L. H. Mitchel & Sons v. Benwell

249 P. 30, 79 Cal. App. 222, 1926 Cal. App. LEXIS 166
CourtCalifornia Court of Appeal
DecidedAugust 26, 1926
DocketDocket No. 5576.
StatusPublished
Cited by1 cases

This text of 249 P. 30 (L. H. Mitchel & Sons v. Benwell) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L. H. Mitchel & Sons v. Benwell, 249 P. 30, 79 Cal. App. 222, 1926 Cal. App. LEXIS 166 (Cal. Ct. App. 1926).

Opinion

STURTEVANT, J.

The trial court caused a judgment to be entered against the defendants for moneys due under a written contract. The appellants made a motion to vacate the judgment and enter a judgment in favor of defendants and the motion was denied. They made a motion for a new trial and the motion was denied. Thereafter they appealed under section 953a of the Code of Civil Procedure. The findings followed the pleadings and fully state the facts. They are as follows:

“I.
“That it is true that plaintiffs, L. H. Mitchel, Hoyt H. Mitchel and Glen H. Mitchel are co-partners doing business under the firm name and style of L. H. Mitchel & Sons.
“II.
“That it is true that the defendants, John L. Benwell and Mary A. Benwell, are now and for all the times mentioned in the within action have been husband and wife.
“III.
“That it is true that on or about the 19th day of November, 1922, defendant John L. Benwell made and entered *224 into a contract in writing with plaintiffs, in words and figures as follows, to-wit:
“ ‘San Francisco, Calif.
“ ‘November 19th, 1922.
“ ‘L. H. Mitchel & Sons,
“ ‘803 Stock Exchange Building,
“ ‘Los Angeles, Calif.
‘ ‘ ‘ Gentlemen:—
“ ‘In consideration of your agreement to assume the indebtedness of Messrs. Casteel & Hitchcock in connection with their operations of Benwell No. 2 and your agreement to take over the development of this oil well and bring it into production, paying the entire cost thereof, I hereby agree to contribute Seventy-five Hundred Dollars ($7500.00) providing your expenditures aggregate a cost of Fifty Thousand Dollars ($50,000.00) or in like ratio in the event the expenditure is a lesser sum. This money to be paid to you through whatever bank is designated as my depository and dispensing agent.
“ ‘The amount of Seventy-five Hundred Dollars ($7500.00) is to be paid to you out of the first production, but not more shall be taken each month than is earned by ten points (10) of my thirty-three and one-third points (33%) Royalty.
“ ‘This is in no sense an assignment, but is merely an admission of an obligation to pay you the above sum on the above conditions.
“ ‘This writing has no relationship to my lease in any sense and when the full Seventy-five Hundred Dollars ($7500.00) shall have been paid, I am free of all indebtedness and obligation to you.
“ ‘This agreement is to be on the condition that the control of all operations shall not be exclusive but shall be jointly as between yourself and Casteel & Hitchcock and this provision shall apply to all expenditures incidental to the completion of said well and bring the same to production.
“ ‘The well referred to is known as Benwell No. 2, and is located on Lots six (6) and seven (7) of La Reina Place, a subdivision of a portion of Lot Eighty-five (85) of the American Colony Tract, Los Angeles County, State *225 of California, as per map recorded in Book 11, Page 104 of Maps, in the office of the Recorder of said County.
“ ‘Very respectfully yours,
“ ‘ (Signed) John L. Benwell.’ /‘IV.
“That it is true that subsequent to the date of said contract plaintiffs entered into an agreement with two certain parties, to-wit: Messrs. W. T. Casteel and H. H. Hitchcock, in connection with and relative to the operations of drilling a certain oil well known and designated as ‘Ben-well No. 2,’ and located on that particular real property described as Lots Six (6) and Seven (7) of La Reina Place, a subdivision of a portion of Lot Eighty-five (85) of the American Colony Tract, Los Angeles County, State of California, as per map recorded in Book 11, Page 104 of Maps, in the office of the Recorder of said County.
“V.
“That it is true that plaintiffs, pursuant to an agreement with said parties, Messrs. W. T. Casteel and H. H. Hitchcock, agreed to assume and take over the development and the drilling of an oil well for the production of oil on said property described, and to bring in to production, if possible, a well on said property, and to pay the entire cost thereof; and that it is true that plaintiffs did take over said operations of said well on said property described, and did pay out and expend from plaintiffs’ own funds all of the necessary moneys to develop said oil well on said property, and did, subsequent to the date of said contract herein set forth, to wit: November 19, 1922, complete the drilling of a well on said property, and cause the same to be brought into production of petroleum oil; and it is true that said well on said property is now and has since December, 1922, been producing oil from said property.
“VI.
“That it is true that plaintiffs laid out and expended a sum in excess of $50,000.00 for necessary and proper expenditures for the drilling of said oil well on said property described, and that plaintiffs did, in fact, expend a sum in excess of $75,000.00, to wit: approximately the sum of $76,585.29, for the drilling of said oil well and in *226 order to place the same on production and to produce oil therefrom.
“VII.
“That it is true that defendants have received from the oil produced on said property a sum equal to the sales price of 33%% of the oil produced therefrom, or a 33%% royalty.
“VIII.
“That it is true that said well had been producing for a period in excess of one month prior to the date of the filing of the complaint in the within action, and that it is true that ten points of defendants 33%% royalty of said oil produced from said property at the date of filing the within complaint, exceeded in amount the sum of $7500.00.
“IX.
“That it is true that plaintiffs have kept and performed all of the terms and conditions of said contract to be by plaintiffs, or either of them, kept and performed.
“X.
“That it is true that defendant John L. Benwell failed and refused to keep and perform terms and conditions of said contract, to be by said defendant kept and performed, and said defendant breached said contract.
“XI.
“That it is true that plaintiffs demanded of defendants the payment to plaintiffs of the sum of $7500.00; and that it is true that said $7500.00 has not been paid plaintiffs by defendants, or otherwise.

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Cite This Page — Counsel Stack

Bluebook (online)
249 P. 30, 79 Cal. App. 222, 1926 Cal. App. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-h-mitchel-sons-v-benwell-calctapp-1926.