McDonald v. Stewart

259 P.2d 799, 127 Mont. 188, 1953 Mont. LEXIS 63
CourtMontana Supreme Court
DecidedJuly 16, 1953
DocketNo. 9267
StatusPublished
Cited by7 cases

This text of 259 P.2d 799 (McDonald v. Stewart) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. Stewart, 259 P.2d 799, 127 Mont. 188, 1953 Mont. LEXIS 63 (Mo. 1953).

Opinion

MR. JUSTICE FREEBOURN:

This is an action in equity wherein S. A. McDonald, plaintiff and appellant, sought specific performance of an agreement [189]*189alleged to have been made with Boyd Stewart, defendant and respondent, whereby McDonald would be decreed the owner of an undivided one-half interest in an oil and gas lease as against Stewart, R. L. Pattie and Pardee. At the conclusion of plaintiff’s case the action as to Pardee was dismissed. At the conclusion of the entire case the trial judge made findings of fact and conclusions of law in favor of Stewart and Pattie, and rendered a decree and judgment dismissing plaintiff’s complaint. From the decree and judgment in favor of Stewart and Pattie, McDonald appeals.

The complaint alleges McDonald, Stewart and Pattie were co-partners in certain oil and gas operations in Glacier County, Montana, under an oil and gas lease known as the Swenson lease; that on May 21, 1951, McDonald and Stewart made an agreement, in writing, whereby Stewart offered McDonald a first refusal to participate fifty-fifty with Stewart and Pattie in any oil and gas lease Stewart and Pattie should acquire in the vicinity of the Swenson lease, on payment by McDonald to Stewart and Pattie of fifty per cent of the cost of obtaining such lease; that McDonald agreed to grant to Stewart and Pattie a first refusal to acquire on a fifty-fifty basis with McDonald an interest in any oil or gas lease which McDonald should acquire in the State of Montana, on payment by Stewart and Pattie of fifty per cent of-the cost of acquiring such lease; that on June 12, 1951, the State of Montana offered for oil and gas leasing state land known as tract No. 7, which was in the vicinity of the Swenson lease; that it was orally agreed between McDonald and Stewart that Stewart would attend such state leasing and bid on said tract No. 7, on behalf of himself and McDonald, and if Stewart was the successful bidder for such tract No. 7, at a price not exceeding $25,000, McDonald would advance such money and Stewart would have the right and option to take a one-half interest in such lease on tract No. 7, upon payment to McDonald, within a reasonable time thereafter, of one-half of the cost of acquiring said tract No. 7 lease; that Stewart was the successful bidder upon the tract No. 7 lease, but that he took such lease in [190]*190the names of Stewart and Pattie only; that McDonald was ready to and offered to carry out the terms of his agreement, but that the agreement was repudiated by Stewart and Pattie, and they refuse to transfer to McDonald any interest in the tract No. 7 ■ lease, which covered 559.42 acres. McDonald asked that he be decreed a one-half interest in the tract No. 7 state oil and gas lease and that Stewart and Pattie be required to make an assignment to McDonald of such interest.

Separate answers of defendants to the complaint and replies thereto by plaintiff made up the issues.

McDonald testified that: It was agreed between himself, Stewart and Pattie that “we should jointly apply — put in an application * * * to the state board * * * that Mr. Stewart should apply in his name * * * I thought it best to put in writing * * * an arrangement where I would be willing to offer him a partnership basis on acreage which I could acquire and wanted the same right of acreage that he would acquire * * *”

The arrangement in writing was a letter written to Stewart by J. A. McDonald, under date of May 21, 1951, in part as follows : “I am writing you at the request of Mr. McDonald [plaintiff] to confirm an agreement which you made last week with respect to further acreage acquired in the State of Montana with reference to natural gas and petroleum lease. As I understand it you are prepared to offer Mr. McDonald a first refusal to participate 50-50 with yourself and Mr. Pattie in any lease which you acquire on the payment by Mr. McDonald of 50 % of the cost of obtaining the said lease. As I further understand it Mr. McDonald is prepared in consideration of the above to grant you a first refusal to acquire on a 50-50 basis with himself an interest in any lease of petroleum or natural gas he may acquire in the State of Montana on the payment by yourself of 50 % of the cost of acquiring the aforementioned lease * * *” Stewart’s written approval of the contents of the letter appears on such letter.

On June 12, 1951, McDonald was in Toronto and conversed with Stewart, then in Helena, by telephone. McDonald testified:

[191]*191“* * * I told bim I could provide twenty-five thousand dollars but that I couldn’t do it instantly, but within the next 48 hours I could cover any check he wrote up to that amount. With that he asked if I could cover it and I said yes, that I would forward the funds to his payment at Cut Bank within 48 hours. * * * I would cover the funds before sometime Thursday * * * I would supply the money and at some later date when Mr. Stewart could afford to pay his half he would then pay the half — I said I would put up the twenty-five thousand. I said, ‘I will put that up and if we are successful you pay me your half back later and we can adjust that later. ’ * * * I talked to Mr. Stewart the next Friday. * * * it [the price bid for the lease] was approximately $22,500 and I was told that Mr. Pardee was getting 160 acres and which would reduce the total down to something in the vicinity of * * * between sixteen and eighteen thousand dollars. * * * I went down and made arrangements on Thursday to transmit the funds for the account of Mr. Boyd Stewart in the Glacier Bank at Cut Bank through the First National Bank at Buffalo, and I was in the bank myself personally when those funds * * * eighteen thousand dollars * * * were transmitted before that bank in Buffalo closed on that Thursday * * * the 14th * *

The evidence shows the $18,000 was sent to,the Union Bank and Trust Company at Helena, to the credit of Charles Angsburger. Although the Glacier Bank of Cut Bank did not receive the money they did receive, on June 15th, from the First National Bank of Buffalo, a telegram stating “conditions unacceptable for release of money to Boyd Stewart please return $18,000 advance to First National Bank of Buffalo through same channels as received * * ®.”

The Glacier Bank never received any money from McDonald to be credited to Stewart or Pattie.

Charles Angsburger, vice-president of the First National Bank of Buffalo, testified: ‘ ‘ McDonald said he wanted to forward the eighteen thousand dollars to the Bank of Glacier County in Cut Bank but that he had some, misgivings about the terms under which the money would be used, and as I understand wanted to [192]*192make a telephone call to a Mr. Stewart * * * ’ ’ Angsburger transmitted the money to the Union Bank and Trust Company of Helena to his own credit, “based on Mr. McDonald’s instructions,” and on June 17th the money was returned to his bank in Buffalo.

McDonald testified that on Friday, June 15th, he talked by telephone to Stewart who said “that he had not received the money on Thursday so he had made another deal. ’ ’ The following week he talked to Stewart who said “that they had made other arrangements for the money * * * Boyd said at that time that he refused to accept the money.”

On cross-examination McDonald testified he was to advance the entire amount of money necessary to secure the lease on tract No. 7, “because Boyd Stewart said he had no money in the bank then.

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Bluebook (online)
259 P.2d 799, 127 Mont. 188, 1953 Mont. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-stewart-mont-1953.