Jackson v. Pure Oil Operating Co.

217 S.W. 959, 1919 Tex. App. LEXIS 1294
CourtCourt of Appeals of Texas
DecidedOctober 18, 1919
DocketNo. 9143.
StatusPublished
Cited by12 cases

This text of 217 S.W. 959 (Jackson v. Pure Oil Operating 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
Jackson v. Pure Oil Operating Co., 217 S.W. 959, 1919 Tex. App. LEXIS 1294 (Tex. Ct. App. 1919).

Opinion

DUNKLIN, J.

On August 18, 1916, I. N. Jackson and wife executed to the Pure Oil Operating Company what is commonly termed an oil and gas lease to 1,540 acres of land situated in Callahan county. On May 4, 1918, the lease was duly assigned to the Ohio Cities Gas Company, the assignment being made by the board of directors of the Pure Oil Operating Company, which 'company had theretofore been dissolved and had surrendered its corporate charter. This suit was instituted by I. N. Jackson against the Pure Oil Operating Company and the Ohio Cities Gas Company to cancel the lease, and from a judgment denying him the relief sought, he has prosecuted this appeal.

The suit was returnable to the September term of court for the year 1918, and September 17th was appearance day. On September 23, 1918, a judgment by default was rendered in favor of the plaintiff against both defendants, no answer having been filed by either of those defendants at that time, and both of them having been duly cited to appear and answer at that term. But on September 24, 1918, the Ohio Cities Gas Company did file an answer, and on the following day that defendant filed a motion to set aside the judgment by default rendered against it, which motion was duly heard and sustained on Oc *960 tober 1, 1918. And by the order granting that motion, it was also decreed that the judgment by default against the Pure Oil Operating Company be also canceled and set aside. Error has been assigned to the action of the court in setting aside the judgment by default and in granting a new. trial, which resulted in the judgment from which this appeal has been prosecuted.

[1] It seems that when the case was called for trial on appearance day an order was made setting it for trial on its merits for October 1st following. This setting of the case was at the instance of the plaintiff’s counsel and in compliance with an agreement with the attorney for the Ohio Cities Gas Company, to allow the latter further time for filing an answer for that defendant. Following that setting, counsel for that defendant agreed to file an answer by a certain date in September which was prior to the date of the default judgment. The answer was prepared and mailed in time to have complied with that agreement, but through inadvertence and mistake of counsel was misdirected in the mails, and on account of that mistake the answer was not filed until one day after the default judgment was rendered. Under the circumstances related, the trial court did not abuse the discretion vested in him by law to set aside the judgment by default against the Ohio Cities Gas Company. Field v. Fowler, 62 Tex. 65; Travelers’ Ins. Co. v. Arant, 40 S. W. 853; Combination Fountain Co. v. Rodgers, 186 S. W. 407; Belknap v. Groover, 56 S. W. 249.

[2, 3] The record shows conclusively that prior to the institution of the suit the Pure Oil Operating Company had been dissolved, and its title to. the lease had passed to the Ohio Cities Gas Company. The only relief sought by plaintiff against the Pure Oil Operating Company was the cancellation of the lease originally given to that company; no money judgment being requested. As held by the trial court, plaintiff showed no valid ground for a cancellation of the lease as against the Ohio Cities Gas Company, the assignee of the lease. No useful purpose could have been accomplished by permitting the judgment by default against the Pure Oil Operating Company to remain undisturbed, and the order setting aside that default judgment was harmless at all events. Indeed, if final judgment in favor of the Ohio Cities Gas Company was correct and should be affirmed, as we have decided should be done, then it was entirely proper to set aside the default judgment against the other defendant, and also deny a judgment against it upon final hearing in the absence of any appearance or answer by that defendant at any time,, since such a judgment could have no other purpose than to cast a possible cloud 'upon the title of the Ohio Cities Gas Company to the lease in controversy.

The lease in controversy contained a recital of the payment to the grantors of the sum of $160 cash. A further consideration expressed in the lease was as follows:

“Lessee agrees to begin operations for the drilling of a well upon the described premises within one year from date hereof or hereafter to pay to the lessors the sum of $160 per an-num quarterly in advance until a well is commenced or until the end of the five-year term hereof as a rental and complete remuneration to the lessors for delay.”

The lease contains this further provision:

“In consideration of the money paid at the delivery hereof, and the payment of lease rentals above mentioned, lessee acquires and has the right and option to surrender this grant at any time upon the payment of the sum of one dollar, and all amounts then due hereunder, and thereafter be released and discharged from all payments, obligations and covenants herein contained; whereupon this grant shall become null and void, or to continue the same in full force and effect from quarter to quarter and from year to year by making the stipulated payments which lessors hereby bind themselves to accept when tendered.”

In addition to the cash consideration .of $160 received by plaintiff at the time the lease was executed to the Pure Oil Operating Company, he also received the three quarterly payments of rentals of $40 each, provided for in said lease, for nine months, beginning August 18, 1917, and ending May 18, 1918. On May 1, 1918, the Ohio Cities Gas Company, the assignee of the lease, offered to plaintiff another quarterly payment of $40 for the period beginning May 18, 1918, and ending August 18, 1918, but plaintiff refused to accept that offer, and repudiated the lease on the ground, as stated in his testimony in substance upon the trial, that the Ohio Cities Gas Company was not a party to the original lease, but was a stranger thereto. Later and prior to May 18, 1918, the company last named made a tender of $40 as rental for the quarter beginning May 18, 1918, .but this tender was likewise refused.

[4] It cannot be denied that the $160 received by plaintiff at the time the lease was executed ■ and the $120 received later for rentals constituted a valuable consideration to support the lease, and, this being true, appellant’s contention that his contract with the original lessee was unilateral and therefore void must be overruled. Even though, by the terms of the further stipulation in the lease, the lessee was given the right to surrender the lease at any time upon the payment of a consideration of $1 and all rentals then due, yet, since the lessee had paid a valuable consideration for such option, his right to continue the lease in full force for five years was none the less enforceable. National Oil & Pipe Line Co. v. Teel, 95 Tex. 586, 68 S. W. 979; McEntire v. Thomason, 210 S. W. 563; Aycock v. Reliance Oil Co., 210 S. W. 848; *961 Guffey v. Smith, 237 U. S. 101, 35 Sup. Ct. 526, 59 L. Ed. 856; 36 Cyc. 625.

The lease contains this further stipulation:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Clayton Williams Energy, Inc. v. BMT O & G TX, L.P.
473 S.W.3d 341 (Court of Appeals of Texas, 2015)
Moore v. Wilson
138 S.W.2d 1099 (Court of Appeals of Texas, 1940)
Craddock v. Sunshine Bus Lines, Inc.
133 S.W.2d 124 (Texas Supreme Court, 1939)
Harris v. Goodloe
58 S.W.2d 156 (Court of Appeals of Texas, 1933)
Bryson v. Fuller
279 S.W. 488 (Court of Appeals of Texas, 1925)
First Nat. Bank of Morgan v. Southwest Nat. Bank of Dallas
273 S.W. 951 (Court of Appeals of Texas, 1925)
Panhandle Refining Co. v. Swope
241 S.W. 597 (Court of Appeals of Texas, 1922)
Morris v. Texas Pacific Coal & Oil Co.
228 S.W. 981 (Court of Appeals of Texas, 1921)
Burt v. Deorsam
227 S.W. 354 (Court of Appeals of Texas, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
217 S.W. 959, 1919 Tex. App. LEXIS 1294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-pure-oil-operating-co-texapp-1919.