Graham v. Omar Gasoline Co.

253 S.W. 896, 1923 Tex. App. LEXIS 434
CourtCourt of Appeals of Texas
DecidedMay 12, 1923
DocketNo. 10592.
StatusPublished
Cited by13 cases

This text of 253 S.W. 896 (Graham v. Omar Gasoline Co.) 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
Graham v. Omar Gasoline Co., 253 S.W. 896, 1923 Tex. App. LEXIS 434 (Tex. Ct. App. 1923).

Opinion

CONNER, C. J.

The Omar Gasoline Company, styling itself as a “common-law trust,” instituted this proceeding against appellant, H. L. Graham, for the purpose of securing a temporary injunction. The prayer therefor was granted upon the allegations of the petition without notice, and from that order this appeal has been prosecuted.

It was alleged in the petition for the injunction, in substance, that the company, as we shall hereinafter designate appellee, had—

“entered into a written contract with the Sioux Oil & Refining Company for the purchase of all the casing-head gas and other gas produced on lot 1 and the west one-half of lot 3 of the W. P, George tract, block 818, Wichita county, Tex., at 12 cents per 1,000 cubic feet of casing-head gas delivered to the plaintiff as more fully shown by copy of such contract, attached to the pleading and marked Exhibit A and made a part of this petition for any and all purposes.”

It was further alleged that the company had at all times faithfully complied with the provisions of said contract at great expense, and that later the Sioux Oil & Refining Company sold the lease described in said contract to the defendant, H. L. Graham; that at the time of such sale to Graham the contract so made an exhibit was of record, and that the defendant had due notice thereof. It was further alleged that the defendant Graham—

“has threatened to breach said contract and has threatened to destroy the personal property of the plaintiff on said lease, to disconnect the gas lines and meters now owned by this plaintiff and having been installed by said plaintiff on said lease at great expense, and the said defendant threatens further to sell said casing-head gas and gas to other parties than plaintiff; that plaintiff would show to the court that defendant was insolvent and unable to respond in damages for the breach in said contract, and that the threatened trespass on the part of the defendant would constitute an irreparable injury to plaintiff, and plaintiff has no adequate remedy at law.”

*898 It is nowhere alleged in plaintiff’s petition that the Omar Gasoline Company is a corporation or a partnership, nor does it give the name or names of persons composing the trust, and appellant insists that the plaintiff has not shown itself to be an entity, which, under the law, is entitled fo maintain an action. The common law of England, when not inconsistent with the Constitution and laws of this state, constitutes, together with such Constitution and laws, the rule of decision in our courts (see article 5492, 'Rev. Statutes); but we have been unable to find any definition of the term “common-law trust.” However, in describing the form of business organizations of the kind, it is said in Thompson on Corporations (2d Ed.) Cumulative Supplement 1922, § 6780, that the business organization commonly known as the “Massachusetts trust” is no more than “the adaption of the old common-law trust to the purpose of carrying on the enterprises,” etc. And in speaking upon the same subject, the author of Dunn, Business Trust, says, among other things, on page 39:

“Trusts for business purposes are quite generally referred to as common-law companies, and they are generally referred to as organized under the common law. From the foregoing decisions it would seem that the phrase ‘common-law company’ as referring to a. trust is a misnomer, for they are created in this country, as in England, under the right of citizens to contract.”

Article 6149, of chapter 2, tit. 102, Rev. Statutes, provides that:

■ “Hereafter any unincorporated joint-stock company or association, whether foreign or domestic, doing business in this state, may sue or be sued in any court of this state having jurisdiction of the subject-matter in its company or distinguishing name; and it shall not be necessary to make the individual stockholders or members thereof parties to the suit.”

In Re Associated Trust (D. O.), a case reported in 222 Eed. 1012, it was held that an inventory petition in bankruptcy against “the associated trust, the voluntary association and unincorporated company maintaining its principal place of busines in Boston,” etc., was “an unincorporated company,” and subject to be adjudicated a bankrupt, though “voluntary associations” were not specifically referred to in the Bankruptcy Act. The “Home Lumber Company, a trust estate,” was held to be within the blue sky laws of Kansas in the case of Home Lumber Co. v. Hopkins; 107 Kan. 153, 190 Pac. 601, 10 A. L. R. 879. In the case of Brotherhood of Railway Trainmen v. Cook, by the Amarillo Court of- Civil Appeals, reported in 221 S. W. 1049 (writ refused), it was held that the appellant, an unincorporated association, constituted an entity for the purpose of litigation, within the purview of article 6149, supra. Lloyd’s Association was held by this court to be “an unincorporated association,” within the meaning of the quoted statute, in the case of Merchants’ & Mfgr.’s Lloyd’s Ins. Exch. v. Southern Trading Co. of Texas (Tex. Civ. App.) 205 S. W. 352. While our judgment in this ease was reversed by the Supreme Court, as will be seen by reference to 229 S. W. 313, our conclusion on the point under discussion was not disturbed.

[1-3] We accordingly conclude that under our statute the appellee was entitled to maintain the proceeding before us, even though, as it seems to us, it would have been more satisfactory to have named the trustees and acting officers of the Omar Gasoline Company. Appellee’s petition specifies certain pipe and other personal property which it is averred had been extended and fixed upon the lease specified in the contract attached as an exhibit to the petition, but fails to allege its value or the value of its lease contract, arid appellant insists that hence the jurisdiction of the court issuing the writ of injunction has not been made to affirmatively appear as required by our decisions. It is undoubtedly true that our county courts have exclusive jurisdiction in all cases where the amount in controversy exceeds $200 and is not in excess of $500, and that in such cases the county court and not the district court is empowered to issue writs of injunction. We are of the opinion, however, that the appellee’s petition exhibits a right, easement, or interest in land over which the district court, and not the county court, has jurisdiction under our statutes. The lease attached as an exhibit to the plaintiff’s petition recites that the Sioux Oil <& Refining Company, a corporation, was the owner of a “valid oil and gas mining lease covering” the land described in the plaintiff’s petition, and that as vendor it desired “to sell” and the Omar Gasoline Company,desired “to purchase” any and all easing-head gas and other gas 'capable of producing gasoline then or thereafter produced “from the oil wells upon said” land. It was then provided:

“That vendor [the Sioux Oil & Refining Company] hereby sells and vendee [the Omar Gasoline Company] hereby buys, upon the terms and conditions set forth herein, all the casing-head gas and other gas produced from the oil wells drilled or hereafter to be drilled on the above-described land, ready for delivery at the wells or gas pumps now in operation or that may hereafter be in operation on said land.”

The contract further provided, among1 other things, that:

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Bluebook (online)
253 S.W. 896, 1923 Tex. App. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-v-omar-gasoline-co-texapp-1923.