McGary v. Campbell

245 S.W. 106, 1922 Tex. App. LEXIS 1395
CourtCourt of Appeals of Texas
DecidedOctober 28, 1922
DocketNo. 848. [fn*]
StatusPublished
Cited by22 cases

This text of 245 S.W. 106 (McGary v. Campbell) 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
McGary v. Campbell, 245 S.W. 106, 1922 Tex. App. LEXIS 1395 (Tex. Ct. App. 1922).

Opinion

O’QTJINH, J.

A. McGary sued J. W. Campbell, Clark O. Wren, and the Texas Company in the district court of Harris county, Tex., for a one-fourth (or at least a one-fifth), interest in certain oil lands described in plaintiff’s petition, located in the oil fields at West Columbia, and for an accounting for the oil produced therefrom.

Defendant J. W. Campbell answered, and also set up a cross-action against plaintiff, McGary, seeking to be- quieted in his title to said lands. Defendant Wren answered, adopting the facts as pleaded by defendant Campbell, and disclaiming any interest in the lands in controversy. Defendant Texas Company answered by general denial and plea of not guilty.

The case was tried before a jury, but after the evidence was all in for both sides, the court instructed the jury to return a verdict finding that the defendant Wren had no interest in the subject-matter of the suit; and against the plaintiff, McGary; and in favor of the defendants Campbell and the Texas Company upon plaintiff’s suit; and in favor of defendant Campbell against plaintiff, Mc-Gary, upon the cross-bill of said defendant Campbell — which was accordingly done, and judgment rendered thereon, from which judgment plaintiff appealed.

The record, comprising the transcript, statement of facts, and briefs, contains 950 pages of printed and typewritten matter.

Briefly, the record reflects the following: During the summer of 1907, plaintiff and defendant Campbell, residents of the city of Houston, Tex., agreed that for their' mutual benefit they would make a systematic effort to locate lands having prospective oil value, and that during the fall and winter months of that year they made trips to various territory contiguous to the city of Houston in search of such lands. In the spring of 1908 *108 they went to what was known as West Columbia, in Brazoria county, Tex., for the purpose of investigating conditions and prospects there, efforts having been made to develop certain lands there for oil, and while there inspected a 75-aci’e tract owned by one W. E. Arnold. While there they saw gas coming out of a water well that had been bored for oil, and discussed the advisability of purchasing some acreage, but Campbell, who already had some money invested in land in that locality and out of which he had failed to realize anything, advised that they do not, themselves, invest, but that they get some capitalist interested in the proposition, and said that he had a friend in Galveston, Tex., J. C. League, who was wealthy, and who, he believed, would put up the money to buy the land and allow them (plaintiff and Campbell) a one-half interest in same, including all mineral rights- and profits, after repaying to said League all the money advanced by him. for the purchase of said land, with interest thereon. Some time about Christmas, 1908, they went to see League, and effected the following agreement with him, to wit:

“State of Texas, County of Harris.
“Whereas, the undersigned, A. McGary, J. W. Campbell, and Clark C. Wren, all of said Harris county, have reached an understanding and agreement with J. C. League of Galveston county, Tex., the general purport of which is that the said Harris county parties are to give so much of their time and services as may he necessary to the acquiring and handling of oil lands and leases, and the said League is to finance acceptable trades, and, in pursuance thereof, it is desired to purchase all or so imuch as possible of a certain tract of land lying in Brazoria county, Tex., at or near ■ the point of active development in an oil prospect known as the West Columbia oil field, said tract containing approximately 75 acres, and being the tract of land upon which-Arnold now resides and generally known as the Arnold tract: This instrument is to evidence: That the said A. McGary, J. W. Campbell, and Clark C. Wren are hereby authorized and empowered to purchase, for cash, all, or so much of said tract of land as can be bought, at a price not exceeding two hundred ($200'.09) dollars per acre, the deed to same to be taken in the name of A. McGary.
“The said League agrees and binds himself to furnish, promptly whenever called upon so to do, the necessary cash to buy said land.
“When the said land is purchased, the said McGary shall hold the same in his name until such time as it is, by the parties hereto, deemed expedient to convey the legal title to some other, in trust, upon the following terms and conditions, to wit:
“The equitable title to the same shall be absolutely in the said .T. C. League, until such time as he shall have been repaid, from the said land, ail of the cash advanced by him and eight (8%) per centum per annum on the whole amount from the date of its advancement until it is repaid.
.“If at "any time, by a sale of any part of said land,-, the said League shall be so. repaid, the balance remaining of said land shall be thereafter owned as follows: Three-sixths (8/b) thereof by said J. C. League, and an undivided one-sixth (%) thereof, by each of said Harris county parties.
“If at any time, the said land, or any part thereof, is leased for oil or gas development, it being understood and agreed that no such lease is to be made unless it is agreed upon by all the parties hereto, the said repayment, or so much thereof as may be then still due, shall be made to the said League out of the first cash realized upon said land, either as bonus or royalties, and, after such repayment, the title to the land leased, and the right to royalties under the lease, shall be owned in the following proportions: Three-sixths (3/c) by the said League and one-sixth (%) thereof by each of said Harris county parties.
“If a sale of all of said land is made before such repayment from sale or lease of a part thereof, of the proceeds, said League agrees to pay to the said Harris county parties one-half (%) of the balance remaining^ after repayment to him as aforesaid.
“A majority interest shall prevail in the sale and disposition of said property.
“Witness our hands in triplicate originals, either of which shall have force and effect as an original, this the 21st day of December, 1908. [Signed] J. O. League,
“J. W. Campbell,
“A. McGary,
“Clark C. Wren.”

In pursuance of this contract, McGary purchased from Arnold 70 acres of the 75-acre tract, taking the deed in his name. By mutual consent and understanding of all of the parties to said contract, it was deemed ■ advisable to purchase other tracts of land in that vicinity, and, in accordance with the terms of said contract, plaintiff purchased one tract of 5.35 acres, one of 25 acres, and one of 113.36 acres, title, to -each and all being taken in plaintiff’s name, and paid for out of money advanced by League. Before the understanding with League had been perfected, at the suggestion of Campbell his law partner, Clark G.

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Bluebook (online)
245 S.W. 106, 1922 Tex. App. LEXIS 1395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgary-v-campbell-texapp-1922.