Hunt v. State

48 S.W.2d 466
CourtCourt of Appeals of Texas
DecidedFebruary 24, 1932
DocketNo. 7732
StatusPublished
Cited by35 cases

This text of 48 S.W.2d 466 (Hunt v. State) 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
Hunt v. State, 48 S.W.2d 466 (Tex. Ct. App. 1932).

Opinion

BAUGH, J.

Appeal ,is from an 'order appointing a receiver of. property situated in Rusk county, Tex., with power to take possession of, oper'ate, develop, and collect royalties on, a tract of land' on which was situated an oil well, pending a determination óf the suit upon its merits.. Suit was filed by the state on. December 3, 193Í, against numerous parties, asking for a receiver. This petition was not .verified. On'December 4,; 1931, Joe Leé and Richard Yett). two, ,of Alie defendants, 'answered by verified .cross-action, also asking for a receiver. On the same, date, i. e., December 4th, in vacation, the trial court, entered an order appointing Geo. Si Matthews receiver, reciting that the appointment was based upon the state’s application.’ On December 12th, that, order wás modified as to the powers of .the receiver. Op December 15th, appellants.’prosecuted .this appeal,'

Since said appeal hás been filed .in thjs .court,, the defendants. Lee and Yett. have asked 'for writ, of certiorari to bring up, as a part of the record, an amended order of the trial court entered on December 22, 193Í, in term timé. Both' the -original order of December 4th,' and that of December 22d, wore entered ex parte without notice to appellants. The first question presented is whether the state and the defendants Lee, and Yett. are entitled t-o have the "amended order of December 22, 1931, considered ás' a part of th'e record on appeal.

The obvious purpose of the application for writ of certiorari is. that, in the event the receivership appointment, cannot -be sustained upon the application of the state, then that [468]*468the application of Lee and Yett for such receivership be considered; and if so considered it is contended that the latter is sufficient to sustain the appointment. Since, however, we have concluded that the record discloses sufficient grounds to authorize such appointment by the trial court on the application of the state, the application for cer-tiorari becomes immaterial.

Authorities are numerous to the effect that appointment of a receiver without notice to the adverse party is one of the most drastic remedies known to the courts and should be exercised only in extreme cases, where the right thereto is clearly shown, and then in the exercise of great caution by the court. Zanes v. Lyons (Tex. Civ. App.) 36 S.W.(2d) 544, 545, and eases there cited; 53 C. J. 59; 23 R. C. L. 18. Of necessity the exigency for such appointment must depend upon the facts of the particular case.

In this case the state alleged, in the alternative to its action in trespass to try title to the land in question, that said lands had for several years prior to July, 1931, been within the enclosure of Joe Lee; that during said July, 1931, under authority of House Bill No. 358, enacted by the Forty-Second Legislature, at its Regular Session (chapter 271 [Vernon’s Ann. Civ. St. art. 5421c]), giving him priority, the said Joe Lee applied to the land commissibner to purchase said lands from the state; that same were sold and patented to him by the state as mineral lands, wherein the state reserved one-sixteenth of the oil and gas as a free royalty; that the said Joe Lee and his assigns were obligated to the state to protect such minerals retained by the state from drainage and loss, to develop same, and to account to the state for its royalty, but had failed and neglected to do so; that H. L. Hunt and H. L. Hunt, trustee, as trespassers had entered upon said lands, drilled a well thereon, and were extracting large quantities of oil and gas from said land without accounting to the state for same; the amount thereof being unknown to the state.

The fifth paragraph of said petition reads as follows: “All of the lands above described are surrounded by producing oil and gas wells so that the oil and gas to which the State is entitled is being drained from under said land by wells on adjoining tracts of land, and it has become and is the duty of the defendants Joe Lee and Richard Yett to develop said land for oil and gas and to pay the State its royalty on the production secured therefrom in order to prevent the oil and gas from being drained through wells on adjoining tracts of land; that said defendants have wholly failed and refused to develop said land or to protect the State’s interest therein, and as a result the interest of the State is being dissipated and destroyed through drainage from wells on adjoining lands, and the defendants H. L. Hunt and H. -L. Hunt, Trustee, are, as trespassers on the tract of land first above described, actually taking from the land oil and gas belonging to the State without aecounting therefor, so that it becomes and is necessary for the protection of the State’s interest that a. receiver be appointed to take full possession and control of all of said lands with authority to produce and save oil from the well that has already been drilled thereon by the defendants H. L. Hunt and H. L. Hunt, Trustee, and with authority to lease said lands to persons or companies who will drill the same for "oil and gas and who will produce oil and gas therefrom and account to the State for its royalty.”

Following this was the prayer for immediate appointment of a receiver to take charge of the property, to conserve the state’s interest, and to develop same through leases or contracts so as to recover the oil and gas thereunder belonging to the state.

While the allegations of the state’s petition were not as full and explicit as they might have been, we think they sufficiently set forth grounds to bring the application within the provisions of subdivision 1 of article 2293, R. S. 1925. It is not essential that the application for appointment of a receiver, as a pleading, be verified. An appointment ex parte, based upon such application alone, without hearing evidence as to the facts alleged, cannot be sustained unless such application is verified and sets out fully the facts relied upon. S. W. Grain & Hay Co. v. Continental Ins. Co. (Tex. Civ. App.) 240 S. W. 686; Zanes v. Lyons, supra. When so verified it is competent evidence, in an ex parte hearing, of the facts stated.

While the state’s application was not sworn to, there appears in the record the verified cross-action of Lee and Yett, filed on December 4, 1931, setting out in detail the grounds alleged by the state, showing that the failure of Lee and Yett to develop said oil and gas lands was due to the action of appellants; that in addition to the well on said lands, appellants and others had wells on adjoining tracts which were producing oil and gas from a structure higher than that found on the lands here involved, and which were unduly draining said lands. That the controversy over the ownership of such lands prevented said Lee and Yett from developing said lands and conserving and producing the oil and gas underneath same; that the oil was being constantly drained and the gas dissipated into the air, which facts demanded immediate action under the supervision of the court, through a receiver, to protect their interests and those of the state with which they were jointly concerned.

This verified cross-action of Lee and Yett [469]*469was introduced in evidence by the state and is brought up as a statement of facts, bearing the certificate of the court that he considered it as evidence in passing upon the state’s application. Considered as such, it was clearly sufficient to authorize immediate appointment of such receiver.

When appointment of a receiver on the grounds stated in any of the first three subdivisions of article 2293, R. S.

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48 S.W.2d 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-state-texapp-1932.