Gulf Production Co. v. Trans-Bay Oil Co.

297 S.W. 634, 1927 Tex. App. LEXIS 628
CourtCourt of Appeals of Texas
DecidedMay 18, 1927
DocketNo. 8993. [fn*]
StatusPublished
Cited by1 cases

This text of 297 S.W. 634 (Gulf Production Co. v. Trans-Bay Oil 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
Gulf Production Co. v. Trans-Bay Oil Co., 297 S.W. 634, 1927 Tex. App. LEXIS 628 (Tex. Ct. App. 1927).

Opinions

LANE, J.

This suit was brought by the Trans-Bay Oil Company against the Gulf Production Company, hereinafter referred to as the Production Company, to recover the sum of $5,740.80, with interest thereon from May 10, 1925, alleging that said sum was due it as the agreed price of two steel tanks which the Production Company purchased from it on or about the 10th day of May, 1925.

In addition to alleging an express agreement to purchase the two tanks, the plaintiff set up a cause of action in the alternative, alleging that defendant, without plaintiff’s consent or permission, had converted the tanks belonging to the plaintiff to its own use, -and that the reasonable market value of the tanks' so converted by the defendant amounted to the sum of $5,740.80.

The defendant answered by general and special exceptions, general denial, and special denial that it ever purchased, or agreed to purchase, the two tanks, and also denied that it ever asserted title or intended to assert title, or that it ever asserted any acts of ownership, or denied that plaintiff was the owner of the two tanks; that defendant did use the two tanks for about 30 days, for the purpose of storing certain oils, with the consent of the plaintiff, upon the agreement and understanding that the defendant was to pay the plaintiff the usual rental value for the use of the tanks; and that said tanks were permanent fixtures located on certain land held under lease by plaintiff, and that defendant, when it used the tanks for the purpose of storing oil, did not in any manner interfere with plaintiff’s right to the possession of such property, or deny plaintiff’s ownership, and *635 further averred that it was ready and willing to pay the plaintiff the usual rental value for the use of said property.

The court overruled all demurrers and exceptions and submitted the case to a jury upon the following special issues and instructions, to wit:

Special Issue No. 1: “Did the defendant agree to purchase the tanks?”
Special Issue No. 2: “Did defendant use the tanks under any agreement of rental?”
Special Issue No. 3: “Did defendant take possession of and use the tanks after being informed by Carter that plaintiff would not lease same, but that he would only sell same?”
“In determining your answer to special issue No. 1, as to whether or not defendant agreed to purchase said tanks, you are instructed that to constitute a purchase there would have to be a contract of sale — that is, an agreement between the two parties, plaintiff and defendant, the plaintiff to sell and the defendant to buy the tanks at an agreed price. This agreement may be implied by the action of the parties, as well as by definite words of the parties.”
“You are hereby instructed that the burden of proof is upon the plaintiff to prove the affirmative of special issues Nos. 1 to 3 by a preponderance of the evidence; and, if it fails to do so, you will answer said issues in the negative, that is, ‘No.’ ”
To the special issues the jury answered: To No. 1, “Yes;” to No. 2, “Noand to No. 3, “Yes.”

Upon the answers-of the jury and the evidence, the court rendered judgment-for the plaintiff for the sum of $5,972.88. From the judgment so rendered the Production Company has appealed.

Appellant’s contention is that the court erred in overruling its motion for an instructed verdict in its' behalf, in that there wás no evidence to show that appellant had agreed to .purchase the tanks, or to show that appellant converted the tanks, or that it took possession thereof without the consent of appellee. We think the contention that there was no evidence showing that appellant had agreed to purchase the tanks or that it converted them should be sustained.

That appellee did not desire to lease or rent its tanks, and that it held them, contemplating that some oil company, which had no storage facilities and which might bring in a producing well near them, would purchase them so as to save it from loss on the same, may be conceded. It may be also conceded that appellant, the Production Company, upon the bringing in of its producing well, without storage facilities, was very anxious to procure the tanks in which to store its oil, a great portion of which might have been lost without them, but such concessions do not tend to show or prove that it made either an express or implied agreement with Carter, the president of appellee, the Trans-Bay Oil Company, to purchase the tanks. Whether there was or was not such an agreement is to be determined, not from'the desire of appellee to sell, nor the circumstances making it necessary for appellant to procure storage for its oil, but upon the question as to whether appellant expressly or impliedly unconditionally agreed to purchase the tanks upon the specific terms made by Carter.

The evidence with reference to such agreement is substantially this: Carter, who alone represented appellee in the negotiations in question, testified substantially that three or four days before appellant’s oil well was brought in, he called the Production Company over the telephone and asked to speak to the manager of the production department; that Mr. Buchanan answered as such manager; that in the conversation over the phone he told Buchanan that he had the two tanks near the well of his company; that he had kept them for an emergency, hoping that he would be able to sell to some one whom might need them in a hurry; that he would not lease or loan them, but would sell them; and that if he (Buchanan) needed them, he would- be glad to sell them to his company at what the Parkersburg Rig & Reel Company charged him for the same; that he paid said company for the two tanks $5,740.80; that on the occasion mentioned, Mr. Buchanan told him that he would look into the matter and let him hear from him later; that the next day Buchanan called him over the phone and asked who owned the land on which the tanks stood, and asked about the lease on the same; that he told Buchanan that the land was owned by the Great Western Oil Company, and that Mr. Tiernan, of Houston, was the agent of'said company; that in a few days after the above-mentioned conversation, to wit, on the 10th day of May, 1925, he went to the oil field to see if appellant’s well had been brought in so that he might be there and see if appellant would need his tanks; that while he was at- said oil field the well came in as an oil producer; that he at once saw a Mr. Rosser, the driller of the well, and repeated to him the conversation he and Buchanan had had a few days theretofore, and told Rosser that the tanks were available to appellant if it wanted to buy them; that Ros-ser, the driller, called Mr.

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Bluebook (online)
297 S.W. 634, 1927 Tex. App. LEXIS 628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-production-co-v-trans-bay-oil-co-texapp-1927.