Fried v. Guiberson

217 P. 1087, 30 Wyo. 150, 1923 Wyo. LEXIS 38
CourtWyoming Supreme Court
DecidedSeptember 4, 1923
DocketNo. 1051
StatusPublished
Cited by9 cases

This text of 217 P. 1087 (Fried v. Guiberson) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fried v. Guiberson, 217 P. 1087, 30 Wyo. 150, 1923 Wyo. LEXIS 38 (Wyo. 1923).

Opinion

Ilsley, District Judge.

This case is here on error, and was heard upon a motion to strike the bill of exceptions and also at the same time on the merits. The motion to strike the bill will be denied for reasons to be stated in an. opinion by the Chief Justice.

In April, 1915, the parties involved in this suit embarked upon a joint adventure. Mr. Waltemeyer, a geologist, interested another geologist, Ralph Arnold, of California, in the development of the Big Muddy Oil Dome in Wyoming. It was agreed that those participating in the joint adventure should share in the profits in the following manner; Those furnishing the capital were to receive 50%, and those doing the labor in the field were to receive 50%. Mr. Arnold interested the defendant, Julius Fried, [155]*155wbo put in $250, and later a Mr. Whitley put in $125 and the plaintiff Guiberson put in $125. Mr. Arnold and Mr. Waltemeyer were to share their profits in the adventure with a Mr. Charles A. Mau, an associate of Mr. Arnold’s, so that in the beginning Waltemeyer, Arnold and Mau, who were to do the labor, were to receive 50%, and those furnishing the capital were to receive the following interests : Guiberson a %, Whitley a and Fried a % interest. With the money thus raised, Mau and Waltemeyer came to Wyoming and procured oil leases on several hundred acres of land in the Big Muddy field. Upon this trip it was found that certain of these lands were patented and other lands belonged to the State of Wyoming, and there seems to have been some discussion among the joint adventurers as to whether or not it was advisable to procure these leases. In any event, after a second and third trip to Wyoming, two leases were obtained upon patented lands known respectively as the Glenrock Sheep Company and the Fenex leases. These leases were secured by Mr. Waltemeyer and were taken in the name of Charles A. Mau. In the beginning powers of attorney were given Mau by the various members of the adventure, and though the leases were taken in Mau’s name they were to be held in trust for the syndicate, the leases thus being left in escrow until drilling should be commenced. These leases were obtained on May 11 and May 14, 1915, and on the 29th day of May, 1915, Julius Fried, one of the defendants, as one party, and Charles A. Mau, Ralph Arnold and T. S. Waltemeyer, the other parties, entered into an agreement whereby Fried, in consideration of financing the procurement of oil and gas leases on private patented lands, was to receive a 50% interest in the leases and the second parties were to receive jointly a 50% interest, and in this agreement it was recited that Mau had obtained for the benefit of all of the parties to the agreement the oil land leases known as the Glenrock Sheep Company and Fenex leases.

[156]*156It will be remembered that Charles A. Mau was acting as trustee for all of the parties to this venture, handled most of the correspondence and did a great deal of work in obtaining leases and taking care of the business affairs of the syndicate. Now, in July, 1915, Fried withdrew from Mau his power of attorney, and, as one of the witnesses puts it, there was a general row. The plaintiff Guiberson was claiming an interest in the Glenrock Sheep Company and Fenex leases, and Fried, by reason of the agreement referred to of May 29, claimed to have a 50%-interest in the leases. And in October, 1915, Guiberson made a claim to an interest in these leases to the same extent that he had an interest in the original leases obtained by Waltemeyer on his first trip to Wyoming. Mau told the plaintiff that he would not assign or deal with the leases without protecting Guiberson’s interest. On the first day of July, 1916, Mau subleased all of the Glenrock Sheep .Company and Fenex lands to A. E. Humphreys in consideration of $12,500 cash and a 2%% royalty on all oil produced over and above that which was to be paid by Mau to the Glenrock Sheep Company and Fenex as provided for in the original leases. At this time there was a good deal of contention among the co-adventurers. The defendant Fried warned Mau not to dispose of his interest in the leases, and Waltemeyer did the same. Both of them stated that they would deal with their own interests in the matter.

After the sublease was made to Humphreys, Mau wrote a long letter to Arnold, Whitley, Guiberson, Fried and Waltemeyer, in which he defined what he considered to be the interest of each and all of them. It fully appears from the testimony that Humphreys knew of the contentions among the members of the syndicate and immediately after obtaining the subleases from Mau proceeded to procure a ratification of the sublease from the members separately. Humphreys knew that Fried and Waltemeyer were objecting to Mau dealing with their interests, and [157]*157knew that there were conflicting interests claimed in the sublease. On September 14, 1916, by a letter, Guiberson ratified the lease made by Mau to Humphreys. In October of the same year, Humphreys secured the ratification of the lease by Fried and Waltemeyer, and in a separate instrument assigned to Fried and wife and Waltemeyer and wife all his interest in the sublease to him by Mau as to 480 acres (described by legal sub-divisions) of the 680 acres described in that lease; the ratifying agreement reciting that Fried and Waltemeyer, with their wives, claim to own a two-thirds interest in the original leases, and the assignment agreement reciting that their interests in the assignment are in the proportion of % to Julius and Dorothy Fried and % to T. S. and Alice Waltemeyer.

Thereupon this suit was started by Guiberson in the district court of Converse County to compel the defendants Fried and wife to account for any and all moneys and property that they had acquired more than an undivided % interest in the leases, and the effect of the prayer of the petition is that the defendants be declared to hold in trust for plaintiff an undivided three-sixteenths (3/16) interest in the rights obtained by them from Humphreys in said sub-lease, and required to account for all they have acquired by means of asserting more than a one-fourth interest in said leases. The district court, after a full hearing, entered its decree for the plaintiff, in which judgment and decree it is recited, in substance and effect, that Guiberson is the owner of.a 3/16 interest in that portion of the Mau lease assigned to Fried and wife, said interest being held in trust for him by said defendants, and directed that they convey and assign said interest to the plaintiff, and that in default thereof the decree shall operate as such conveyance and assignment; also that they assign to plaintiff an undivided 3/16 interest .in all bonus money held in trust for him under Humphreys ’ said assignment to defendants. From that judgment said defendants prosecute this proceeding in error.

[158]*158It is recited in the agreement assigning an interest in the Man sub-lease to Fried, "Waltemeyer and their wives, that it is in consideration of the covenants and agreements “herein made,” and of the observance of the conditions and terms of the lease. And that assignment agreement contains several covenants and promises by the assignees.

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Bluebook (online)
217 P. 1087, 30 Wyo. 150, 1923 Wyo. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fried-v-guiberson-wyo-1923.