Henderson v. Hollingsworth

102 So. 577, 157 La. 474, 1924 La. LEXIS 2238
CourtSupreme Court of Louisiana
DecidedDecember 1, 1924
DocketNo. 24797.
StatusPublished
Cited by3 cases

This text of 102 So. 577 (Henderson v. Hollingsworth) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. Hollingsworth, 102 So. 577, 157 La. 474, 1924 La. LEXIS 2238 (La. 1924).

Opinion

ROGERS, J.

Plaintiff instituted' this suit for the recovery of the purchase price of an *475 assignment of an oil and gas lease covering certain property situated in tlie parish of Red river, this state. The defendants, impleaded in solido, were J. J. Hollingsworth, Mrs. A. A. Hollingsworth, W. R. Hollingsworth, O. W. Hollingsworth, Arnold Hollingsworth, and O. D. Henry.

Plaintiff alleged: That on August 9, 1919, he purchased the assignment of lease in question from C. D. Henry and Arnold Hollingsworth for $38,000, hut that assignors had no interest in said lease, merely acting as intermediaries or dummies at the instance and request of J. J. Hollingsworth, who received $35,000 of the purchase price, the remaining $3,000 being paid to cover brokerage and commissions at his direction.

That C. D. Henry and Arnold Hollingsworth had acquired said assignment from J. J. Hollingsworth on August 8, 1918, but that said assignment was simulated, no consideration having been paid therefor. .

That J. J. Hollingsworth acquired the lease from Mrs. A. A. Hollingsworth, C. W. and W. R. Hollingsworth on June 20, 1919, and that this contract of lease was a simulation without consideration and merely constituted J. J. Hollingsworth as the agent and representative of the lessors.

Plaintiff alleged the nullity of these transfers because at the time of the assignment to him there was an existing lease on said land in favor of the Standard Oil Company, which lease was well known to the defendants but was omitted from the abstract of title furnished plaintiff and upon the faith of which he had made his purchase; and that therefore he had been defrauded out of the said purchase price which he is entitled to recover with legal interest thereon.

Mrs. A. A. Hollingsworth, J. J. Hollingsworth, W. R. Hollingsworth, and C. W. Hollingsworth each filed an exception of no cause of action. The exceptions were overruled as to Mrs. A. A. Hollingsworth and J. J. Hollingsworth, and sustained as to the other two exceptors.

Mrs. A. A. Hollingsworth, in her answer, admitted the lease to J. J. Hollingsworth, but averred that it was executed in good faith and for the consideration stated therein. Defendant also admitted the prior lease to the Standard Oil Company, but averred that it was not an existing and valid lease at the time of her lease to J. J. Hollingsworth. She averred that she had' never received any part of the consideration paid by plaintiff to J. J. Hollingsworth for said assignment. Defendant denied the other allegations of the petition.

J. J. Hollingsworth answered denying all the allegations of plaintiff’s petition except that he had assigned the lease to O. D. Henry and Arnold Hollingsworth, who in turn had assigned it to plaintiff. He especially denied that the assignment to G. D. Henry and Arnold Hollingsworth was simulated and fictitious, and that he was acting for any one but himself.

Neither O. D. Henry nor Arnold Hollingsworth filed answers, and it appears that plaintiff’s demand as to them was abandoned.

The court below rendered judgment for plaintiff and against J. J. Hollingsworth for $38,000, with legal interest thereon from August 9, 1919, until paid, and all costs of suit. Plaintiff’s demands against Mrs. A. A. Hollingsworth, C. D. Henry, and Arnold Hollingsworth were rejected. J. J. Hollingsworth devolutively appealed.

Counsel for appellant earnestly and seriously contend that the exception of no cause of action filed on his behalf should have been sustained by the court below. The argument is made that the allegations of the petition show that Mrs. A. A. Hollingsworth was not the sole owner of the property, but that the title thereto was in C. W. and W. R. Hollingsworth as well as Mrs. Hollingsworth, *477 and, therefore, Mrs. Hollingsworth not being the owner of the whole property, the lease by her to the Standard Oil Company did not create a valid servitude.

On the trial of an exception of no cause of action the exhibits attached to and made part of the petition must be considered in connection with the allegations thereof. Attached to plaintiff’s petition are copies of the leases to the Standard Oil Company and to J. J. Hollingsworth. Mrs. A. A. Hollingsworth appears as the sole lessor in both leases. It is true the following indorsement appears on the lease to J. J. Hollingsworth, viz.: “I hereby ratify and approve the above and foregoing lease in so far as interest and (sic) concerned,” (signed) by “C. W. Hollingsworth” and “W. R. Hollingsworth.” We take it that this approval by the Messrs. Hollingsworth was appended to the lease merely to indicate that they were satisfied to have their mother execute the lease to their relative J. J. Hollingsworth. He doubtlessly procured this indorsement to forestall future inquiry and possible trouble on the part of C. W. and W. R. Hollingsworth. Certainly, if they were co-owners with their mother in the property the lessee would have required them to appear in the lease as lessors, agreeing to the stipulations and acknowledging the receipt of the consideration set forth in said instrument. Moreover, it may be safely assumed that the Standard Oil Company would not have accepted a valuable oil and gas lease from Mrs. Hollingsworth alone, if C.' W. and W. R. Hollingsworth were the owners of an undivided one-half interest in the property.

But, beyond all this, defendant J. J. Hollingsworth is specifically and particularly charged with having committed the act by which plaintiff was defrauded and as being the one who received the money which resulted from said fraudulent act. It is immaterial, therefore, ’ whether Mrs. Hollingsworth was the sole or only a part owner of the leased property. If this defendant had not removed from the abstract the lease to the Standard Oil Company, plaintiff’s attorneys would have advised him of said lease, when it is certain that he would not have entered into the contract with J. J. Hollingsworth, paying over to him so large an amount as $38,000. He would have assumed, and correctly so, that whether the lease was good or bad, it would require a lawsuit with the Standard Oil Company to determine that issue, and as he was seeking to purchase an oil and gas lease and not a lawsuit, he would have declined to deal with J. J. Hollingsworth. That is the course a sane man would have pursued, and it is not suggested in the record that plaintiff was not possessed of normal intelligence.

In oral argument on behalf of appellant it was suggested that there is nothing in the record to show that any formal judgment was rendered. We do not find any merit in the suggestion. The minutes of the district court, of date, July 24, 1920, show that, for the reasons assigned in a written opinion filed on said day, judgment was entered for plaintiff. At the end of these written reasons, which were signed by the judge, and filed the same day. appears the decree. On May 18, 1921, appellant, on showing that “he is aggrieved by the judgment rendered herein, and that said judgment is contrary to the law and the evidence,” etc. (writer’s italics), applied for and obtained a devolutive appeal; and in an agreement as to what facts are to be considered by this court, which agreement is signed by counsel representing the parties and filed in this court, it is shown that the judgment was read, rendered, and filed on July 24, 1920.

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Related

Leidenheimer v. Schutten
194 So. 32 (Supreme Court of Louisiana, 1940)
Larche v. Doughtie
153 So. 583 (Louisiana Court of Appeal, 1934)
Henderson v. Hollingsworth
105 So. 14 (Supreme Court of Louisiana, 1925)

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Bluebook (online)
102 So. 577, 157 La. 474, 1924 La. LEXIS 2238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-hollingsworth-la-1924.