Hoad v. Aritex Oil Co.

243 S.W. 490, 1922 Tex. App. LEXIS 1111
CourtCourt of Appeals of Texas
DecidedJune 15, 1922
DocketNo. 1357.
StatusPublished
Cited by4 cases

This text of 243 S.W. 490 (Hoad v. Aritex 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
Hoad v. Aritex Oil Co., 243 S.W. 490, 1922 Tex. App. LEXIS 1111 (Tex. Ct. App. 1922).

Opinions

The Aritex Oil Company, a corporation, brought this suit against D. S. Hoad, W. O. Mullins, Bertha Bethel, and C. W. Harkrider, to recover of the first three above named the value of the personal property described in the petition, and consisting of certain oil well equipment and supplies, alleging a conspiracy to convert said property to their own use, and conversion of said property on their part, and that it have a lien upon certain oil well equipment and supplies on the Harkrider lease, on which it is alleged said oil well equipment and supplies are being used for drilling an oil well, and placed on the Harkrider lease by said three first named defendants, and a lien upon the leasehold interest in the Harkrider lease belonging to said three defendants. In the alternative they pray that if the said personal property did not enter into the drilling of the Harkrider well, and the use of said property did not form a part of the consideration for their interest in the Harkrider well, then the plaintiff have a personal judgment for the value of the said personal property so taken and converted by them and not used in the drilling of said well.

Harkrider filed a cross-action against the plaintiff oil company. Hoad, Bethel, and Mullins answered by general denial and several special pleas and defenses, but upon the trial defendants offered no evidence, but on the conclusion of the plaintiff's evidence moved for a judgment in their favor, which was overruled, and to which they excepted.

The case was tried before the court without a jury. The court made findings of fact which, we think, sufficiently reflect the issues tendered in the pleadings. The trial court's findings are as follows:

"(1) That the plaintiff, Aritex Oil Company, is a corporation organized and existing under laws of the state of Arizona, and that at the times referred to in its petition it had and now has a permit to transact business within the state of Texas.

"(2) That during the month of January, 1920, and for several months subsequent thereto, the defendants D. S. Hoad, Bertha Bethel, and W. O. Mullins were employees in the service of the plaintiff in connection with its oil operations in Eastland and Stephens counties, Tex., the said Hoad as superintendent and manager in charge of said business, the said Bertha Bethel as agent, and the said Mullins in the capacity of bookkeeper and accountant. That each of the said defendants, by the acceptance of the compensations paid by plaintiff, contracted and agreed to use their time and best skill and ability in conducting said business for the benefit of plaintiff.

"(3) That plaintiff is the owner of an oil and gas mining lease upon a part of section 7 of block 5 of the Texas Pacific Railway Company lands in Stephens county, together with certain oil well tools, machinery, fixtures, equipment, and supplies connected therewith, and that plaintiff, subsequent to the 2d day of January, 1920, authorized and directed the defendant Hoad, as its superintendent, agent, and manager, to proceed with the drilling of a well for oil and gas upon said land for the benefit of plaintiff, and out of the funds and upon the credit of plaintiff to purchase such additional tools, machinery, equipment, and supplies, and pay for such labor as might be necessary or required for use in the drilling and completion of said well. *Page 492

"(4) That while so in the employ of plaintiff and while engaged in plaintiff's work and looking after plaintiff's business the defendant D. S. Hoad, at the same time, without the knowledge or consent of plaintiff, engaged in business for his own personal benefit and that of his codefendants Bertha Bethel and W. O. Mullins, in this: That on or about the 12th day of October, 1920, the said D. S. Hoad entered into a contract with defendant C. W. Harkrider for the furnishing of the necessary tools, labor, etc., and the drilling of a well for oil and gas upon a tract of land held under lease by the said Harkrider upon a part of the southeast quarter of the northwest quarter of section 8, of block 5, Texas Pacific Railway Company land, in which land and lease plaintiff had no interest.

"(5) That under the terms of his employment with plaintiff, the defendant Hoad had charge of plaintiff's property and funds, and had full authority to purchase equipment and supplies and to pay for labor out of the funds belonging to plaintiff, and that he and the said defendants Bertha Bethel and W. O. Mullins had contracted, agreed, and were in duty bound to account to plaintiff for all of said property and funds, and to devote their whole time to the said work and business of plaintiff.

"(6) That the defendants Hoad, Bethel, and Mullins, for the purpose of obtaining machinery, tools, equipment, and supplies for use in the drilling of said well, which the said Hoad had contracted to drill for his own personal use and benefit and for that of said Harkrider and others, the said D. S. Hoad, Bertha Bethel, and W. O. Mullins did take into their possession the following items of property belonging to plaintiff, which are enumerated in paragraph No. 15 of plaintiff's first supplemental petition, to wit: [Here the court enumerated the articles indicated.]

"(7) I find that the above-described property, at the time and place so taken by the defendants, was of the reasonable market value of $17,531.78, and that the defendants D. S. Hoad, Bertha Bethel, and W. O. Mullins converted the same, or the proceeds thereof, to their own personal use and benefit, and that plaintiff was thereby damaged in the said amount.

"(8) That, further, the defendants Hoad, Bethel, and Mullins did purchase, or cause to be purchased for the account of plaintiff, and either paid for themselves out of the funds of plaintiff, or caused plaintiff to pay for, the following items of property, as set out in paragraph 14 of plaintiff's first supplemental petition, to wit: [Here the court enumerated the articles indicated.]

"(9) That the last above described property was purchased and paid for by funds belonging to plaintiff; that the same was taken and converted by the defendants D. S. Hoad, Bertha Bethel, and W. O. Mullins to their own use and benefit, and that at the time and place so taken and converted said property was of the reasonable market value of $3,233.87, and that thereby plaintiff was damaged in the said amount.

"(10) I find that of the property belonging to plaintiff, the defendants, Hoad, Bethel, and Mullins, on or about the 28th day of April, 1920, sold to Mark Brannen 1,282 ft. 8 1/4" casing, for which they received the sum of $2,654.56; that on or about the 14th day of June, 1920, said defendants sold to Western Ex-Keoughan-Hurst Syndicate 7,319 feet of tubing, for which they received the sum of $3.639.96; that on or about the 24th day of February, 1920, said defendants sold to Jarecki Manufacturing Company 899 feet 9 inches of 5 3/16-inch casing (Byers 17 pounds) for which they received the sum of $1,214.66; and that on or about the 9th day of October, 1920, said defendants sold to Haile Knight 1,883 feet 3 inches of tubing, for which they received the sum of $646.89; the total of said sales aggregating the sum of $8,156.07

"(11) I find that the said property so sold by the defendants was the property of the plaintiff; that the said defendants received the proceeds thereof, and converted the same to their own use. I find further in this connection, however, that the said property so sold by the defendants has been included in the property listed under paragraph numbered 8 of these findings, as having been converted by the said defendants, and therefore the same is not here listed as a separate item or an additional charge against the said defendants.

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Bluebook (online)
243 S.W. 490, 1922 Tex. App. LEXIS 1111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoad-v-aritex-oil-co-texapp-1922.