Hall v. F.A. Halamicek Enterprises, Inc.

669 S.W.2d 368, 81 Oil & Gas Rep. 599, 1984 Tex. App. LEXIS 5157
CourtCourt of Appeals of Texas
DecidedMarch 8, 1984
Docket13-83-309-CV
StatusPublished
Cited by13 cases

This text of 669 S.W.2d 368 (Hall v. F.A. Halamicek Enterprises, Inc.) 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
Hall v. F.A. Halamicek Enterprises, Inc., 669 S.W.2d 368, 81 Oil & Gas Rep. 599, 1984 Tex. App. LEXIS 5157 (Tex. Ct. App. 1984).

Opinion

OPINION

BISSETT, Justice.

This is an appeal from summary judgments wherein David S. Hall and Charles Chambers were plaintiffs and F.A. Halami-cek Enterprises, Inc., and F.A. Halamicek were defendants. Each plaintiff sued defendants to recover damages in the amount of $10,000.00, exemplary damages and attorney’s fees for alleged fraud in the sale of interests in the working interest in an oil and gas lease. Each defendant filed a separate motion for summary judgment. Each motion was contested by the plaintiffs. The trial court granted both motions, and judgments were rendered that the plaintiffs take nothing against each defendant.

Henceforth, plaintiffs will sometimes be referred to by name and sometimes as “plaintiffs.” The defendants will sometimes be referred to as “Enterprises” and “Halamicek,” respectively, and sometimes as “defendants.”

Enterprises is a Texas corporation. Ha-lamicek is President and a major shareholder of Enterprises. Enterprises is in the business of exploring for oil and gas, and producing oil and gas after production is obtained. Kenneth R. Johse, who is not a party to this lawsuit, hereinafter referred to as “Johse,” is a certified public accountant, who has Enterprise and Halamicek among his clients.

Enterprises, who desired to drill for oil or gas on the Mikus lease, in Lee County, Texas, sold interests to several investors at $10,000.00 for a 1% interest in the 60% working interest in the Mikus lease. Each plaintiff paid $10,000.00 to Johse for a 1% interest of the working interest in the proposed well. In turn, Johse paid Enterprises the sum of $70,000.00, for a 7% interest in the working interest, which covered investments in the well made by persons, including plaintiffs, who were not clients of Johse. Additionally, other investors who were clients of Johse paid certain sums of money to Johse, who then paid such monies directly to Enterprises. An attempt was made to complete the well in the “Buda.” This attempt failed to establish production. Then, an attempt was made to complete the well in the “chalk”; it, too, failed. Attempts were later made to establish production at a higher level, but during such operations a hole appeared in the casing at about 4,000 feet below the surface of the ground. In an effort to patch the hole, a “squeeze tool” became stuck in the casing and the well was plugged and abandoned. There was never any production in commercial quantities from the drilling operations on the Mikus lease. None of the $10,000.00 invested by each plaintiff was returned.

Plaintiffs, in this suit alleged that Enterprises had defrauded them through its “duly authorized” agent, Johse. They further alleged that Johse solicited investments from them in the Mikus well, and that he falsely represented to each of them: 1) that the prospect was surrounded by several very productive oil and/or gas wells; 2) that all but one of these wells was a producer in the range of 200 or more barrels per day; 3) that they could expect the well to be drilled upon the Mikus lease to produce in excess of 200 barrels per day; and 4) that each of them would recover his investment within nine (9) months after the commencement of the sale of oil produced therefrom. They also alleged that Halami-cek, a major shareholder in Enterprises, aided and abetted in the fraud perpetrated *371 on them by Enterprises, and is, therefore, also liable to them in damages.

The summary judgment rule, Rule 166-A, Texas Rules of Civil Procedure, states, in part:

“... The judgment sought shall be rendered forthwith if ... the moving party is entitled to judgment as a matter of law on the issues as expressly set out in the motion ...” (emphasis added).

Therefore, the only issues upon which the trial court could base the granting of summary judgment in favor of defendants, the movants, were those expressly raised in the motions filed by them. City of Houston v. Clear Creek Basin Authority, 589 S.W.2d 671 (Tex.1979). The motions filed by defendants were identical, except as to the movants’ name. The motions stated the following grounds:

(1) there is no genuine issue of fact as to whether or not defendants made any direct representations to either plaintiff;
(2) there is no genuine issue of fact as to whether or not Johse was the agent [of defendants] to solicit investors in the well;
(3) there is no genuine issue of facts as to whether or not Johse solicited investments from the plaintiffs;
(4) there is no material issue of fact as to whether or not Johse made any guarantee to plaintiffs or made any misrepresentations to plaintiffs regarding the proposed Mikus well;
(5) there is no material issue of fact as to whether or not the plaintiffs relied upon representations made by Johse to make their decision to invest in the well; and,
(6) there is no material issue of fact as to whether or not any misrepresentations made by Johse, if made, were made wantonly, maliciously or willfully.

The purpose and intent of the summary judgment rule is not to deprive litigants of their right to a full conventional trial if there are any material questions of fact. Gulbenkian v. Penn, 151 Tex. 412, 252 S.W.2d 929 (1952). The question at both the trial and appellate court levels is whether the summary judgment proof establishes as a matter of law that there is no genuine issue of fact as to one or more essential elements of plaintiffs’ cause of action. Gibbs v. General Motors Corp., 450 S.W.2d 827 (Tex.1970).

In reviewing the granting of summary judgment, the appellate court is required to follow the following well established rules:

“(1) the movant for summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law;
(2) in deciding whether or not there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true; and,
(3) every reasonable inference must be indulged in favor of the non-movant and any doubts resolved in his favor.”

See Wilcox v. St. Mary’s University of San Antonio, 531 S.W.2d 589 (Tex.1975). The trial court is not required to ascertain the credibility of affiants or to determine the weight of evidence in the affidavits, depositions, exhibits and other summary judgment proof. The only question is whether or not an issue of material fact is presented. Gulbenkian v. Penn, supra.

Two issues are presented in this appeal: first, is there a genuine issue of material fact as to whether Johse was the agent for the defendants in the transaction; second,

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669 S.W.2d 368, 81 Oil & Gas Rep. 599, 1984 Tex. App. LEXIS 5157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-fa-halamicek-enterprises-inc-texapp-1984.