McDaniel v. Rose

315 S.W.2d 368, 1958 Tex. App. LEXIS 2157
CourtCourt of Appeals of Texas
DecidedJune 27, 1958
DocketNo. 3356
StatusPublished
Cited by3 cases

This text of 315 S.W.2d 368 (McDaniel v. Rose) 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
McDaniel v. Rose, 315 S.W.2d 368, 1958 Tex. App. LEXIS 2157 (Tex. Ct. App. 1958).

Opinion

WALTER, Justice.

The judgment heretofore entered herein on May 30, 1958, is set aside and the original opinion withdrawn and this opinion will be substituted for the original;

This suit was filed by D. L. Rose against R. D. McDaniel to annul and terminate a contract executed by them on September 25, 1949. After the suit was filed R. D. McDaniel died intestate and his widow, Mable McDaniel, and his children, Dean McDaniel and Evelyn M. Stevens and her husband, B. R. Stevens, were substituted for him as defendants and cross-plaintiffs.

The material provisions of the contract are as follows:

“That the parties hereto hereby undertake and consent to a working agreement for a joint enterprise in the business of drilling oil and gas wells ■ and producing oil and gas, which said agreement shall, in the manner, at the time, and under the hereinafter named . conditions, culminate- in a partnership -•wherein the proportionate ownership of the parties hereto, in and of the 'assets, liabilities,, and profits of- the [370]*370same shall be as follows; to-wit: D. L. Rose, 75 per cent, therof; R. D. McDaniels', 25 per cent, thereof; it being expressly understood and agreed that ownership of all the assets of the said enterprise shall be and remain the property of D. L. Rose until the said D. L. Rose shall have been fully paid for the property and funds contributed by him to the said enterprise.
“That the said D. L. Rose has put into said enterprise, as capital stock, a rotary drilling rig of the value of ninety thousand dollars ($90,000.00), and will invest such further property or sums as shall be necessary and appropriate to the operation of the business, and will exercise the powers of general manager of said .enterprise, at all times during the continuance of this business agreement both before and after the assets of the enterprise shall have been fully paid for; it being expressly understood and agreed, however, that the said D. L. Rose shall not be restricted in his right to carry on his other business of any nature whatsoever, inasmuch as this enterprise is joint only insofar as it covers the property herein described and the efforts of the parties herein agreed upon.
“That the said R. D. McDaniel? will, at all times during the continuance of this agreement, use his undivided and utmost endeavors to the best of his skill and ability to promote and enhance the mutual interest of the parties hereto and will not, at any time during the continuance of this agreement, exercise or follow the said trade or business, or any other, to his private benefit or advantage.
“That in all matters respecting the several transactions of the enterprise and the management of the business thereof, the said D. L. Rose shall exercise complete managerial and supervisory control at all times, and the said D. L. Rose shall be responsible for and shall provide for the keeping of separate and accurate books of account wherein shall be entered and set down an account of all the money and property invested, received, and expended in and about the said business, and all other matters and things in any wise belonging or appertaining thereto and either of the parties may have access to said books. It is further expressly agreed that no contract or indebtedness on behalf of the said business shall be created or made without the consent of the said D. L. Rose.
“That it shall be lawful for each of the parties hereto to take out of the enterprise a maximum of four hundred dollars ($400.00), during any one calendar month, to his own us, the same to be charged on account, excepting that the expenses of conducting the business of the enterprise, when said expenses are carefully and accurately itemized, may be taken out of the cash of the enterprise. The maximum of $400.00 permissible to be withdrawn to the own use of either party in any one calendar month shall be cumulative from month to month.”

The plaintiff also pleaded a written instrument executed by the plaintiff and McDaniel on February 15, 1955; the material portions of which are as follows:

“And Whereas, it is desired on this 15th day of February, 1955, that the said D. L. Rose and R. D. McDaniel.? enter into this agreement showing the condition of the business of said D. L. Rose Drilling Contractor;
“Now, Therefore, for and in consideration of the premises, it is mutually agreed by D. L, Rose and R. D. McDaniel.?, as follows:
“The assets of said D. L. Rose Drilling Contractor consists of the following items:
“1. Rig No. 1 — power rotary drilling rig and equipment identified from draw-works unit as a Unit Rig Model U-15, [371]*371powered by two Buda Gas Engines, Model P.C. 1879, as fully described in Exhibit ‘A’, which is attached hereto and made a part hereof;
“2. Rig No. 2 — power rotary drilling rig and equipment identified from draw-works unit as being a Bethlehem, Model S-SS powered by two GM, Model 12103 twin diesel engines, as fully described in Exhibit ‘B’, which is attached hereto and made a part hereof;
“3. An undivided 4⅜4 interest in an oil and gas lease executed February 27, 1947, by Lillian Leech Porter, et al, as Lessors, to Danciger Oil and Refining Company, as Lessee, insofar as said lease covers the East Y2 of the Southeast ⅛ and the West Y2 of the Northeast ¼ of Section No. 22, Lunatic Asylum Lands in Shackelford County, Texas, said lease being recorded in Book 138, page 428, Deed Records of Shackelford County, Texas;
“4. An undivided 1/3 interest in an oil and gas lease covering the following described land in Nolan County, Texas:
Being out of the South part of Section 43 and 44 in Block 22, T. & P. R. R. Co. Surveys, and more particularly described as follows:
(field notes omitted)
and containing 282.3 acres, more or less, and being the Nemir Lease in said county;
“5. Oil payment of $25.00 per acre, payable out of ⅜4 of % of all the oil produced from an oil and gas lease dated April 14, 1949, executed by A. E. Jones, et al, as Lessors, to Thomas G. McCurdy and John C. McCurdy as Lessees, insofar as it covers the following described land in Coleman County, Texas:
“(1) West of the S.E. ¼ of Sec. 16, T&NO RR Company Survey;
“(2) East 40 acres of West Y2 of N.E. ¾4 of said Section 16, T&NO RR Company Survey-;
“(3) East 80 Acres and West 80 acres of South Y2 of Section 15, T&NO RR Company Survey;
“6. One Bethlehem No. 300 mud pump;
“7. One 1954 Oldsmobile ‘88’;
“8. One 1954 Oldsmobile ‘98’.
“The liabilities of D. L. Rose Drilling Contractor are as follows:
“1. Amount owed to D. L. Rose, personally — $27,000.00;
“2. Amount owed to D. L. Rose Trucking Contractor — $10,000.00;
“3. Amount owed to Bethlehem Supply Company — $9,000.00, which note is payable at the rate of $2,000.00 per month;

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Bluebook (online)
315 S.W.2d 368, 1958 Tex. App. LEXIS 2157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdaniel-v-rose-texapp-1958.