Laycock v. Study

44 P.2d 220, 141 Kan. 756, 1935 Kan. LEXIS 233
CourtSupreme Court of Kansas
DecidedMay 4, 1935
DocketNo. 31,865
StatusPublished
Cited by1 cases

This text of 44 P.2d 220 (Laycock v. Study) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laycock v. Study, 44 P.2d 220, 141 Kan. 756, 1935 Kan. LEXIS 233 (kan 1935).

Opinion

[757]*757The opinion of the court was delivered by

Thiele, J.:

This was an action for an accounting between plaintiff and defendant on account of a claimed partnership.

Omitting formal parts, the petition alleged that plaintiff and defendant entered into an oral agreement to become partners in the business of buying, selling and operating oil and gas leases; that each should devote his time to the business, and leases taken in the name of either should belong to the partnership; that all commissions earned by either should be divided, except commissions paid either for securing leases in territories designated by oil companies in advance of securing such leases, and that there was no agreement as to the duration of such partnership; that oil and gas leases were taken and sold and partial division of profits and losses made; that no other agreement was entered into relative to the partnership and there had been no dissolution of it and no final accounting; that defendant by a series of transactions, the exact nature of which was unknown to plaintiff, had secured a lease of certain lands (the Haury lease hereafter mentioned); that while the lease stood in defendant’s name it was in truth partnership property, and defendant had been collecting approximately $1,000 per month therefrom; that defendant had received at least $-over his due proportion of partnership profits and appropriated same to his own use. The prayer was for an accounting. Defendant’s verified answer denied any partnership and that plaintiff was entitled to an accounting; that the transactions between plaintiff and defendant were limited solely to individual instances of purchase and sale, and that plaintiff had received his full compensation therefor. Laches and the bar of the statute of limitations were pleaded. Plaintiff’s reply denied inconsistent allegations of the answer, alleged joint ownership of the property described in the petition; that plaintiff trusted and relied upon defendant as he handled other property of like kind and character and plaintiff had done nothing to waive or forego his interest in the partnership property.

The trial court made findings of fact and conclusions of law as follows:

“Plaintiff and defendant for some years prior to June, 1928, had each been engaged in procuring and selling or otherwise dealing in oil and gas leases and royalties in the state of Kansas. Each of the parties had acted in the capacity of representatives of oil companies or individuals interested in the oil busi[758]*758ness in procuring oil and gas leases and royalties, and they had also been engaged in such business on their own accounts.
“In the spring of 1928 they began to operate jointly with each other, agreeing that they would take jointly and own and dispose of such leases in the Halstead field as they might agree upon, get an office and divide the expense. One or both of the parties then leased an office and bought some secondhand furniture, each contributing half of the cost. They also had a sign posted on their window reading: ‘E. L. Study and E. L. Laycock, Oil and Gas Leases and Royalties.’ Their arrangement did not contemplate either drilling or operating any wells.
“After leasing this office in July, 1928, each continued to purchase leases for companies they represented individually, bought some leases jointly, each contributing half of the cost, taking some of them in the name of E. L. Laycock, the wife of the plaintiff, and some in the name of E. L. Study. Leases were never taken in the name of the two jointly. They did not maintain a joint bank account and no joint books of account were kept; the only indication as to the ownership of the leases was contained in a wall map. Fifteen or twenty leases were handled in this manner and always after consultation between the parties, and where one or the other was not interested, the lease, if taken, would be handled separately.
“Generally settlement between the parties was made after each lease deal was completed, but where the deal was not completed at once they were carried on a list of leases prepared by one or the other and submitted to the other party.
“During October or November, 1928, a disagreement arose which resulted in a declaration that they would not have any more joint deals and thereafter they dealt individually, and no further leases were obtained or handled jointly, although the parties continued to office in the same.room.
“In August, 1928, one Daniel Haury executed an oil and gas lease covering all his undivided one-half interest in the west half of section 1, township 23 south, range 4 west of the sixth principal meridian, for a consideration of $160 rental per year, leaving the same with the Farmers State Bank of Hal-stead to be delivered to plaintiff upon his paying $160. Nothing further was ever done with this lease and it remained in the bank until, the trial of this case.
“In March of 1929 the defendant, Study, and one D. H. Lehman, after some discussion with Haury over whether it was to be in one piece or in eighty-acre divisions, finally agreed to purchase the lease on the half section in quarter-section tracts for a ten-year term at $1 per acre. The lease was executed by Daniel Haury ■ and left at the bank to be executed by the other owners. Further negotiations were necessary before Carl Haury, guardian of certain minor .owners, consented, but the lease was finally signed in December, 1929, and the consideration agreed upon and paid. While the lease was taken in the name of E. L. Study as lessee, it was owned jointly by Study and D. H. Lehman, Lehman furnishing the capital, apparently. Later the south half was sold to an oil company by Study and Lehman. This oil company made an arrangement with Study to drill upon this south half, which was done. Later [759]*759Study acquired Lehman’s interest in the remaining quarter section by purchase, which was drilled, oil and gas being found on both quarters.
“Sometime in June, 1929, the plaintiff moved to the state of Colorado, turning over his desk in the office to another, and no correspondence was had between plaintiff and defendant relative to any of the oil leases from then on. Plaintiff engaged in the oil business in Colorado on his own account and apparently lost interest in the Halstead field. Plaintiff never claimed an interest in the Haury lease until after it became valuable.”
"conclusions of law
“1. No partnership was entered into between plaintiff and defendant, the business transactions between the parties being limited to joint ownership of certain oil and gas leases.
“2.' The Haury lease involved herein was not jointly owned by the plaintiff and defendant at any time.
“3. Plaintiff is further barred by laches from obtaining the relief sought herein.”

Judgment was rendered accordingly. Plaintiff’s motion for a new trial was denied, and he appeals, the questions presented depending largely on his contention the undisputed evidence showed a partnership existed.

Space forbids that a complete statement of the evidence, which as abstracted consists of 85 pages of abstract and 50 pages of counter abstract, be made to demonstrate in detail the merit or lack of merit of appellant’s contention. We shall limit the matter.

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Related

Williams v. Gilbert
72 P.2d 955 (Supreme Court of Kansas, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
44 P.2d 220, 141 Kan. 756, 1935 Kan. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laycock-v-study-kan-1935.