Lewis v. Phillips

114 S.W.2d 864, 131 Tex. 313, 1938 Tex. LEXIS 308
CourtTexas Supreme Court
DecidedMarch 30, 1938
DocketNo. 7060.
StatusPublished
Cited by3 cases

This text of 114 S.W.2d 864 (Lewis v. Phillips) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Phillips, 114 S.W.2d 864, 131 Tex. 313, 1938 Tex. LEXIS 308 (Tex. 1938).

Opinion

Mr. Judge German

delivered the opinion of the Commission of Appeals, Section A.

A. W. Phillips on May 22, 1931, was owner of an oil and gas lease on five acres of land in Rusk County. On that date he entered into a contract with W. G. Boone to drill an oil well on the land covered by the lease. Phillips was to furnish derrick, fuel, water, casing, cement and other fixtures and appliances for the control of the well. Boone was to furnish rig and the labor and materials necessary in drilling the well. Phillips was to pay as a consideration for drilling the well $2.50 per foot, payable in stated amounts.

On June 5, 1931, Boone assigned this contract to the T & T Drilling Company. Phillips consented in writing to this assign *315 ment. On June 21, 1931, T & T Drilling Company assigned the contract to Albert Baggett. Phillips did not consent in writing to this assignment. Baggett drilled the well to a depth of about two thousand feet, and then assigned the contract to H. E. Lewis and F. G. Swanson. Phillips did not consent in writing to this assignment. These parties did some work on the well, but were unable to complete it, and Phillips finally drilled it to completion and production.

On October 10, 1931, Albert Baggett, H. E. Lewis and F. G. Swanson, in an attempt to fix a lien upon the lease and leasehold interest of Phillips, filed with the County Clerk of Rusk County duplicate copy of the contract between Phillips and Boone of date May 22, 1931. To the contract was attached assignment by Boone to T & T Drilling Company, reciting a consideration of $500, to be paid out of money paid for drilling the well. There was also attached agreement between Phillips and Boone providing for an extension of time in which to begin the well, and providing that Phillips was to receive one-half of the $500 payment retained by Boone. There was also attached to the contract the assignment by T & T Drilling Company to Albert Baggett, and the assignment by Albert Baggett to H. E. Lewis and F. G. Swanson. This last contract recited that the $1000 payment to be made by Phillips when the well was spudded in, the $1000 payment to be made when a depth of one thousand feet had been reached, and the $1000 payment to be made when a depth of two thousand feet had been reached, had been paid or were to be paid to Baggett. It was further provided by said agreement that Lewis and Swanson were to take the place of Baggett under the contract for the completion of the well; and certain provisions were made for distribution of the balance of payment to be made by Phillips. As above stated, there was nothing in writing to show that Phillips assented to these last two assignments.

Along with these instruments Baggett, Lewis and Swanson attached an affidavit showing balance claimed by them as due under the contract and showing to whom the same was to be allocated. There were also letters and statements attached showing numerous unpaid accounts of various parties.

This suit was originally instituted by A. W. Phillips as plaintiff against Lewis and others for the purpose of clearing title to the lease from the apparent cloud by reason of the attempted creation of a lien. Lewis and others answered and filed cross action, by which they sought to recover of Phillips personally a large sum of money, and to enforce a statutory lien against *316 the leasehold interest. Shortly after the filing of the papers above mentioned Phillips assigned the lease to W. V. Lester for benefit of the Trico Oil Company, and they came into the suit by way of intervention. Plaintiff dismissed his suit, and the case proceeded against him and against Trico Oil Company and W. V. Lester as defendants; Lewis, Baggett, Swanson and others being regarded as plaintiffs.

Judgment of the trial court was in favor of the plaintiffs against Phillips personally for sums aggregating several thousand dollars, but was against the plaintiffs and in favor of W. V. Lester and Trico Oil Company in so far as allowing plaintiffs a statutory lien against the lease. Upon this question alone the plaintiffs appealed. As Baggett, Lewis and Swanson alone attempted to fix lien under the statute by filing contract and affidavit, it is wholly unnecessary to consider the judgment as to other parties.

The Court of Civil Appeals in affirming judgment of the trial court held that plaintiffs failed in their attempt to fix a lien upon the lease because the contract and affidavit filed with the county clerk were recorded in the deed records of Rusk County rather than in the record kept for the recording of mechanic’s and other liens. 90 S. W. (2d) 310. Upon this holding of the Court of Civil Appeals writ of error was granted.

We do not find it necessary to discuss the interesting question. thus presented, because after a careful examination of the record we are of the opinion that Baggett, Lewis and Swanson failed to show they had fixed a lien under the statute. Article 5473 of Vernon’s Revised Civil Statutes, as amended in 1929, and which is applicable, is as follows:

“Any person, corporation, firm, association, partnership; artisan, materialman, laborer or mechanic, who shall, under1 contract, express or implied, with the owner of any land, mine or quarry, or the owner of any gas, oil or mineral leasehold interest in land, or the owner of any gas pipe line or oil pipe line, or the owner of any oil or gas pipe line right-of-way, or with the trustee, agent or receiver of any such owner, perform labor, furnish or haul material, machinery or supplies used in digging, drilling, torpedoing, operating, completing, maintaining or repairing any such oil or gas well, water well, mine or quarry, or oil or gas pipe line, shall have a lien on the whole of such land or leasehold interest therein, or pipe line, or gas pipe line, including the right-of-way for same, or lease for oil and gas purposes, the buildings and appurtenances, and upon the materials and supplies so furnished or hauled, and upon *317 said oil well, gas well, water well, oil or gas pipe line, mine or quarry for which the same are furnished or hauled, and upon all of the other oil wells, gas wells, buildings and appurtenances, including pipe line, leasehold interest, and land used in operating for oil, gas and other minerals, upon such leasehold or land or pipe line and the right-of-way therefor, for which said material and supplies were furnished or hauled or labor performed. Provided, that if labor, supplies, machinery or material is furnished to or hauled for a leaseholder, the lien hereby created shall not attach to the underlying fee title to the land.”

By Article 5476 it is provided that such a lien may be fixed by the method set out in Article 5453, which provides the manner of fixing other liens. The pertinent portions of said article are as follows:

“1. Every original contractor, within four months, and every journeyman, day laborer, or other person, within three months after the indebtedness accrues, shall file his contract in the office of the county clerk of the county where the property is situated to be recorded in a book kept by the county clerk for that purpose.

“2.

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Bluebook (online)
114 S.W.2d 864, 131 Tex. 313, 1938 Tex. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-phillips-tex-1938.