Lambert v. Gant

290 S.W. 548
CourtCourt of Appeals of Texas
DecidedNovember 13, 1926
DocketNo. 11638.
StatusPublished
Cited by4 cases

This text of 290 S.W. 548 (Lambert v. Gant) 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
Lambert v. Gant, 290 S.W. 548 (Tex. Ct. App. 1926).

Opinion

CONNER, C. J.

This suit was instituted by appellant, B. Lambert, in the district court of Wichita county on the 6th day of August, 1925, complaining of G. N. Gant and wife, Emma Gant, and W. P.*' Stokes and wife, Annette Stokes, alleging that on or about the 20th day of October, 1924, the plaintiff and defendants entered into “a written agreement” whereby the defendants agreed to execute and deliver to the plaintiff in escrow with the Wichita State Bank <& Trust Company, of Wichita Falls, an oil and gas lease on what is commonly known as “producers’ 88 form,” on a tract of land described in the petition, and alleged to have been owned, jointly by the defendants; a copy of the contract being attached to the petition as an exhibit. It was further alleged that, as a consideration for the delivery of the said oil and gas lease, the plaintiff agreed to commence the drilling of a well for oil or gas on a tract of land near that described in the lease, and, after beginning the same, to prosecute such drilling with reasonable diligence until the well should be, completed,to a depth of 1,800 feet, *549 unless oil or gas should be discovered at a lesser depth; that the contract further provided that, if the plaintiff should in good faith begin operations for drilling said well within the time specified, then said Wichita State Bank & Trust Company was authorized to deliver the lease to the plaintiff.

It was alleged that the lease in the form specified in the contract had been executed by defendant G. N. Gant and his wife, Emma Gant, and AV. P. Stokes, and deposited with the bank in escrow, but that the same had not been signed or executed by the defendant Annette Stokes; that, after the plaintiff had commenced the drilling of a well as provided for in said contract, “he had a purchaser for said 50-aere lease, and, upon investigation at the bank, the escrow holder, he discovered that said lease had in fact not been signed by the defendant Annette Stokes, and the defendants and each of them and through their agents upon inquiry by plaintiff had told plaintiff that said lease had been signed by all of said defendants and had been placed in escrow with said bank, and plaintiff, relying on the statements that the lease had been executed as represented and as called for in the contract, began the operations of said lease and prosecuted the same with due diligence to its completion, and through the fraud and misrepresentations on the part of the defendants that said lease had been executed in legal form plaintiff was unable to m'ake title to said lease and was thereby damaged in the sum of $5,000, the reasonable market value of said lease after the well was commenced; that, if defendants had delivered said lease in due and legal form, with all the signatures of the defendants, he could have sold the same for the sum of $5,000 cash, and, although often requested, defendants and each of them have failed and refused to pay' the same, to his damage in the sum of $5,000; that defendants and each of them, by virtue of said written contract, became obligated and bound and promised to deliver said lease with all the signatures for a valid lease to said land to plaintiff, and thereby became liable to plaintiff for the damages incurred; * * * that plaintiff relied on the representations of defendants and their agents that said lease had been signed and acknowledged by all parties concerned, and acted on such representations and began the drilling of said well as he had contracted and spent his money for the drilling of the same, and in good faith believed said representations of defendants to be true, and, if said representations had been true, plaintiff would have been able to sell said 50-acre lease for the price above specified, and through the fraud and misrepresentations on the part of defendants plaintiff is damaged in the sum- of $5,-000 as aforesaid,” for which he prayed judgment.

The contract declared upon and attached to the petition as an exhibit reads and is signed as follows:

“The State of Texas, County of Wichita.
“Know all men by these presents: That this escrow agreement, made and entered into this 20th day of October, 1924, by and between W. P. Stokes and wife, Annette Stokes, G. N. Gant and wife, Emma Gant, party of the first part, and B. Lambert, party of the second part, wit-nesseth:
“(1) That party of the first part is the owner of a certain tract of land in Archer county, Tex., fully described in the original .lease hereto attached. ■
“(2) That party of the second part has agreed to begin operations for the drilling of a well on the following described tract of land: Block 66 Lula P. Hunt subdivision of Brazos county school lands of W. P. Coleman ranch — Said well to be drilled in the southeast corner of said above-described tract of land, on or before 30 days after approval of title to said land,’ and that, after having begun said operations, to prosecute them with reasonable diligence until said well is completed to a depth of 1,-800 feet, or to what is known as the ‘big lime,’ if same is found at a lesser depth, unless oil or gas is found in paying quantities at a lesser depth; and, in case said operations are not begun within said time, or are not prosecuted with reasonable diligence, or is not drilled to oil or gas in paying quantities or to a depth of 1,800 feet, unless the ‘big lime’ is encountered at a lesser depth, then, as liquidated damages the lease hereto attached shall be forfeited to the lessors, and this contract to become null and void as to both parties.
“(3) Party of the first part is to execute an oil and gas lease on what is commonly known as a producers’ form 88, to second party, which said lease is to be placed in escrow, together with this contract, in the Wichita State Bank & Trust Company, of Wichita Falls, Tex. If second party shall in good faith begin operations for drilling of said well within the time above specified, then said bank is authorized to deliver the attached lease to second party; but, upon failure to so begin operations, same shall be returned to first party as undelivered, and shall thereafter be of no force and effect.
“(4) Party of the first part agree to furnish an abstract of title brought down to date for examination purposes only, covering the land described in attached lease, showing good and merchantable title in him, in and to the oil and gas mineral rights upon the land' described in attached lease, and should said title be found not good and merchantable in first party, and he is unable to perfect the same within a reasonable time this contract shall wholly terminate as to both parties hereto.
“Witness our hands this - day of January, 1924. W. P. Stokes,
“G. N. Gant,
“First Parties.
“B. Lambert,
“Second Party.”

The defendant answered by a general denial and specially that the lease had been forfeited by the failure of plaintiff to drill the well as specified in the contract or to pay rentals due on the lease May 7. 1923.

The case was submitted to a jury on spe *550

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

Related

Kadane v. Clark
134 S.W.2d 448 (Court of Appeals of Texas, 1939)
Lindsay v. Texas Iron & Steel Co.
9 S.W.2d 287 (Court of Appeals of Texas, 1928)
Taylor v. Higgins Oil & Fuel Co.
2 S.W.2d 288 (Court of Appeals of Texas, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
290 S.W. 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lambert-v-gant-texapp-1926.