Foster v. Spencer

47 S.W.2d 492, 1932 Tex. App. LEXIS 192
CourtCourt of Appeals of Texas
DecidedMarch 2, 1932
DocketNo. 4084
StatusPublished
Cited by2 cases

This text of 47 S.W.2d 492 (Foster v. Spencer) 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
Foster v. Spencer, 47 S.W.2d 492, 1932 Tex. App. LEXIS 192 (Tex. Ct. App. 1932).

Opinion

SELLERS, J.

This was a suit by the appellant, James C. Foster, Jr., brought in the district eoui't of Tarrant county to recover of Charles P. Spencer, Mrs. Marshall Spoonts, and Dan E. Lydick, in his capacity as administrator of the estate of Marshall Spoonts, deceased, the appellees herein, the sum of $12,500. When the case was called for trial, the court sustained general demurrers and certain special exceptions of appellees to the appellant’s petition. Appellant refusing to amend his petition, the cause was dismissed, from which order the appellant has duly prosecuted this appeal.

The appellant in his petition alleged three separate agreements as a basis of his right to recover against the appellees. The first of these was executed by Marshall Spoonts on January 31, 1921, and this instrument and certain amendments thereto were recorded in the deed records of Tarrant county, and a copy of which was also attached as exhibits to appellant’s petition by the terms of which there was created a so-called trust estate which was designated and known as the Oil Operators’ Trust. The instruments named Marshall Spoonts trustee, and was to continue for a period of fifty years. The purpose of the trust agreement, as expressed, was to raise a fund to be used for making investments in oil properties and its allied industries. It provided that the trustee should have absolute control of the fund to invest and reinvest as to his judgment should seem proper, except that his actions were to have the approval of a board of- advisors composed of himself as trustee and two other men, one of whom was the appellant herein. The amount of the fund sought to be raised was $5,000,000. This amount was to be raised by issuing profit-sharing certificates to those contributing to the fund for the amount so contributed. It is provided that the trustee should have no direct interest in the principal of the trust fund and should receive no salary or fixed compensation from such fund, but should receive one-half of whatever profits are earned with such fund. It is provided that the trustee and board of advisors therein named should serve during the life of the trust, unless removed by death, resignation, disability, or breach of trust; and providing that, should a vacancy occur in the office of trustee, a substitute trustee should be appointed by the board of advisors, which appointment should be in writing and recorded in the deed records of Tarrant county; and, further, when a substitute trustee was so appointed, he would immediately take over the rights, titles, etc., held by the original trustee, and should receive for compensation for his services the same compensation as that provided for the original trustee. There are many other provisions contained in these instruments, but the above are deemed a sufficient statement of the provisions therein contained to make clear the questions to be disposed of in this appeal.

The second agreement alleged is one between Marshall Spoonts and the appellant made on May 11, 1922, some sixty days after appellant had resigned as a member of the advisory committee. The conditions of this agreement were contained in a letter from Spoonts to appellant, and, as alleged, is as follows:

“Mr. Jas. C. Foster, Jr., Fort Worth, Texas. “Dear Jim: Confirming our understanding, and in consideration of your various advances [493]*493of money to me, and your services rendered, I hereby assign to you and agree that you shall have an equal one-half interest in all money or property which X may, at any time, he entitled to receive from the Oil Operators Trust, and that you shall share equally with ¡me any personal interest of mine in the Trust or its assets, present or future.
“It is understood between us, and I agree, that I will not make any other disposition of any interest which' I have, or may have, in the Oil Operators Trust or its assets without your approval and consent.
“[Signed] Marshall Spoonts.”

The petition, after setting out the above two agreements, contains allegations to the effect that Mrs. Marshall Spoonts had full knowledge of the agreement between her husband and this appellant; and it is further alleged that Marshall Spoonts resigned as trustee of the Oil Operators’ Trust on April 24, 1923; a copy of his resignation being attached to the petition, and is as follows:

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Related

Bowers v. Ground
115 S.W.2d 1142 (Court of Appeals of Texas, 1938)
Throckmorton v. Robinson
83 S.W.2d 696 (Court of Appeals of Texas, 1935)

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Bluebook (online)
47 S.W.2d 492, 1932 Tex. App. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-v-spencer-texapp-1932.