Evans v. Turney

1936 OK 399, 61 P.2d 237, 177 Okla. 550, 1936 Okla. LEXIS 419
CourtSupreme Court of Oklahoma
DecidedMay 19, 1936
DocketNo. 26460.
StatusPublished
Cited by4 cases

This text of 1936 OK 399 (Evans v. Turney) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans v. Turney, 1936 OK 399, 61 P.2d 237, 177 Okla. 550, 1936 Okla. LEXIS 419 (Okla. 1936).

Opinion

PER CURIAM.

This case involves an appeal from a judgment of the district court of Oklahoma county, Okla., in favor of the defendant in error, defendant below. The parties will be referred to as plaintiffs and defendant, as they appeared in the lower court.

The action sought the rescission of a contract made by the parties to the action. The facts alleged in the petition are in substance as follows; Plaintiffs allege that they and the defendant Turney were joint owners on, and after, June 28, 1929, of certain land in Woodward county, Okla., referred to as the Sontag farm, each owning an undivided one-lialf interest therein, and in consideration of the premises and covenant by the said defendant that she would furnish the money to develop and mine certain deposits of ben-tonite or fuller’s earth upon said tract of ' land, and .an adjoining tract known as Walters farm, plaintiffs conveyed to the defendant an undivided one-sixth interest in the Sontag farm, making their interests two-sixths to plaintiffs and four-sixths to defendant.

The petition further alleges that thereafter *551 the Fullers Earth Company, an express trust, was formed, which acquired the mineral rights under the Sontag farm for 200,000 shares of beneficial interest in said tract, of which 100,000 shares were issued to defendant Turney, and 50,000 shares were issued to plaintiffs, and that the defendant Turney neglected and refused to furnish money or to pay the expenses or develop the said Sontag and Walters farms, and for that reason the consideration failed.

The petition further alleges that at the time of the execution of the said deed conveying tiffs one-third, and that it was further agreed gages outstanding against the Sontag farm, aggregating $1,800, of which amount defendant assumed and paid two-thirds, and plaintiff one-third, and that it was further agreed that, if the defendant failed to develop said properties, she would reconvey the said interest to the plaintiffs, and they in turn would repay her the amount by her paid.

The prayer asks for a cancellation of the deed and for a transfer of 25,000 shares of the beneficial interests of said trust to plaintiffs.

To this petition the defendant filed her demurrer, which was, by the court, overruled, exceptions being allowed. The defendant then filed her answer, which contained both affirmative and negative allegations. She affirmed that the petition did not state facts sufficient to constitute a cause of action against her, and that she had received no stock, by reason of the ownership of the one-sixth interest transferred- to her, but she had paid for all such shares. She denied all allegations of the petition and asserted that if an agreement to develop the property had been made, the same had been complied with.

The court ruled that the action was not one for a jury and proceeded to try the case, which resulted in ,a judgment for the defendant, from which this appeal is prayed.

There are six assignments of error, none of which are briefed. Plaintiffs base the right to reversal on the foffowing- proposition set out in the brief:

“The sole question then, did plaintiff’s evidence sustain his petition, and if so will the court protect one who has conveyed property on'agreement to develop when development has not been done.”

In view of the fact that the lower court heard the evidence and that plaintiffs base their right to reversal on this record evidence, it is useless .for us to determine whether error was committed in refusing to sustain the demurrer to the petition, ■ and also, whether the court properly held that it was not a jury case.

We will, therefore, determine whether the judgment is reasonably sustained by the evidence regardless of whether the case is jury or nonjury, as shall be more fully set out hereafter.

The undisputed evidence discloses that the (plaintiff Chester L. Evans and the defendant Mrs. tB. E. Turney owned the Sontag farm and that they understood that the same was underlaid with bentonite or fuller’s earth, and both were desirous of having the same developed. It was undoubtedly the intention of the parties that the defendant Turney was to develop this property at the time she received from the plaintiff the deed conveying ito her the additional one-sixth interest. This is evidenced by the fact that she expended quite a sum of money in attempting to install proper machinery. The venture, however, was not successful, as the defendant failed to make good her promise and the original adventure was abandoned.

The parties then conceived the idea of creating an express trust, in which shares of the beneficial interests were issued to the parties in proportion to the interests they then owned in the land, namely, two-thirds to the defendant and one-third to the plaintiff. This trust is a very elaborate arrangement and vests in a majority of the trustees absolute right to carry into execution the provisions thereof, one of which provisions is as follows:

“(B) To improve, manage, develop, sell, assign, transfer, lease, mortgage, pledge or otherwise dispose of or turn to account or deal with all or any part of the property of this trust, and from time to time to vary any investment or employment of capital of this trust.”

The proof further shows that the plaintiff himself wrote this trust instrument, It is, therefore, patent that he cannot be heard to complain of its provisions.

The proof further shows that -the parties were interested in another trust known as the Natural Mineral Company, and that the assets of this company became the property of the Oklahoma Fullers Earth Company, as well as the additional property known as the Walters lease. After the title to all of this property was vested in the Oklahoma Fullers Earth Company, shares were issued as follows : Ninety thousand shares to the defendant Turney, 100 shares to a Mr. Cole, and 50,000 shares to the plaintiff.

*552 The evidence further shows that thereafter the Oklahoma Fullers Earth Company, acting through its regular officers, made and delivered to Benson Brothers ,a lease for the purpose of developing this property, and that the plaintiff participated in and received checks from the Oklahoma Fullers Earth Company, both for bonuses and royalties, arising from the development of this property.

The evidence further discloses that in order to develop the Walters farm, as well as the Sontag farm, the rights under the leases were reduced to community interests, that is to say, the royalties were to be paid to both, regardless of where the mineral was mined.

After careful'y reading the entire record and examining the briefs filed, we fail to find where any fraud was perpetrated on the plaintiff.

The promise to develop the property can, in no event, rise higher than a condition subsequent, and, that being true, the rule regarding cancellation for nonperformance is that the promise must go to the whole consideration of the contract. From the case of Haydon v. St. Louis & S. F. R. Co., 222 Mo. 126, 121 S. W. 15, the rule is stated as follows:

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Related

Easterling v. Ferris
1982 OK 99 (Supreme Court of Oklahoma, 1982)
Creach v. Home Owners' Loan Corporation
1942 OK 380 (Supreme Court of Oklahoma, 1942)
Walker v. Limestone Oil & Gas Co.
1938 OK 171 (Supreme Court of Oklahoma, 1938)
Oklahoma Fullers Earth Co. v. Evans
1937 OK 79 (Supreme Court of Oklahoma, 1937)

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Bluebook (online)
1936 OK 399, 61 P.2d 237, 177 Okla. 550, 1936 Okla. LEXIS 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-turney-okla-1936.