Garland v. Carpathia Petroleum Co.

1924 OK 259, 226 P. 379, 99 Okla. 210, 1924 Okla. LEXIS 862
CourtSupreme Court of Oklahoma
DecidedMarch 4, 1924
Docket11973
StatusPublished
Cited by4 cases

This text of 1924 OK 259 (Garland v. Carpathia Petroleum Co.) 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
Garland v. Carpathia Petroleum Co., 1924 OK 259, 226 P. 379, 99 Okla. 210, 1924 Okla. LEXIS 862 (Okla. 1924).

Opinion

Opinion by

PINKHAM, C.'

The plaintiff in error, as plaintiff, brought this action for a broker’s commission against the Carpathia Petroleum Company, and the individual defendants named herein.

The petition alleged that the Carpathia Petroleum Company was a corporation; that it was the owner of an undivided one-half interest in two oil and gas leases, which were valuable oil producing properties, and which constituted all the property owned by the said corporation; that said corporation and its stockholders, officers, and directors desired to sell said leases; that the defendants J. R. Keaton, D. I. Johnston, J. S. Daniels, J. M. Van Winkle, and John Sinopoulo were the directors, and J. R. Keaton the president of said corporation: that in the latter part of May, 1915, the corporation, through J. R. Keaton, duly authorized thereunto, entered into a verbal contract with the plaintiff that if he could find and introduce a prospective buyer who would himself or in conjunction with others purchase the aforesaid property, at a price satisfactory to the defendant corporation, the defendants would pay to the plaintiff as a compensation therefor, a commission of five per centum on the amount received by the corporation or the stockholders or officers for the sale of such property, providing such prospective purchasers or a portion of them should be found and introduced within a certain time, which said time was originally fixed at 48 hours, and thereafter by the defendants extended for a pori'd of 24 hours; and that the plaintiff found and introduced certain persons within' said extended period and that afterwards certain of those persons purchased a certain portion of the stock in said corporation, whereby the corporation and the directors thereof became liable to plaintiff for a commission of five per cent, upon the price paid for the stock.

The defendants filed a verified answer admitting the corporate existence of the Car-pathia Petroleum Company, and its ownership of the leases mentioned, and denying all of the other averments contained in the petition.

A jury trial was had and the plaintiff offered his evidence and rested, and the defendants demurred thereto. The demurrer to the evidence was sustained, and judgment entered in favor of the defendants. Plaintiff’s motion for a new trial was overruled, and he appeals.

The plaintiff in error claims: First, that the trial court erred as a matter of law in overruling his motion for a new trial; Second. the trial court erred as a matter of law in sustaining the demurrer of the defendant corporation. Carpathia Petroleum Company, to the evidence of the plaintiff, and in entering judgment in its favor for costs; third, the trial court erred in sustaining the demurrer of the individual defendants to *211 the evidence of plaintiff and in entering judgment for costs in their favor.

In the brief of plaintiff in error this assignment is discussed under the following propositions: First, the trial court erred in holding that the plaintiff’s evidence failed to make out a case against the corporation and of the defendants; second, the trial court erred in holding that the plaintiff’s evidence failed to make out a case against the individual defendants sufficient to go to the jury.

The theory of the plaintiff is that the defendant company, by and through its directors, made an express verbal contract with the plaintiff, to the effect that if he introduced it to a purchaser for its property, he was to receive for his services a commission in the sum of $20,000 if the property sold for $420,000, or five per cent, of any sum received if it sold for less than that amount.

It is contended thg,t the evidence in behalf of plaintiff shows that he performed this contract by introducing the defendants to certain persons who became the subsequent purchasers of stock in the.. company,' and that the sale of this stock was due to the efforts of the plaintiff.

The evidence discloses that the plaintiff was, in May, 1915, a stockholder in the defendant corporation, and the owner of 175 shares of its stock, of a par value of $2,500 per share, and that the total stock of the company was $120,000; that the company was itself the owner of a one-half interest in an oil and gas lease in the Cushing field containing 75 acres, and the entire lease upon another tract in Creek county, consisting of 95 acres; that both tracts had been developed and production had been found upon both; the production on the 93 acre tract was very small, but the production on the 73 acre tract was, in May, 1915, four or five thousand barrels a day; that the defendant company owned no other property, and the company wanted to sell the property. On or about May 24, 1915, the plaintiff had a conversation with the defendants about the sale of the property. Prior to that time the property had been on the market and had been listed with George E. Black, an oil broker, living in Tulsa, but he had failed to sell it; that the title to the lease was bad and in litigation. Before the plaintiff saw the directors about the sale of the property he had a conversation with one Franklin Garland, in Tulsa, a distant relative, about the sale of the company’s property in the Cushing field (the 73 acre tract) and ascertained from him that he had a prospective buyer for the property. The plaintiff then came back to Oklahoma City and stated to the president of the defendant company that he had come there to see if he could get the property for sale; that he had a prospective buyer at Tulsa who wanted Cushing production, would pay a good price for it, and was well able to buy. Later that day the plaintiff at a meeting of the directors of the company asked them if they had made up their minds to let him have the property for sale. They inquired about the ability of the buyer' to pay for the property, and plaintiff stated that “he was informed by a man who was helping him in Tulsa, that they (the prospective purchasers) were well able to buy anything they would undertake to buy”; that they wanted some good production in the Cushing field and would look into the matter as quickly as possible.

At this meeting of the directors of the company, an agreement was entered into by the terms of which the plaintiff was to receive $20,000 if he got $420,000 for the property; but if he sold for less he was to receive five per cent, on the price that was received, and the plaintiff was to get the prospective purchasers at the company’s office in Oklahoma City within 48 hours. In stating the terms of this agreement the plaintiff testified:

“Finally I told them that I would make a price of $420,000 and reserve all the oil to us in the pipe lines and tanks up to the time the deal was closed, the purchasers to take the title as it was and they all assented.”

Plaintiff then testified that he immediately phoned Franklin Garland at Muskogee and told him what he had done and directed him to get his men together and. get them to the company’s office in Oklahoma City as quickly as possible. Plaintiff then sent Franklin Garland the following letter:

“You have sale of the Carpathia Petroleum Company half interest in lease, the west half, northeast quarter section 17, township 18 north, range 7 east, containing 73 acres, for the sum of $420,000 net, no commission, all oil runs in pipe line and tanks up to date of closing deal, buyer to take title as it now is.”

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Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 259, 226 P. 379, 99 Okla. 210, 1924 Okla. LEXIS 862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garland-v-carpathia-petroleum-co-okla-1924.