upon its information that by said contract said production company sold to said oil company, and said oil company purchased from said production company, all the oil to be produced from said Merriweather lease owned by the production company, all in furtherance of, and to carry out, said wrongful conspiracy between said defendants. That thereafter, from January 27, 1924, to the end of February, 1924, all said oil was delivered by said production company to said oil company, amounting in the aggregate to 44,711.85 barrels.1
“Plaintiff alleges that it has been damaged by the said wrongful acts of the defendants in causing the breach, and in the breach and violation of its contract with said production company, pursuant to said conspiracy and the acts of the defendants jointly, as herein alleged, in the sum of $22,355.92, in that the price agreed to be paid by plaintiff for said oil was the sum of 75 cents per barrel, and the reasonable market value of said oil at the time and place where the same was to be delivered to plaintiff was the sum of $T.25 per barrel. And for this amount plaintiff prays the judgment of the court against both said defendants jointly and severally.”

In the second count of the petition plaintiff alleged:

“Plaintiff, without repeating, reiterates all the facts hereinbefore set out, and further avers that, under and by virtue of its contract.with the production company, it became, and was, the owner of all the oil produced from the, Merri-weather lease by the production company from and after January 26, 1924, and to and including the month of February, 1924, and that, in disregard of plaintiff’s rights thereto, the defendants and both of them converted said oil to their own use and benefit, to plaintiff’s damage in the sum of $22,355.92.”

In due time appellee filed its plea of privilege, claiming its right under the statute to be sued in the county of its domicile. This plea contains all of the requirements prescribed by the statute, and expressly denies th e existence of any of the exceptions named in the statute authorizing the rhaintenance of a suit in any county other than that in which the defendant resides.

In answer to this plea', appellant filed a controverting affidavit, alleging that the domicile of the Rio Bravo Oil Company was in Harris county, and reciting the allegations of its petition before set out, and claiming the right to sue appellant in Harris county under subdivision 4 of the Venue Statute (Rev. St. 1925, art. 1995), authorizing suits against two or more defendants to be brought in the county in which any of the defendants reside.

In reply to this affidavit, appellee by general demurrer challenged the sufficiency of controverting affidavit to show a cause of action against either of the defendants, and especially excepted to its sufficiency to show a cause of action, against the Rio Bravo Oil Company, or a joint cause of action against both defendants.

Appellee further alleged under oath:

“And for further answer to plaintiff’s controverting affidavit, if such be necessary, this defendant alleges as a fact that the defendant Rio Bravo Oil Company is not a proper party to this suit, and is not a real bona fide defendant against whom plaintiff expects or can prove a real bona fide cause of action, but such defendant was made a party to this action by plaintiff solely for the purpose of securing and retaining Venue as to this defendant in this county, and defendant here and now puts plaintiff on strict proof that said codefendant Rio Bravo Oil Company is a proper party defendant against whom plaintiff has a real bona fide cause of action, and that such defendant .was made a party to this suit solely for the purpose of securing and retaining venue in this court as to this defendant.”

Upon the hearing of this plea the only evidence offered by appellant was the testimony of M. K. Towns, an officer of appellee company,. and two letters written by appellant confirmatory of the alleged contract up.on which appellant’s suit is based.

The first of these letters, omitting the names of the addressee and the writer, is as follows:

.“Gentlemen: This will confirm ’phone conversation to-day with your Mr. Malcolm Towns, in which we purchased from you all the production from your wells in Caldwell county, Tex., for the rest of January and month of February, at Q7yz4 per barrel, to be delivered in our pipe lines, at your lease.

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Bluebook (online)
283 S.W. 246, 1926 Tex. App. LEXIS 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elliott-jones-co-v-m-k-towns-production-co-texapp-1926.