Forbes v. Becker

1931 OK 288, 1 P.2d 721, 150 Okla. 281, 80 A.L.R. 1, 1931 Okla. LEXIS 370
CourtSupreme Court of Oklahoma
DecidedMay 26, 1931
Docket19899
StatusPublished
Cited by21 cases

This text of 1931 OK 288 (Forbes v. Becker) 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
Forbes v. Becker, 1931 OK 288, 1 P.2d 721, 150 Okla. 281, 80 A.L.R. 1, 1931 Okla. LEXIS 370 (Okla. 1931).

Opinion

SWINDALL, J.

This was an action to set aside a partnership settlement on the ground of fraud; for an accounting; and to recover an undivided one-half interest of an undivided one-fourth interest in an oil and gas lease known as the Miller Tiger lease, on a claim that the one-fourth interest was a partnership asset.

It was undisputed that on September 27, 1925, the parties, Mr. Becker and Mr. Forbes, formed a partnership as drillers for oil and gas, in which they were to share profits and losses equally, agreeing each to devote his time to the business, the plaintiff to draw wages at $11 a day and the defendant at $12 a day.

Mr. Forbes invested $650 under an agreement to buy a half interest in a string of tools owned by Mr Becker for $4,000, the balance to be paid from the earnings of the tools. There had been considerable talk of forming the partnership for - some time before it was formed. Mr. Becker called Mr. Forbes on the morning of September 27th, and at that time he had a prospect of a drilling contract with a Mr. Sherry, and Mr. Becker and a Mr. Gibson had caused the guardian of Miller Tiger to advertise an oil and gas lease for sale. On September the 2Sth, Mr. Forbes drove Mr. Gibson to Eufaula, where Mr. Gibson purchased the lease, paying a bonus of $1 an acre, taking it in his name and in the name of Mr, Becker, and on the same day Mr. Becker went to Tulsa to see Mr. Sherry. During a drive from Sapulpa to Drumright on the 27th, when ■ the partnership was finally formed, there was talk of this lease. The plaintiff claims that it was understood that if they should get it, Mr. Becker’s interest would be a partnership interest, and that they would pay for the partnership interest by the drilling. . Mr. Becker denied that, and testified that he told the plaintiff that if he and Mr. Gibson got the lease the partnership would get a drilling contract to' the Layton sand, and" that if the plaintiff would stay with him he would give him an interest to that sand. They both testified that Sir. Becker said that if they got a 50 barrel well on the lease it would make them $150 each (probably monthly), and would relieve them from financial worries.

Before they drilled on that lease they got a contract to drill a well for Mr. Sherry, near Kelleyville, which was completed in about 115 days, as a dry hole. They got $8,000 and an interest in Mr. Sherry’s lease. They lost $424.46 on that venture.

They then began work on the Miller Tiger lease. Before operations were begun an undivided one-half of that lease had been sold to obtain money with which to drill the well, including the money-to be paid to the partnership under the drilling agreement, so that the interest standing in Mr. Becker’s name was reduced to an undivided one-fourth interest, which is the interest which is involved in this suit. After this well was down about 100 feet, the plaintiff went to move the tools that had been used in drilling the well for Mr. Sherry to another location to drill another well for Mr. Sherry on another lease, for $7,000 and an interest in that lease, and he did practically no more work on the Miller Tiger well. At about 1,575 feet, in the Layton sand, about the middle of April, 1925, this Miller Tiger well was completed as a dry hole and then went to water. The plaintiff was at the lease the day after it was completed and after ic had gone to water. Mr. Sane, one of the workmen, testified that he there asked the plaintiff if he had “any interest in the well,’’ or had “lost any interest in the well,” and that the plaintiff replied. “Not a damned bit more than you have.” The plaintiff at first denied having had a conversation with Mr. Sane, but later admitted a conversation, but said that Mr. Sane had asked him if he was “as sick of this graveyard as the rest of us,” and that he had made the reply, *283 ‘•Not a damned bit more than you are.’’ Up to that time the plaintiff bad only received for bis services an advance of $250, wbicb was half of $500 that Mr.- Becker loaned the partnership after the first Sherry well had been completed at a loss; Mr. Becker had also paid about $135 board for the plaintiff, and had also given him a check for $15. In addition to those advances, during the existence of the partnership Mr. Becker advanced the plaintiff $75 in money, but it does not appear how much, if any of that, was advanced before the Miller Tiger well went to water. As soon as the Miller Tiger well went to water, they both worked finishing preparations to drill the second well for Mr. Sherry near Kelley-ville, and in drilling it. It was completed July 15, 1925, as a dry hole, and during the work on that well, after the Miller Tiger well had gone to water, the plaintiff withdrew some heavy advances, having drawn $275 April 21st, $100 June 1st, $100 June 15th, $200 June 21st, and $400 July 15th, the day of the completion of the well as a dry hole, which was the last day he worked for the partnership. He then went to Texas before this well was plugged by Mr. Becker, and stopped there about ten days or two weeks and worked some while there. He then went home to Bloomington. Ill., for about the same length of time. He appeared in Drumright in August and stayed two days, 'and while there was at the Miller Tiger lease, when; according to the defendant’s testimony, he, the defendant, had contracted to deepen the well to the Peru sand and had reached it and it had proven dry, and the defendant asked the plaintiff if he was ready to go to work; and he replied that he was not, that he had a job in Texas and that he was going to go to it. There was a dispute as to the remainder of the conversation. The parties both admitted that the plaintiff mentioned the fact that the partnership had not made money. The plaintiff said that he also gave his financial condition as a reason for leaving. The defendant denied that plaintiff’s financial condition was mentioned, but he admitted saying that if things didn’t pick up he would have to take a job himself. He also said that when the plaintiff said he was going he added that he liked that work better than “running tower” and that he, the defendant, told the plaintiff to suit himself. They brought it out. on cross-examination of the defendant that he also said, “Good-bye Tommie: I don’t blame you a bit: there are no hard feelings,” but the defendant denied that Mr. Forbes suggested that the defendant remain on the job. Nor did Mr. Forbes testify to any such statement, although he had alleged it in his petition. There was no further communication between the parties until Christmas. Mr. Becker brought in a gas well in the Bartles-ville sand, about 1,100 feet below the Layton sand, which on September 9th gauged five and a half million feet. He testified that this was under a contract made after he had reached the Peru sand. The plaintiff apparently did not even know that a well was in until the middle of November when a brother from Illinois visited the sister at Drumright and then went to Texas to visit the plaintiff. He remarked in the presence of a contractor that Mr. Forbes was a producer — that they had got production on a lease in which he had an interest. The plaintiff testified that he did not ask the brother about the well until after the contractor left, and that the brother could not give him any information, although he did tell him that Pat Cawley, the sister’s husband, who had in his name a one-sixteentli interest in the lease, which belonged to his wife, was elated. The plaintiff returned to Drumright on Christmas Eve and went to his sister’s home late in the night. He saw both the sister and Mr.

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Bluebook (online)
1931 OK 288, 1 P.2d 721, 150 Okla. 281, 80 A.L.R. 1, 1931 Okla. LEXIS 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forbes-v-becker-okla-1931.